Financing in Warren>Question Details

Miya, Home Buyer in Warren, MI

It's closing day, and Quicken Loans has not approved our mortgage. What to do?

Asked by Miya, Warren, MI Mon Dec 12, 2011

I signed a purchase agreement (subjected to mortgage approval), and had a set closing day (today!). I was assured by Quicken Loans everything would be done in time. They even pressured me into giving them a $500 "good faith deposit" to "expedite the process." My interest rates are locked in for another 7 days. It's closing day, and I have yet to obtain a mortgage. The seller has agreed to wait for a mortgage approval (or denial). I'm afraid that Quicken Loans will approve of my mortgage after the lock rate date, thus, resulting in higher interest rates. What to do? The specialists in charge of my loan case is not responding to emails or calls either. If I walk now without getting a written denial, I risk losing my $1,000 earnest deposit. If I wait, I risk getting higher interest. Should I tell them to release my loan case to another lender? Will this affect my credit scores at all?

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Dan Tabit’s answer
Miya,
Underwriters are doing a lot of business right now. I'm not excusing it, but times are longer for most lenders than they have been. This is in part due to all the refinancing and part due to some increase in purchases.
Your options would be to wait them out or find a new lender. Finding a new lender would be starting from scratch and likely take another 30-45 days to work through the system, so I doubt you want to do this.
Since your seller has granted you an extension, I would just stay on top of the lender daily, or multiple times a day until you get an update. What you want to know is, "where is my file in the process" and "how soon do you anticipate getting final approval"?
There are a number of possible delays; the most common I hear of is the borrower not getting all the paperwork into the lender. If they don't have a complete file, they don't begin to underwrite. Did you submit your pay stubs, bank statements, W2's and anything else requested in a timely manner? If not, you could be the cause of the delay.
Has the appraiser completed their work? Did the Title Company submit a commitment? Find out where you are, solve whatever part you can and hope for the best. This is one reason I suggest most borrowers deal with a local lender, in cases like this you can walk into their office and ask what's going on. Best of luck.
0 votes Thank Flag Link Mon Dec 12, 2011
Quicken loans did the exact same thing to me. Today. I won a house a MONTH ago, and they just told me now I'm not approved. For the second time. First time, they said I needed a co-signer. so I did. Then was approved. Had an appraiser coming. Now today I have no loan. 8 months working with Quicken Loans and I'm back to square one. I have a few weeks til closing. Awesome. Worst company ever. Although I made sure I got my $400 good faith money back. Apparently this is how they do business. Scamming deposits from clients they don't intend on actually approving... smh.
1 vote Thank Flag Link Thu Aug 15, 2013
They are doing the same thing to us :( we have a 10 month old and twins on the way (due Masrch 28). We have too be out of our apartment Feb 28. Our relotor told us not to sign a lease. We have no place to live in 8 days.
Flag Thu Feb 20, 2014
Yes it will effect your credit. Every time a company does a credit check your score goes down. Regardless of what company or what reason the check is done.
0 votes Thank Flag Link Tue May 6, 2014
Local lenders! I can't stress this enough. If the lender is promising anything that sounds too good to be true..it probably is. Local lenders understand the local market, insurance, appraisals. Ask your realtor who they work with, who has a good track record for closing on time and being responsive. Someone they have a good working relationship with!
0 votes Thank Flag Link Wed Mar 26, 2014
To anyone in this situation... Call Movement Mortgage!
0 votes Thank Flag Link Thu Mar 6, 2014
We switched to Movement Mortgage. They did a wonderful job saving us from being homeless and we couldn't be more grateful. I would say yes. Release your loan to another lender!
0 votes Thank Flag Link Thu Mar 6, 2014
It's so true! People want to use names they recognize such as big banks or what is advertised on TV. However, there are mortgage bankers who work very hard for their clients. don't disregard the mortgage banker and brokers. Also, always check on the internet the person you are working with not just the company. Glad it all worked out!
Flag Thu Mar 6, 2014
I'm sure this matter is already resolved. However, in most cases requesting an extension on the closing date will eliminate the anxiety and doubt or worry. If the lender does not approve the mortgage within the 7 days to ensure the interest rate is locked in, then you may find it cheaper to walk away from the deal. Losing your earnest money deposit is less costly than locking yourself into a mortgage with a higher interest rate. Walking away will not impact your credit score. If you explain the situation to the seller's agent and request a mutual release you may be able to get your earnest money deposit returned.

In situations like these it's best to stay calm, and think clearly about all of your options.
0 votes Thank Flag Link Tue Feb 25, 2014
First of all, they should have NEVER pressured you in giving a $500 good faith deposit to expedite the process? What the heck is that about? AND if they charged this to you before you were given your loan disclosures then they are in violation of the law and you can easily report them to the Consumer Financial Protection Bureau online. This is a huge no no and that is why there is that law to prevent lenders from strong arming the consumer into using them. I have been in this business since 1985 and have never heard of anything like that. This is also bordering predatory lending as well which is a huge no no.

