loanDepot is a California credit and banking company that offers a wide variety of financial solutions, including mortgage loans.
The company’s mortgage loans are linked to more than 1,700 partnering loan officers across the United States.
You can get a loanDepot mortgage loan to buy an existing home, to build a new home, or to refinance an existing mortgage, even if that mortgage loan is with a different lender.
In this loanDepot mortgage loans review, you’ll find out everything you need to decide whether this financing option is best for you.
Table of Contents
- loanDepot Spotlight
- Are loanDepot Mortgage Loans Right for You?
- Why Choose loanDepot Mortgage Loans?
- loanDepot Mortgage Loans Features
- loanDepot Mortgage Loans: What You Need to Know
- loanDepot Mortgage Loans Fees
- loanDepot Mortgage Loans Eligibility Criteria
- How to Apply for a loanDepot Mortgage
- loanDepot Mortgage Loans Review Summary
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via loanDepot secure site
Are loanDepot Mortgage Loans
Right for You?
A loanDepot mortgage loan may be right for you if you want to refinance an existing mortgage that you took out when interest rates were higher than they are now.
If your mortgage loan’s interest rate is 0.5% higher than the current interest rate, a refinance could save you money.
One of the company’s mortgage loans may also be a good choice if you want to secure a new mortgage.
If you are a first-time homebuyer looking to purchase a larger home or a home in a different neighborhood, loanDepot’s loans may be a good fit.
loanDepot also offers a home-equity loan program to help you finance repairs or upgrades.
Why Choose loanDepot
When it comes to applying for a mortgage loan from a big bank, the process can be time-consuming and difficult.
loanDepot’s aims to simplify the process in a couple of key ways:
- Less stringent credit score requirements
- Low minimum down payment required
Through loanDepot, you have access to many loan types. You can choose a loan to purchase or to refinance a home. The company also offers home-equity loans for making improvements.
The available types of mortgage loans through loanDepot include:
loanDepot Mortgage Loans Features
loanDepot mortgage loans have many features:
|Fixed-term Loan Terms|
|Adjustable Rate Mortgage Terms|
loanDepot Mortgage Loans:
What You Need to Know
If you are considering doing business with loanDepot for a mortgage loan or a refinance, here’s what you need to know:
The company has sizeable origination fees that range from 1% → 5%, depending on the loan terms, down payment, and the amount that you need to borrow.
Origination fees are tied to your credit score.
No HELOC Offerings
The company does not offer home-equity lines of credit (HELOC).
It does offer fixed-term loans for home equity.
Fast Funding Timeline
Typically the funding timeline for a mortgage loan is faster than you’ll find when applying at big name banks.
The timeline from application approval to funding is as fast as 3 → 5 days after all of your documents are completed.
loanDepot Mortgage Loans Fees
Sadly, you can’t avoid the fees associated with mortgage loan applications and mortgage loan refinances.
loanDepot has a comparison page where you can look at its mortgage rates next to those of its competitors. It shows you the fees and interest rates for different loans that it and two of its closest competitors offer.
It’s important to take a close look at the fine print of what the different fees and rates mean.
With that said, loanDepot is transparent about showing all of its mortgage loan costs.
loanDepot gives itself a wide range for origination fees. The company states that its typical lender’s fee ranges from 1 to 5 % of the total loan amount.
The exact percentage that you will pay depends on your loan grade.
When comparing this to other lenders, a 1 % fee is in line with big banks.
A fee of 3% → 5 % is much higher than normal.
