loanDepot Reviews
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About loanDepot
LoanDepot (NMLS #174457) is a direct lender that offers home loans, refinancing and other mortgage services. The company provides a completely digital mortgage experience that starts with an online application. LoanDepot was founded in 2010 and has funded over $275 billion in consumer loans.
Pros & Cons
Pros
- Available nationwide
- “No steering” policy helps you get the right loan
- Offers a 40-year loan
Cons
- Limited fee transparency
- Some customer service complaints
Bottom Line
LoanDepot is a home loan and refinancing company that offers a completely digital process and a variety of loan types. The lender has a large network of local agents and is available in all 50 states. You can contact loanDepot for a personalized quote on a purchase or refinance loan.
Featured Reviews
Find this lender to regularly be available for personal communication and answers to my questions. Their digital platform is very user friendly. They keep me informed of changes i...
Read full reviewGreat Mortgage company, they have great follow up, do what they say. They will guide you throughout the mortgage process and they will have the documents delivered on time so your...
Read full reviewRates
For the most accurate current rates, you can contact loanDepot for a customized quote. The company provides pre-qualification decisions in a few minutes — pre-qualification does not require you to give your Social Security number, and the company performs a soft pull that does not impact your credit score.
LoanDepot’s rates for home purchase loans are generally close to the national average for home purchase loans that year; in 2021, the company’s rates were only one-hundredth of a percent higher than average.
In addition to fixed-rate loans, loanDepot also offers adjustable-rate mortgages (ARMs), which become more common when mortgage rates rise. LoanDepot’s ARMs have an initial fixed-rate period of three, five, seven or 10 years.
loanDepot average home purchase rate vs. national average
| Year | Difference from national average |
|---|---|
| 2021 | +0.01% |
| 2020 | -0.01% |
| 2019 | +0.1% |
Mortgage rates change constantly; the rate you get depends on your credit history, mortgage type and loan term. When looking at rates, keep in mind the differences between interest rate and annual percentage rate (APR): The interest rate does not include additional fees, like origination fees or discount points.
Your APR includes these charges, so it tends to better reflect the true cost of the loan.
Application process
You can view your mortgage rates and get pre-qualified with loanDepot without a hard credit check, and the company offers an online application. You need to provide a valid email address and phone number to start the application process.
You should be ready to provide information relating to your income and assets; loanDepot uses information to calculate how much you can borrow.
LoanDepot is a direct lender and typically services its loans, so it’s likely you’ll work with the company from your application all the way until your loan is paid off or you decide to sell.
loanDepot application features
| Features | Availability |
|---|---|
| Online application | |
| Mobile document upload | |
| Physical branches | |
| Publishes minimum rate on website | X |
| Rate lock | |
| Pre-qualification (no hard credit pull) | |
| Certified approval letter |
Loan types
LoanDepot offers several mortgage products online, including conventional loans (ARM or fixed-rate), government-backed loans (like FHA and VA loans) and jumbo loans for those who need to borrow beyond the conforming loan limits set by Fannie Mae and Freddie Mac.
The company offers 10-, 15-, 20-, and 30-year terms on its conventional loans. LoanDepot also offers a 40-year interest-only loan. With this type of loan, the borrower can make interest-only payments for the first 10 years, then interest and principal payments for the remaining 30 years of the loan term.
In 2021, loanDepot took in close to 127,000 home purchase applications and closed on 75%. The company denied about 8.5% of these applications.
Loan applications for home purchases only by year
| 2021 | 2020 | 2019 | |
|---|---|---|---|
| Home purchase applications | 126,877 | 110,323 | 75,705 |
| Home purchase loans closed | 94,718 | 81,408 | 54,623 |
| Home purchase applications denied | 10,753 | 8,601 | 4,817 |
| Home purchase preapprovals denied | 0 | 0 | 0 |
Refinancing
More borrowers refinanced in 2020 and 2021 due to historically low interest rates, which likely explains loanDepot’s higher percentage of refinance loans over the past few years. With the rise of rates in 2022, fewer people are expected to refinance this year.
In 2021, about 36% of all U.S. mortgage loans were used for home purchases, while 38% were used for refinancing, and 20% were used for cash-out refinancing.
Home purchase vs. refinance loans by year
| 2021 | 2020 | 2019 | |
|---|---|---|---|
| Home purchase loans | 26.27% | 28.98% | 39.08% |
| Refinance loans | 42.51% | 51.39% | 27.85% |
| Cash-out refinance | 31.22% | 19.63% | 31.33% |
Requirements
Requirements with loanDepot differ by loan type. You can use loanDepot’s online resources or speak with a loan officer to determine your eligibility and how much you can borrow. Conventional loans tend to be more difficult to qualify for than government-backed loans.
