LoanDepot 2021 Mortgage Lender Review
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Preview of LoanDepot
With $ 275 billion in consumer loans since its launch in 2010, LoanDepot is the second largest non-bank retail mortgage lender in the United States. states, and offers special discounts for loyal customers.
Plus, there are plenty of choices when it comes to loan programs and customer experience. Applicants can either receive in-person assistance at over 200 branches nationwide or complete the mortgage process entirely online. The lender says its online closings are 75% faster than the industry average, and in some cases, closings only take eight days.
LoanDepot is headquartered in Foothill Ranch, California, and offers conventional loans, government guaranteed mortgages, home improvement loans, and refinance loans.
Pros and Cons of LoanDepot
Offers digital verification of borrower’s income, assets and employment.
Offers most of the major types of loans, including home improvement loans.
Works online in all 50 states and customers can get in-person help at over 200 affiliate loan stores nationwide.
If you decide to refinance an existing LoanDepot mortgage, the company will waive the lender’s fees and reimburse the appraisal fee.
Information on mortgage rates and fees is not available online. You will need to contact a loan officer by phone, email, or during an office visit.
LoanDepot does not offer US Department of Agriculture loans, home equity loans, or home equity lines of credit.
LoanDepot: loan types and products
LoanDepot says it has over 300 loan products, so whether you need to buy a home or refinance an existing mortgage, you’re likely to find what you’re looking for. Currently, LoanDepot offers the following main types of mortgage loans:
- Conventional loans
- Jumbo loans
- Federal Housing Administration (FHA) loans
- Department of Veterans Affairs (VA) loans
- Refinance loans
- Cash-out refinance loans
- FHA 203 (k) home improvement loans, which allow you to take out a single loan to finance both the purchase and the renovations. You can also use this type of loan for refinancing if your home needs improvements.
LoanDepot also offers the choice between Fixed Rate and Adjustable Rate Mortgages (ARMs). With an ARM, the rate will be fixed for the first three, five, seven or 10 years. After the end of the fixed period, the rate may increase or decrease annually for the remainder of the term of the loan.
You might notice a few options missing from LoanDepot’s lineup, however. The company does not offer US Department of Agriculture loans, home equity loans, or home equity lines of credit.
The LoanDepot website can be confusing. While you will find mortgage calculators and information on loan programs and the home buying process, some of the content is repetitive and organized in a way that is not always clear.
The blog and website reference pages are also lacking in answers on how LoanDepot will specifically handle your mortgage and tools for estimating your own loan terms. For example, one of LoanDepot’s web pages states that borrowers should be aware of closing costs, prepaid interest, and prorated items like property taxes and home insurance. But there are no specific guidelines on what you could pay for these items if you take out a loan from the lender.
So you will need to call LoanDepot’s customer support line to get answers to some critical questions.
LoanDepot: rates and fees
LoanDepot’s website does not advertise daily refinance and buy rates, as some of its competitors do, and does not offer a list of lender fees. This can be frustrating for buyers looking to quickly compare loan offers. Although several links apparently lead to sample rates, such as “mortgage rate”, “refinance rate” and “compare mortgage rates”, clicking on them only leads to definitions of loan terms, not to real rate quotes.
If you’re looking to save money, get a loan estimate from multiple lenders. Compare the interest rate, APR and closing costs. When you identify the best deal, ask another lender to beat the rate or lower closing costs. This is the best way out.
But you can call LoanDepot and work with a loan officer to estimate your rate. When you receive a quote, it is advisable to check the interest rate, the annual percentage rate (APR), and any fees charged by the lender, such as points of call. A point of discount, or mortgage point, is an optional fee that you can pay at closing to reduce your interest rate. This may be a good option for some borrowers, but you’ll want to know if you’re paying the fees before you take out the loan.
To qualify for a mortgage with LoanDepot, the minimum credit score varies depending on the type of loan you want to take out. For example, conventional mortgages require a score of at least 620. For FHA loans, your credit score can be as low as 580. But a higher credit score can help you get the best mortgage rates.
You can freeze your interest rate between 15 and 270 days, but extending the freeze can get expensive. The extension fee is equal to a quarter of 1 percentage point of the loan balance. So if you borrow $ 200,000, for example, the fee would rise to $ 500 for every 15 days that the foreclosure is extended.
LoanDepot does not have an application fee or prepayment penalty on any of its loans, but the lender does charge late fees if a borrower is more than 15 days late on a mortgage payment.
You can call the lender for a full breakdown of the fees you might pay for refinancing or buying a mortgage. We’ve got a sample fee worksheet to get an idea of the closing costs involved:
- Assessment fees
- Credit file fees
- Tax service charge
- Flood certificate
- Processing fee
- Subscription fees
- Costs associated with your search for titles (you can purchase some of these services)
- Registration fees
Refinancing With LoanDepot
Refinancing with LoanDepot comes with a major advantage: the “lifetime guarantee”. If you take out a mortgage with LoanDepot and later refinance with the company, the company will waive your lender fees and reimburse your appraisal fees.
But you will pay a fee if you refinance a loan from another lender. The specific fees you pay will vary depending on factors such as the type of loan and where you live.
However, you may be able to close the loan faster as the lender recently revamped their online application software. The “mello smartloan” is an end-to-end online application that helps you find the best loan for your situation, checks your financial and business information, withdraws your credit, and manages other loan details – all faster. framework relative to the industry average.
LoanDepot compared to other mortgage lenders
|loan deposit||Fairway Independent Mortgage Corp.||Motion mortgage|
|Minimum credit score||620 for conventional loans; 700 for jumbo loans; 580 for FHA loans; 620 for VA loans||620 for conventional loans; 660 for jumbo loans; 600 for FHA loans; 600 for VA loans||580 (some mortgage programs may require a higher score)|
|Minimum deposit||0% to 5%||0% to 5%||0% to 3.5%|
|Where does the lender operate?||The 50 states||The 50 states||The 50 states|
|Main types of loans||Conventional Home Improvement Loan, Jumbo, VA, FHA, FHA 203 (k), Variable Rate, Fixed Rate, Refinance, Cash Refinance||Conventional, Jumbo, VA, FHA, USDA, Various Home Improvement Loans, Variable Rate, Fixed Rate, Refinance, Refinance With Withdrawal, Reverse Mortgages, Home Equity Loans, Home Equity Lines of Credit||Conventional, Jumbo, VA, FHA, USDA, Various Home Improvement Loans, Variable Rate, Fixed Rate, Refinance, Refinance With Withdrawal, Reverse Mortgages|
How to Shop for the Best Mortgage Rate
Mortgage rates can fluctuate daily and even by the hour, and each lender has their own formula for setting a borrower’s rates and fees. So it is important to shop around and compare deals so you know you are getting the best deal.
The only way to accurately compare offers is to apply to multiple mortgage companies. The lender will review your application, withdraw your credit, and provide you with a mortgage estimate. Use it to compare the lender’s interest rate, APR, and fees – and don’t be afraid to ask questions. You may also be able to negotiate. Send the best offer to another lender and ask them to beat the interest rate or closing costs. Having good credit can help here, as mortgage lenders can compete for your business.
Every app can trigger a serious investigation into your credit reports, but credit rating companies know consumers are shopping. FICO will treat all mortgage applications made within 45 days as one application. Try to submit your mortgage applications in this window to minimize the impact on your credit.
LoanDepot is a strong lender that offers online and in-person help in over 200 offices across the country. While the website offers a lot of general information on the home buying process, your best bet is to call the lender to receive a quote and get information on what fees you might be paying. Once you’ve received a personalized offer, you’ll always want to look for the best deal.