What LoanDepot does and who it serves

LoanDepot is a mortgage lender that originates home loans directly to borrowers through an online platform and retail branches. The company does not service loans it has already sold — it originates new mortgages, sells most of them to investors, and keeps origination fees. You interact with LoanDepot to get a mortgage; you do not use it to pay an existing mortgage with another servicer.

LoanDepot operates in all 50 states and offers conventional loans, FHA loans, VA loans, and USDA loans. It also offers cash-out refinances and rate-and-term refinances for borrowers who already own a home. The company advertises low rates and fast closing timelines, though actual rates depend on your credit score, down payment, loan type, and current market conditions — not on LoanDepot's advertising.

The company is publicly traded (ticker: LDI) and is regulated by state banking authorities and the Consumer Financial Protection Bureau. It is not a bank; it is a non-bank mortgage lender, which means it must sell loans to banks or investors to fund new mortgages.

Key Takeaways

  • LoanDepot originates mortgages and refinances but does not service loans after sale, so you will make payments to a different company once closing is complete.
  • You can explore online, by phone, or at a retail branch, and the company publishes current rates on its website, though your actual rate depends on your financial profile and market conditions.
  • LoanDepot charges origination fees, appraisal fees, title fees, and other closing costs that vary by loan type and state — ask for a Loan Estimate within three business days of process.
  • The company offers conventional, FHA, VA, and USDA loans, so the loan programs available to you depend on your military status, income, and down payment amount.
  • If you have a complaint about LoanDepot's origination process, you can file with your state banking regulator or the Consumer Financial Protection Bureau.

Loan types and programs LoanDepot offers

LoanDepot offers conventional loans (not government-backed), which typically require a credit score of 620 or higher and a down payment of 3 to 20 percent. The company also offers FHA loans, which are insured by the Federal Housing Administration and allow down payments as low as 3.5 percent but require mortgage insurance premiums. VA loans are available to active-duty service members, veterans, and surviving spouses and require no down payment if you have full entitlement. USDA loans are for rural borrowers with moderate incomes and also require no down payment.

For borrowers who already own a home, LoanDepot offers rate-and-term refinances (you refinance to a lower rate or different term without borrowing extra money) and cash-out refinances (you borrow against your home equity and receive the difference in cash). Refinances have the same closing costs as purchase mortgages and take 30 to 45 days to close.

LoanDepot also offers jumbo loans for loan amounts above the conforming limit set by Fannie Mae and Freddie Mac. Jumbo loans typically require a higher credit score, larger down payment, and more documentation than conforming loans.

How to get a rate quote and explore

You can get a rate quote on LoanDepot's website by entering your loan amount, down payment, credit range, and state. The quote is not a binding offer and does not lock your rate. To lock a rate, you must formally explore and provide documentation.

You can explore online through LoanDepot's website, by phone with a loan officer, or in person at a retail branch. Online applications take 10 to 15 minutes and ask for basic information: your name, income, assets, debts, and the property address. After you submit an process, LoanDepot must send you a Loan Estimate within three business days. The Loan Estimate shows your interest rate, monthly payment, closing costs, and loan terms. You have the right to shop other lenders before you lock your rate.

Once you lock your rate, LoanDepot orders an appraisal and title search. The appraisal typically takes 7 to 10 days. LoanDepot then orders a home inspection (if you want one) and underwrites your loan — a process that takes 5 to 10 business days. Underwriting is when the lender verifies your income, assets, and credit and decides whether to approve the loan or ask for more documents.

Closing costs and fees you will pay

LoanDepot charges an origination fee (usually 0.5 to 1 percent of the loan amount), an appraisal fee (typically $400 to $600), a title search and insurance fee (typically $500 to $1,500), and recording and transfer fees set by your county. You also pay for a home inspection (if you order one), homeowners insurance, property taxes, and HOA fees (if applicable). The total closing cost is typically 2 to 5 percent of the loan amount.

LoanDepot publishes its fee schedule on its website, but the exact amount depends on your loan type, loan amount, state, and property. Some fees are set by third parties (the appraiser, title company, county recorder) and are not controlled by LoanDepot. Ask LoanDepot to explain each fee on your Loan Estimate before you lock your rate.

If you are paying for mortgage insurance (because your down payment is less than 20 percent on a conventional loan, or because you have an FHA loan), that cost is rolled into your monthly payment. FHA mortgage insurance is permanent if your down payment is less than 10 percent; it can be removed after 11 years if your down payment is 10 percent or more.

Timeline from process to closing

The typical timeline from process to closing is 30 to 45 days. The exact timeline depends on how quickly you provide documents, how fast the appraisal is ordered and completed, and whether underwriting asks for additional information. If you are buying a home, closing also depends on the seller's timeline and the title search.

