LendingTree Mortgage: A Comprehensive Guide

There are several different mortgage options at your disposal when you’re shopping to buy a home.

Sometimes, you may assume that your options are limited. But in most cases, mortgage shoppers have more options than they realize.

Since a mortgage is one of the key things you’ll have to consider before buying a home, it is important for you to choose the right one. If you’re a first time home buyer, here’s a simple guide about types of mortgages.

Some mortgage shoppers prefer visiting a credit union or a local bank for a start. You can as well go online, find a reputable broker and apply with him or her.

The broker then puts the loan forward with one of the wholesale lenders in his or her network of lenders. The mortgage shopper may also consider other options such as using a LendingTree service.

You can find important tips about how to get a mortgage pre-approval here.

LendingTree Mortgage Meaning

Unlike other options of obtaining a mortgage from lenders, LendingTree is neither a broker nor a mortgage lender.

LendingTree is a third-party service provider that helps borrowers submit their information to several different brokers and lenders in its wide network.

This process triggers competition among all the lenders involved. LendingTree strongly believes that competition among lenders lowers prices.

This makes mortgage brokers and bankers offer reduced rates and fees because they are aware that they are directly competing with one another.

How LendingTree Works

Here’s the deal:

Submitting an application is the first thing you have to do in order to get a LendingTree mortgage. You can apply via the company’s website or reaching out to them on their 800 number.

The application contains similar regular questions that borrowers are required to answer on any other mortgage application.

For instance, LendingTree will ask you questions about your Social Security number (SSN), assets, income, occupation and how long you have been on the job, debt, to allow them to pull your credit report.

When you submit an application via LendingTree, they don’t process applications and make approval or disapproval for a mortgage.

Rather, they use a potential borrower’s Social Security number to get his FICO score and then based on the credit report, they choose what lender to submit the borrower’s information to for a mortgage.  

Some of the lenders in the LendingTree network prefer borrowers with very good credit scores. While some others are interested in borrowers with a good score or a few credit hiccups here and there.

After LendingTree obtains a borower’s FICO score, they transfer the borrower’s application to brokers and lenders who are in their vast network. Typically, up to four or five lenders or brokers get a borrower’s application.

These lenders and brokers can see the key information they need to make a decision. They can see information such as the borrower’s FICO score, requested loan amount, monthly income, name and phone number.  

Using the information obtained in the lender’s report, LendingTree can come up with a preliminary quote which they can present to the borrower.

So if you submit an application to LendingTree, odds are you will start getting phone calls from lenders in about five to ten minutes time.

Whoever you have to communicate with on the phone is a trained salesperson. His or her responsibility is to convince you that they offer the best deal.

Pay attention to the quotes

As a borrower, it is absolutely crucial for you to listen to as many quotes as you can before making up your mind.

However, in some cases, a lender can offer a better deal when a borrower reach out to them that another lender is offering a better option.

This is one of the key benefits of using LendingTree. The platform gives borrowers the option of weighing several lenders against several competitors in order to get the best deal possible.

Considering the multiple benefits of LendingTree, borrowers who are aware of how to take advantage of the service often get a better mortgage offer than what they would have end up with by submitting application to just one lender.

But are there any disadvantages of using LendingTree?

Down Side of Using LendingTree

Despite the multiple benefits of LendingTree, there are several disadvantages of using the platform.

One of the most common complaints of LendingTree customers is that they are swamped with emails and phone calls.

Five companies may seem like normal. Odds are the loan officers who work for these firms to convince people to choose them are paid on commission.

Chances are they are offered a high incentive to get as many leads as they can. This means they have to keep calling you, at least more than once. They’ll do this hoping that you’ll eventually choose them ahead of their competitors.

Worst still, a potential borrower may end up with up to five hungry fellas – emailing and calling at almost every hour of the day. Just to put themselves ahead of other lenders – their competitors.

If you’re concerned about multiple credit pull as a borrower, then you should be careful about using LendingTree.

Aside from LendingTree pulling your credit to verify the information you provide about your credit. Chances are the five companies who receive your application may also pull your credit reports as well.

The three major credit bureaus have different standards for coming up with credit scores. Many potential borrowers assume that multiple credits pull within a short while can reduce your credit score.

Other experts argue that multiple credit pull within a short while is just one pull.

The situation is tricky. Because none of the credit bureaus has made a definite statement about how credit pull affects a credit score. So it’s hard to decipher which is right or wrong.

But if you’re worried about the chances of multiple credit pull affecting your score negatively, you should consider staying away from LendingTree.

Bottom line

If you know exactly how to find a way around it or follow the tips in this article, LendingTree can be a very good option to get the best mortgage deal.

If you’re wondering how to start the home buying process, you can learn about how to buy a home in 10 easy steps here.   


Williams Oleije

Williams Oleije

Williams Oleije is an Inbound Marketer, and a pop culture enthusiast. He's an avid researcher about how digital media is transforming marketing in several industries.

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