Consumer complaint received 2026-05-13 00:00:00
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Negative impact of inaccurate appraisal
Company: GUARANTEED RATE INC.
State: MA

Complaint narrative:
I am submitting a formal complaint regarding a mortgage lending experience that involved significant communication failures, lack of transparency, and unprofessional handling of our loan process. My partner and I chose to work with this lender based on a previously positive experience, during which we had also referred multiple clients due to the professionalism demonstrated at that time. Unfortunately, this recent transaction fell far below those standards. From the outset, the process was disorganized and lacked clear communication. We were repeatedly asked to submit the same documentationincluding W-2s, pay stubs, and employment explanationsmultiple times, despite having already provided them. This raised concerns regarding proper file review and attention to detail. There was also ongoing confusion regarding otherwise straightforward employment information. Despite submitting thorough documentation, including employer verification, we were repeatedly asked for clarification on matters that had already been clearly addressed. In some instances, incorrect assumptions were made about employment history, resulting in unnecessary and irrelevant document requests. Communication throughout the process was inconsistent and often delayed. On XX/XX/XXXX, we were informed that the loan was in underwriting and that we should expect an update by the following day or Friday. That update was not provided. We followed up again on XX/XX/XXXX via email, referencing this commitment and requesting a status update. This email went unanswered. Additionally, after a subsequent phone conversation, we were told that we would receive an answer within one day. That commitment was not fulfilled at all. On XX/XX/XXXX, a request was made for my partner pay stubs again, despite having already provided this documentation previously. This request was made without any explanation or context, and no follow-up communication was provided afterward. Beyond this isolated request, there was no meaningful communication, update, or clarification for approximately three weeks. This pattern of requesting duplicate documentation without explanation, combined with a lack of follow-up or status updates, contributed to significant confusion and uncertainty regarding the handling of our application. Throughout this time, closing timelines were repeatedly adjusted without clear explanation, and we were never provided with a definitive approval or denial. Additionally, requested documents would appear and then be removed from the system without explanation, creating further confusion and inefficiency. Most concerning, a substantial change to our loan amount was made without any prior discussion or notification. We only became aware of this change by independently checking the system. A change of this magnitude, which directly impacts financial outcomes, should have been clearly communicated and explained in advance. We also note that an additional hard credit inquiry was performed during this period of non-communication, without any accompanying explanation or discussion. This is concerning given the absence of ongoing updates or engagement regarding our application. Due to the lack of communication and inability to move forward, we ultimately sought another lender. With a different lender, we received clear communication and obtained closing approval within 23 weeks. This demonstrates that the delays experienced were not due to our qualifications, but rather deficiencies in communication and process management. We also paid approximately {$300.00} in application fees and {$670.00} for an appraisal while proceeding in good faith. Given the lack of communication, organization, and overall service, we do not believe the level of service provided justifies retention of the application fee. We would also like to note that, while we are younger borrowers we entered into this transaction responsibly and in good faith. We expect to be treated with the same level of professionalism, transparency, and respect as any other clients. Regardless of whether the loan was ultimately viable, clear and honest communication should have been provided. Instead, we were left without answers and without follow-up, creating the impression that we were not being given the same level of attention or respect that other clients may receive. This is a significant concern. This experience caused unnecessary stress and uncertainty during a critical financial process. Notably, this occurred during a particularly difficult personal time for our family, which was the death of my spouse sister, which made the absence of communication even more concerning. We are requesting that this matter be reviewed for professional conduct, particularly regarding failure to communicate, lack of transparency, and mismanagement of a consumer loan application after fees were collected. Thank you for your time and consideration.

Company response to consumer: Closed with explanation