loan depot

I would think that collecting $500 from anyone who calls to inquire and is lead to believe they won't be charged until the loan goes through, could actually end up being quite a bit of extra money for some crooks, on top of whatever fees they are able to rip people off of in actually processing a loan for them. If anyone has an extra $500 laying around that you would not miss, I will gladly take it.

The $500 goes to the 3rd PArty Appraisal Companies, NOT Loan Depot. They have NO WAY of knowing the value of your home until an appraisal is done. No one does. It would be quite difficult to stay in the Loan Business if you are only paying Appraisers and NOT doing loans.

Also, to GMAKERLEY, not all MLO's are required to be licensed. Anyone can get a job at a Depository/Bank (B of A, Wells Fargo) and do loans without a license.

they were very pushy and wanted my credit card number to lock in rates.

Hi pizzanook,

With a credit score of 495, you won't be able to get a mortgage in the present market. It's better not to go for any kind of loan unless you improve your score.

Thanks

The $500 ($495) they speak of is credited back to you when your loan closes. I see no "clear" (as George implies) ways this company is ripping people off. No mortgage company would do a deal on a house that does not appraise on or close to what was indicated on the application.

Mortgage paperwork is extremely intimidating. It is your responsibility to understand something that can be very difficult to comprehend.

We are in the middle of this process for a refi, and we have all our numbers that we were given by phone on a spreadsheet. There were some mistakes on our paperwork that we caught. However, we also paid a $400 fee to another BigBank -- our existing mortgage company -- for a similar set of paperwork and ran into similar discrepancies. LoanDepot's set of number are better by a good clip. Our effective rate was higher with the BigBank, which is ridiculous because our credit scores are over 790.

We pointed out the discrepancies to LoanDepot, and they have addressed or fixed all but one of them. If the numbers change by any great degree (I can understand a few hundred dollars based on appraisal or other anticipated third-party fees), we will not close and will gladly walk away from $500 instead of thousands paid over 20 years. That said, LoanDepot has been a better experience overall compared with BigBank.

We received a phone call about our appraisal just one day after submitting our signed paperwork. My appointment was set for two business days from now. They asked me about one business day from now but I could not do that day. So, so far, no delays in processing at all.

The sales rep was a delight to speak with. And the loan officer supplied all her contact info and seems very pleasant.

I'll keep you updated on my experience.

pizzanook: Unfortunately, ALL lenders want a fee to lock in your rate. It's considered a payment in good faith for processing all the paperwork they will send you. And most, if not all, will claim to credit it back to you when you close.

They will have done quite a bit of work by closing. If they can't close a deal with you because your house value is $10,000 less than what you thought it was, refunding that initial fee probably isn't fair.

Now... BigBank has not yet charged my card. I anticipate they will. But again, I'd rather lose $400 than thousands over 20 years.

I am now having to take legal action against Loan Depot for breech of contract. They would not refi my home and kept demanding larger sums of cash from me. Then refused to refund my money and would not give me a loan all while i have equity in my house along with 20k cash and an excellent credit score. I recommend you stay far away from them.

perchy it seems like your attempt to refinance is going relatively smoothly - that's good, and your input here has been helpful, i'm sure to readers. i have to think that someone who considers his lender "pushy" to request a lock-in fee simply doesn't understand the process.

You have to make sure you are looking at the correct company, there is a loan depot and loandepot.com loan depot.com is based out of irvine, if you pull the information out of the bbb you will see they are a credible company they also have a link on the bbb "trust link" their customers post comments on their experience with the company.. this is with every company on the bbb.

Where is the "other" Loan Depot from? I am definitely working with the one from Irvine, Calif., and it has gone very smooth.

We are in our three-day rescission period. Our home appraised on the day we expected for $2k less than we estimated. Never the less, this did not affect our terms or ability for approval. They were very thorough about making sure they approved a good home/sold a good loan. They sought information from our HOA about the "community well" our home uses. And any change in numbers was in the bottom line....directly reflected by the amount of escrow we would owe and depending on our closing date and payoff amount. We had a "final" set of numbers that didn't reflect our last mortgage payment with escrow. On the day the notary showed up with paperwork (e-mailed to us in advance), the numbers then reflected that final payment with additional escrow, but with our next mortgage payment due March 1 instead of Feb. 1. (had we closed in December, we would have skipped January).

So....I have no idea how to estimate escrow, but every other number jived.

i find the web sites misleading that they advertise 2.9 interest rates - the man on the phone explained, "it's a 30 year loan and only fixed for 3 years it is not a 30 year fixed." He than states "it does state that it is a 30 year mortgage but does not say anywhere that it's a fixed loan i agree it
could have been worded better." The loan I am enquiring about is a fixed 30 year at 4.875 - he claims settlement charges are $3730 - title, escrow, credit report and appriasal and all lender charges no points (2500 3rd party costs)

Ryan, what was the reason they gave for not approving your refi? Was it the appraisal?

Sweetczz, I agree that all the "advertised rates" seem to never be realistic with any mortgage company for the average borrower. 30 year fixed at 4.875 sounds about right and pretty good. (That's what I got for my 20 year with no points.) I wonder if your escrow is based on closing by a certain date? It is the escrow number that changed for us and made our final number increase. But every other number tied to that final settlement was on or close to what they said initially.

Who did you get your loan with Perchy? What were closing costs? I thought the closing costs were incredibly low - makes me wonder. My boyfriend just closed on two homes and i think paid around 5 or 6 k or more per home. I'm wondering if i should lock in the rate while I'm loan searching?? They didnt say anything about my escrow being closed by a certain date so I guess it has to do with paying taxes this year for last maybe?

When you decide to take out a mortgage, the lender will offer you the option to lock the rate.

I have just gone through 3 months of utter hell working with Loan Depot and just walked away from the entire process. Misinformation, miscommunication, poor followup, and when one person doesn't have the answer they push you on to someone else. I don't think the statement, "things change in this business every day" is supportive of having to restructure a loan to my deficit because of the inability of the personnel to keep their stories straight. I am 54 years old, have been through numerous real estate transcations and this is the worst epxerience I have ever had.