Consumer complaint received 2020-06-29
Company: GUARANTEED RATE INC.
State: TN
Product: Mortgage
Sub-product: VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
On XX/XX/2020 I obtained a pre approval for a mortgage loan through Guaranteed Rate Mortgage. This was to be a VA loan. It was to close on XX/XX/2020. The appraisal had already been completed and the earnest money had been paid. There was a delay due to several factors : 1 ) the mortgage lender rep XXXX XXXX had XXXX and his wife had a XXXX  and the closing was pushed to XX/XX/XXXX. 
2 ) in XXXX, the company stated they wanted to get the DTI ratio down from 52 % to below and requested that my wife put an interest free account in her name in the amount of {$4600.00}. She did this to help secure the loan. 
3 ). On the day of closing on XX/XX/XXXX, we were informed that the company was seeking an exception for the loan to go through and asked for an additional week, putting the closing out to XX/XX/2020. 
4 ) On XX/XX/2020 I received a denial notice stating that my DTI was too high both before the loan and after. These were listed as excessive debt and insufficient income. 
5 ). I requested that the {$650.00} paid for the appraisal be refunded. They refused stating that I would only have gotten that back had they closed the deal. Emails indicated that when I paid this it would be returned to me. It did not specify that only if the deal closed. 
6 ) Guaranteed Rate has failed to communicate well throughout the entire process. I have contacted people all the way up through the general manager without response. 
7 ). I lost the opportunity to purchase the home I wanted. 
8 ) Guaranteed Rate Lists that they have an XXXX rating through the XXXX   and that they are accredited. Neither of which is true. 
9 ). I finally obtained a copy of the appraisal on XX/XX/2020 along with information from my own employer. They refused to give me documentation regarding their decision and my income as required by the Frank Dodd Act in terms of any validating information as to why they denied the loan. 
10 ). I am in contact with a new mortgage company who informed me that they had to request a certificate of eligibility from the VA. This should have been done during the almost 60 days the loan process with Guaranteed Rate was involved. They have not given me information as to why it did not properly go through certification with the VA. 
11 ). I feel like the company claimed to be able to do something they could not do. They took my money, had me jump through hoops and were lacking in customer service, communication and ethics. To lie and state on your website that you are accredited with an XXXX  rating and not be ; and to never file for the VA eligibility is unethical at best. 

I would appreciate your help in not only getting compensated for at least the {$650.00} for the appraisal but also to keep this company from doing this to others. On their website there are clearly realtor friends who have given them positive feedback, again something very unethical. They state they have a net promoter score of XXXX but I can not find anything to support that either. 
They in all took money from me, had me refinance an interest fee loan and put them on my wifes credit cards ( my payment was only XXXX a month ). The only other credit I had outstanding is approximately {$15000.00} on a car loan which is {$340.00} per month. I do not understand wherein they state the car payment alone is excessive debt. I make {$13.00} an hour and work 40 hrs a week ( that does vary some in XXXX and XXXX because it is A XXXX XXXX business ). However I am also slated for an increase to at least {$15.00} an hour in XXXX. I provided them copies of my paystubs on the first day of my application earlier in XXXX. It shows the YTD income. I also provided three months of paystubs showing 40 hrs a week ( there was a week or two I was affected by Covid but my employer compensated me {$860.00} for that time. Somehow they determined in a method of average to count my income as being {$1500.00} a month instead of actual income. I have excellent credit ( XXXX ). It was XXXX when credit was first pulled. I would never not pay my mortgage. I pay my rent and have never missed a payment. I have had a mortgage in the past through the VA and through a credit union, all of which were paid in full. 
Anything you can do to number one : get my money refunded and make sure these crooks do not continue to harm the hard working American people. 

I can send you emails and appraisal reports etc if you need it but please let me know I am attaching the XXXX  site where it shows they are not accredited and the site where they claim they are. I am also attaching the approval letter and the denial letter.

Company response to consumer: Closed with explanation