Lending Tree offers a platform for customers to easily browse and compare similar financial products and loan terms from multiple lenders to get the best deal.
If you’re looking for a Lending Tree Mortgage, it’s important to understand that Lending Tree does not offer mortgages or lending of any sort themselves.
They work with other lending partners to compare products and get you the best deal available.
Table of Contents:
- Is LendingTree Legit?
- Is LendingTree Good For Mortgage Loans?
- Qualifications
- Mortgage Options
- Pros & Cons
Is LendingTree Legit?
Lending Tree was founded in 1996 and is currently America’s largest online lending marketplace. Its headquarters are in Charlotte, North Carolina, with offices in San Francisco, NYC, Chicago, and Seattle.
With an overall rating of Excellent (81%) from 7,462 reviews on Trustpilot and a B rating from the Better Business Bureau, you can rest assured Lending Tree is a legit way to efficiently compare multiple lending offers by filling in one simple form.
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Is LendingTree Good For Mortgage Loans?
With Lending Tree, mortgage offers can be compared quickly and easily through an initial and straightforward 4-step process.
The terms of the mortgage you get will depend on the conditions of the lender itself. Lending Tree, however, will enable you to compare offers from multiple mortgage lenders to make sure you’re getting the best deal.
Through LendingTree, you can compare offers for:
- Conventional Loans
- Jumbo Loans
- FHA Loans
- VA Loans
As Lending Tree works with over 1,500 potential lenders, you will be able to compare other financial products too.
These may include home equity loans, USDA loans, and investment property mortgages.
LendingTree Mortgage Qualifications
Generally, there are three things taken into consideration when approving a loan. These are your:
- Credit Score
- Debt-to-Income Ratio
- Downpayment
There’s a certain degree of flexibility between lenders concerning the exact figures. Generally, however, the larger your downpayment and your credit score, the lower your interest rates will be, and the more options you’ll have.
Credit Score
For most lenders, a minimum credit score of 620 is needed to get loan approval. However, this varies, and there are certain loans (such as the government-backed FHA loans or VA loans) that will allow approval with a lower credit score, depending on whether you meet other criteria.
In some cases, you may be able to secure a loan with a credit score as low as 500. However, this will incur a higher interest rate and require a larger downpayment.
Downpayment
Other approval criteria include the downpayment you are in a position to pay. You usually need a minimum of 10%, and some lenders may require up to 20%.
Again, there are options out there if you don’t have the available funds to put down a large downpayment, and it is possible to secure a VA loan with a 0% downpayment. Certain government-backed loans cater to lower incomes and may allow a reduced downpayment. Jumbo loans generally require a larger downpayment and may require anything up to 20%.
Again, this varies between lenders, and LendingTree will present you with all available options.
Debt-to-Income Ratio
Your debt-to-income ratio usually needs to be no higher than 43%. Some lenders, however, allow as much as 50%. Lending Tree will source offers from over 1500 lending partners to see what’s available for you.
Once you pre-qualify, you will need to supply specific information and documentation before approval. These generally include identification, social security number, credit report, date of birth, and current address.
Mortgage Options with LendingTree
Conventional Loans
Conventional loans will have a broad range of terms and conditions, depending on the lender. There will usually be an option to choose from a fixed-rate or adjustable-rate mortgage (ARM).
A fixed-rate loan will usually have higher interest rates, but repayments will remain constant over the term of the loan.
An ARM may start with a reduced interest-rate, but repayments will be subject to any fluctuations in the market. A Fixed-rate mortgage may incur penalties if you try to cash out early, so if you think you may sell your home before the end of your mortgage term, an ARM might be the better option for you.
VA Loans
VA loans are backed by the United States Department of Veterans Affairs (VA).
Any military service members, ex-military service members or their spouses or surviving spouses may be eligible for a VA loan. They can be secured with a 0% downpayment.
FHA Loans
FHA loans are backed by the Federal Housing Administration (FHA). The credit requirements to secure an FHA loan can be more flexible than conventional loans and are designed to make lending accessible to those on a lower income or with no lump sum for a downpayment.
FHA loans can be secured with a downpayment of as little as 3.5%. As FHA loans are government-backed, they usually require a lot more paperwork.
Jumbo Loans
Jumbo loans are any loan over $484,350. This is the current conforming loan limit for areas where property value is average as set by the Federal Housing Finance Agency (FHFA). In areas with higher than average property values, anything under $726,525 will still be considered a conventional loan.
Jumbo loans usually require a higher downpayment, a higher credit score, and can sometimes incur higher interest rates. In some cases, private mortgage insurance will be required to secure a jumbo loan due to the high amount of the loan.
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Pros and Cons of LendingTree
LendingTree can turn the headache of mortgage shopping into a much quicker and simpler process, allowing you to compare multiple offers by filling out a single form.
Of course, there are advantages and disadvantages to this approach when considering a Lending Tree mortgage application.
Pros:
- Simple 4-Step Process
- Compare mortgage offers from up to 1,500 lending partners
- Access to customer reviews
- No Fee to use service
- Alerts on better deals and services
Cons:
- Due to the high volume of lending partners that Lending Tree works with, you can expect to receive plenty of information, marketing, and sales emails (and calls) following submission of your contact info. This can be annoying, but it can also alert you to any better offers out there.
