LoanDepot mortgage review
Get a mortgage up to $2 million, but watch out for high fees.
finder.com’s rating: 3.5 / 5.0
As one of the largest nontraditional lenders, LoanDepot offers a wide array of mortgage products, with higher loan limits than you can find with other banks and mortgage lenders. But high origination fees and lack of home equity products may lead some borrowers to look elsewhere.
|Loan products offered||Conventional, Jumbo, FHA, VA, USDA, Home Equity, Refinance|
|Minimum credit score||Conventional: 620|
|Minimum down payment (Conventional)||3.5%|
|State availability||Available in all states|
To be eligible for a home loan with LoanDepot, you’ll need a minimum credit score of at least 620. You’ll also need to be ready to put down a minimum down payment of at least 3.5%. But if you’re looking to refinance, LoanDepot’s loan-to-value (LTV) ratio can go as high as 90%, which can give you more access to your home’s equity.
To apply for a mortgage, you need to provide:
- A copy of your Social Security card
- Pay stubs from the past 30 days
- W2s and 1099s from the past two years
- Personal tax returns from the past two years
- A list of your assets, including savings, real estate, car titles and other investment records
- A complete list of your debts, including student loans, auto loans, personal loans and credit cards
Costs and fees
LoanDepot doesn’t charge an application fee, but once you’re approved, you may be required to pay the following fees:
- Origination fee. Expect to pay between 1% and 5% of your loan’s total cost as an origination fee.
- Third-party fees. These can include an application fee for your private mortgage insurance, taxes on the purchase and any other fees or charges not from LoanDepot.
- Other fees. Mortgages can come with application, underwriting, rate lock and ongoing fees. LoanDepot’s website isn’t very forthcoming about what fees you’ll be charged, so check the fine print before submitting an application.
How to apply for a mortgage with LoanDepot
To get started with your mortgage application, follow these steps:
- Go to LoanDepot’s site and select the loan product you’re interested in.
- Enter your ZIP code and choose Get Started.
- Enter your basic details, including the sale price of the property you want, the loan amount you’re interested in and your credit score, full name, phone number and email address.
- Choose Apply Now.
- Enter your loan and financial information, along with your address, Social Security number, date of birth, income and any available assets you hold.
- Wait for confirmation. After you submit your application, a LoanDepot loan officer will contact you to confirm your information and let you know which loan you qualify for.
What types of mortgages can I get through LoanDepot?
Other mortgage products offered by LoanDepot
LoanDepot offers the following specialty mortgage products:
- Refinance loans. Whether you want to lower your rates or cash-out to access your home equity, LoanDepot offers refinancing options to meet your financial goals.
- Mello Smartloan. LoanDepot offers an end-to-end digital mortgage experience that promises to save time and find areas to save you money by digitizing the entire process, even through closing. This process can sometimes remove the need for a home appraisal.
- FHA 203k refinance. This loan works as a kind of construction loan in addition to your refinance for renovations aimed at improving the value of your home. The estimated costs of your renovation are combined with the amount of your first mortgage for the loan, but are held in an escrow account and released when you hit milestones in your renovation project.
How LoanDepot’s mortgage products compare to other lenders
This lender’s mortgage products include all the standard bank offerings plus some unique refinancing options and a fully digital smartloan that promises to streamline the home loan process.
LoanDepot also wants to reward loyalty with a guarantee that once you finance a loan with the company, they’ll waive the lender fees for any refinance you do in the future and reimburse your appraisal fees.
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LoanDepot reviews and complaints
LoanDepot has a strong online presence. As of November 2020, the Better Business Bureau gives LoanDepot an A+ rating after having closed 653 complaints over the past three years. The lender earns 3.82 out of 5 stars based on almost 1,400 customer reviews. On Trustpilot, LoanDepot receives 3.8 out of 5 stars based on 3,037 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.
Pros and cons of LoanDepot
- 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.
- High loan limits. Borrow up to $2 million through a jumbo mortgage loan. Fixed- and adjustable-rate loans are available, with ARM terms of three, five or seven years.
- No prepayment fee. Pay off your home loan early with LoanDepot without worrying about fees or penalties.
- Award-winning customer service. LoanDepot has earned certification from the Eliant homebuyer survey company for exceeding 90% on customer satisfaction surveys for five years in a row.
- High origination fees. Expect to pay as high as 5% of your total loan amount in origination fees.
- No home equity products. LoanDepot doesn’t offer home equity lines of credit (HELOCs) or home equity loans.
- No advertised mortgage rates. LoanDepot is a direct lender and claims to have access to low-rate home loans, but you’ll have to go through the preapproval process to see what kinds of rates this lender offers.
What is LoanDepot?
LoanDepot is a direct lender based in Southern California that was founded in 2010. Since launching, it has become the fifth largest retail mortgage lender in the US and the second largest nonbank loan originator, funding over $248 billion in mortgage products.
Historical mortgage data for LoanDepot
All numbers based on 2019 nationwide data from the Home Mortgage Disclosure Act.
|Loan type||Applications denied||Loans originated||$ Amount (originated loans)|
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Heather Petty is a personal finance writer at Finder specializing in home loans, banking and insurance. After falling victim to a disreputable mortgage broker when buying her first home, she’s on a mission to help readers avoid similar experiences when managing their own finances. A self-proclaimed word nerd, her writing has been featured on MSN, Credit.com and MediaFeed.org, among others. Heather previously worked as a technical writer and editor for the casino systems industry and is an internationally published young adult mystery author. She holds a bachelor’s degree in English with a minor in journalism from the University of Nevada, Reno.
Despite its focus on a digital loan experience, LoanDepot still requires that you work directly with a representative, even to find out what mortgage rates the lender offers. But its award-winning customer service may ease the process. Its no-steering policy can keep you from facing a hard sale on any loan, ensuring your loan officer is working to find the best loan for you.