National mortgage requirements by type
| Min. credit score | Min. down payment | Compare with other lenders | |
|---|---|---|---|
| Conventional | Typically 620 | Typically 3% | Mortgage lenders |
| FHA | 500 | 3.5% with 580 credit score | FHA lenders |
| VA | Set by lender (often 580) | 0% | VA lenders |
LoanDepot doesn’t offer USDA loans. For information about USDA loans, check out our guide for choosing the best USDA-approved lenders.
Cost and fees
Like other lenders, loanDepot charges an origination fee that varies depending on the loan amount. Most origination fees fall between 0.5% and 1% of the loan total. You can also expect to pay other closing costs in addition to the origination fee, which altogether can account for 2% to 5% of the total home loan amount.
One of loanDepot’s features is its “Lifetime Guarantee,” which waives lender fees and reimburses appraisal costs if you refinance a mortgage you originally got with loanDepot.
FAQ
How does loanDepot work?
You can apply for a loanDepot home loan through the company’s website. You can go over mortgage options, apply for approval and manage your account online. Loan officers are available to answer your questions and help you through the application process over the phone or at a branch.
Is loanDepot legit?
LoanDepot is a legitimate lender that's licensed to offer a variety of home loan products throughout all 50 states. The company has been in business over a decade and has funded over $275 billion in loans.
Where is loanDepot available?
LoanDepot is available in 50 states; it has more than 200 branch locations in the U.S.
loanDepot Reviews
ConsumerAffairs has collected 61 reviews and 1,043 ratings.
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Reviewed Sept. 20, 2023
I went past my 16 day grace period, which is completely my legal right, and to pay a late fee. Loan Depot has harassed me numerous times, including to my personal email address. Their corporate executive management in California, is poor, and lacks proper oversight, that I have unfortunately discovered. I do not recommend them to anyone.
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Reviewed March 9, 2023
I applied for an owner occupied cash out refinance VA mortgage at 2.75 in December 2022. Today I learned that they misrepresented the reason for not funding the loan and in the process libeled my good name. I called LoanDepot in 2022 and stated that I needed cash out for several reasons including paying for nursing for my daughter. I owned two homes and asked the loan officer to help me determine which I should apply under. I was asked to explain my residency situation and did so in detail via signed email and submitted this via the processor. I could have refinanced either property…I was honest and stated that I would be moving to the other home on a specific date in the near future. This was well within the timeframe allowed by VA Underwriting Guidelines.
Essentially, I was moving from one owner occupied property back to another. I reviewed the VA Manual which states that even in cash out refinances, the only criteria for occupancy is that the owner must intend to reside there within 60 days of closing. I had stopped residing there temporarily because my daughter needed me in physical proximity as she had a terminal illness and I wasn’t able to hire a nurse yet. This was all documented. The VA Regional Office reviewed my situation with me and even gave me the citation to the regs that covered my situation.
Imagine my surprise when the underwriter claims that they have more restrictive guidelines than the VA and that I had to occupy the home on the closing date! They declined the loan without an explanation (I have the email). This money would have enabled me to get a nurse for my daughter and in the two plus months that LoanDepot had my application the interest rates went up a full two points! I believe that Loan Depot declined it because they had locked in incredibly low rates and didn’t want to honor them.
Today I discovered that LD had written that they declined my loan because I was deceptive on the loan application. They never allowed me to submit proof of residency such as my car registration, etc. I did move back to the other property as scheduled. As an attorney my good name is what gives my services value. I couldn’t believe it today when I spoke to a LD manager and was told that the underwriter declined my application for alleged deceit. Again, I wasn’t told this. I was very upset when they refused to fund the loan and advised them of my intent to file complaints. I believe that this is both in retaliation and also to attack my credibility. Again, I did occupy the property as promised in my applications, even after they declined my loan.
Finally, the VA underwriting guidelines state what they are to do in disputed occupancy situations and they didn’t follow guidelines. They just claimed that they had overlays that were more stringent than the VA. Then they change their story and claim (to everyone but me) that I hadn’t been honest about occupancy yet I had stated a date when I would occupy the property and moved in on that date. So, they can’t have it both ways. They saw that the loan was way underpriced and didn’t want to write it. Records will show that it was a SALES MANAGER who complained about the low rate for what he called an investment property. Shockingly, the LD underwriter was not familiar with the 60 day post-closing rule and one can see that all this was an excuse not to fund the loan because the VA stated that their actions were dead wrong.
Reviewed March 8, 2023
I was going to refinance my home. Everything was going good with Loan Depot. The loan officer kept adding more than what I wanted so I decided to withdraw my application however loandepot still took $495.00 out of my account for the appraisal fee after I withdrew the application. Now, no one is responding to my emails or text to reimburse me my money. Go to a more reputable company to purchase or refinance. Don’t go to loandepot!
