LoanDepot

Mortgage Basics

Mortgages are large, long-term loans issued by banks, online lenders, and other financial institutions to enable consumers to purchase a home. These loans come in many shapes and sizes, with the most common being 15-yea mortgages and 30-year mortgages.

The time period denotes how long the loan will be from the borrower’s first payment to the last. While 15-year mortgages often have a higher monthly payment than their 30-year counterpart, they will cost much less in interest over the long run. However, consumers who want to lock in a lower, more affordable monthly payment often choose 30-year mortgages to ensure they can afford them.

In general, mortgages either charge fixed or variable interest rates. Fixed-rate mortgages charge the same rate over the loan’s entire life and are generally the most popular choice. Variable-rate mortgages begin with a fixed rate for a few years, and then the rate adjusts to where the market stands. In falling rate environments, variable-rate mortgages may be a good fit, and fixed-rate mortgages can hedge against inflation in rising rate environments.

LoanDepot’s Approach

When you start working with loanDepot, their deep industry expertise is immediately apparent. Since 2010, they have originated more than $275 billion in consumer loans across their new home and home refinancing lending arms. Since their founding, they have become one of the largest and most reputable online lenders on the market. 

However, loanDepot may not be for everyone. At the moment, they offer plenty of loan options, including conventional, jumbo, and FHA loans, but they do not provide USDA-backed mortgages.

Working with loanDepot is easy because they walk new customers through seven dedicated steps to help improve your chance of finding a loan that fits your needs and budget and prepares you for each component of buying a home.

loanDepot’s 7 Steps

• Identify how much you can afford – before you apply for a mortgage, loanDepot will walk you through some screening questions to identify how large of a mortgage you can reasonably afford.
• Choose the ideal loan for your needs – Aside from USDA loans, loanDepot has plenty of loan types for you to research so you can find a loan you are comfortable with.
• Find a real estate agent to start shopping for a home – Since loanDepot is a large, online loan originator, you have plenty of options to choose a real estate agent that you prefer to work with.
• Review your loan application and ensure your profile is up to date – Once you have your agent and ideal mortgage in mind, you can apply for a mortgage.
• Lock down your mortgage rate – Once you submit your application and receive approval, you can choose the terms and rates that fit your budget.
• Home appraisal and inspections – After you find a home you are want to put an offer on, conduct the necessary due diligence
• Final approval, signing, and closing – Finally, you can go through the closing process once you and the seller agree on the price and terms. 

Strong Borrower Resource Library

One of the most impressive components of the loanDepot website is its extensive library of guides and blog posts covering everything from buying a home to building a new deck. Many online lenders do not offer many resources for their potential customers, so loanDepot’s library is a welcome addition to its business model.