A close to closing rejection
In the summer, it always seems like the real estate business will start to bounce back. Everyone who is looking to purchase a home is hitting the streets with their real estate agents looking for that perfect house for them and their family. But what happens when you finally find it? Well if your pockets are not fat with wads of cash, you more than likely need financing. My name is Corey, and I was in this same position this summer. Here is my nightmare story with Quicken Loans.
My fiance and I moved to Atlanta Georgia, from Southern California in October of 2014. Since we did not know the area too well, we decided to rent our initial year, and start looking for the home of our dreams in the upcoming summer. As time got closer to start looking for our new house, we like most Americans looking to purchase a home, had to find a way to finance it. Some background, I am a 32 year old User Interface designer, that runs my own Design Agency. I have excellent credit and I would say, a way above average yearly salary. With that said, I figured no problem to get financed, so I started the application process with Quicken Loans.
The Start of it All
As I was waiting for a loan officer to answer the phone I was really excited about the idea of purchasing a home. We just had a baby in November, so I was imagining how my son would grow up in his new environment. A lady picked up the phone and introduced herself as Shevell Anderson. She had an amazingly soft tone which was comforting, especially knowing I am about to go down the path to make the largest purchase in my life. She started asking the standard questions, where I work , how much I make, how long have I been doing web design, all in between a lot of small talk. At the end of it all, she told me that I was pre-approved based on what I told her, and the reflection on my credit report. I was excited! After it was all done, she send me login access to their management system call MyQL. I created an account, and could instantly see my pre-approval letter. So now I was armed to find a realtor who will ultimately help me find the new home for my family.
The Dreaded Paperwork
As my fiance and I were scouring the internet and back and forth conversations with my real estate agent, I was also uploading documents that Mrs. Anderson was asking of me. These documents are pretty standard such as 60 days worth of bank statements, w2's for the last two years, tax returns for the last two years, and finally pay stubs. I quickly updated the MyQL account with the information. I was confident that I would definitely not have to worry about anything. Besides, I had a stable job, my tax returns reflect stability in the industry that I have been working in for years, and all my self employment schedules that I have filed for the last two years were attached to my tax returns. Smooth sailing, so I thought.
We Found a House…Two of Them!
In the midst of uploading paperwork, trying to find that perfect home, and lots of back and forth with Quicken Loans, on additional things they needed such as letters of explanation regarding residential mailing addresses, we found a home! We thought it was perfect! The exterior of the house was absolutely gorgeous. A two-story home with a terrace level basement, and a backyard oasis, complete with a super huge pool! We loved it, so we made an offer on the house. It was accepted! So at that point we started doing the due diligence on the house such as inspections and ordering up the appraisal. Mrs. Anderson advised me that we would need a good faith deposit for this property. So I gave her my debit card number and she debited $400 from my account. Meanwhile, I received a conditional loan approval from Quicken Loans! Now they just need to verify employment, and a few minor documents from me and we’re in the clear!! Unfortunately, the inspection for this property came out to be absolutely horrible. The inspection of the property was $650 which included the pool inspection. The foundation needed a lot of work that was unknown to us. As a result, we had to start to find another home, and close the loan process with Quicken Loans on that particular loan. All the while, I was $1050 in the hole with the good faith deposit and the inspection.
A few days passed and my amazing realtor found that dream home. I saw pictures of it, and immediately wanted to check it out in person. The next day, I advised Quicken Loans, that we in fact found a house, and I wanted to start the process again with this new home. At the time, I was still working with Shevell Anderson, and she told me that this time around would be much easier, since they already had all my information on file such as w2, bank statements, etc. I would just need to provide an updated pay stub. Easy enough, I uploaded this right away! She sent me over the new pre-approval letter. The next day, I went to view the property with my family, we fell in love with it. This home had everything we wanted and more! Armed with our pre-approval letter, I submitted an offer and it was ultimately accepted by the seller! Again, another good faith deposit of $400 was needed, but Shevell Anderson told me that I would get a credit back in Closing.
