On line lenders? Does anyone know if they are reputable?

Question

These wb sites like Lending Tree and Ditech. Are they okay to check into? What are the pros and cons of them? My wife and I are looking to purchase a home. Want to know if anyone has had a bad experience with any on line lenders.

Thanks!

Answer 1

Lending tree is safe, they are going to make sure everyone has a license. Ditech does loans themselves, they are licensed and insured as well.

Do NOT use any fly by night, there are MANY of them running scams. The ones spamming here are examples of ones to avoid.

Answer 2

My suggestion would be to stay away from online lenders, and here is the top three:

* Many sell your information to other lenders, all who pull a credit score and lower your credit score.

* I have heard enough bait and switch stories about online lenders to make you squirm. They promise favorable terms and great rates up front, but when the final docs come through, it is a whole new set of terms, more fees and higher interest rates.

* Missing closing dates, another online lender problem. Although some lenders process mortgages quickly and efficiently, some are plagued with problems getting everything together in a timely manner.

There are a bunch of little reasons why I avoid them, not having a local office I can walk into to resolve problems, no rapport building, identity theft, that sort of thing.

Answer 3

I have heard a lot of horror stories. You should go with a smaller company that can give you more personable service. I suggest Hometown Banc Corp. They may be your best opportunity for someone to say yes. If your credit does not measure up, they don’t simply “forget to call you back.” They help you get into a credit repair program you can afford regardless of income. Check out the free evaluation form at the source website and a Hometown loan officer will contact you .

Answer 4

I am a Realtor and work with many lenders. I have had several clients work with the on line lenders. My experience is that they usually end up with someone local. The local lenders are easier to get a hold of and usually get the job done quicker.
I am working to close a deal right now, and can't seem to get a hold of anyone.

Answer 5

I've had several loans with Ditech (a division of GMAC) and have had no problems at all. Fast, efficient service and lots of options. Lending Tree is also a reputable firm.

Answer 6

Be careful with ditech, but lending tree actually sells that information to mortgage brokers and lenders. My advice to you, is to find a mortgage broker that you trust and have them shop around for you.