LoanDepot is an online direct lender of mortgage loans that states they can help current homeowners refinance their mortgages as well as provide loans at low rates to new homeowners.
Updated daily rates can be found on their homepage and users can also generate custom rates for a more accurate snapshot with the online rate tool.
How Does it Work?
There are three methods available to obtain a quote, get pre-approved and apply for a loan.
First, you can apply online; second, you can send your contact information through their online request form; third, you can call them directly to speak to a mortgage banker.
These bankers are also able to answer any questions you may have and help you select the loan option. Available loan options include fixed, adjustable, jumbo, and FHA mortgages.
The LoanDepot website is equipped with an array of interactive tools and resources. These tools are provided to help their customers and other website visitors understand the loan process.
They feel it's important for consumers to have a quickly accessible database of information to make better decisions and prepare for what they may expect while proceeding forward with a loan.
There are a multitude of mortgage calculators, articles and glossaries. They also have online videos which can be found in their VideoDepot library.
The visual content walks you through each step of the loan process and describes exactly how their program works.
LoanDepot Customer Reviews
There are mixed reviews online regarding LoanDepot's business practices.
Some customers found the rates, service and processing to be much better than similar companies. Still, there were other customers who were highly dissatisfied and regretted applying for a loan through Loan Depot.
What these customers encountered is actually a common complaint of many other online direct lenders as well, such as QuickenLoans.
It seems as if these companies share a common underlying issue when it comes to closing loans. They claim that they can close loans within a short time frame, but the findings show that this is not the case.
LoanDepot claims they can close loans in under thirty days; however the duration of the process took as much time as the customer’s rate lock was valid for.
As the rate lock expiration date approached customers were completely in the dark. They did not receive returned phone calls, status updates, or any communication of issues that had surfaced.
In the end, some of these individuals lost their rate lock, their appraisal deposit, and the home they wanted to buy.
The Bottom Line
The convenience of online loan processing is attractive as it may seem, may not be a reliable approach to a transaction of this sort. An important purchase of this magnitude is probably better off conducted in a face-to-face interaction.
Being able to track the progress is a lot easier because you can actually visit a physical location to speak with someone.
Review the online lender if you are considering applying for any type of loan before making the attempt to do so.
If you have any experience with Loan Depot or their services, please leave your reviews below.
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LoanDepot Customer Reviews
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