loanDepot is a direct mortgage lender with over 11 years of industry experience. It uses innovative lending technology to streamline the funding process from start to finish and boasts closing times that are 50 percent faster than the industry average.
To date, loanDepot has funded over $275 billion in consumer loans. It’s currently the fifth largest mortgage loan originator in the nation and specializes in home purchase and refinance loans. If you’re in the market for a new home, a home purchase loan from loanDepot could be a good fit.
How Home Purchase Loans Work
As the name implies, home purchase loans are used to fund the purchase of your next home. There are several options to choose from, depending on your unique needs, financial situation, desired purchase price and credit worthiness. loanDepot also offers home refinance loans if you are looking into saving money on your current mortgage.
How Much House Can You Afford?
loanDepot offers a free mortgage calculator on its website to help you determine how much house you can afford, or you can speak to a licensed loan officer. You’ll need to input your annual income, desired loan term (in years), projected interest rate, property tax rate and home insurance rate.
Types Of Home Purchase Loans offered by loanDepot
With loanDepot, you can access multiple types of home loans to purchase a house:
Fixed-Rate Mortgages
Fixed-rate home purchase loans come with 30, 20, 15 or 10-year repayment terms. You’ll get a monthly mortgage payment that doesn’t change over time, making your monthly payments predictable and easy to work into your budget.
Many conventional, fixed-rate loan products only require 5 percent down. But you may qualify for a down payment as low as 3.5 percent if you get an FHA loan. More on that shortly.
Adjustable-Rate Mortgages
Adjustable-rate mortgages (ARMs) offer lower introductory rates than what you’ll find in fixed-rate mortgages. As a result, they are ideal for homeowners who want to save a bundle in mortgage payments at the beginning of the loan to accomplish other financial goals.
But here’s the catch: the interest rate will likely increase over time, so you want to either sell your home or refinance into a fixed-rate mortgage in the first few years. Otherwise, you could find yourself stuck with a steep interest rate that continues to climb and spending a fortune on interest.
There are 10-, 7-, 5- and 3 Year ARMS. Each is notated as 10/6, 7/6, 5/6 or 3/6 – the first digit is the number of years the introductory interest rate is available, and the second digit is the frequency in which the rate can change following this period. So, a 7/6 ARM means you’ll get an initial interest rate for the first seven years, and the rate will adjust annually after this point.
You could get approved for an ARM with just 5 percent down (or 3.5 percent if you get an FHA loan).
VA
VA loans are backed by the Department of Veterans Administration and offered by approved lenders. These loans cater to active-duty military and veterans who meet specific qualification criteria.
You could get approved with no down payment, and there’s no loan limit (this applies for 2022 only) or PMI requirement. Plus, the rates are competitive, and these loans have less stringent requirements than you’ll find with traditional mortgage products.
Closing costs are relatively low but include a funding fee that can be rolled into the loan. This means you can come to the closing table with little to no cash.
FHA Loans
FHA loans help make the dream of homeownership a reality for borrowers who can’t afford a large down payment or who’ve had past credit challenges. It’s backed by the Federal Housing Administration and requires a down payment of just 3.5 percent to get approved if you have a credit score of 580 or higher. (If your credit score is between 500 and 579, you’ll need a 10 percent down payment).
The downside is you’ll pay mortgage insurance for the life of the loan unless you refinance into a conventional home loan product. You’ll also pay a funding fee at the beginning of the loan – some lenders let you roll this amount into the loan.
There are also limits on the amount you can borrow for a new home purchase. The loan limits for 2022 have increased to $420,680, but you could get approved for as much as $970,800 in high-cost areas.
loanDepot Mortgage Rates and Fees
loanDepot does not advertise mortgage rates and fee schedules as they vary by loan product and customer. However, you can submit an online inquiry or reach out to a loan officer by phone to get a rate quote. Since the fees and costs of getting a mortgage vary by loan product and what you qualify for, it is best to connect with a licensed loan officer from the loanDepot team to learn more.
What Documents Are Needed For A Home Purchase Loan?
You’ll need these documents to start the loan process:
- Paystubs for the last 30 days
- W-2s for the previous two years
- Bank statements for the prior two months
- Asset statements for any other funding sources that’ll be used to close your home loan
The underwriter may require additional documents from you. Hence, it’s best to inquire about any other documents you may need before applying.
How Long Does It Take To Get A Mortgage?
It generally takes between 30 and 60 days to close on a home loan. However, delays can occur and push back the closing date.
Purchase Your House With loanDepot
When you’re ready to apply for a loan, see what loanDepot has to offer. Get started today by submitting an online inquiry to connect with a loan officer in your area. It only takes a few minutes of your time, and you can discuss your needs and review personalized rate quotes.
