LoanDepot Mortgage review October 2018 | finder.com

loanDepot mortgage review

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Fast mortgage applications online, but watch out for high fees

When you’re ready to buy a home, you’ll find no shortage of mortgage financing options. Many lenders provide similar options and features, but each tends to offer something unique.

LoanDepot is one of the largest nontraditional lenders in the home loans space, offering mortgages in all 50 states. Looking to lead the nation into “the next generation of modern lending,” loanDepot boasts more than $100 billion in funding since its launch in 2010.

Name loanDepot
Description A nontraditional lender offering impartial guidance on a range of loans, though with potentially high fees.
Loan types Purchase, Refinance, Home Equity, Jumbo, Fixed, Adjustable, FHA, VA, USDA
Minimum credit 620
Minimum down payment 3.5%
Origination fee 1.0% to 5.0%
Other fees Confirm with a loan officer any other fees you might pay when you get a home loan through loanDepot.

Pros

  • Wide selection of mortgages.
  • High loan amounts.
  • No prepayment fee.

Cons

  • High origination fees.
LoanDepot has a strong online presence. The Better Business Bureau gives loanDepot an A rating, and it earns 4.42 out of 5 stars based on more than 750 reviews.

On Trustpilot, loanDepot gets an 8.7 out of 10 based on 326 reviews. Many borrowers speak highly of its loan officers, saying customer service is quick and professional.

Of the complaints, the most frequent is about loanDepot’s high origination fee, which can be as high as 5% of your loan’s total value. Many competitors offer origination fees of 0.5% to 1% of your loan amount.

Compare to other lenders

Name Product Min. down payment Loans Offered Origination fee
3.5%
Purchase, Refinance, Home Equity, Jumbo, Fixed, Adjustable, FHA, VA
N/A
Competitive rates and no prepayment penalties on a variety of loans.
3.5%
Purchase, Refinance, Home Equity, Jumbo, Fixed, Adjustable, FHA, VA, USDA
1.0% to 5.0%
A nontraditional lender offering impartial guidance on a range of loans, though with potentially high fees.
3%
Purchase, Refinance, Jumbo, Fixed, Adjustable, FHA, VA, USDA
0.5% to 1.0%
Streamline your mortgage from quote to final payment — all from your computer or phone.
3%
Purchase, Refinance, Jumbo, Fixed, Adjustable, FHA, VA, USDA
0.5% to 1.0%
Flexible options, fast approvals and support online backed by a trusted brand.
3.5%
Purchase, Refinance, Home Equity, Jumbo, Fixed, Adjustable, FHA, VA, USDA
Depends
Connect with vetted lenders quickly through this free online marketplace.

Compare up to 4 providers

Pros and cons

Pros

  • No steering policy. LoanDepot holds its loan officers to a “no steering” policy, which means honest, impartial guidance when it comes to selecting the best loan for you.
  • Wide selection of mortgages. LoanDepot offers fixed-rate, adjustable-rate, jumbo, FHA, VA and HARP loan options to its customers.
  • Online resources. Access mortgage and refinancing calculators that help you estimate costs.
  • High-amount loans. Borrow up to $2 million through a jumbo mortgage loans. Fixed- and adjustable-rate loans are available, with ARM terms of three, five or seven years.
  • Accepted loan-to-value ratios. Refinance to access up to 90% of your home’s equity.
  • No prepayment fee. Pay off your home loan early with loanDepot without worrying about fees or penalties.

Cons

  • High origination fees. Expect to pay as high as 5% of your total loan amount in origination fees.

How do I apply?

To get started with your mortgage application, visit loanDepot’s site.

I got the loan. Now what?

  • Set up autopay. Create an online account with loanDepot to register for automated online payments.
  • Ask questions. If you’re unsure about anything in your loan agreement, reach out to a loan officer Monday to Friday from 5 am to 7 pm PT or Saturday from 8 am to 3 pm PT.

Bottom line

LoanDepot offers a strong selection of mortgage products. But it charges a higher origination fee than many of its competitors.

Before you sign a contract, learn about other home financing options you might be eligible for.

Frequently asked questions about loanDepot

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