Consumer complaint received 2018-04-01
Company: American Financial Network Inc.
State: CA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
To Whom It May Concern : On XX/XX/XXXX, I signed a contract to purchase my first home. The home is in a XXXX development and they offered to cover {$8000.00} of closing costs to if you utilized their on-site lender. I tried to negotiate an exception with the same structure using my lender, as I trusted him ; however, the builder would not except. I secured my lot with {$1500.00}, with the understanding that it would be refunded at closing. The lender, American Financial Network,  approved my loan as an FHA 30 year fixed with monthly payments ; including p and I, taxes and mortgage insurance and home owners insurance. My payment was negotiated first at approximately {$1400.00} with a 4 % interest rate. I provided all requested documentation and satisfied all debt paydowns. I was approved for a grant to assist with my down payment ; including the additional {$8000.00} from builder. 

My house was scheduled for completion in XXXX. Due to uncircumstantial situations, the move in date was delayed until XXXX XXXX. About a month prior to closing of escrow, my lender, advised me that I needed to complete a new application as there was a system glitch, to pay off additional debt in the matter of days which was not acquired after the intital approval. Im addition, I had to come up with {$3000.00} to place in an account for three days to get approved. A week from closing, I was asked if I had selected a home owners insurance provider ; which of course I hadnt, as it was my first time hearing of it. I scrambled on a Friday afternoon obtaining three different quotes and realizing I needed my appraisal to generate the quote ; which I had to go back to my lender to get. Monday. And quickly and my lender contacted me for the insurance selection. I provided her the with my selection and she then informed me that the fha guidelines required a limitation on the fees which I wasnt aware of. Therefore ; I was obligated to proceed with their insurance provider. 

To make matters worse, I receive a call to sign loan docs on a Friday afternoon which was supposed to be that following Monday ; which my mom was going to to attend to explain things to me. Anyhow, I quickly rush over to sign, thinking Im going to meet with lender to review documents and explain them to me as again this is my first time buying a home. Comes to find out when I arrived that the hired notary was the only one there. The documents indicated {$700.00} was due at closing. Unbeknown to me, I was completely confused as I was supposed to be receiving my deposit back, not owing. My payments and APR increased to {$1700.00} per month with a 4.75 % APR. I was advised if I didnt sign I would not receive my keys. Time was of the essence as I had to be out of my rental so with hesitation and confusion, I signed. The lender said she would revise the closing instructions. 

I received {$320.00} back and a payment which is unaffordable. I tried to contact my lender, the company no longer existed, my file was shipped to XXXX, my agent no longer worked at the location and no one could talk to me. After reviewing my loan documents with an educated individual, I realized that a new application was unnecessary, I was not granted the closing costs as stated, I paid for the warranty that my builder was supposed to pay for. 

I feel completely taken advantage of and upset at myself for not taking the time to educate myself on the process. I trusted that the lender would advise me in the right direction being that this is my first home and Im a single mom. I hope others do not have to experience the same thing.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation