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LoanDepot Mortgage Review 2023

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At a glance

LoanDepot
NMLS: 174457
Editor's take

LoanDepot is best suited for borrowers who are looking for a variety of loan options and the flexibility of both online and in-person support. You won’t be able to compare rates without first contacting this lender, however.

Bankrate Score
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4.4
Rating: 4.4 stars out of 5
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Customer Rating
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3.7
Rating: 3 stars out of 5

819 ratings

Mortgage Percent

Loans offered

Conventional, jumbo, FHA, VA, fixed-rate, adjustable-rate; rate-and-term and cash-out refinancing; construction and renovation loans

Credit Good

Min. credit score required

620 for conventional loans, 700 for jumbo loans, 580 for FHA loans, 620 for VA loans

Location

Nationwide availability

Available in all U.S. states

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Min. down payment

3.5% for FHA loans

At a glance

LoanDepot

NMLS: 174457

4.4

Rating: 4.4 stars out of 5
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Bankrate Score

Mortgage Percent

Loans offered

Conventional, jumbo, FHA, VA, fixed-rate, adjustable-rate; rate-and-term and cash-out refinancing; construction and renovation loans

Location

Nationwide Availability

Available in all U.S. states

Credit Good

Min. credit score required

620 for conventional loans, 700 for jumbo loans, 580 for FHA loans, 620 for VA loans

LoanDepot overview

LoanDepot was founded in 2010 and has quickly become one of the biggest names in the mortgage market. The company was the third-largest mortgage lender in the U.S. in 2022, originating loans worth $53 billion, according to federal data. The lender offers an end-to-end digital process, dubbed “mello smartloan” (that’s not a typo but a reference to loanDepot’s partnership with the real estate brokerage known as mellohome.) You also can get in-person assistance at more than 200 branches across the U.S. Notably, loanDepot claims it can beat industry average closing times by 50 percent. The lender has closed loans in as few as seven days, but the typical timeline is 30 days, 45 or 60 days.
 
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Bankrate insight

LoanDepot's Grand Slam package offers rebates of up to $7,000 back when you work with an affiliated real estate agent to both buy and sell homes (up to $3,500 for each transaction).
 

Pros and cons of LoanDepot

Pros
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    Waives fees for existing customers who refinance

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    Offers an entirely digital process from application to close with its "mello smartloan" platform

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    More than 200 branches across the country

Cons
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    Rates and fees not available online

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    No USDA loans

Our Editor’s Take on LoanDepot

LoanDepot is best suited for borrowers who are looking for a variety of loan options and the flexibility of both online and in-person support. You won’t be able to compare rates without first contacting this lender, however.

How Bankrate scored LoanDepot

To determine LoanDepot’s Bankrate Score, Bankrate’s editorial team rated it and other lenders on a scale of one to five stars based on a variety of factors relating to the lender’s products and services. (Bankrate’s partners compensate us, but our opinions are our own, and partner relationships do not influence our reviews.) We derived its overall score by considering three basic factors.

  • Affordability: LoanDepot’s mortgage rates run above Bankrate’s averages. One benefit for returning customers: The lender waives fees on future refinances.
  • Availability: This lender operates nationally and offers the basic slate of loan offerings.
  • Borrower experience: You can apply for a mortgage on LoanDepot’s website, but the lender also maintains more than 200 locations if you’re looking for in-person help.

Affordability: 4/5

LoanDepot’s mortgage rates and fees aren’t publicly advertised on its website. Instead, you’ll need to fill out a request for a personalized rate quote and preapproval. The lender’s Grand Slam package could net you $7,000 back at the close of your transaction, provided you work with an affiliated real estate agent and meet other qualifying criteria.

Availability: 5/5

LoanDepot has a good array of products: It offers conventional mortgages, jumbo loans, FHA and VA loans, construction and renovation loans and refinances. The lender has also begun offering home equity lines of credit (HELOCs). It operates in all U.S. states.

Borrower experience: 4.1/5

LoanDepot is accredited by the Better Business Bureau with an A+ rating, and based on more than 3,900 reviews, has 3.7 out of five stars on Trustpilot. It scored above average in J.D. Power’s 2022 ranking for mortgage origination satisfaction. The lender’s website includes a “Knowledge Cafe” with educational resources on buying and owning a home, and borrowers can easily apply and make their monthly payments online.

