Part of Lending Tree called Home Loan Center I sent off my financial information and received back two rate lock forms and I allowed them to charge $800 to my credit card to cover the rate lock and to insure that the appraiser was paid in case the loan failed for lack of value or some other reason.
Long story short they quoted 6% and 6.625% on the two loans I was looking for. Then came back later saying they couldn't give me those rates and had changed the terms from a fixed to an interest only 3/6 Libor mm at 8.25%. Also the loan fees were going to total $9000 for both loans after being assured since two properites were being financed I would receive "A break". When I told them I couldn't justify such a high rate and cost, the person I was working with said I would have my $800 deposit returned since the rates weren't what was quoted and no appraisal had been performed. I told them thank you I didn't want the loan.
I had other lenders with better offers. Later I was told I would only receive a refund for one loan "since so much work had been done". Later that extended to both loans not being refunded. I have filed a complaint with the Idaho Department of Finance and a merchant dispute with my bank. Now they are sending out letters saying I was denied a loan because of insufficient income. I have been told by several other lenders that they use these tactics because most people won't roll over. I feel that if I pressed the issue they should be liable for the origin quotes but I wouldn't want to work with them at this point.
I'm sure others have been taken. Do not ever give money up front. I have been told this is not a normal practice and the company I went with did not require them. STAY AWAY FROM LENDING TREE AT ALL COSTS!!! You can do better almost any where! They have highly skilled sales people that will do anything to get you to commit. Even if you are not scammed you most likely will be paying more than you have to.
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