LendingTree Review: Do You Really Win?
“When banks compete, you win” is a slogan you’ve probably heard recently but is that really true or is that just a clever slogan wrapped around some somewhat clever advertisements?
When I was looking at houses over two years ago, I signed up to LendingTree because of all the advertisements I saw on the television and because I felt that it was a useful resource. It’s essentially a search engine for mortgage loans and while the banks don’t necessarily “compete” in the sense that they are scrambling to beat one another for a loan, it certainly aggregates all the offers in one place so you can compare them easily.
Easily Compare Offers
I think that everyone should use LendingTree because getting those offers is free and because it gives you a general idea of the rates you can probably expect. See, Bankrate is nice with their rate listings but they’re not terribly accurate; getting a series of rate quotes based on your personal information and geographic area will give you a better sense of what’s a “good” rate and what’s a “bad” rate.
Pre-Approval Letter
Another benefit to using LendingTree was that they processed me for a pre-approval letter and I was able to print that out within hours (I want to even say within minutes since in a previous post I talked about how LendingTree called me a little after I submitted a quote). A pre-approval letter is crucial whenever you’re bidding on a home because it shows that you are a qualified bidder (that you’re good for the amount that you bid) and, given how hot the market was in two years ago, so it was definitely a bonus to using LendingTree (even though my loan wasn’t originated by a LendingTree lender).
Lots and Lots Of Offers
This can be a good or a bad thing depending on your perspective but within minutes of applying, I was deluged with mortgage related emails from all sorts of lenders from local banks and credit unions to big national banks that had a presence in my geographic area. Some of the offers included sample rate quotes based on my information, some were just cold call type “hey we’re here, call us,” but in general it was good.
Why Am I Pimping LendingTree?
I’m compensated for each signup but also because I had an email asking me whether I thought LendingTree was worth using and whether it resulted in any spam. I don’t think I’ve gotten any spam as a result of using LendingTree but you can never be certain with those sorts of things. Since it’s a major company and fairly reputable, I’m inclined to think that they don’t sell the lists or do anything questionable. However, considering your information is forwarded to a bunch of banks and lenders, you could perhaps get spammed if those institutions sell your information. Ultimately, who knows… use a good spam filter and you should fine.
Has anyone had a good or bad experience with LendingTree?
11 responses to “LendingTree Review: Do You Really Win?”
NewHomeOwner responds:
Posted: August 16th, 2007 at 4:43 pm
I purchased a house in March of this year, and this is whom I contacted regarding financing the property (My FICO score was above 750, and I had 10% down payment and income documentation, so this was for a prime loan):
1) Independent Mortgage Broker
2) Washington Mutual
3) CountryWide
4) LaSalle Bank
5) My Credit Union
6) LendingTree.com
For the above 6, by far the worst offers were from Lending Tree. Washington Mutual, Countrywide, the independent mortgage broker and my credit union all had the same rates and loans, just different amounts for closing costs. LaSalle bank was about a half point higher.
And LendingTree.com assailed me with loans a point higher of interest, higher closing costs, and no real way to distinguish a reputable lender from a fly-by-night operation.
In my experience, lendingtree.com was useless. And since when you go to lendingtree.com, EACH lender hits your credit report, so it can also potentially lower your credit score.
The web makes it easy to know what the current rates are, but you still have to pick up the phone.
jim says in reply:
Posted: August 16th, 2007 at 6:11 pm
Thanks for sharing your experiences, just one point worth mentioning is that the credit bureaus count all mortgage lender inquiries within a 30 day period as only one because they recognize you’re going to be shopping around, not getting 30 mortgage loans.
Rich responds:
Posted: August 16th, 2007 at 6:39 pm
I looked at Lending Tree a few years ago when I refinanced. If you read the fine print, there is nothing that says they will get you a low rate, only multiple offers. The lenders are chosen at random. I got a much better rate and lower costs from Wachovia on my own.
Mr Credit Card responds:
Posted: August 16th, 2007 at 11:16 pm
I have spoken to mortgage firms and every one said you actually pay more with lending tree. If you bother to shop around, you will pay less. Lendingtree is a broker and takes in “fees”.
This is the real scoop that folks who just go online thinking it is the cheapest because of competition have got it all wrong.
Friday Finance Findings For August 17th : Generation X Finance responds:
Posted: August 17th, 2007 at 11:15 am
[...] Lending Tree Review: Do You Really Win? - Jim does a good review of Lending Tree. I’m sure you’ve seen their commercials on TV, but how does their service stack up? [...]
The Simple Dollar » Carnival of Personal Finance #114 responds:
Posted: August 20th, 2007 at 9:35 am
[...] LendingTree Review: Do You Really Win? (@ blueprint for financial prosperity) [...]
Mapgirl’s Fiscal Challenge / Carnival of Personal Finance #114 is Up! responds:
Posted: August 20th, 2007 at 9:33 pm
[...] at Blueprint for Financial Prosperity on using Lending Tree to find a mortgage. The comments are very interesting stuff and it looks like I did the right thing by shopping around [...]
My experience with LendingTree, and free gift cards at Mighty Bargain Hunter responds:
Posted: August 21st, 2007 at 1:11 am
[...] told his readers about his experience with LendingTree and he was pretty impressed with it. I was also impressed with it when I did [...]
Louis responds:
Posted: February 7th, 2008 at 10:03 am
I found Lending Tree to be useless. The “bids” that lenders give you are not binding in any way. Often lenders will just post low bids to get your attention and once you start dealing with them the rates change. If rates go up during the process the bid is meaningless. You are better off shopping around on your own.
Crystal responds:
Posted: March 13th, 2008 at 7:39 pm
I will be closing with Lending Tree on 3/14/08! What a relief! In November 2007, I submitted information to Lending Tree at the same time my husband talked with a mortgage broker to refinance our home. I had ONE point of contact (Austin Crigger)with Lending Tree who was extremely helpful and not pushy and my husband had ONE point of contact with his friend of 40 years, the mortgage broker. In December 2007, in the interest of friendship, we went with the mortgage broker (though I really felt much more comfortable with Lending Tree). We paid for the appraisal (which could only be used by this broker) and began the process. By the end of February 2008, we had been through so many ‘locks’ that never materialized but that left us having to keep ‘locking in’ at a higher rate that I finally refused to do this again and sent an email to Austin. He was unable to answer but, fortunately for me, Saeed Gazemzadeh called me and continued right where Austin left off - quoting me daily rates and ranges and a firm lending cost - until I was ready to lock the rate. Now, three weeks later, we are signing and will have money in hand in less than a month! All this with only ONE credit pull from Lending Tree (the other broker had three pulls during the previous two and a half months - two of which lowered my credit rating). I am pleased as punch, happy as a lark and a lot less stressed because I made the choice to go back to Lending Tree. Due to my very pleasant experience, I highly recommend Lending Tree to those looking to refinance.
bill mullen responds:
Posted: April 22nd, 2008 at 4:51 pm
If you know of anyone from South Carolina who has obtained a mortgage using Lending Tree, please let me know.