loanDepot was founded in 2010 as a lender specializing in personal loans, mortgage loans, and home equity loans. The company is licensed in all 50 states and has 4 direct-lending business centers, more than 140 retail bank locations and more than 5,000 employees including 1,500 licensed loan officers.
The company's rapid growth since inception has allowed it to become the nation's second largest nonbank consumer lender. They are a direct mortgage lender whose mission is to demonstrate honesty and fairness throughout the entire mortgage process.
The loanDepot seeks to transform the entire lending model by integrating their ethical lending tools with efficient systems and technology to streamline the lending process from start to finish. Let's see what they offer in terms of mortgages for hopeful homebuyers.
loanDepot employs a team of home loan experts to help you obtain a mortgage on your dream home, starter home, or rental property. Their 'no steering' policy helps assure that you get the best loan to meet your current and future needs. Borrowers can choose from loans like FHA, VA, Jumbo, and fixed interest mortgage programs.
Other types of loans they offer include ARM loans and HARP loans. ARM loans help reduce the cost of your mortgage if you are planning to stay in your home short-term or would just prefer lower payments. ARM stands for 'adjusted rate mortgage' and it's set up so the interest rate changes at a predetermined frequency. This option could help you save money if you plan on refinancing or selling your home later down the line.
loanDepot also specialized in helping customers refinance their home. HARP loans are operated under a federal program that helps responsible but underwater homeowners refinance their mortgages. Savings with HARP refinancing average $355 per month and there's no equity required, no appraisal needed, and no minimum credit score.
loanDepot offers an array of mortgage and refinancing options for everyone whether you're looking to secure a traditional mortgage, put a smaller down payment down, obtain lower monthly payments, or qualify easily while receiving the best interest rate.
- Loans to meet every homebuyer or homeowner's needs
- Licensed in all 50 states
- Instant rate calculator on the website - this tool allows you to accurately predict your rate based on factors like the value of your loan, current mortgage balance, total loan amount, and your credit score.
- Current mortgage rates are always available through the site to keep you updated
- Online chat feature
- Lifetime loanDepot Guarantee - States that when you fund your home with loanDepot, you are protected by their guarantee. Their guarantee allows you to waive lender fees and have your appraisal costs reimbursed any time you refinance with loanDepot after your first refinance. Since homeowners tend to refinance their mortgage every 7 years or so, the guarantee can save borrowers thousands of dollars over the life of their mortgage.
Cons to Consider
- The Lifetime loanDepot Guarantee is not available to all mortgage customers. Borrowers who come to loanDepot to refinance their current mortgage may not qualify
- While loanDepot has maintained some positive feedback from current and past customers overall, there were a few negative reviews from dissatisfied customers that could raise some red flags. For example, some customers have complained about misleading promotional offers from the company that advertised 'baited rates' while in reality, customers were subjected to higher rates. When applying for any loan, it's important to realize that the lowest rates or 'promo rates' are reserved for borrowers with the highest and most competitive credit scores. On the other hand, loanDepot seems to be on top of customer dissatisfaction by responding professionally to negative reviews and offering to help customers go over the process once more and find a pleasant solution.
loanDepot understands that buying a home can be a stressful and confusing process which is why they strive to take on most of the prep work and simplify the mortgage process with just seven clear steps. Mind you, these are steps that anyone should follow who wishes to obtain a new mortgage.
Step 1 - Decide how much you can comfortably afford
When you decide you want to purchase a home, you should always stop and specify your price range and how much you can afford to spend first. You should take factors like interest, insurance and upkeep into account. loanDepot offers an affordability calculator tool to help you determine what your payments would look like.
Step 2 - Find out which loan best suits your needs
As mentioned earlier, loanDepot offers several different mortgage options to take into account. You can consult with your loan officer to find the one that best fits your needs and expectations. You can also get preapproved for a loan with loanDepot at this point in the process.
Step 3 - Contact a real estate agent to start looking at properties
Once you know how much you can afford and what type of loan would be best for you, you're ready to shop and compare homes with a licensed real estate agent. Once you find the home you like, you can work with your agent to submit an offer, counter, and settle on an agreement.
Step 4 - Review your loan application and update your file
If you've already been pre-approved with loanDepot, this process should run quickly and smoothly. Depending on how much time has passed, you may need to submit some updated documents, but afterward, your home buying specialist will walk you through the details of your loan including closing costs and confirm everything with you.
Step 5 - Lock in your Rate
During this step, you can finalize your rate and sign an agreement. You will have to pay a refundable deposit fee to lock in your rate which will be returned to you at the end of the transaction.
Step 6 - Home Inspection and Appraisal
LoanDepot customers have the freedom to choose their own home inspector to appraise their home and offer some peace of mind, or highlight any noticeable issues.
Step 7 - Approval, Signing, and Closing
Once all your paperwork is in, your account manager will submit your file to the underwriting or approval. Once approved and you sign your loan documents, your loan can be funded in as little as two to three days.
Verdict - Good
loanDepot provides a flexible array of mortgage options to the savvy home buyer with the intent to help save time, money, and enhance the overall experience. Their interest calculator and guarantee program are great attributes that will assist you in the home buying process.