LoanDepot is a considerable online lender that focuses on providing mortgages to clients throughout the United States. The firm's founder, Anthony Hsieh, is famous for creating many popular loan platforms. After selling your previous projects, LoanDepot is your most recent project. It remains privately owned.
While LoanDepot originally required human approval for certain types of loans, it has developed an automated system that uses a technology-based approach to streamline the approval process. If you are looking for a large online lender that offers considerable convenience, there is a possibility that LoanDepot is the right partner for you.
In addition to the company's online loan platform, there are also a variety of physical locations that customers can use to apply for loans in person. Unlike many online lenders, LoanDepot also serves customers who wish to go to a branch to apply for a loan. Currently, there are more than 150 LoanDepot locations across the country.
Let's delve into the deepest details of this unique lender.
Is LoanDepot a reputable lender?
One of the best ways to measure a lender's reputation is to look at his consumer sentiment. LoanDepot is accredited with the Better Business Bureau (BBB), which is one of the largest consumer watchdog groups in the country. The current rating of the company with BBB is an "A", the second highest rating available on the platform.
While there are many positive comments about LoanDepot in various consumer watchdog groups, it is important to keep in mind that the company has recently had to settle a court case in the state of New York. While many lenders face legal challenges, it is important to keep in mind that LoanDepot does not have a perfect record.
Either way, LoanDepot is a great lender with a broad customer base across the country. This is undoubtedly a legitimate credit partner if you are looking for an accredited mortgage company.
Is LoanDepot FDIC insured?
LoanDepot FDIC insurance status is slightly vague. While LoanDepot itself is not insured by the FDIC, the lender used for personal loans is insured by the FDIC. LoanDepot grants personal loans through Cross River Bank, a New Jersey-based lender.
The FDIC, which means Federal Deposit Insurance Corporation, is a corporation run by the United States government. Its main objective is to secure the deposits of depository institutions. The FDIC guarantees deposits of up to $ 250,000 for eligible institutions.
This insurance program protects consumers and instills confidence in the banking system. If you are someone responsible with your money, it is essential to work with an institution insured by the FDIC; It is the only way to guarantee your deposit.
Mortgage options with LoanDepot
If you decide to find a mortgage through LoanDepot, you are probably curious about what mortgage products they offer to their clients. Fortunately, LoanDepot has a wide range of mortgage products that can meet the needs of various types of borrowers.
You can find most of the main mortgage products at LoanDepot:
- Fixed rate mortgage
- Variable Rate Mortgage
- Jumbo Mortgage
- FHA loans
- VA loans
In addition to mortgages, you can also request refinancing mortgages. Again, LoanDepot offers fixed and variable interest rates for refinancing.
Unfortunately, you will not be able to find any USDA loan at LoanDepot. While the lender offers most popular government-backed loans, this is a notable exception. But don't worry, there are many other options available in the market.
LoanDepot previously offered personal loans to its clients, but recently stopped providing this service. It now offers mortgage-only products exclusively.
To start, go to your site and choose if you are buying a house or want to refinance, it's that simple!
LoanDepot Mortgage Ratings
LoanDepot has a minimum credit score of 620, but you must have a much higher credit score if you want to have the possibility of being approved for a good interest rate. The best interest rates on the company's website generally assume that it has a credit score of 740; You will also need a debt-to-income ratio of 35% or less.
In addition, the minimum down payment for a loan is 3.5%. Again, you will need a very high credit rating to access this low down payment.
In terms of rates, LoanDepot is quite reserved about its financing rates. It seems that the company sometimes imposes a rate of between 1% and 5%. The upper end of this range is extremely irrational when compared to other mortgage lenders in the market. It is a good idea to clarify any fees before applying for a loan at LoanDepot.
Pros and cons
There is no perfect lender. If you want to make sure you choose the best lender for your mortgage needs, it is important to understand the advantages and disadvantages of each provider. Next, let's explore the advantages and disadvantages of LoanDepot.
- You can pay your mortgage online
- You can apply for a loan with a credit score of 620
- You can complete your complete loan application online
- The firm offers loan applications online and at the branch
- LoanDepot has a strong reputation in consumer watchdog groups.
- Backed by an experienced mortgage loan team
- There is the possibility of high loan rates
- No USDA loans available
- You need a high credit score to access the best rates from this lender
Verdict: Is LoanDepot Mortgage right for me?
The answer to this question will depend on your financial situation and the type of loan you expect to obtain. While LoanDepot offers a wide range of mortgage products, it is inconvenient that there are no USDA loans available.
If you have a good credit score, you can access a good interest rate. Unfortunately, rates can be quite high with LoanDepot. Either way, if you decide to work with LoanDepot, you will partner with a lender that has a solid reputation with consumers.