Now for the Fun Part
The seller has accepted the offer and now the due diligence starts for this new house. We got the inspection done ($325 later) and the house was in tip top shape! After the good faith deposit, the inspection for the new property, and the escrow payment of $3420, I am now in this new home for $4145. That’s ok because at the end of it all it would be well worth it…so I thought.
While waiting for the appraisal, my realtor received a letter from Quicken Loans that the loan had been fully underwritten. They only other thing they were waiting on was the appraisal and title information, according to them.
The Nightmare Begins
After two weeks of putting the offer in, and having it accepted, we finally got the appraisal back, and everything was perfect! I now knew that I was approved for the loan (according to the letter that was sent and by communication by the Quicken Loans team), the inspection was great and the appraisal came back above the selling price! So everything was smooth sailing. We even had a closing date scheduled for the 27th of August 2015.
With our new closing date scheduled, my family and I started to get our current affairs in order, we gave notice to our landlord that we would not be signing a new lease come September but we really enjoyed living in the home while it lasted. At this time, we also started purchasing new furniture that would be delivered to the new house on September 4th, 2015. We started gathering up our things and packing up the house as we had about a week before closing on the August 27, 2015.
August 04, 2015
I was moved from dealing with Shevell Anderson to Michelle Boji, a purchase specialist for Quicken Loans. She advised me that she needed an updated bank statement from me showing the clearing of the earnest check. I sent this to her that same day.
August 17, 2015
I had an insurance policy setup with Allstate for homeowners insurance. The premium had to be paid upfront for the year, which would be handled at closing. I was notified that I would need to show reserves in my bank account for the added funds to close with the new insurance policy. However, Quicken Loans showed a lesser different amount than what I actually had to pay at closing.
August 18, 2015
I received a call from Michelle Boji, saying they could not get a hold of my previous employers to verify past employment. Even though the approval letter they sent out, clearly states they have already verified everything. So I had to do some leg and contact my previous employers and get working phone numbers for them that could verified by Google / Yellow Pages.
August 24, 2015 (three days before close)
I was advised by Michelle Boji, that they needed Profit and Loss statements for Mossio, since there was a schedule E in the tax returns. I provided them the Profit and Loss statement. I was then told by Michelle Boji that my loan has hit a challenge because Mossio has only been in business one year, and there is not taxes for two years.
Again, I was under the impression that all my information was fully underwritten based off the letter they sent, and the time that they have had to review my taxes, which was the end of June 2014. Michelle informed me that I will now be dealing with a solutions consultant by the name of Bryant Nowicki and he would be in touch with me very soon.
August 25, 2015 (two days before close)
Bryant Nowicki called my phone at 8:45 in the morning and advised me in a very dark tone that I have only had Mossio for one year on my taxes and therefore they could not use the income that I am claiming under that employer and will not be able to qualify for the loan. He did not give me any other options, and said there was nothing they could do and even that my debt to income ratio was too high at 71% (which is just not the case). How can you even conditionally approve me, let alone fully underwrite the loan without knowing my debt to income ratio was so high? Something does not add up here.
I fully understand policy, I am a successful business man and know that there are certain guidelines to follow. However, what I find absolutely unacceptable is the fact that they wait until the last minute to completely do their due diligence on my loan application. The situation is this, I have one day before I am to close on my new home, I do not have a residence by the end of September, and I am now out over $5,000 in good faith deposits, inspections and escrow money. My tax documents should have been reviewed before any conditional or fully underwritten approval letters have been sent, not 3 days before closing after everything else has been smooth.
I would not want anyone else to make the mistake of using Quicken Loans to purchase, or refinance a home loan. They are careless and reckless with people’s livelihood and money. I personally hold Dan Gilbert liable and accountable for employing such behavior. I want a resolution to this issue.