Consumer complaint received 2024-07-23
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Changes in loan terms during or after closing
Company: NVR INC. (PA)

Due to a new job in XXXXXXXX XXXX  we decided to look into properties in that area. On XX/XX/year> we signed a purchase agreement with XXXX XXXX to proceed with the purchase of a completed construction of a single family home in a new XXXX development XXXX with a price of {$470000.00}. 

We were requested to provide $ XXXX upon signing, and $ XXXX within 30 days which we did. From the beginning we explained to them that we did not have more cash to use for this property because we were not prepared for it, and they said it was fine, they would work it out. 
We also stated to them from day one that the extra income was coming from my pension was not going to be deposited into our bank account until XXXX and for that reason we requested an XXXX date settlement. The settlement date is supposed to be on XX/XX/year>. 

They offered us to go with their preferred lender for a $ XXXX credit towards points. We submitted the loan application and started the process sending all required documents. XXXX was supposed to send us some documents for review within seven days of the Purchase Agreement signs, but by day 6 we had to send them a reminder that we hadnt received the documents and basically had no time to review them properly within a day of their dateline.

They sent us a conventional loan estimate and we asked for an FHA due to the fact that we have two other properties under the same income and the FHA would be easier to met the XXXX of 50 %. Then, they sent us the FHA loan estimate sheet. Their cost of loan in every of the 4 different loan estimates received from XXXX is excessive and we told them from the beginning that their closing costs were ridiculous, is like their credits are also added to the cost of the loan. 

Their feedback response was delayed over and over. They acknowledged in writing that the XXXX was technically over the 50 %, and we kept insisting that the XXXX must be up to 50 % with and FHA loan. 

Eventually they sent an email letting us know that the lot was FHA restricted, and our only option was conventional loan. At that point we had enough with XXXX and decided to apply, and submit, the purchase agreement through our preferred lender, XXXX XXXX XXXX XXXX XXXX ( XXXX ) which is our bank for the past 22 years. 

XXXX only approved us for a $ XXXX loan due to the XXXX. After talking to the loan officer from XXXX, she explained to us that according the Federal rules a conventional loan with over 43 % XXXX should NOT pass the underwriting process. She told us that the practices used from the seller were predatory, and we should not be bullied into using their preferred lender because later on we could be in serious financial distress. 

To show good faith, we submitted the purchase agreement, and applied to a loan, with XXXX  XXXX XXXX ( XXXX ). The response was similar to XXXX, that we can not afford a loan for {$460000.00}. XXXX mentioned that other lender would have similar responses as they follow XXXX XXXX guidelines. 

Last Friday, XX/XX/year>, we sent an email to the seller informing them that we were not going to use their preferred lender, and that our preferred lender only approved us for $ XXXX based on the XXXX. At no point, we have written that we do not intent to purchase the property. Yesterday, their response was that we must show intendent of using XXXX and close with them using their approved conventional loan offer, which is a conditional approval, in which certain conditions are not met. They mention that us not moving forward risk the default of our XXXX deposit and forfeit the $ XXXX Today, Tuesday XX/XX/year>, They send us another email saying that are failing to secure financial approval from other lender and we are obligated to use XXXX, otherwise we are at default in the loan process and we will lose our $ XXXX. 

This clearly violates our Ability and Repay the loan because other respectable lenders have only approved us for the amount we can afford, while XXXX is intimidating us into accepting their loan, that we can not afford, or lose our XXXX.