How to apply for a mortgage with LoanDepot

LoanDepot employs a streamlined online platform to collect all of your application documents. The mello smartloan platform is designed to verify all of your documentation and credit reporting in around seven minutes (not all borrowers are eligible to use the tool, however) and facilitate a paperless process.

Still, there are ways to ensure all goes seamlessly. Some tips:

  1. Set a budget. Evaluate how much you can afford in a monthly home loan payment. Be sure to consider payments on the principal balance as well as insurance, taxes and interest, and homeowners association fees if applicable.
  2. Explore loan and rate options. LoanDepot offers a wide array of loan products, and you should evaluate the pros and cons of your options. For example, you should consider an FHA loan if you have a lower credit score and want to make a smaller down payment.
  3. Obtain preapproval and start shopping. To get preapproved with LoanDepot, you should prepare to present a detailed review of your financial life. Gather info from tax returns and brokerage/bank statements, and proof of employment. Once you’re preapproved, you can work with a real estate agent and start house-hunting.
  4. Lock your mortgage rate and schedule a home inspection. Once you’ve selected a loan and start preparing to close, you can sign a rate lock agreement. You’ll then schedule a home inspection to check for any major issues and a home appraisal to assess the home’s value.
  5. Close on the loan. Signing your loan documents at the escrow or title office will take between an hour and an hour and a half. Your funds should be available 2 to 3 days after your signing.

If you prefer live human help with your mortgage, you can reach customer service Monday through Friday, 10 a.m. to 9 p.m. ET.

Refinancing with LoanDepot

You can refinance your existing mortgage with LoanDepot. The lender offers a Lifetime Guarantee program: Take out a loan or mortgage with the company, and it’ll never charge you fees for another refinance on the same property. Plus, you’ll get your appraisal fee reimbursed. If you’re a new customer, you’ll need to ask a loan officer about refinance rates and costs, as they aren’t listed online.

Special programs offered by LoanDepot

LoanDepot’s Grand Slam

LoanDepot’s Grand Slam package offers up to $7,000 back after closing if you work with an affiliated real estate agent through mellohome and both buy and sell a home. The incentives are paid as a rebate of up to $3,500 after each transaction. The program also offers first-time homebuyers $1,000 if they buy through mellohome. The mellohome Grand Slam is not available in Alabama, Alaska, Iowa, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Oregon and Tennessee.

Compare LoanDepot to other lenders

LoanDepot
Rating: 4.4 stars out of 5
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4.4

Bankrate Score
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Ally Bank
Rating: 4.9 stars out of 5
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4.9

Bankrate Score
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Read full review

Cardinal Financial

Rating: 4.8 stars out of 5
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4.8

Bankrate Score
Info
Read full review

Loans offered

Conventional, jumbo, FHA, VA, fixed-rate, adjustable-rate; rate-and-term and cash-out refinancing; construction and renovation loans

Loans offered

Conventional, jumbo, fixed-rate, adjustable-rate; rate-and-term and cash-out refinancing

Loans offered

Conventional, jumbo, FHA, VA, USDA, fixed-rate, adjustable-rate; refinancing; construction and renovation loans; investment property

Min. credit score required

620 for conventional loans, 700 for jumbo loans, 580 for FHA loans, 620 for VA loans

Min. credit score required

620 for conventional loans, 700 for jumbo loans

Min. credit score required

580 for conventional loans, 550 for FHA loans, 550 for VA loans, 580 for USDA loans

Down payment

3.5% for FHA loans

Down payment

3% for conventional conforming loans, 10.01% for jumbo loans

Down payment

3% for conventional loans; 3.5% percent for FHA loans; none for VA loans and USDA loans

Nationwide availability

Available in all U.S. states

Nationwide availability

Available in all U.S. states

Nationwide availability

All U.S. states

LoanDepot customer ratings and reviews

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NMLS: 174457

3.7

Rating: 3 stars out of 5

819 ratings

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This lender has 14 reviews.

Knowledge
Rating: 3.9 stars out of 5
Level of service
Rating: 3.9 stars out of 5
Professionalism
Rating: 3.7 stars out of 5
Responsiveness
Rating: 3.8 stars out of 5
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63%
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29%

68% of customers would recommend this lender.

of 14 reviews

The consumer reviews posted on Bankrate.com ("Bankrate") are individual, subjective opinions of reviewers, and not of Bankrate. Bankrate does not endorse any of the opinions expressed by reviewers or any responses to reviews.

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To help serve you with relevant information, the consumer reviews shown below are limited to only those that this advertiser has received during the past 12 months.

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