LoanDepot Mortgage Review 2023

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.

• Methodology

  Bankrate's expert editorial team collects lender information through a variety of methods. We contact lenders directly, and we also turn to regulatory filings and to assessments by third parties. Our research takes into account three main factors – affordability, availability and borrower experience.

  Bankrate's reporters and editors have decades of experience covering the mortgage industry. They're skilled at gathering information through interviews and by scouring regulatory filings. Bankrate evaluates more than 85 lenders for factors relating to affordability, availability and customer experience, assigning each a Bankrate Score out of five stars. Here's how we assess each of the categories:

  • Affordability. Loan cost is a deciding factor for many borrowers. We look at two metrics: 1) a lender's lowest advertised annual percentage rate (APR) based on Bankrate's sample scenario, which assumes a 740 or higher credit score and a 20 percent down payment, among other factors and 2) established-customer discounts or incentive pricing, when applicable.
  • Availability. Another factor is how quickly your loan application will be approved, and how many loan programs the lender offers. So we evaluate approval and closing timelines and diversity of loan products.
  • Customer experience. Finally, we delve into what it's like to deal with the lender as a consumer. We look at the lender's application process and availability of customer service support. We also consider the results of J.D. Power's 2022 Mortgage Origination Satisfaction Survey.

  Bankrate's editorial team confirms the accuracy of data at the time of publication. Our team is dedicated to maintaining the timeliness of information – the mortgage industry is changing constantly, so we regularly revisit these reviews to update them.

  Bankrate's methodology page spells out our rating process in greater detail.

Affordability: 4/5

Loan cost is a deciding factor for many borrowers. The affordability nature of loans differ from lender to lender, so comparing costs is key. Unfortunately, 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

Availability factors can make the overall mortgage-application process smoother or more challenging. 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

Customer experience factors can help you know what to expect when you work with a specific lender. Loan Depot 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. Still, 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.

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.

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.