Consumer complaint received 2020-05-04 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: GARDEN STATE HOME LOANS INCORPORATED
State: NJ

Complaint narrative:
Hello CFFB, I started a Home loan refinancing application with Garden State Home Loans, Inc. Located at XXXX XXXX XXXX. XXXX XXXX, XXXX XXXX, NJ XXXXThey proposed to me a 30 years fixed conventional loan with a 3.37 % interest rate. with the following closing cost. 


Transaction Type : Refinance Estimate Home Value : {$0.00} or greater Loan Amount : {$240000.00} Credit Score : Fair Property Type : Single Family Residence Property Usage : Primary Residence Escrows Property Taxes and Insurance : Taxes and Home Owners Ins. 

Lock Duration : 30 Days **** if any of the above criteria changes, the below quotes would then be subject to change. 



Option One Loan Program 30 Year Fixed Loan Amount - {$240000.00} Loan Rate 3.37 % Loan Payment {$1000.00} Monthly Mortgage Insurance {$0.00} Summary of Closing Cost Origination Fee {$0.00} Credit Report Fee {$31.00} Flood Certificate Fee {$8.00} Appraisal Fee {$480.00} Warehouse Fee {$75.00} Tax Service Fee - {$85.00} Title/Settlement Charges - {$1600.00} Recording Fee - {$250.00} Total Cost - {$2500.00} I agreed to those terms and we moved forward with the appraisal which they said to me that the appraisal fee will be refunded at the time of the closing. When the appraisal came back I was told the the property came 25k lower than the market value expected by the bank. I asked my loan officer what does this mean to me as I am not trying to cash out just refinance to reduce my interest and lower my monthly payment. She said to me that it will cost me now an extra {$1700.00} dollars in order to retain the interest rate of 3.37 %. However, she spoke to the her manager about the situation and she managed to lower the fee to {$1200.00}. I stated to my loan officer that I was not agreeing to pay for any extra fees as they were not disclosed to me during the original proposal. Also how can the based the value of the house without an appraisal what number was entered originally that gave them the confidence to offer an interest rate based on that number. Also there were areas of the house that were not taking into consideration during the appraisal such as the inground pool and the new heat & cooling system 97 % efficiency. 
In the good faith estimate they marked the {$1200.00} fees as if I bought points to lower my interest rate. I really don't appreciate how they manipulated the situation where they are putting me on the spot now to buy mortgage points for their mistake. 3.37 % was the rate that they gave with the factual information I provided, If I am paying points it should be for a lower rate than what it was agreed upon no for the same rate. 
Again I am not satisfy with the way they are handing the loan. I feel like they manipulated the process knowing that in order to get that rate mortgage points needed to be bought and they waited until the loan application was submitted and the appraisal completed to disclose those details. In other words they wanted to make sure I was already locked in with appraisal fees and bank commitment letters, etc, etc. 
I am not willing to pay any additional fees other than the one disclose in the orginal agreement. 
I will really appreciate your help on this matter and I will attached documents to help you in the investigation. Thank you in advance and I look forward to your answer soon. 

Regards, XXXX XXXX

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation