First time home buyer with LoanDepot
My husband and I are looking to buy a home in the SF Bay Area peninsula. Our budget is around 1.25M and we received a preapproval from LoanDepot. But now, my agent is telling me LoanDepot preapproval are taken less seriously than traditional banks and that could put us at a disadvantageous . I have an option to try and apply for US bank or Union bank. Is it worth doing that considering I already have a preapproval? Combined TC: 400k #mortgage #housing
There isn’t anything wrong with loan depot. Your agent is telling you this because they want your to use their loan officer. When you do that the agent gets a lil taste of the fees as a rev share. Everything in real estate is grifting. This whole not taking seriously thing is a straight up lie. The only real competition is cash versus loans that aren’t 80/20. For example 5% down might cause concern you won’t close on financials. You should shop around. Loan companies will negotiate.
The only wrong thing with loan depot is that they tend to take decades to close. That's totally fine for refinancing but for purchasing you better find someone else.
More importantly how does one buy a place in the peninsula for 1.25?!
beware of loandepot if you are buying. i recommend loan depot for refinance, but not for purchase due tk their extremely slow processing time. they are providing aggressive rates comlared to competitors, meaning their business is floodimg with people. I recently closed my refinance with them last week, and it took 3 MONTHS to close. It didnt bothered me too much as it was refinance, but i would have been flipping if it was a purchase where there is a deadline, which could potentially blow your earnest money.
Interesting, I would be careful of that
I had bad exp with loan depot on refinancing. They couldn’t close for 2+ months. I had to find another lender. Try quicken
I did hear several times that pre-approvals from "internet banks" (owning, better, loandepot) are usually not taken seriously. Pre-approvals from big *local* banks are preferred. Side note, budget of 1.25M for a sfh in the peninsula might be tight.
They are slow and mediocre customer service but you can present a pre-approval from one bank and use another for your mortgage. You're usually not under any obligation to use the same lender you included a pre-approval letter for
True but during the offer review, agents do pay attention to the lender on the pre-approval.
loandepot will not close on time, beware. You risk losing your earnest money.
Avoid using LoanDepot. As with a few others on here, I've had a bad experience with them that wasted my time and cost me $500. Reputable banks will often match rates they offer as the alternative I would recommend if their quote is the best.
DM me for a good loan officer at Wells Fargo. Very patient, gets things done on time and answers all the questions.
There is no harm in shopping around
We already did two credit pulls in the last 3 weeks, so I am worried about hitting the limit. Also, it seems lenders don't like knowing we talk to many lenders and they can see it at credit pull.
I think all credit pulls towards same thing is counted as one if done within a month. That's why it's called shopping around.