If you’re looking for a mortgage to purchase or refinance a home, you’ve probably heard of loanDepot, a top 10 mortgage lender that’s in the same league as companies like Bank of America, Chase, and Wells Fargo.
Before you decide to take out a mortgage with them, you should check out loanDepot reviews and get a feel for the different types of loan products and level of service the company provides.
In this review:
- loanDepot mortgage review
- loanDepot mortgage refinancing review
- How loanDepot could improve
- Compare multiple lenders first
loanDepot mortgage review
- You need to close your loan quickly
- You’re a member of the military or a veteran
- You’re interested in an adjustable-rate mortgage
- You’re buying a new home
As a direct lender, loanDepot says it can deliver low mortgage rates (depending on your credit score) and get you to the closing table 50% faster than the industry average.
The company offers several types of mortgage loans, including conventional mortgage loans, jumbo loans, FHA loans, and VA loans. loanDepot is the fifth-largest VA lender in 2018, with more than 27,000 loans guaranteed by the Department of Veterans Affairs.
Depending on your needs, you might choose a fixed-rate or adjustable-rate mortgage (ARM) loans. ARM loans are available with rates that are fixed for the first three, five, seven or 10 years, and then adjust annually after that.
If you’re buying a new home, the builder might recommend loanDepot — loanDepot says about half of its home purchase mortgage business comes from referrals by home builders.
If you decide to buy a home by taking out a purchase mortgage from loanDepot, here’s what you should know:
|Mortgage programs||Conventional, jumbo, FHA, VA, FHA 203k loan, HARP loan
|Fixed-rate loan terms||10, 15, 20, and 30 years|
|Variable-rate loan terms||3/1, 5/1, 7/1, and 10/1 ARMs|
|Rates and fees||APRs are based on the loan amount and may include up to 3 points, including any origination, discount, and lender fees
|Min. credit score||
|Min. down payment||5%
(3.5% for FHA loan programs)
loanDepot mortgage refinancing review
- You want a fast closing
- You’re active duty military or a veteran
- You want to refinance to an adjustable-rate mortgage
- You might do a mortgage refinance again
If you’re wondering how to refinance your mortgage, loanDepot might be a simple option. Because it’s a direct lender, loanDepot says it can deliver low rates and close loans 50% faster than the industry average application process.
The company offers a wide range of mortgage refinance options, including conventional, jumbo loans, FHA and VA refinance. If you’re active duty military or a veteran, a Streamlined VA Interest Rate Reduction Refinance Loan (IRRRL) can simplify refinancing. loanDepot offers a cash-out VA refinance loan that allows qualified borrowers to refinance up to 100% of their home’s value.
Although most direct lenders don’t offer home equity loans, loanDepot is an exception. A home equity loan is a second mortgage loan that lets you borrow against the equity you’ve built up in your home. However, loanDepot does not offer a home equity line of credit (HELOC) which is typically available only from banks.
Whichever option you choose, be sure to compare your mortgage refinance rates from multiple lenders. With Credible, you can see your rates in three minutes.
How loanDepot can improve
While loanDepot promises fast closing times and competitive rates, there are also areas where it could improve:
- Be more transparent with rates and fees: Unless you set up an account, it’s difficult to find information on how you could qualify for a loanDepot mortgage. Their rates pages don’t actually show any rates, and there’s no word on how much you might end up paying in fees. If you’re wondering how to get the best mortgage rate, you can compare your actual rates through Credible in three minutes.
- Offer HELOCs: If you want to use your home’s equity to set up a revolving line of credit, you’ll have to go with another lender. loanDepot only offers traditional refinancing, home equity loans, and cash-out refinancing.
- Offer USDA loans: If you’re interested in a loan insured by the U.S. Department of Agriculture, you’ll need to consider other lenders.
Compare multiple lenders first
If loanDepot looks like a good option for buying or refinancing a home, make sure to compare rates from several other lenders.
Taking the time to compare your personalized home loan options with different mortgage companies allows you to choose a loan with confidence — and can save you thousands of dollars in interest. Getting a mortgage preapproval could also help you narrow down your options.
To help you with the loan process, Credible lets you compare personalized mortgage rates from loanDepot and other lenders who are on our platform. You can see your rates from our mortgage partner lenders in the table below in three minutes.
Learn More: How to Find the Best Mortgage Lender
Keep in mind that not all loan products are available through Credible.