I decided to pursue refinancing my home loan about three months ago. After doing a lot of shopping around, and comparing rate quotes, I thought that I was going to get the best deal with Quicken. After all, they had given me some good numbers- And I could save about $300 a month, according to them, on my home loan. So, I went ahead and put down a "refundable" $500.00 good faith deposit to get the process started.
Recommend this product?
So, I submitted all the required documentation to them. And waited. And waited. Finally, I called my contact person back at Quicken. It seems I had been somehow 'lost'... Not very professional. But, I suppose it happens.
They then scheduled my appraisal. This is where things started to go wrong. I know that the real estate market is kind of rocky now, but the company that Quicken sent to do my appraisal did a terrible job. My appraisal came in WAY low. The "comprable" sales that they used were 1000 square feet or more SMALLER, on 1/2 acre lots. My house has 3 1/2 acres. The other houses were standard, tract houses- Vinyl siding- basic amenities, etc. Mine is a custom built brick house. Other than being somewhat close geographically, they were NOT comprables. But, that's what they chose to use, and values my house at $40k less than it should have been.
So, I get an E-Mail from Quicken telling me I now have new documents to sign. I go to the web page to sign them, and notice that there have been some changes. Some MAJOR changes.
They had initially estimated closing costs to be somewhere in the $4000 range. And, Based on my credit score and anticipated value of the home, I would NOT have to pay PMI. They were going to roll everything back in to the loan, so I would pay nothing out of pocket. In the end, It was SUPPOSED to cost me about $6k to refinance, which was well worth it because I'd save $300 a month... BUT-
The documents they wanted me to sign were for an ENTIRELY DIFFERENT loan than I had ever discussed with them. For starters, they were requiring that I pay PMI. $4500 up front (rolled into the loan, of course), and an additional $80 a month. Oh- the rate I had 'Qualified' for- No longer available. It was a 'bit' higher on this particular loan. Now I was only saving $100 a month- and the closing costs had increased to almost $10,000.
What bothered me the most is that they didn't tell me that they had changed the terms, just that I needed to sign a few documents. So, I called to ask them about it. The person I had been working with agreed that the appraisal was no good, and made no sense, an needed to be redone. That was the last that I heard from her.
Two weeks passed. Nothing. I called. Emailed. Finally, I got ahold of the person that I had been working with. She claimed her blackberry had not been working, and she wasn't getting voicemail or email reliably. Really? She apologized, then said she'd be getting back with me soon to finalize the details on getting the new appraisal done.
More time passes. Still nothing. Then I get an E-Mail from someone else at quicken, telling me that my file has been closed, and that if they can help me in the future to call them. Upon calling him, I find out that the first woman I had been working with had been 'Reassigned', and that he would be handling my file from now on. But now there were more problems- I needed to get a different type of loan now. They needed my wife on the loan, then they decided it would be better if it was only in my name... we went back and forth for another 2 weeks. Finally, he said all was set, and that the appraiser would contact me in a few days.
I got a call from the appraiser. It was the same incompetent appraiser that had done the first appraisal. They left a voicemail, which I returned several times, leaving them a message to contact me. I even E-Mailed them several times. Nothing.
Another week passes, and I get an E-Mail from yet ANOTHER person at Quicken- Who just inherited my file. I have to start over from the beginning AGAIN. He said that he was going to check on the appraisal. I call him back, and he says that the appraisal 'is what it is'. That was the only appraisal company that they work with in my area, and their opinion of my value would have to do. So, I was going to have to pay my PMI, but that was OK- After all, I was still going to save ALMOST $100 a month, right??
This was NOT the loan that I had put a deposit on- It looked nothing LIKE the loan that they had put together for me. They informed me that the bulk of my deposit had already been spent on the appraisal- An appraisal that they had agreed earlier was bad. So, they were going to give me $130 back. That was it.
I argued with them, but they weren't going to back down. The latest person that I was working with told me that it was MY fault, since they had estimated my loan based on a value that I had given them- Which was over $100,000.00 more than it had appraised for. Wait a minute- SAY WHAT? I NEVER told them my house was worth that much. NEVER.
It turns out that the first lady I had been working with typed whatever numbers she needed to into her computer to make the loan look good enough for me to pay my deposit... She probably figured that I'd just settle for whatever loan they ended up sending me the paperwork for- I'm sure that this 'tactic' works in many cases. I'd LOVE to ask her about this, but since she was 'reassigned' (read- FIRED), she was no longer available.
After this bit of information came to light, Quicken did decide that it was in their best interest to refund all my deposit.
But- I have already wasted more than 3 months. If I'd have refinanced with my current lender, I'd have saved almost $900 in that three month time. The TINY amount that I would have saved each month with Quicken, if they COULD have given me the original loan, has been more than wiped out at this point.
Perhaps I am making more of this than I should- But I'd LOVE to know who's getting the kickbacks for the PMI- That I HAVE to add to my loan, according to the ONLY appraiser that quicken works with in my area.
And, For the record, My credit is excellent- I closed my last loan 2 yrs ago, with a 95% LTV, and the bank paid ALL closing costs, and I do NOT pay PMI.
I feel like I was scammed by them, and was LUCKY to get out with my deposit money. Perhaps I just got a bad egg in the bunch, But I'll be bringing my business elsewhere in the future.
Read all comments (5)