- Jurisdiction
- Wisconsin
I am hoping to get some answer on what my rights are as a consumer for a mortgage loan. I know the Loan Officer owes me no fiduciary responsibility but I was hoping to see if there was anything that may have been violated.
I initiated a pre approval on February 1st with Loan officer A. He ran my credit report and advised us what we needed to accomplish to get pre approved. We paid off the credit cards and student loans that he mentioned for me to take care of to get me below the debt to income ratio. As the months went by I paid those off and provided documentations for proof. At that time he advised me that I still needed to pay additional debts off my debt. He even mentioned that if the car my spouse and I own was just in their name it would release more availability for the debt to income ratio which will guarantee me an approval as he said he ran the numbers with it off. He didn't directly tell me to do it but I can see he was implying it. So we traded the car in and was able to get another vehicle in their name but we also spent an additional 4K dollars in doing so. The whole time the Loan officer was not giving us an actual pre approved number. He stated it would be pre approved for 100k then after 105k then after 135k and so on. Finally I found a house and was ready to put in an offer but I needed the pre approval documentation from the lender. I told him the house was 122k and he said he guaranteed me a loan for 140k but he is only going to write the offer for 135k so that the seller doesn't know how much I am approved for as far as negotiations goes.
Finally we put the offer in and after some back and forth we came to an accepted offer on 6/28. The offer to purchase was submitted to the loan officer and we proceeded. I paid my earnest money of $1000 dollars as required and paid for an inspection. The inspection was done on 7/5 and report was sent out on 7/7. I emailed my loan officer multiple times from 7/7-7/15 and called in between with no answer. At this time we needed for the appraisal to be done so we can proceed. I contacted the loan officer to see where we stand in the process as to any updates. The seller needed to know when the closing date would be. We were unable to reach the loan officer as both party tried to contact him. Finally on 7/18 we were informed by the seller realtor that they spoke with the Loan officer and reached a closing date of 8/22. So I called the loan officer and ask if we have sent the appraisal to be done because I'm waiting to pay for the appraisal process so we can proceed. At this time I asked him again about the closing date and he said it won't be done for another 60 days. So I questioned him why did he tell them 8/22 was the closing date but by him saying it won't be done for at least another 60 days that would of made the closing date to be 9/17. He said don't worry about it he will make sure it gets done as soon as possible. I then said he needs to give me a straight answer as I have already signed the offer to purchase amendment for closing date on 8/22. He then told me "I got you bro". A couple days goes by and i have not heard from him about the appraisal. I contacted him again by phone and email. No response for another week. Finally he calls and said I sent you the loan documents to sign and that he sent the appraisal. We get the loan documents and it was for an FHA loan. From the beginning we discussed about there neighborhood program which is a conventional loan with only 3% down. In the offer to purchase FHA was striked as to say the contract is only accepted if it's a conventional loan. So I called him back and emailed him again asking why is this a FHA loan. Again no response. Finally he calls on 7/28 and states he is no longer working there and that he can take our files with him to a different company that he is going to and finish it up there. I told him no and that I was going to proceed with another loan officer at the same company because we were already at the end of the process.
So...we finally called and emailed another loan officer. Loan officer B now and she took over the file. Pretty much having to redo the entire process all over again. Now we sent everything in repeatedly to this person. She requested our W-2 and tax documentation like 5 times through email and I have all emails that I sent her for all these requests but she keeps blaming me that I was holding up the process. When clearly everything came in a PDF format and even on those emails she confirms that she has received it. Now she is telling me that I am not approved because I don't meet the debt to income ratio. So we go through everything all over again through email. I never even met this person because she never has time for that apparently. Then she says we are good to go and she will send the apprasier. A week and a half goes by and no response from her. Emails after phone calls and no response. Finally she calls and said she will send the appraiser. This is now 8/10. I asked her if we were gonna close on 8/22 and she said no. So then we had to amend the offer to purchase contract again to a different date. But now she doesn't even want to give me or both parties a closing date after they asked her repeatedly that they need a closing date. She then threw a number which was 8/31. She said that it will not be done by that time but they needed a date so that was the date she gave them . After all this she stated we are good Togo and that everything was going to underwriting. After we signed all the loan documents and underwriting states we only qualify for 115k and we need to pay off an additional 3k in debt. This is now today 8/24. So now it looks like we may not even get approved for the house unless we cough up another 3k dollars to pay off a debt. I asked why was this never shown to us or why no one was ever clear on what we approved for and what we needed to do.