After you lock your rate, LoanDepot orders the appraisal (7 to 10 days). While the appraisal is being done, underwriting reviews your process and may ask for pay stubs, tax returns, bank statements, or explanations of credit issues. You typically have 48 hours to respond to underwriting requests. Once underwriting approves your loan, LoanDepot orders a final walkthrough (for purchase loans) and prepares closing documents.

You will receive your Closing Disclosure at least three business days before closing. The Closing Disclosure shows your final interest rate, monthly payment, closing costs, and loan terms. You have the right to review it before you sign. Closing itself takes 1 to 2 hours and happens at a title company or attorney's office, not at LoanDepot.

After closing: who services your loan

After closing, LoanDepot sells your loan to an investor (usually Fannie Mae, Freddie Mac, or a bank). Your loan is then serviced by a loan servicer — a company that collects your monthly payment, manages your escrow account (property taxes and insurance), and handles customer service. The servicer is not LoanDepot.

LoanDepot will tell you the name of your servicer in your closing documents. You will receive a letter from the servicer after closing with instructions on how to make payments. If you have questions about your loan after closing, you contact the servicer, not LoanDepot. If you have a complaint about how the servicer is handling your account, you can file with your state banking regulator or the Consumer Financial Protection Bureau.

How LoanDepot compares to other mortgage lenders

LoanDepot competes with other non-bank lenders (Better.com, Rocket Mortgage, may provide Rate), banks that originate mortgages (Chase, Bank of America, Wells Fargo), and credit unions. Non-bank lenders like LoanDepot typically have lower overhead than banks and advertise faster closing times and lower rates. Banks typically have more branches and may offer relationship discounts if you have other accounts with them. Credit unions typically offer lower rates to members but have stricter membership rules.

The actual rate you receive depends on your credit score, down payment, loan type, and current market conditions — not on the lender's advertising. Two borrowers with different credit scores will receive different rates from the same lender. You should get rate quotes from at least three lenders before you decide, because a difference of 0.25 percent in interest rate costs tens of thousands of dollars over the life of a 30-year loan.

LoanDepot's main advantage is its online platform, which allows you to explore and upload documents from home. Its main disadvantage is that it does not service loans, so you will make payments to a different company after closing. Some borrowers prefer lenders that both originate and service loans because they have one point of contact.

Complaints and regulatory oversight

LoanDepot is regulated by the Consumer Financial Protection Bureau (CFPB), your state's banking regulator, and state attorneys general. If you have a complaint about LoanDepot's origination process — for example, if you believe the company charged you an illegal fee, misrepresented your rate, or discriminated against you — you can file a complaint with the CFPB at consumerfinance.gov or with your state banking regulator.

The CFPB publishes complaint data for all mortgage lenders on its website. You can search LoanDepot's complaint history to see what other borrowers have complained about. Common complaints about mortgage lenders include unexpected fees, slow closing timelines, poor customer service, and rate lock disputes.

If you believe LoanDepot violated fair lending laws (for example, by charging different rates based on race or national origin), you can file a complaint with the CFPB, your state attorney general, or the Department of Justice. Fair lending violations are serious and can result in fines and restitution to borrowers.

Frequently Asked Questions

Can I lock my rate with LoanDepot before I find a home?

Yes. You can lock a rate for 30, 45, 60, or 90 days while you are shopping for a home. The rate lock protects you if interest rates rise during that period. If rates fall, you cannot lower your rate unless you pay a fee to extend or re-lock. Ask LoanDepot about the cost of extending your rate lock if you need more time to find a home.

What happens if LoanDepot denies my process?

LoanDepot must tell you in writing why your process was denied and give you the right to see the information it used to make the decision. Common reasons for denial include low credit score, high debt-to-income ratio, or insufficient income. You can ask LoanDepot to reconsider if you believe the decision was based on incorrect information, or you can explore with a different lender.

Do I have to use LoanDepot's title company or appraiser?

No. You can use your own title company and appraiser, though LoanDepot may charge a fee to use a third-party vendor. Many borrowers use LoanDepot's preferred vendors because it simplifies the process and may reduce costs. Ask LoanDepot for a list of preferred vendors and their fees before you lock your rate.

What if my appraisal comes in lower than the purchase price?

If the appraisal is lower than the purchase price, you have several options: you can renegotiate the purchase price with the seller, you can pay the difference in cash, or you can walk away from the deal (if your contract allows it). LoanDepot cannot lend more than the appraised value, so you must close the gap yourself or the deal cannot close.

Can I refinance with LoanDepot if I have bad credit?

LoanDepot typically requires a credit score of 620 or higher for conventional refinances. If your credit score is lower, you may still be able to refinance with an FHA loan, which allows scores as low as 580. Ask LoanDepot about your options based on your current credit score and home equity.