Consumer complaint received 2022-10-07
Company: GUARANTEED RATE INC.
State: NC
Product: Mortgage
Sub-product: FHA mortgage
Issue: Closing on a mortgage

Complaint:
Where to begin Guaranteed Rate, Guaranteed Nightmare!!! My problem with Guaranteed Rate ( XXXX XXXX XXXX XXXX, XXXX, NC ) began a few weeks into my loan process. As a first time home buyer, I knew the process wasnt going to be a breeze, but I never thought it would be a nightmare, which continued weeks after closing on our very first home. 

Throughout the loan process, there was a lack of communication amongst the mortgage consultants, VP, and others involved in my loan process at Guaranteed Rate. These individuals include VP/Branch Manager XXXX XXXX XXXX VP XXXX XXXX XXXX XXXX XXXX and XXXX XXXX XXXX Documents were requested, and received in a timely manner ( before requested deadline ), and I would constantly receive emails/calls asking for the documents. Once I stated documents were sent to the individual requesting them, they mysteriously located said documents this went on back and forth for weeks and weeks. Lack of communication. 

I understand that I changed jobs throughout the loan process from a XXXX XXXX  into XXXX XXXX, a job with a greater income, and this information was discussed prior to the change of employment with the XXXX XXXX, who even stated he would play around with the numbers to ensure financially I would be approved. He stated it would be no problem. 

I received a conditionally approved notification on XX/XX/XXXX. Shortly after, I spoke with a XXXX XXXX who stated that underwriting needed a few more documents to proceed to the clear to close status. These documents were submitted right away. The last document underwriting stated they needed, were statements for credit cards / loan balances that I needed to pay off in order to process my loan. I was specifically told by XXXX XXXX that these balances would be included in the cash to close, and the lawyer would write checks to XXXX XXXX XXXX XXXX, XXXX  XXXX, XXXX XXXX, and XXXX. The debt totaled {$3200.00}. ( Copies of the emails regarding the statements and balances sent to XXXX XXXX are available if needed ). After sending these emails, I spoke with the XXXX XXXX again, who stated these balances would be included in the XXXX and paid off at signing by the attorneys office. 

A few weeks went by, and I checked my credit card / loan accounts and noticed there was no activity. The credit cards/ loans were NOT paid off. I immediately contacted the lawyers office who handled the signing of documents ( XXXX XXXX XXXX XXXX of XXXX XXXX, NC ) and I spoke with XXXX XXXX, the paralegal who handled the signing of documents. XXXX stated that she had no knowledge of debt to be paid off, and stated the office does not mail checks to pay off debt. ( XXXX contact information is XXXX to confirm above ). I immediately contacted XXXX XXXX XXXX, and unsurprisingly, I was unable to get in contact with him, so I called XXXX XXXX. I told XXXX XXXX XXXX, who sounded very shocked as XXXX was the mortgage consultant who requested and received my debt statements, and stated the debt would be included in the closing and checks will be mailed by the lawyers office. I informed XXXX that the lawyers office has no knowledge of debt to be paid, and that XXXX stated the debt was not on the XXXX. XXXX then stated the lawyers office has the funds, and needs to send the checks. XXXX stated she would contact XXXX, and would let me know ASAP. I contacted XXXX about this matter on Friday, XX/XX/XXXX at XXXX pm. I received a call in the afternoon of XX/XX/XXXX from XXXX XXXX. 5 days later!!! I didnt expect a call on the weekend of course. XXXX stated the debt was not paid, and my cash to close should have been XXXX. I asked XXXX who made the mistake, and unsurprisingly, XXXX had no response. According to XXXX XXXX, the debt was on the XXXX, but not in the right spot. And whos fault is this? Why should I have gotten a sense of financial relief thinking I paid off my debt, when all along a simple mistake made by Guaranteed Rate made this sense of financial relief not true!! This company has been hiding behind mistake after mistake and lack of communication throughout the entire loan process. 

