Everything You Need to Know About LoanDepot Mortgages
Table of Contents
- Our Review of LoanDepot Mortgages
- LoanDepot’s Mortgage Process
- LoanDepot’s Pros & Cons
- What States Does LoanDepot Offer Mortgage Services?
- LoanDepot’s Available Mortgage Types & Programs
- LoanDepot’s Mortgage Fees & Rates
- LoanDepot’s Customer Service
- LoanDepot’s Borrower Qualifications & Requirements
- LoanDepot’s Online Reputation
LoanDepot is a mortgage lender that was founded by Anthony Hsieh, the same entrepreneur that founded LoansDirect.com. Technically, LoanDepot is an online mortgage lender. However, most customers need to make a phone call or contact a local loan officer at some point during their mortgage application process. Either way, LoanDepot is known for simplifying the process and will help you to purchase your new home.
Our Review of LoanDepot Mortgages
At LoanDepot, you’ll have access to a wide range of mortgage products and competitive rates. While the company’s origination fees can be somewhat high, you won’t have to pay any lending fees if you choose to work with LoanDepot to refinance your home.
Since this lender makes the application process so easy, and provides loans to all 50 states, it’s not hard to see why it has grown into one of the industry’s biggest competitors and one of our best mortgage lenders.
If you’re wondering if LoanDepot is the best partner for your next home loan, it would be wise to take a look at the core features of this lender. In what follows, we will explore these features in detail.
LoanDepot’s Mortgage Process
While LoanDepot has an online application portal that can help you get started on your loan, don’t assume that you can complete the entire application online. When you first visit the LoanDepot mortgage website, you will enter key details about yourself and the type of loan you’re applying for.
While this might seem like an application, it’s actually just a tool to collect your basic information. This provides a seamless transition to the next stage. You will either be contacted by a LoanDepot loan officer over the phone or be instructed to visit one in person to get your quote.
Keep in mind that while LoanDepot has loan officers in most regions of the country, they don’t have as extensive of a network as some of their competitors.
LoanDepot’s Pros & Cons
If you’re comparing multiple lenders, it’s always a good idea to weigh the pros and cons of working with each company. Here are the advantages and disadvantages of choosing LoanDepot as your next home loan partner:
What States Does LoanDepot Offer Mortgage Services?
It’s sometimes hard to find lenders that operate in all areas of the country. As each state has its own licensing requirements, many online lenders don’t have a presence in all 50 states. So, does LoanDepot have the ability to lend money in your state of residence?
Yes. Fortunately, LoanDepot is licensed to lend in all 50 states. In fact, the company completed its licensing for the last of the 50 states in 2012.
LoanDepot’s Available Mortgage Types & Programs
At LoanDepot, you can access both home mortgages and home-refinance loans. The company offers fixed and variable interest rate loans. You can choose between 10, 15, 20, and 30-year terms. Additionally, you have the option to choose between fixed and adjustable jumbo loans.
For those who are interested in government-backed loans, LoanDepot is authorized to offer VA and FHA loans to their clients.
Unfortunately, there are still a few loans you won’t be able to access if you choose to work with LoanDepot. You will not be able to borrow using USDA loans or any type of home equity loan (including HELOCs).Have a house to sell before moving? Read our guide here. (March 31, 2020)
LoanDepot’s Mortgage Fees & Rates
It’s hard to find details about rates that aren’t dependent on a particular credit score. For example, you can find interest rate quotes before applying, but they’ll only be applicable to you if you have an excellent credit score.
Unfortunately, you will have to pay a substantial origination fee if you want to obtain a loan from LoanDepot. Origination fees can range anywhere from 1% to 5%, depending on the type of loan you’re applying for. This rate is quite high when you consider there are some online lenders that no longer charge any origination fees.
Still, LoanDepot does offer a few benefits in terms of fees. If you decide to refinance your loan at a later date, you can do so through LoanDepot without having to pay any lender fees or associated charges. This bonus is an excellent incentive that allows you to keep your refinancing under the same lender without needing to pay extra money.
LoanDepot’s Customer Service
If you’re going to work with an online lender, it’s essential to choose a provider that has excellent customer service features. Fortunately, LoanDepot clients can contact the lender via telephone or an online contact form.
If you want to reach LoanDepot over the phone, you will need to call between 5 AM and 7 PM (PST) during weekdays. Additionally, the telephone lines are open from 8 AM to 3 PM (PST) on Saturdays. You will not be able to get in touch with LoanDepot on Sundays.
While these are typical customer service hours, some other lenders now offer 7-day customer service access.
LoanDepot’s Borrower Qualifications & Requirements
As with most significant lenders in the mortgage industry, you will need a credit score of at least 620 to apply for a loan at LoanDepot. Additionally, if you want to take advantage of the lender’s most competitive rates, you will need to have a much higher credit score than the minimum number.
For some government-backed loans, you will only need a deposit of around 3.5%. This being said, if you apply for a traditional loan, you will be expected to pay a much larger down payment.
Don’t apply for a LoanDepot loan if you are not eligible for their financing — it will only further damage your credit score.
LoanDepot’s Online Reputation
If you’re seeking to work with the best mortgage lender on the market, you will want to find a firm that has an excellent reputation with its customers. If past clients have had bad experiences with a particular lender, there’s a high chance that you will too.
By searching through some of the leading consumer watchdog groups, we were able to assess if LoanDepot had a strong reputation with clients. The Better Business Bureau awarded LoanDepot an ‘A’ rating. This classification is the second-highest rating that the bureau issues to companies.
While LoanDepot does have a good reputation online, it is worth noting that legal action was brought against the company by the Department of Business Oversight. Fortunately, this matter has been resolved.
More From ISoldMyHouse.com: Be sure to check out our other mortgage company reviews!
About the Author: Kris Lippi is the owner of ISoldMyHouse.com and the broker of Get LISTED Realty. He actively writes about real estate related topics such as buying and selling homes, how-to guides for around the house and home product recommendations. He has been featured in Inman, Readers Digest, American Express, Fit Small Business, Policy Genius, Lending Tree, GoDaddy, Manta as well as other major websites. Read more about us here.