Quicken Loans
Complaint 328986 Details

I applied for a mortgage loan with Quicken Loans. Originally my fiancé and I were both supposed to be on the loan but since my credit score is much higher Quicken recommended to remove him from the loan and have only me on there even though I make much less money than him which we pointed out to our Lender who insured us that it would not be a problem. We submitted all the documentation they required (recent paystubs, W2's, bank statements and so on) and they also ran our credit reports. After they pre-approved us/me we picked out a home and made an offer and came to an agreement with the seller. We immediately submitted a copy of the contract to Quicken. Quicken sent us the Good Faith Estimate showing that our closing cost would be $16,264.00 and our monthly Mortgage Payment will be $1,311.36 plus $175 for the HOA fee. The seller required a $5000 down payment which we paid right away, we also paid $500 to Quicken for the appraisal and paid another $515 for the home inspection which according to the contract had to be done within 10 days. Now we're 3 weeks away from our closing day (September 15th) and the underwriters at Quicken are telling us that I don't make enough money to qualify for the loan, something we had already brought to their attention BEFORE the entire process started and were told that it would be ok. They said that they forgot to add the HOA fee which is ridiculous because it is clearly stated in the contract and even in the Good Faith Estimate Quicken sent to us. Now they're saying that they would have to add my fiancé back on because of my debt to ratio income being to high (after they added the HOA) but due to his lower credit score we would have to get a different loan, one that has a PMI (we had told them from the very beginning that we did NOT want a PMI). After adding him back on last week they sent us a revised Good Faith Estimate that has now $20,815.17 as closing cost ($4,551.17 higher than the first estimate) and a Monthly Mortgage Payment of $1,476.47 plus $175 HOA fee ($165.11 higher than the first estimate) and a $25 a month lower insurance rate (they made us adjust the homeowner's policy to reflect a higher deductible to safe some money). The PMI is listed as $206.13. With all the numbers having gone up like this we no longer can afford the house, we were going by what was originally quoted to us. Not only are we going to have to back out of the house contract but we don't know if we can get the $5000 down payment back and there is also the $500 appraisal fee and $515 for the inspection that we know for sure we won't be getting back, that's over $1000 lost for sure. We're also in a time crunch because our lease at our current place runs out on September 15th, after that we have to go month to month at a higher rate of $242 a month. Since we have no house now which is devastating enough and have to start the entire process all over again it will cause additional hardship having to go month to month for several months until we find another house and can close on it. I don't know exactly what our rights are here but it seems so very wrong that they can change the numbers like that after we had provided all the necessary information and were given an estimate. They knew exactly how much money we're making and what our credit scores are before they sent the first estimate. Nothing has changed since then and yet they all of a sudden decide that we or I don't qualify after all and that our closing cost and monthly payment will now be much higher. We were in almost daily contact with Quicken throughout this entire process and they kept reassuring us that everything is fine. Is there anything we can do short of having to take legal actions? I find it so hard to believe that they do not have to honor the estimates they give. There has to be some kind of consumer protection against something like this.