When financing large purchases, such as a home or automobile, you sometimes need help from professional brokers and lenders. There are plenty to choose from today, but two of the top companies in this industry are Quicken Loans and LendingTree.
Both lenders provide added convenience and help speed up this often times complicated process, but which one is better? Let’s take a deeper look at their company profiles and see where their strengths and weaknesses lie.
Broker vs. Lending Firm
One of the major differences between Quicken Loans and LendingTree is how they operate. Lending Tree acts as a broker, working with lenders directly to find borrowers the right deal. Since they’ve made connections with various lending companies, there are significantly more financing options available.
Despite having more loan options, though, there is a risk of the broker not aligning with the interests of the borrower. They may look for a deal, for example, that maximizes their compensation amount rather than finding the lowest rate possible.
Additionally, LendingTree operates on the basis of good faith estimates. Even though they are fairly close to what you can get from different lenders, they are not precise. The added wiggle room in terms of price is thus problematic when you’re on a tight budget and need accurate estimates.
Conversely, Quicken Loans acts as the lender directly. The middle man is taken out of the equation. Information is kept private, so the chances of getting bombarded with calls from numerous lenders are zero.
However, since Quicken Loans does not work with multiple lenders, it can be quite difficult to discern if an offered rate truly is the lowest rate available. This makes it paramount for borrowers to understand what type of loan is being offered and get familiar with the terms associated with it.
Services Provided
Where Quicken Loans only offers mortgage loans and refinancing options, LendingTree offers a wide variety of loan types. These include auto, student, personal, business, and home loans. Securing each type is a simple process, where you submit some personal and financial information. After the right details are entered, users have access to multiple offers from real lenders.
In each loan category for LendingTree, there are a myriad of options. For example, with home loans, users can secure FHA, VA, home equity, and home refinance loans. With so many options to choose from, borrowers can select the perfect loan that works for their unique situation.
LendingTree even offers a platform that lets users compare credit card offers. Some cards feature cash back, while others have travel rewards. Credit cards comparisons are also available through credit scores, ranging from low to high.
As mentioned earlier, Quicken Loans specializes in mortgage refinancing and home loans. They’ve mastered their loan processes and haven’t stretched themselves too thin as far as offering too many loan types. Getting home loans is a much more efficient process as a result, from submitting the application to closing on a potential dream home.
Customer Service
Getting a loan is often a complex and stressful process, as there are so many factors that go into it. That’s what makes it so important to find lending companies that offer great customer service. Even when problems arise, good customer service helps diffuse tension and problematic situations. So where do LendingTree and Quicken Loans stack up in the customer service department?
First on deck is LendingTree. Their customer service agents are prompt in getting back to borrowers, which is important during such a demanding time. They also are direct with their information and a reliable as far as call-backs. However, they are not able to answer any specifics regarding loans as that information is mostly known by the lenders.
They can, however, help with the transition of finding and working with a lender. From there, the lenders take over the underwriting process. As far as negative complaints, much of them are focused around the lenders, not LendingTree directly. There are numerous reviews detailing mass calls early in the morning, from lenders who aren’t offering what the borrowers are looking for.
Now let’s examine Quicken Loans. Like LendingTree, customer service representatives are extremely accommodating for when you can talk to them. They are reliable with answering questions, even if they are last minute and answers are needed immediately. You can talk to agents either on the phone or online through chats and emails.
Their notification directory is extremely helpful online, as it keeps you updated with every step. More information may be required from the underwriting team, for example, and you’ll receive a notification immediately. Agents are also very patient and go the extra lengths of breaking down lending terminology.
In terms of the negatives, those who make contact with the company are usually added to email and call lists. These constant attempts at connecting are sometimes tedious and burdensome, especially for those who are just tentatively looking for quotes. Also, finding accurate information as far as interest rates sometimes warrants a call, since posted information online is not always accurate.
Helpful Resources
To make securing a loan much less complicated, LendingTree and Quicken Loans offers borrowers a lot of additional resources. LendingTree, for example, has featured articles at the bottom of their home page.
Some are designed to help answer common mortgage questions, while others are intended to help borrowers avoid costly mistakes. These articles can be accessed at any time, and they are professional done by writers who have specific knowledge in this lending industry.
Borrowers also have the ability to check their credit score, a major determinant for what type of rate they can get for their desired loans. The process is rather simple, as well. After submitting some basic information, a score is provided within minutes along with a detailed explanation of what that score means. What's great is that credit is not affected in the slightest and no payment is required.
Quicken Loans also goes the extra mile in giving their customer base a smooth and stress-free experience. Their company blog features insider tips and tricks to help soon-to-be homeowners save money. Home improvement and mortgage basics are also provided, which are particularly helpful for those who’ve never sought home loans before.
Users also have the opportunity to sign up for emails and text updates regarding current mortgage rates. Knowing exactly when these rates are offered is critical for not missing out on important deadlines.
Lastly, there are plenty of lending calculators available dealing with refinancing, mortgages, and home affordability. Each calculator simply requires some financial and personal information. For those who are interested in the available rates shown, they can follow up by chatting with someone on the phone or via their computer.
Where Quicken Loans really shines is with their access to lending experts in each category. These professionals are available every day, no matter how difficult or confusing your question might seem.
Final Decision
Although both of these companies are great at providing convenient lending options, only one can be the winner. Quicken Loans is the clear choice for several different reasons. For one, their customer service is second to none. Very rarely can you find negative press about the company and if there are any complaints, they are minor.
The company specializes in home refinancing and mortgage loans, making them the top choice for home-related lending. Formerly called Rock Financial, Quicken Loans has been in business since 1985. Having decades of experience in this industry, it has had plenty of time to learn what works and what doesn’t in terms of giving customers a pleasurable experience. It also seems like their added experience equates to greater trust from customers, which was found in a consumer advocate report comparing both companies.
LendingTree — by comparison – offers many more services, but there major shortcoming falls on their wiliness to work with so many lenders. Sure, this gives consumers the ability to search different rates in hopes of finding the most competitive. Yet, there’s a disconnect between these lenders and the borrowers.
Customer agents can’t always provide as many details as you would hope for, as they are not the final party being worked with. There’s also a recurring issue with tedious calls from lenders, who seem interested in pushing their own agenda rather than what customers want. This is chiefly troublesome for those new to these lending processes, as they may not know exactly what type of loan they need.
At the end of the day, determining which lending company is superior depends on customer needs. They may need more than just a home loan, in which case LendingTree is superior. Conversely, those looking for a specialized home lending service would be better served with Quicken Loans.
In either case, both companies have made securing loans online a streamlined process. Everyone benefits as a result because not only does this expedite the underwriting process, it gives people additional access to loans that they may desperately need or have wanted for a long time.
Sources:
- How Quicken Loan Mortgages Work, Investopedia.com (https://www.investopedia.com/articles/personal-finance/010815/how-quicken-loans-mortgages-work.asp?lgl=myfinance-layout-no-ads)
- Compare LendingTree vs. Quicken Loans Mortgage Refinance, consumeradvocate.org (https://www.consumersadvocate.org/mortgage-refinance/compare/lending-tree-vs-quicken-loans)
