Consumer complaint received 2019-12-31
Company: Home Financial Corporation
State: VA
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
On XX/XX/2019 we applied for loan with Home Financial Corp. XXXX XXXX XXXX XXXX XXXX XXXX XXXX VA XXXX to see if we can get approved to buy a home, we provided all the information and paperwork they asked for, like Job information credit report etc. On XX/XX/2019 we received a letter from them that we have been pre-approved for the loan amount of {$370000.00} at the rate of 3.5 % the loan officer XXXX XXXX called us and assured, that our application has been approved and that we should go ahead and start to look for a home. 

Trusting her we stated the process, after few days we found the home we like, it was a condominium listed for {$280000.00} we knew that we have been pre- approved for the loan amount of {$370000.00} so there should be no problem getting approved for a lower amount, we were confident that we will get the loan. We made an offer to the property, and it was accepted we were very excited and started to take the necessary steps we need to take, such as signing of our apartment lease, buying new furniture for new home, packing stuff etc. 

During this time we did not hear anything from our loan officer, so after couple of weeks we called the company to see how thing are going, the office manager told us that everything is on track, nothing to worry about. After few days we called back again to check, we were told that she is very busy but she will be working on our loan and will call us back, but she never did, after few days we called again and left a message, this went on for days, it became just like a second job to us, every time we called she was either out of office or busy with other client, we were getting nervous as the closing day was fast approaching. Our Agent calling us to get th
e Final Loan Approval Letter before the contingency date expires. Finally we got a call from her, she told us that she has switched our loan from conventional to FHA loan since that will be more suitable for us, we agreed since as a first time home buyers we were unfamiliar with home buying process, then very close to the closing day she called us again and told us that she is switching back to conventional loan and that, we will have to put down 10 % down and the interest rate is going to be 4.99 % we were shocked, but since we were already packed and signed off our apartment lease we agreed to go ahead with higher interest rate and larger down payment. We borrowed money from our friends and family, told her to go ahead with the conventional loan, the final loan approval contingency date was coming close, but we were still not getting the final approval letter.

One day before the Final Loan Approval Letter contingency deadline we told her that if we dont get the final approval letter we should withdraw from the contract so that we dont lose our escrow money, but she told us not to worry, she is working on it and the loan will be approved.

Few hours before the deadline she told us the loan has been electronically approved in the computer and we should tell the other party that they will get the approval letter tomorrow.

Next day we kept calling her all day, then in the evening we were told that our application has been denied, the reason given was our low credit score.

It was a shock to us. We did not understand that how we got approved for the loan amount of {$370000.00} and then denied for {$280000.00} loan amount with 10 % down. 
Next day our Agent XXXX XXXX Associate Broker for XXXX XXXX called us to sigh the Release of Sales Contract and Deposit agreement and told us that if we dont sign, the seller will sue us and then we have to pay additional fine & penalties etc. We lost our escrow money The whole scenario was inconceivable & shocking for us, as a first time home buyers we were totally unfamiliar with the home buying process.

We belief that due to their careless, unethical and unprofessional practice we have lost our escrow money. We believe that were misled and miss treated.

To resolve the problem, she must pay us {$4100.00}, which includes : escrow money in the amount of {$3000.00} ; home inspection fee {$500.00} ; Appraisal fee {$650.00}.

Enclosed are the copies of canceled checks of those.

I look forward to your response and a resolution to this problem and will greatly appreciate your help in this matter. 

Sincerely, XXXX XXXX XXXX XXXX : XXXX XXXX

Company response to consumer: Closed with explanation