Q. What is the LendingTree and how does it work?

A. Many people would refer to the LendingTree as a multiple submission loan service. A potential borrower submits just one form through the LendingTree site and they distribute the information to as many as four lenders who then “compete for your business”.

Q. Do banks really compete for my business like they show on TV?

A. They don’t really come into your house like they show on some of the commercials but they do fight against each other to try to get you the best loan. The LendingTree banks know your name has been given to other lenders and that to get your business they have to get you to choose them instead of the others by offering better service, better rates or some other advantageous terms.

Q. Can I use the LendingTree service if I have bad credit?

A. Yes, but as with any loan the rate will be higher and the terms more stringent. You may wish to learn more about bad credit loans in general or specifically about how bad credit home loans work.

Q. Am I automatically approved by all of the lenders who contact me?

A. No, they may have your credit and income information to give them a good idea about the likelihood of getting a loan but until you get an official written acceptance with the proposed terms of the loan you are not approved. It could be that you get offers from four lenders or it could be that you get no proposals at all. In this area LendingTree operates unlike the others. Very often banks and loan brokers who contact you from LendingTree will already have your credit report. On one hand this means faster answers about both rates and qualification, on the other hand it means your credit report will be run. Most other multple submission mortgage services, including GetSmart which LendingTree owns, will not run your credit based only on your initial inquiry.

Q. Is my information always given to four lenders?

A. No, it is given to as many as four depending on how many lenders in the system can work with your specific loan. Your credit, loan to value or income could mean that only one lender has any interest in contacting you.  In some cases no lenders at all have an interest in looking at a potential loan. Keep in mind that some of the loans people apply for cannot be funded by anyone anywhere either within or outside of the LendingTree program.

Q. Where do these lenders come from?

A. Most lenders in the LendingTree program are national banks or other lenders with a national presence.

Q. Is the form a complete mortgage application?

A. No, it is shorter and easier to fill out than a full standard 1003 application form.

Q. What kinds of loans can I apply for?

A. You may apply for a mortgage loan including new home purchase, refinancing, a home equity loan or a debt consolidation loan. You may also use the service for auto loans, credit cards and personal loans.

Q. Does LendingTree operate in all fifty states?

A. Yes, for most of their products.

Q. How does the LendingTree determine who gets my loan?

A. Once their computer establishes which lenders from the LendingTree system might potentially have an interest your loan they send it to four potential lenders randomly. The lending laws would not allow them to pick and choose on your behalf in a more selective way.  The legislators feel that should be up to the consumer. If they have fewer than four lenders who may have interest in your particular loan than it would go to them all.

Q. So they do not pick the lenders with the four best rates?

A. No, it does not work like that.

Q. How do they pick the lenders who get into their system?

A. While LendingTree is concerned with having good lenders in their system and may pay attention to customer service keep in mind that no one gets into the system in the first place unless they pay a very large fee. In addition to the initial fee lenders pay a fee for each application and pay yet another fee if they close a loan. 

Q. What does it mean to me that the lenders get into the system because they have paid a lot of money?

A. On one hand it means that the lenders in the system are those who can afford to participate, not necessarily those who are the best.  On the other hand it makes no sense to get involved in a program where you know you will be competing against up to three other lenders on every application presented if you did not think that you had the rates and services to offer which would allow you to close a fair number of loans. The other thing to understand is that in most cases you will be dealing with a large national lender.  Some people have no problem with this and even prefer it. If you happen to be someone who would like to meet with a local person face to face a multiple submission service like LendingTree may not be for you.

Q. What are the advantages of using a multiple submission loan service?

A.        1. You only have to fill out 1 form to hear from up to 4 lenders.

            2. The banks know they have to contact you quickly and compete for your business.

            3. The service will find banks for you who may have an interest in your loan.

Q. What are the disadvantages of using a multiple submission loan service?

A.        1. National companies may contact you rather than local lenders you could have a face-to-face meeting with.

            2. Just because you get four banks competing for your business does not mean that you will have the lowest rate possible, it just means that you can get the best deal of those four lenders.  Your best deal could be from a lender not selected for you or from a lender not subscribing to the multiple loan service.

            3. Up to four lenders will call; you may only want to deal with one or one at a time.

Q. Are there other similar multiple submission services besides LendingTree ?

A. For mortgages GetSmart - which is a service of LendingTree, owned by LendingTree, has short forms and its own groups of lenders, America's Lending Partners, LoanWeb, LoanApp and others offer similar services. Auto Credit Finders works with multiple auto loan lenders. At this time I do not know of others operating in the same way for credit card transactions.

Q. What if I would like to submit an application to only one lender?

A. To submit a mortgage application online to only one lender use this form.