LoanDepot.com: Loan Depot Review

Whether you need a loan using home equity, buying a vehicle, or just to make ends meet this month, finding a loan is frustrating and stressful especially when you need it right now! If you have poor credit, it can be difficult to secure any type of loan. If you have good credit, you might struggle finding a loan that isn’t charging ridiculous interest rates.

Loan Depot offers a variety of loan products that may take care of things financially when you aren’t able to. In this Loan Depot review we will look at what it takes to apply for a personal loan and what customers are saying about the company.

Non-banking finance companies have established themselves as a credible option for individuals with credit needs. In the crowded marketplace of mortgage lenders, LoanDepot has quickly emerged as a leading player with their bouquet of financial products and attractive interest rates.

Based out of Foothill Ranch in California, LoanDepot is a fairly new company, having been established in 2010. With their operations now spread in all 50 states, Loan Depot boasts of more than 130 branches employing well over 4000 personnel.

Business Model And Services Offered

Operating in the consumer lending business, LoanDepot offer a variety of financial solutions including mortgage, personal loans, home improvement loans, home mortgage refinance and purchase loans.

Individuals desirous of availing credit facility from LoanDepot can approach them online through their website, call them on their dedicated number or simply visit one of their 130 branches.

The company uses proprietary underwriting software to determine eligibility of applicants.

The loan amount, ranging from $5,000 to $35,000, is offered without any collateral. The interest rate on the loan amount is arrived at after considering a host of factors including an individual's credit history, payment history, and debt profile.

Currently the interest rate varies from 6.17% to 29.99% and individuals with an excellent credit profile stand to benefit from the lowest interest rates.

In terms of loan repayment, the period for it is set at 36 and 60 monthly payments. While LoanDepot does not offer shorter loan repayment terms, you would not be levied any fine or charges for prepayment.

Are You Eligible For A Loan From LoanDepot.com?

It is very easy to ascertain if you are eligible to apply for a loan from LoanDepot. If you fulfill the following criteria, you can approach Loan Depot for a loan:

  • You are 18 years of age or older;
  • You are a US citizen or a documented permanent resident in US;
  • You have a verifiable means of income;
  • You have a verifiable bank account;
  • You meet Loan Depot's credit criteria requirements

Do note, however, that meeting eligibility criteria does not guarantee a loan from LoanDepot, as that decision rests solely with the company.

How To Apply For A Loan?

​Applying for a loan from Loan Depot is a fairly uncomplicated and hassle free affair. You can either initiate the process on their dedicated website, or, alternatively, call one of their dedicated consumer lending specialists over phone.

The whole loan application process is designed to elicit certain relevant information from the applicant. They include the following:

  1. Your personal information including the full legal name, date of birth, address and email ID
  2. Social security number
  3. Bank account number
  4. Employment details
  5. Government ID

For individuals who are self-employed and cannot furnish salary slips as supporting document, federal tax returns for the last two years would work as a valid substitute.

Once the loan amount is approved, it typically takes 2-3 business days before the loan amount is deposited in your bank account. This time is taken to review your application and supporting documents for their accuracy and authenticity.

It is advisable that you quickly upload all the relevant documents in order to expedite the verification process.

Loan Depot Payment Information

Repayment of loan can be set up through an automatic monthly system whereby payments are debited from your bank account without any human intervention.

Alternatively, should you so desire, you can make repayments through a check. However, repayments through a check will incur a $15 processing fee. There are no fees or penalties for loan pre-payment.

For individuals who have availed loans from the company and find themselves unable to repay due to financial hardships, there is an initial grace period of 15 days. Failing the grace period, a late fee of $15 and an additional $15 for failed payment is levied on to the individual.

If the debtor fails to make payments within 30 days, LoanDepot alerts credit bureaus and works with collection agencies to recover the amount owed to them.​

You can always log in to your account to find out the current status of your loan(s). The Loan Depot sign in page is located at: www.loandepot.loanadministration.com or contact the Loan Depot Customer service phone number: 1-888-983-3240

The Fine Print

It should be obvious from the discussion above that Loan Depot is an attractive proposition for people with impeccable credit profiles. They can quickly avail loan amount at very competitive rates. The fact that LoanDepot's loans are unsecured is another advantage for a lot of people.

Similarly, the fact that you can apply for a loan for a variety of purposes including home improvements, credit card debts, small business etc is another factor that makes Loan Depot a preferred destination for many loan applicants.

However, people who have less than stellar credit record should be careful about the interest burden they would incur from LoanDepot. As mentioned earlier, the APR could go as high as 29.99% which is extremely expensive.

In addition, LoanDepot charges a so-called origination fee that can be as high as 5% of the total loan amount. This fee is arrived at on the basis of loan grade, and deducted from the loan amount at the time of disbursal.

Over and above the origination fee, LoanDepot charges a variety of different fees including check processing fees, and feels for late and failed payments.

In terms of services offered, while the reach of Loan Depot is spread throughout the country, there are inconsistencies based on state jurisdiction.

For example, New York mandates that applicants must avail the loans at 16% of less which automatically precludes a lot of individuals who might be willing to pay a higher interest.

Similarly, the interest rate for residents of Connecticut and Vermont is to be less than 12 per cent.

New Hampshire imposes a limit on both the loan amount ($10,000 or less) as well as the interest rate (less than 10 per cent).

Ohio and Massachusetts have a limit on the minimum amount that be availed as loan.​

Is Loan Depot Legit?

Regardless of the claims made by companies, the truest measure of the quality of their service can come only from customers who have bought their products.

In the case of LoanDepot, there are a fair number of disgruntled customers, especially about their unresponsive customer service and slow pace of verification process.

There are a fair few grievances detailing the experiences of customers who were asked to resend their documents multiple times. Similarly, there are a significant number of complainants who mentioned the arduously long waiting period for approval.​

However, the number of satisfied customers who were happy with the company easily outnumbers the negative reviews. Not to mention, a lot of satisfied customers probably aren’t going to go out of their way to leave positive reviews online.

The company makes good effort to resolve the complaints filed with Better Business Bureau, a fact that is reflected in their A+ rating from them.

What are your thoughts and experiences with Loan Depot?​