Reviewed March 3, 2023
This company has been harassing my Family for months over a mistake made by them. Sending me several "paid" notices and then transferring my loan to another company, (informing us over the phone that we don't owe them anything) all the while still sending multiple payment notices to us. They will not leave us alone and are now falsely reporting negative information to the credit agencies. Do not trust them!
Reviewed Feb. 6, 2023
We were called by our original mortgage broker and told about their new heloc program. We had been looking into it already, and decided to go with LoanDepot since our mortgage was currently there. We were misinformed from the get go. Told the process would take a week and it’s already been 6 now. Now we are under signed/notarized contract with them and have not received funding, even though with our contract it was due last Friday. They are dodging our calls, texts, and emails. It’s unprofessional and in breach of a legal contract.
Reviewed Nov. 14, 2022
We have been waiting over 90 days for our refund of our escrow account. You can't escalate to anyone. To speak to a Manager you have to send a letter in the mail. They keep your money to make money off of you.
Reviewed Oct. 18, 2022
Loan Depot is the worst! After several weeks of sending documentation they still haven't approved my loan. Why? Cause they will wait till the last minute so that they can charge you more money after the lock in rate date. So I decided to go with another lender and to my suprise they refuse to transfer my appraisal to the new lender because they stated I did not pay for the appraisal. Morons I have the email receipt you sent me after payment! Then they say that I would have to pay an additional $25 on an outstanding invoice for the difference on the appraisal that was already paid. What a joke this company is. Avoid the waste of time, headaches and frustration and stay away from Loan Depot!!!
Reviewed Aug. 14, 2022
The following explains my experience with this company. On January 19th, I spoke with Mr. **, who conducted the initial in-take of my loan. We were on the phone for about 2 hours. I explained to him thoroughly that I was an expatriate who lives and works abroad and I come home to the US periodically throughout the year. He assured me that this would not be an issue and that he will make sure to keep me in the loop. Within a few weeks, I heard from Alexis ** via email. She requested information from me and never responded to any of my inquiries about the status of my loan. (The month of March) Two months passed after the above inquiry and I received an email from Alexis stating that LoanDepot would need to do a rate lock extension. I immediately tried to reach out to her and Mr. **.
Since I could not reach either of them, I reached out to Jay ** and he explained to me that Mr. ** was no longer with the company. I inquired about my loan and I was advised that the loan sat dormant for 2 months (Now bringing us to April). Jay apologized and proceeded to work on moving it forward. Within a week of working with Jay, Alexis was removed from my account, and Missy ** was assigned to be my new account manager. (The month of April) On April 11th I uploaded the new notarized and signed POA to the portal and received a call from Terrence **, stating that underwriting could not approve my loan based on the fact that I did not live in my primary residence for 6 months out of the year. At which time, I reached out to Joe **, who advocated for me for two weeks. On 4/29/22, I received a final decision that my loan would not be approved because I live abroad.
The issue is that I lost my locked-in rate. I could have gone with another company. They did not apologize to me, they blamed it on COVID that communication was lost. In my opinion, information should have been communicated to me on the day of the initial intake. It was easier for them to give me a reason that justified their decision instead of taking ownership of their incompetence and lack of communication.
In short, this company does not take ownership, what they tell you may be questionable and they do not communicate or follow up at all. I had three reps, one of them quit, the other ended up reassigned to another loan and the last one was not empowered to make a decision. All of this was not communicated to me. It does not take almost 4 months to refinance. I suggest looking for another Refi/Mortgage Company.
Reviewed Aug. 7, 2022
I was very happy at first working with loanDepot and we were in underwriting. They told me I needed a co-signer. My Mother signed on and all seemed great. As it turned out at the last minute I found out that I really needed a co-borrower which meant I would have to add her name to our deed, which was unacceptable for a variety of reasons. I put on the brakes and cancelled the deal after which I received several letters saying they declined me when I actually declined their offer. Needless to say we were disappointed since it was going so smooth. Go with National Debt Relief!!
Reviewed June 14, 2022
Home was refinanced, escrow account set up. Once we needed home repairs due to a snow storm, Loan Depot wrote that we had no home owners insurance and said that we would need to pay out of pocket for repairs. We looked at our contract which included our payment for home insurance. Regardless, LoanDepot had failed to send State Farm the premium. We had the repairs made at a cost of about $10.000. After sending them all the information they requested, including a copy of our contract with them, they stonewalled our request for reimbursement. Instead, they ran us through the gamut of numerous phone calls, requests for information which they already had received, and still have had no resolution 16 months later. Extremely frustrating experience.
Sources
- Federal Financial Institutions Examination Council, “ HMDA Data Publication .” Accessed June 13, 2022.
loanDepot Company Information
- Company Name:
- loanDepot
- Website:
- www.loandepot.com