Consumer complaint received 2019-02-06
Company: GUARANTEED RATE INC.
State: CA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
On XX/XX/XXXX XXXX XXXX and I were approved for a XXXX ARM with specific outstanding conditions listed on a conditional approval letter sent to us by Guaranteed rate. Between XX/XX/XXXX and XX/XX/XXXX I worked with XXXX XXXX to get the required conditions satisfied in ample time for our scheduled closing of XX/XX/XXXX. 
On Thursday XX/XX/XXXX, I received a call from XXXX XXXX who has been working on our file in a Loan Coordinator position. She advised that the original underwriter on the file was no longer with the company, and a new underwriter had taken over and started from scratch having to re-underwrite the file. Due to that, there were some additional items they needed. She advised she would send me a list so I could obtain those and get them back to her. The list consisted of items I am not unfamiliar with and had fully expected we would need to provide at some point during the process. This was the first I had heard of a new underwriter on the file. All items were provided to XXXX to allow us to line up appropriately for our signing on Friday XX/XX/XXXX. There was no mention of the sale of the property we were departing aside from a request for an HOA statement for that property. 
On Thursday I met with our Real Estate Agent ( XXXX XXXX ) for a final walk through on the property we are purchasing and she mentioned as far as she was aware the only thing XXXX was waiting on was a conditional approval from the buyers on the property my family and I were departing at XXXX XXXX XXXX XXXX. I thought it odd that this was required since it had been discussed ( numerous times ) that we were to be ( and had been ) approved with both mortgage payments and using 100 % gift funds for the down payment on the property were purchasing and securing the loan for ( XXXX XXXX XXXX ). I had never seen a condition advising that, nor had I been told that by anyone at XXXX prior to my agent making a passing comment about it. Once again, I didnt think anything of it since we were moving along on the sale. 
XXXX XXXX called me that day and advised that was the only thing they were waiting on. As I was in the middle of some work projects I didnt think anything of it until later that night at which point I sent him an email asking why that was needed if the loan was not contingent on the sale of our property. He advised they needed to see that it was in fact under contract but not sold ( once again, the first time I had heard about that since it was made very clear early on that we needed to qualify with both payments ). I expressed my frustration at the fact we were never notified but pushed it no further since it was not an issue at that point. 
On Friday, we were notified that a property our buyers were selling had fallen out of escrow and they would not be able to proceed with the purchase of our property leaving us in a situation whereby XXXX would not move forward on our loan and thus not be able to provide the necessary conditional approval to XXXX allowing us to close. 
We lifted the final loan contingency on the property we were purchasing under the premise that provided we satisfied all conditions provided to us in the conditional approval our loan would fund and purchase be complete. We accepted that there were new conditions added and satisfied those in a timely manner. Further, our Real Estate Agent was advised by XXXX that we were clear to move ahead and lift the loan contingency. As we were never notified that the specifics of our loan had been altered to allow us to qualify ONLY if our property was being sold ; material information allowing us to make an informed decision on whether to lift the final contingency on the purchase of the property was withheld. 
Over the coming days XXXX and I worked with XXXX to try and restructure the loan to get it approved again. His only viable solution was a single premium PMI payment which would reduce our DTI to within allowable tolerance levels. We verbally agreed to this and requested the lender cover the ufront payment of approximately 7500 as we viewed it as their fault. XXXX verbally agreed to at least half. 
At an event the following night put on by our RE Agent we ran into XXXX and he gave us his apologies and said he would work on the credit but gave us no figure. He advised he would call me to discuss on XX/XX/XXXX ( he never did ). XX/XX/XXXX we were advised loan docs were drawn and we had never been told about the credit which ultimately amounted to XXXX. 
In the end we were put in a position where we either needed to come up with an additional XXXX OR lose our XXXX earnest deposit. XXXX too the stance that they got the loan done and were in no way at fault.

Company response to consumer: Closed with explanation