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I recently decided that it was time to buy my first home and went to LendingTree to get pre-approved?*
I was pre-approved through Supreme Lending and Mortgage Lenders of America, but my realtor seems to think they are worthless since they are out of state lenders. They also pre-approved me for $5000 more than my local broker did. Why would they give me more money and why does everyone in the real estate business think they are a joke?
Answers:
1) Do yourself a favor and listen to the people who deal in real estate EVERY day. Those lenders are viewed VERY similarly to online colleges when compared to traditional ones. They just do not have the same experience or reputation. Deal with an ESTABLISHED lender/broker.
2) They(LendingTree) pre-approved you for a higher amount, but they might also charge you a higher interest rate. Have someone familiar with home buyng look at the fine print from the lenders you are going to use.
3) Because online lenders have no commitment in your community and no reason to hold your hand or treat you right. They are impossible to deal with, and can screw up your deal with lies and non-performance. Please take the advice of the real estate community and use a respected LOCAL lender that you meet with in person. These people are dependent on the referrals that come from the local real estate agents and will do everything possible to get your loan done - on time, honestly and correctly. An online lender can jack you around big time, and cause you to lose the house or your earnest money.
4) First off, thanks for choosing LendingTree. You definitely did the right thing to comparison shop for the best deal on your mortgage. Now that you’ve got loan offers from several lenders, it’s a good idea to negotiate with each to find the best loan product for your personal situation. Since you’re a first time home buyer, we also recommend that you choose the lender you’re most comfortable working with – be it a local mortgage broker or the lenders you were matched with through LendingTree. It’s a good idea to check out the ratings and reviews of the lenders you were matched with on LendingTree's Lender Ratings site (See below for link) and also to ask for references for the local broker your Realtor recommends. With any lender, local or online, it's important to ask questions if you are uncertain or don't understand something in your loan details. If you don't understand why you were offered a higher amount than another lender, don't be afraid to ask the question! Please feel free to read other's reviews of LendingTree's network of lenders at:
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