Since 2001, most total lender fees and discount points for mortgage loan origination fees have averaged around 1 % of the total loan amount.
|Application Fee||loanDepot does not publish its application fee online from our research. Most lenders charge an application fee of $250 to $1,000. The range depends on whether or not it includes a title check, credit report, and other services.|
|Processing Fee||loanDepot does not list the amount of its mortgage loan processing fee. This involves the details of creating the loan and obtaining the title to the property.|
|Appraisal Fee||An appraisal of the home or property is required before the company will lend you money for a mortgage or before it will refinance your loan. The fee ranges from $250 to $700.|
|Courier Fee||You may have to pay a fee in order to have loanDepot deliver the mortgage loan documents to you.|
|Title Insurance & Search Fees||These fees protect you against any liens associated with the property. The title search is a fee paid to the company of loanDepot’s choosing. Title searches are designed to ensure that nobody can claim ownership of the property.|
|Flood Certification Fee||loanDepot has to ensure that the property is not located in a flood zone. If it is, you have to pay flood insurance and pay the fee to loanDepot at closing.|
|Pest Inspection Fee||If you are getting a VA, USDA, or FHA loan through loanDepot, you must pay a pest inspection fee. This is required for all government loan borrowers.|
|Recording Fees||These are municipal fees from the city or county for recording the deed and other documents at the closing of the loan.|
Private mortgage insurance: If you are not putting at least 20 % of the mortgage loan as a down payment, you will need to have private mortgage insurance.
This fee may be paid as part of your loan process or at the time of the closing of your loan from loanDepot.
VA and FHA fees: There are special fees associated with VA and FHA loans. The VA can charge a funding fee, which is associated with your service record length and discharge status.
FHA loans have a 1.75 % up-front mortgage insurance premium fee. You can roll these fees into the total loan amount that you borrow from loanDepot.
Fee Guarantee: A unique aspect of loanDepot’s services is its lifetime guarantee on loan fees.
loanDepot states that if you refinance with the company once, you will never have to pay any lender fees to loanDepot in the future.
The company will also reimburse you for appraisal fees.
This guarantee has some restrictions. You have to qualify for the refinance, your loan must be approved, and you must hold onto a digital or printed certificate issued by loanDepot.
loanDepot Mortgage Loans
All mortgage loan and refinance loan lenders have eligibility criteria.
In order to secure a loanDepot mortgage loan, you must have a minimum credit score of 620.
If you do not know your credit score, you can pay for this service from one or all three of the credit reporting bureaus in advance of your loan application.
loanDepot also requires a minimum down payment of 3.5 % of the total loan amount.
The total loan amount includes any fees that can be rolled into the loan’s principal.
In addition, you must be at least 18 years old, although Alabama requires borrowers to be at least 19 years old.
You need to be a U.S. resident and have a verifiable U.S. address, bank account, and income.
How to Apply for a
To apply for a loanDepot mortgage, follow the steps below.
- Complete the online application: The online application requires you to provide your name, birthdate, address, and email.
- Complete the verification process: If you get a soft approval from loanDepot, you will need to provide additional information, including your Social Security number, bank account information, and employment details.
You may be required to supply supporting information, such as your driver’s license or government-issued identification, W-2, or recent pay stub.
If you are self-employed, you may need to provide additional information about your income.
You may also be able to complete some of these steps over the phone.
- loanDepot Verification: loanDepot takes a few days to verify your information.
The company may request additional information by email at any time.
Each additional information request will require a new two- to three-day verification period.
loanDepot will also offer you a specific interest rate once your information is verified.
- Arrange for appraisals and inspections: Before loan funds can be dispersed, you need to have the appraisals and inspections completed.
The inspections and appraisals depend on the type of loan that you receive from loanDepot.
- Wait for funds: loanDepot deposits the loan amount into your bank account.
The amount of time that it takes for the funds to be confirmed depends on your bank.
You can check the status online through your verified loanDepot account.
loanDepot expects to launch an online application that is mobile-enabled. It will automatically verify your information within a few seconds of submission.
The company also plans to allow borrowers to upload their documents through an app on their smartphones.
loanDepot Mortgage Loans
loanDepot offers an efficient mortgage loan application process.
By offering a spectrum of mortgage loan and refinance options, loanDepot is able to serve the needs of many homebuyers.
The amount of time from approval to funding is much shorter than that of the big banks.
Finding specific information about the fee schedule can be challenging, but loanDepot offers phone-based and email-based customer support every day of the week.