Did the lender treat me unfairly? Do I have any room for legal actions here?
I initiated a pre approval on February 1st with Loan officer A. He ran my credit report and advised us what we needed to accomplish to get pre approved. We paid off the credit cards and student loans that he mentioned for me to take care of to get me below the debt to income ratio. As the months went by I paid those off and provided documentations for proof. At that time he advised me that I still needed to pay additional debts off my debt. He even mentioned that if the car my spouse and I own was just in their name it would release more availability for the debt to income ratio which will guarantee me an approval as he said he ran the numbers with it off. He didn't directly tell me to do it but I can see he was implying it. So we traded the car in and was able to get another vehicle in their name but we also spent an additional 4K dollars in doing so. The whole time the Loan officer was not giving us an actual pre approved number. He stated it would be pre approved for 100k then after 105k then after 135k and so on. Finally I found a house and was ready to put in an offer but I needed the pre approval documentation from the lender. I told him the house was 122k and he said he guaranteed me a loan for 140k but he is only going to write the offer for 135k so that the seller doesn't know how much I am approved for as far as negotiations goes.
Finally we put the offer in and after some back and forth we came to an accepted offer on 6/28. The offer to purchase was submitted to the loan officer and we proceeded. I paid my earnest money of $1000 dollars as required and paid for an inspection. The inspection was done on 7/5 and report was sent out on 7/7. I emailed my loan officer multiple times from 7/7-7/15 and called in between with no answer. At this time we needed for the appraisal to be done so we can proceed. I contacted the loan officer to see where we stand in the process as to any updates. The seller needed to know when the closing date would be. We were unable to reach the loan officer as both party tried to contact him. Finally on 7/18 we were informed by the seller realtor that they spoke with the Loan officer and reached a closing date of 8/22. So I called the loan officer and ask if we have sent the appraisal to be done because I'm waiting to pay for the appraisal process so we can proceed. At this time I asked him again about the closing date and he said it won't be done for another 60 days. So I questioned him why did he tell them 8/22 was the closing date but by him saying it won't be done for at least another 60 days that would of made the closing date to be 9/17. He said don't worry about it he will make sure it gets done as soon as possible. I then said he needs to give me a straight answer as I have already signed the offer to purchase amendment for closing date on 8/22. He then told me "I got you bro". A couple days goes by and i have not heard from him about the appraisal. I contacted him again by phone and email. No response for another week. Finally he calls and said I sent you the loan documents to sign and that he sent the appraisal. We get the loan documents and it was for an FHA loan. From the beginning we discussed about there neighborhood program which is a conventional loan with only 3% down. In the offer to purchase FHA was striked as to say the contract is only accepted if it's a conventional loan. So I called him back and emailed him again asking why is this a FHA loan. Again no response. Finally he calls on 7/28 and states he is no longer working there and that he can take our files with him to a different company that he is going to and finish it up there. I told him no and that I was going to proceed with another loan officer at the same company because we were already at the end of the process.
So...we finally called and emailed another loan officer. Loan officer B now and she took over the file. Pretty much having to redo the entire process all over again. Now we sent everything in repeatedly to this person. She requested our W-2 and tax documentation like 5 times through email and I have all emails that I sent her for all these requests but she keeps blaming me that I was holding up the process. When clearly everything came in a PDF format and even on those emails she confirms that she has received it. Now she is telling me that I am not approved because I don't meet the debt to income ratio. So we go through everything all over again through email. I never even met this person because she never has time for that apparently. Then she says we are good to go and she will send the apprasier. A week and a half goes by and no response from her. Emails after phone calls and no response. Finally she calls and said she will send the appraiser. This is now 8/10. I asked her if we were gonna close on 8/22 and she said no. So then we had to amend the offer to purchase contract again to a different date. But now she doesn't even want to give me or both parties a closing date after they asked her repeatedly that they need a closing date. She then threw a number which was 8/31. She said that it will not be done by that time but they needed a date so that was the date she gave them . After all this she stated we are good Togo and that everything was going to underwriting. After we signed all the loan documents and underwriting states we only qualify for 115k and we need to pay off an additional 3k in debt. This is now today 8/24. So now it looks like we may not even get approved for the house unless we cough up another 3k dollars to pay off a debt. I asked why was this never shown to us or why no one was ever clear on what we approved for and what we needed to do.
Did the lender treat me unfairly? Do I have any room for legal actions here?
