loanDepot Review: What Military Borrowers Need to Know

Are you thinking about purchasing a new home? If so, you have no doubt thought about home loans.

Buying a home is very exciting, but getting the right home loan tends to take away from the excitement.

More often than not, it depends on the type of lender you choose.

Military personnel have access to a range of lending options, and determining which one is the right fit takes a little bit of research.

Choosing the right lender and the right loan program for your dream home can mean saving thousands of dollars and freeing up money that you can use to finance other projects.

Conversely, choosing the wrong lender can make the entire process of acquiring a new home a nightmare. You’ll end up spending much more than you expected.

Read on to learn more about loanDepot and how it can help you find the best loans for your specific needs.

What is loanDepot?

Founded in 2010 and headquartered in California, loanDepot is a national consumer lender and financial services company.

It focuses on matching borrowers and lenders through its online platform. The company’s goal is to help customers find the best mortgage rates and loans quickly and easily.

loanDepot is currently available in at least 300 locations across the United States.

These professionals abide by a “no-steering” policy. That means they aren’t incentivized to sell one loan product at the expense of another.

Loan terms normally range from 10 to 40 years, depending on the type of loan you choose. To get a quote, you need to apply on the loanDepot website. This won’t affect your credit score.

loanDepot Loan Options

loanDepot gives you access to a wide range of loan options.

This includes home purchase loans, home mortgage refinances, home equity loans, and access to personal loans through third-party lenders via their online platform. Let’s take a more in-depth look at each of the loan options.

• Home purchase loans:  loanDepot is a direct mortgage lender, giving you access to competitive rates and faster closing times. There are a wide selection of home purchase loans to choose from, including fixed-rate mortgages, adjustable-rate mortgages, Federal Housing Administration (FHA) loans, the U.S. Department of Veterans Affairs (VA) loans and Jumbo loans.
• Home mortgage refinances: If you wish to refinance your existing home loan, loanDepot has you covered.

Besides home purchase loans, loanDepot also offers refinancing options including rate-and-term refinances and a cash-out refinance option.

If you have sufficient equity in your home, you can refinance your mortgage and take a part of the rest of the equity out as cash.

It’s also worth noting that this company has a Lifetime Guarantee program, in which it waives lender fees and refunds appraisal fees for subsequent refinances.

• Home equity loans – loanDepot offers fixed-rate second-mortgage loans. With these types of loans, you can borrow up to 90 percent of your home’s value. You can borrow between $35,000 and $400,000 with terms available in 10, 20, or 30 years. Closing is normally done in a couple of days, and you don’t have to refinance your first mortgage.

To be eligible for a loanDepot loan, you must meet the following requirements:

• Be a U.S. citizen or permanent resident
• Be 18 years or older
• Have a verifiable bank account
• Have a verifiable income
• Have a valid email address
• Meet the credit requirements

loanDepot Application Process

The loanDepot application is simple and straightforward. You can do it online or over the phone. You’ll need to provide some basic information, including:

• Name
• Birthdate
• Social Security number
• Address
• Email Address
• Employment information
• Bank details
• Supporting documentation

loanDepot Mortgage Products

We’ve seen that loanDepot offers a wide range of mortgage products including Jumbo loans, FHA loans and VA loans, as well as fixed- and adjustable-rate loans for home purchases and refinances.

loanDepot also offers a home equity line of credit (HELOC). A HELOC lets you borrow against your home’s equity as needed, similar to a credit card, and only pay interest on what you use.

Benefits

• loanDepot offers a home equity loan program.
• It is one of the most active lenders of VA loans and FHA loans in the U.S.
• It has over 300 affiliated stores across the country for customers who prefer face-to-face service.

Disadvantages

• It allows for a wide spread of possible fees. Origination fees normally range from 1 to 5%, depending on the loan type
• Some important aspects could be improved on the online platform.

Final Thoughts on loanDepot

Getting the right home loan lender can make a long-term difference to your finances.

As you shop around for a VA loan, you need to look closely at what each lender has to offer.

loanDepot makes it easy to compare different lenders and choose the best one for your needs.

Its wide range of home loans and convenient online application make it an all-inclusive solution, if you are not looking for any specific attributes in a home loan provider.

However, if you are looking to cut down fees and interest rates, loanDepot may not be helpful. But that’s not the purpose of the platform. Its focus is to connect you with a mortgage lender that best meets your home purchasing needs, not to get you discounts.

If you’re looking for a VA loan, loanDepot is a strong candidate, offering online and in-person assistance as you begin the home buying or refinancing process. Check out the loanDepot website here.

Equal Housing Opportunity. The Department of Veterans Affairs affirmatively administers the VA Home Loan Program by assuring that all Veterans are given an equal opportunity to buy homes with VA assistance. Federal law requires all VA Home Loan Program participants – builders, brokers and lenders offering housing for sale with VA financing – must comply with Fair Housing Laws and may not discriminate based on the race, color, religion, sex, handicap, familial status, or national origin of the Veteran.