Consumer complaint received 2018-04-10
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: GUARANTEED RATE INC. (IL)

Let me start off stating I am very disappointed in my experience with Guaranteed Rate. I am a XXXX XXXX for a huge bank and chose to originate my first mortgage with Guaranteed Rate due to the overwhelming customer satisfaction experiences of other clients. To my surprise, after receiving a clear to close in XX/XX/XXXX and almost a 3 week notice of closing date, Guaranteed Rate dropped the ball by not having the final figures ready until after I showed up at closing, which is absolutely ridiculous when you have a 3 week notice of closing. 

Per numerous conversations with XXXX XXXX, the mortgage consultant ( and I hope recorded ) he had explained the 2 % grant from XXXX XXXX XXXX Home Possible could be used toward the down payment of the 3 % customer required amount for XXXX XXXX XXXX XXXX XXXX  program. He even told me I would most likely have to bring less than {$1000.00} to closing. I received an email on XX/XX/2018 from XXXX misleading me on the 3 2 5 Guaranteed Rate grant program and confirming my approximate cash to close would be about {$300.00}. The loan officer confirmed by email the 2 % grant could be applied to my 3 % contribution/down payment. I didn't receive a final settlement statement/closing disclosure until I was literally at the closing table and to my surprise my cash to close was {$4500.00}. XXXX was now saying the 2 % grant could not be applied to my 3 % minimum down payment. I was infuriated because this is not how the loan officer explained the 3 2 5 Guaranteed Rate program. This caused my final figures to be thrown off by not having enough closing costs to use all of the seller credit that I was given. 

To make matters worse, he didn't fully utilize the {$6000.00} seller credit that was agreed upon between the seller and me. I bought the down the rate to 4.375 % since it was originally locked in at 4.875 %. The seller was only required to give me {$5000.00} at closing because XXXX didn't let me know ahead of time that there would be extra seller credit left over that could've been applied to buying down the rate. Not only did I lose out on {$1000.00} of seller credit but I lost out on saving interest by not buying down my rate with the entire seller credit. The seller 's attorney would not allow me to delay the closing to buy down the rate and stated I was in breach of contract if I did not sign on XX/XX/18. Now I ask, why didn't XXXX quote me a lower rate to buy down the interest rate even more prior to closing? Why was there extra seller credit that given back to the seller? The loan office miscalculated how the 2 % grant would be applied and cause me to close {$1000.00} in seller credit that could have been used to obtain a lower interest rate. 

Buying a home is supposed to be one of the happiest days of your life and I was left at the closing crying because I had to come with cash to close that was not anticipated and lost money that was supposed to be given to me from the seller. How is it ok for a loan officer to mislead the customer to believe a credit can be applied towards a down payment then surprise the customer at closing by saying it can only be applied to closing costs?