Consumer complaint received 2020-09-30
Company: Fairway Independent Mortgage Corporation
State: KS
Product: Mortgage
Sub-product: FHA mortgage
Issue: Closing on a mortgage

Complaint:
My fianc and I are first time home buyers and we were very excited about purchasing a home. We were contacted by Fairway Independent Mortgage based in XXXX  XXXX, Kansas after submitting an application through XXXX on XXXX XXXX 2020. Our lender, XXXX XXXX, called us and was thrilled about helping us as we were. We submitted all of our information to XXXX and I also informed him that I was currently unemployed and have been for the past 9 months, however, I was going back to my old job and starting on XXXX XXXX. He told us that was no problem and that I only needed an Offer Letter from my company, which they gladly sent us. After calling our lender several times, I wanted to be assured that everything was going ok and I also informed him that we were looking for a house as we wanted to move out of our house quickly. He assured us, again, that it would be no problem and that we could look for a house. He sent us pre-approvals to go look for homes. We finally found a home that we were so excited about. Everything about it was perfect. We informed XXXX that we found a house and he was excited for us as well. We put an earnest check of {$1000.00} and also paid for inspector to inspect the house for {$430.00}. Before the inspection, I was emailed by XXXX and was told that we are currently going through an underwriter. Since we are new home buyers, I didn't know what an underwriter was. After googling what an underwriter was, I was in a bit of a panic and called our lender. I told him how I was very nervous about the underwriter. XXXX informed us on XX/XX/XXXX and said that everything would be ok and that we have already went through an automated underwriter and that the actual underwriter is just going through our information making sure the i 's have been dotted and the t 's have been crossed and that we are in good shape. He also said our credit score was fine and we didn't have a lot of debt either. After hearing this from our lender, we proceeded with an inspector on XX/XX/XXXX and paid the inspector {$430.00} that very same day. On XX/XX/XXXX, I get an email from our lender explaining to us that the underwriter might decline us because of my credit score and the unemployment gap. I was confused because this should have been informed to me in the very beginning since I informed XXXX about my unemployment gap. We already signed a contract with the sellers and also Fairway. I was given a break down of my loan estimate and everything seemed to go well that is until XXXX told us about what the underwriter said. He called me and told us that we were declined because my unemployment gap and also have a low credit score that wasn't FHA approved. Thankfully, the sellers had compassion and signed the cancellation contract for the house and gave us our earnest check back. However, we lost {$430.00} due to a lender not doing his job correctly. Had he informed us first about my credit score and also making sure that my unemployment gap wouldn't be an issue, we would have not looked for a home and spent {$430.00} for an inspection. He should have told us to wait until everything had came back ok and then look for a home or better yet, he should have made sure my credit score was FHA approved and also inform me that my unemployment gap would be an issue. He gave us false hope and we lost {$430.00} due to his negligence.

Company response to consumer: Closed with monetary relief