Consumer complaint received 2026-05-27 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Application denials
Company: GUARANTEED RATE INC.
State: FL

Complaint narrative:
I am submitting this complaint regarding the handling of my clients mortgage financing process and the builder incentives tied to their home purchase contract. My clients entered into a purchase contract on XX/XX/XXXX, which included a builder incentive of {$7500.00} plus 2 % of the purchase price toward closing costs, contingent upon meeting specific financing and timing conditions. An addendum was provided stating that these incentives would be honored if the contract was signed before XX/XX/XXXX, including in cases where an outside lender was used. During underwriting, XXXX team confirmed via email that the clients will not be able to move forward until they have improved their credit, requiring a minimum XXXX score for cash-to-close eligibility. The email also states the clients had multiple derogatory items and recent late payments making approval unlikely within XXXX months, and that they would need to use all available funds for credit repair with insufficient remaining for down payment. Despite this written determination, the clients were directed to pursue an outside lender, which ultimately improved their credit profile and approved the loan. However, XXXX XXXX Loans did not provide an initial formal denial letter, and later declined to honor the agreed-upon incentives, citing the absence of an official denial. After escalation, the clients were advised to reapply through XXXX XXXX in order to preserve eligibility for the incentives. The clients complied and reapplied, including adding an additional borrower as requested. However, the XXXX loan officer later indicated that, based on the stated income and credit profile, the loan was not approvable. The closing date was scheduled for XX/XX/XXXX, but the process remains unresolved. XXXX has not issued a final written decision or denial letter and has indicated the loan XXXX be workable in XXXX, effectively leaving the file open without resolution. This has prevented the clients from proceeding with their approved outside lender. Impact to Clients : As a result of the ongoing delays and lack of final determination, my clients have experienced : Loss of certainty regarding financing approval and incentives Inability to proceed with an approved outside lender despite qualification Risk of losing contractual incentives tied to timing and financing conditions Disruption to their scheduled closing on XX/XX/XXXX Significant personal hardship, including lease termination on XX/XX/XXXX and inability to secure stable housing, requiring them to temporarily stay with family Core Concerns : Lack of timely and formal written denial or approval decision Inconsistent communication regarding underwriting outcome and incentive eligibility Delay tactics that have prevented clients from proceeding with alternative approved financing Failure to provide a clear final determination necessary to complete the transaction

Company response to consumer: Closed with explanation