LendingTree vs Quicken Loans: Choosing the Best Lender for You
When shopping around for a mortgage, is it best to start your search with a marketplace or by going straight to a direct lender? Put this to the test with a direct comparison between LendingTree, one of the best online lending marketplaces for finding low mortgage rates, and Quicken Loans, one of the country’s most popular direct lenders.
Types of Loan Programs
One of the marks of a good lender is how many different types of loans they offer. Do they only offer mortgages for home purchases, or do they also offer things like refinancing, home equity loans, and reverse mortgages? Do they typically offer conventional loans, or do they also underwrite government-backed loans and jumbo loans? LendingTree and Quicken Loans both offer a broad range of products and mortgage types to cater to most types of borrowers.
It’s notable that Quicken Loans offers YOURgage, a special fixed-term mortgage with terms of 8 to 30 years and down payment of as low as 3%, on top of its more traditional mortgages.
|Loan Type||LendingTree||Quicken Loans|
|Fixed-rate mortgages (15-year and 30-year)||Yes||Yes|
|Reverse Mortgages||Yes||Yes, through One Reverse Mortgage|
|Home Equity Loans||Yes||No|
|Home Equity Line of Credit||Yes||No|
Winner: LendingTree wins this one, because its search function connects borrowers with an unbeatable amount of loans from its network of lenders.
Below is a direct comparison of the cheapest rates offered by LendingTree and Quicken Loans at time of writing. LendingTree’s rates are based on the cheapest rate offered by any of its network of lenders for a home purchase in Charlotte, NC, for a borrower with excellent credit score purchasing a home for $250,000 with 20% down payment. Quicken Loans’ rates are based on the best rates offered directly to borrowers.
|Type of Loan||LendingTree||Quicken Loans|
Winner: LendingTree’s ability to draw on the best rates from dozens of lenders gives it the advantage over even the best direct lenders such as Quicken Loans.
Most of LendingTree’s network of lenders require the same credit score and down payment as Quicken Loans for the various types of mortgages. For example, for conventional fixed-rate and adjustable-rate loans, LendingTree and Quicken Loans both offer loans to people with a credit score of 620 or more and a standard down payment of 20%. Both can organize conventional loans for as low as a 3% down payment, provided the borrower is willing to meet other conditions, like private mortgage insurance (PMI). The rules for government-backed loans are more or less set in stone, regardless of which lender is underwriting the loan. For example, FHA loans are open to borrowers with poor credit, with down payments ranging from 3.5% to 10%. VA loans are open to qualifying members and veterans of the US Military, National Guard, and Reserves, as well as surviving spouses of service members who died in the line of duty.
Winner: This is a tie, as there isn’t a great deal of difference between LendingTree and Quicken Loans’ loan requirements.
Application Process and Pre-qualification
Quicken Loans prides itself on one of the quickest application processes in the mortgage business. LendingTree likewise connects to several lenders that promise quick and streamlined application processes. Quicken doesn’t specify what documentation you’ll need to provide, but it will likely include the same documentation most other top lenders ask for. This includes:
- Proof of income such as pay stubs and tax returns.
- Proof of identity through social security number or copy of government-issued photo ID.
- A current mortgage statement (if refinancing)
- Proof of eligibility if applying for government-backed loans such as VA loans
Winner: Again, a tie, given this isn’t a great point of difference between the two and the fact that they both make it quick and easy to apply for a mortgage.
Quicken Loans provides customer support in English and Spanish via phone, live chat, and email, although only during extended business hours. Once you apply, you’ll be connected to a dedicated loan agent who will see you through the process – from application through to origination and closing. Quicken also offers online and mobile applications through its Rocket Mortgage brand.
LendingTree offers customer support by phone and email during extended business hours, but it doesn’t have a live chat option. LendingTree shares your contact details with participating lenders from its network, which is useful if your aim is to secure the lowest rate possible but can be annoying if you don’t wish to receive calls from multiple lenders.
Winner: Quicken Loans wins out for customer service, due to the fact it’s a direct lender and doesn’t share your details with other lenders.
Pros and Cons
|Fill out one form to get quotes from multiple lenders|
Not a direct lender
|Quick application process||Live chat isn’t offered 24/7|
|It takes only a couple of minutes to get loan offers||Rates are only shown after entering your contact details||Full suite of loan options||No FAQs on website|
|Check how your credit score impacts your ability to secure great rates||High number of calls and emails from different lenders||Website contains useful educational resources||The huge range of options can be confusing|
Use LendingTree If
Low rates and APR are the most important thing to you. LendingTree’s main purpose is to connect users to the lowest rates in the market, and it does this successfully – using its powerful search tool to sort through and display deals from some of the nation’s best lenders.
Use Quicken Loans If
You’re looking for personalized service backed by one of the country’s biggest lenders. Quicken Loans offers competitive rates and super-quick processing times, making the mortgage application process as comfortable as it could possibly be.
The Winner: LendingTree
Most people would agree that low rates are the number one most important thing to look for in a lender. With this in mind, LendingTree comes out the winner for providing unrivalled access to the lowest rates in the market for each type of mortgage loan. Having said that, Quicken’s rates aren’t that far behind the market lows, and it provides other benefits that many customers might consider of equal importance to low rates. LendingTree wins, with Quicken close behind.