I would contact another lender and see what they can do. If you did an FHA loan the appraisal can be transferred. If you didn't, then you may have to do a new one. I do not know of any loan officers in MI off the top of my head but try asking your friends who they used.
As far as your credit, it would only affect your score 5% unless they had run it in the last 30 days and then I believe it will not affect your credit score.

Not getting phone calls back is not a good sign. Try and reach the manager or email Ditech directly and let them know what is happening.
0 votes Thank Flag Link Fri Feb 21, 2014
Same thing is happening to us. We were supposed to close Feb 28. Our lease is up at noon. We have a 10 month old and I am pregnant with twins due March 28 (and on bed rest). We are homeless in 8 days. Our Realtor says we can't sign a lease on an apt because we are legally bound to the purchase agreement. Me, my husband and my babies have no place to live in 8 days :'(
0 votes Thank Flag Link Thu Feb 20, 2014
Kyle,
I want you to ask your agent if your contract is valid if you are denied a loan? The contracts I use have a financing contingency which states if the buyer makes a good faith effort to obtain financing and is denied, they are able to get their earnest money back and are free to move on to whatever's next.
Flag Thu Feb 20, 2014
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0 votes Thank Flag Link Sat Sep 28, 2013
QL loan officers are people who just take an order over the phone. They have no hand in the operations and are impossible to contact once your loan is closed. Call me as we do not charge made up things like "good Faith Estimate Deposit." I will present you with all the options and show you loans you can afford and that will close on time. In cases of question, we can manual underwrite as well.
0 votes Thank Flag Link Mon Sep 23, 2013
First problem and red flag is not using a local and trusted loan officer. You should be getting better guidance from your buyer agent.
0 votes Thank Flag Link Sat Sep 21, 2013
I have to say I just closed a property with Quicken that they got approved in 2 weeks. My buyer was originally with Bank Of America and after 60 day of waiting BOA told the buyer to get another lender because they would not be able to close the deal for another 30 days. Talk about mad! Quicken loans stepped up to the plate much to my surprise and got the deal closed. The Good Faith deposit goes towards your closing costs. If you need some assistance I get you the name of the person I dealt with, just send me an email. They were more then helpfu with us.
0 votes Thank Flag Link Fri Dec 16, 2011
Miya,

Usually the FHA loan takes 45 to 60 days to process. The conventional loan takes 30 to 45 days to process. Considering the holiday season, the this time might extended by another week.

Talk to the superior in Quicken to ensure the person is in town or on vacation out of country where they dont have email or cell phone access.

As long as the seller is patient enough you should be fine.

Regards,
Ron
http://www.TheBestMIHomes.com
http://www.AffordableMIHomes.com
0 votes Thank Flag Link Tue Dec 13, 2011
That's Quicken.
Call Dan Gilbert and tell him you also want your Cavaliers season ticket money back.

Earl Dommer
Real Estate One
earld@realestateone.com
0 votes Thank Flag Link Tue Dec 13, 2011
I'm sorry to hear your story. But unfortunately, this is becoming a very popular story these days. This is exactly one of the reasons I dislike internet lenders. They promise lower rates and fees and become overwhelmed and cannot handle what they promise. Fortunately for you, interest rates are still low and you should be ok. I wish I could help you as we have a great program called the Diamond Lane where your a complete application gets same day priority from beginning to end. At this point, you are definitely being held over a barrel and have to stay with that lender unless the seller isn't in a hurry to move and is willing for you to wait to reapply elsewhere and find a local mortgage banker. Check Yelp to see responses for local loan officers. Of course, if you feel they are toying with you, you can always file a complaint with the California Finance Protection Bureau. I hope it all ends well for you. :)
0 votes Thank Flag Link Tue Dec 13, 2011
Miya:

You need to ask for your loan officers supervisor or ask to speak with the loan processor to find out what the hold up is. If you have to rant and rave do so until someone will give you answers.

Good Luck,

Karen Paytas, GRI, CMS
Realtor
Real Living Kee Realty
586-709-8465
kpaytas@mirealsource.com
0 votes Thank Flag Link Mon Dec 12, 2011
Miya,
What does your agent or the Escrow company say? Escrow, or your closing attorney (I'm not sure how you do this in MI) should have been in touch with Quicken for pre-doc preparations. Contact one or both to see what they may have heard.
Good job getting your stuff in on time. That has been one of the most common reasons for a delay.
0 votes Thank Flag Link Mon Dec 12, 2011
Every document that has been requested has been submitted. Appraisals, title works, all that has been done. They assured us over the phone they would be our closing day several times, but as it neared our closing day, they just went silent.
0 votes Thank Flag Link Mon Dec 12, 2011
Your whole situation doesn't make sense to me. How can you have a set closing date when you didn't get a mortgage commitment or a clear to close. I've never heard of anyone paying any kind of deposit to speed up a mortgage application. Your situation sounds bizarre.
0 votes Thank Flag Link Mon Dec 12, 2011
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