Consumer complaint received 2019-03-20
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: GUARANTEED RATE INC. (MA)

We applied for an initial loan with XXXX XXXX on XX/XX/2019 for 5 % down, a single loan, with no PMI at a 5.5 % interest rate. The initial conversation I had with XXXX was he assured us we could qualify for that loan based on our income. ( Most of these conversations are in writing but some were verbal promises ) I had applied to another lender to be on the safe side regarding loan options. The other lender mentioned loan limits in XXXX County which would make XXXX single loan with only 5 % down impossible. I contacted XXXX to inquire about the loan limits and he stated it was not true and he promised me again he could do the loan we applied for. XXXX did not submit the information that he was sitting on for over a month until 3 days before the commitment date. The initial commitment date was XX/XX/XXXX. We got conditional loan approval at the 12th hour on the commitment date but that is when XXXX stated he could not do the single loan we initially applied for, he would have to do a first and second mortgage and we only got conditional approval on the first mortgage. When asked why he explained it was a better option for us but no other explanation was offered. XXXX XXXX our Real Estate Attorney requested an extension from the sellers on commitment, which they granted to extend until XX/XX/XXXX. Over the weekend I frantically sent emails to all parties involved regarding this loan stating I was uncomfortable with this process since I didnt know what it would mean rate wise and payment wise given the change in loan structure. My emails went unanswered by all parties. Then Monday afternoon we are contacted by XXXX requesting a signature for the application for the second mortgage. He hadnt even applied for the loan at this point and the extended commitment date was that day. Again the commitment date came and went with no approval. Keep in mind at this point I had contacted XXXX XXXX several times inquiring about this issue and the impact on my family and she stated that she would continue to apply for extensions which for some reason without our knowledge never happened. Everyone kept reassuring me things would be fine. In every conversation I had with XXXX she stated she would continue to ask for extensions so our deposit would not be ask risk, so I am not sure why it was not done again on Monday night when every party knew we did not meet the commitment deadline. I am going to reiterate that I did not know that no one requested an extension. I did not approve not further requests for extensions, that decision was made between XXXX and XXXX without our knowledge. XXXX application for the second mortgage brought my husbands credit score below the threshold of being approved for the loan. We have the official denial letter. When we contacted XXXX yesterday regarding the denial only then were we notified that the extension was never requested and our {$27000.00} Deposit is at risk. I am asking all parties to make this right. None of the issues that have arisen are our fault and 90 % of the issues we were not made aware of until after the fact of this having a significant financial and emotional impact in our family. This has caused emotional trauma for us already. We attempted to contact XXXX and in a verbal disagreement over the phone we have been hung up on. We have a XXXX year old that we signed up for XXXX grade in the school system. We put a substantial down payment on a summer program for our daughter. We signed her up for activities out there. We paid for movers already for the day after our closing date. We will be at a financial loss already for these things we applied for and now based upon the inability of all parties to do the right thing and handle business in the appropriate manner we are now being told we can lose our deposit?