Consumer complaint received 2023-07-19
Product: Mortgage — VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: Freedom Mortgage Company (IN)

I am currently needing to refinance my home. Our lender has been our lender for some time now and our current interest rate on my XXXX XXXX loan is around 2.75 %. I reached out to the lender on XX/XX/2023, and was given an offer I couldn't pass up. I went ahead and had the lender begin the process. I would like to add that I requested a cash amount to be given as well, for a piece of land I am looking into purchasing, which is why I am refinancing, and because I am no longer able to work. 
My husband and I have some debt ( credit cards, personal loans, etc.. ) so I was told by the lender that all debt we owed would be paid off, excluding our vehicles and my home, in the amount of {$22000.00}. 
Next, I was told I would not have to pay any closing costs which is {$3300.00} per the lender. 
I was then told I would not have to make the first monthly payment. 
I also was told I had to lock the new rate in by paying {$340.00}, and the lender said I could just pay it with a credit card since they were going to be eliminating my credit card debt anyway. I paid for it and moved on with the process. 
I then had a termite inspection and report completed that I had to pay out of pocket for and get to them. 
I had to get my house appraised again also. The XXXX XXXX loan appraiser that happened to be next in line to appraise homes could barely walk up the stairs and could n't drive, so he brought a second appraiser with him that I was not aware of happening. They appraised our home for almost {$70000.00} less than the market value of approx. {$340000.00} and we have done several renovations and home improvements. He appraised it for {$270000.00} and the homes in our neighborhood are selling for almost {$400000.00}. We bought our home for approximately {$250000.00}, almost 5 years ago. 

I heard back from the lender ( customer service because I never heard from my loan officeXXXX again ) who never sent our appraisal documents and they said someone from sales would be contacting me with the appraisal amount and to go over the documents. The appraisal was completed on Friday, XX/XX/XXXX and I did not hear from anyone until Tuesday, XX/XX/XXXX. The customer service representative added that I urgently needed to get them paperwork for a personal loan, so they could get to closing the old loan. 

I ended up having to reach back out to the lender to be able to hear from the sales representative that was to be contacting me to go over the appraisal and send me the documents. The sales representative gave me two new options after the appraisal came back, because he said the appraisal was too low of an amount for them to assist with what they originally promised. Here are our 2 new options : Option # 1 Loan amount- {$240000.00} ( 90 % of appraised value ) Debts paid : {$22000.00} Cash back amount- XXXX XXXX Rate- 6.25 % Payment- {$1800.00} Option # XXXX Loan amount- $ XXXX ( 100 % of appraised value ) Debts paid : {$22000.00} Cash back amount- $ XXXX Rate- 6.75 % ( due to loan amount being above 90 % of appraised value ) Payment- {$2100.00} " Both options would still have you skipping 1 payment after closing. '' Our current loan : Current Payment {$1200.00} Monthly {$15000.00} Payments a Year 30 Year Loan {$460000.00} Total Loan Repayment