XXXX XXXX was advised by my realtor XXXX XXXX that her client ( me ) had no issue getting gift funds if needed. XXXX took it upon himself to delay closing to find out 100 % if gift funds were needed without even consulting me, even after XXXX XXXX strongly encouraged him to consult with me. Needles to say, I got gift funds less than XXXX hours after XXXX XXXX requested I do so. After receiving gift funds of {$6000.00}, which was wired to the lawyers office, I was instructed to bring a check in the exact amount of {$5600.00}. This amount and instructions for the certified check was provided by VP XXXX XXXX on the day of closing. ( I have a copy of this message if needed ). 

I was advised by XXXX XXXX that XXXX XXXX would call and put blame on my fianc and I for not submitting documents, when documents were sitting unread in the mortgage consultants inbox/ Again, here is where the lack of communication amongst Guaranteed Rate would occur. A week after closing, XXXX XXXX sent a message to XXXX XXXX stating XXXX didnt even need the gift money after all. Now that Guaranteed Rate failed to balance my CD correctly, gift funds were not needed.. ( I have a copy of this message if needed ). 

VP XXXX XXXX also sent a message 2 days prior to closing stating Good morning its XXXX XXXX, Spoke with XXXX and she is working with the underwriter to get your loan clear to close. She shouldve been in contact with you this morning I did speak with her. Thank you for signing the initial closing disclosure on Saturday. It did not have the payoffs for the items the underwriter asked to be paid off, they will be on the final closing disclosure that we received from the attorney. Please if you do not understand anything in this text message. Please give me a call. 
Thanks, XXXX XXXX I have a copy of this message if needed ) Closing was delayed for a week by the way, as XXXX was on vacation, XXXX XXXX disappeared for a few days, and I was unable to get in contact with anyone near the scheduled closing date. XXXX XXXX called after he reappeared and wanted to apologize for the lack of communication, and stated that he gave the tasks to others to complete as he was away, however the tasks never got done. ( I have cell phone records of the numerous unanswered calls if needed ) After closing on our first home, we continued budgeting as we all know buying a house is a major expense. In our minds, our loans/ debt were paid off ( according to Guaranteed Rate ) so we believed that we had a little extra money in our accounts to purchase items for our new home, such as missing appliances, furniture, necessity items, etc. Little did I know these loans/ debt were not paid off, so now we are stuck wondering what to do next. Had we known this, these purchases would have been made at a later time. I will say that this mistake made by Guaranteed Rate has caused us financial stress after closing, as we believed our mortgage payment was all we had to worry about. After all, if your lender tells you something, you should trust and believe them correct? We strongly feel Guaranteed Rate is responsible for this mistake, and encourage/advise them to not hide behind the wall this time. Had Guaranteed Rate not made this mistake, we would not be going through this disaster. 

To top things off, the Branch Manager/VP, XXXX XXXX XXXX XXXX will say however this deal has been a complete disaster from day one. To hear these words coming from the Branch Manager/VP himself is very disturbing and has caused extreme emotional distress to my fianc and I, as first time home buyers. 

On Guaranteed Rates webpage, right underneath the photograph and title of XXXX XXXX XXXX is XXXX XXXX personal mission statement. I say personal mission statement because the statement includes the following pronouns I, my, me The mission statement states As your trusted Guaranteed Rate Loan XXXX, my goal is to simplify the mortgage process, make your home loan experience easy to navigate and be available to you from application to closing. I take pride in thoroughly educating my customers throughout the mortgage transaction, so they fully understand their options and feel comfortable with their chosen loan program. Whether you are a first time home buyer or seasoned owner, you can trust me and my team with all of your home financing needs. Please reach out anytime using the contact information located on this page and use this website as a resource as you start your home financing journey. 

My fianc and I trusted him and his team with all of our home financing needs, which has turned into a complete disaster / nightmare. 

As eager as I am to publicly share my horrible home buying experience with the news media and others, as a business man, I have refrained from doing so for now, as I know how negative reviews can affect a business and its employees. I have attempted to contact Guaranteed Rate to resolve the issue, however I have been unsuccessful making contact. I have contacted the corporate office in XXXX Illinois, and I am very well prepared to escalate the matter further if no resolution arises. I am hoping for a resolution sooner than later. Thanks for making my first home purchase a nightmare.

Company response to consumer: Closed with explanation