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LoanDepot Mortgage Review
LoanDepot is like the Home Depot of mortgages — it provides a streamlined approach to mortgages, refinance loans and home equity loans. It boasts a two-week plus shorter turnaround time when compared to a traditional mortgage deal, even though this lender has only been around since 2010.
The Simple Dollar’s proprietary SimpleScore methodology compares interest rates, loan terms, customer satisfaction, customer support and fees to help you decide whether this lender is a good match for your needs.
LoanDepot Mortgage at a glance
|Minimum Credit Score||620 (or 580 for veterans)|
|Applicable Fees||1 to 5%|
|Best for…||People who enjoy simple online applications|
|Not for…||People who need to compare lenders beforehand|
|Standout feature||Effortless application process from start to finishFully-integrated application processWide range of mortgage types|
[ Read: Is Now the Right Time to Get a Mortgage? ]
What we like about LoanDepot mortgages
loanDepot loans take the fuss out of endless reams of paper (and even attachments!) by automating the application process. It features a document collection process that, with your permission, collects the information required to assess your application. You’ll have a response in minutes. When you browse the web for LoanDepot reviews, this is the product to beat.
The mello smartdecision feature is another pro to using LoanDepot. This function is used to instantly determine whether you will require an appraiser at the property. If it determines you won’t need a new appraisal, you can save hundreds of dollars in appraisal fees. It also reduces the time it will take to close on your loan.
Things to consider
You’ll need to provide all of your info upfront to get info on the rates and fees.
If you’re in the process of comparing LoanDepot with other mortgage lenders, you will need to disclose all your personal information upfront before getting the details you need, such as APR and fees. What makes this process more frustrating is that you can’t tell whether the rate your shown is the minimum or maximum rate, which leaves little room for negotiation.
You’ll need a pretty good credit score — unless you’re a veteran.
A credit score of 620 or more is required for new applications. However, it’s important that individuals with lower credit scores discuss their personal situations with a LoanDepot representative, especially if they’re existing customers. You may also want to consider a loan option for bad credit with another company.[ Read: How to Offset the New Mortgage Refinance Fees]
LoanDepot vs. the competition
LoanDepot vs. Rocket Mortgage
LoanDepot vs. SoFi
How much will a LoanDepot mortgage cost?
As noted, LoanDepot isn’t upfront about fees on its site, which makes it hard for consumers to compare loans before choosing their mortgage lender. The loan origination fee on your loan can run between 1% and 5% of the loan amount.
Potential costs involve:
- Origination fee
- Appraisal fee (refundable in certain instances)
- Property taxes
- Upfront interest payments
- Other closing costs
But while LoanDepot isn’t transparent about its total costs, it makes up for it with its Lifetime Guarantee. This assures that once you’re a LoanDepot mortgage client, you’ll never pay lender costs with LoanDepot again.
Cheaper alternatives to loanDepot mortgages
If LoanDepot’s origination fee comes in around the 1% mark, it’s a pretty fair price — but it could fall between 1% and 5%, which is a pretty big jump. Compared to Chase’s late fee and $350 origination fee and SoFi’s $1,495 loan processing fee, the 1% origination fee could be a good deal, but it’s unclear what you’ll get from LoanDepot.
There are a few factors that can affect the origination fee, such as your credit rating and existing relationship with the institution. These factors may also help you negotiate these fees.
[ Read: Chase Mortgage Review ]
LoanDepot in the news
In January 2020, Bloomberg reported that loanDepot failed to shake off the Robocall class action. It allegedly infringed on consumer rights by violating the Telephone Consumer Protection Act.
Compare top mortgage lenders
Last updated September 11, 2020 — Updated editorial review of the brand.
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