Complaint / review text:
I submitted a general query online to refinance my home at a lower rate. Eric from Quicken Loans called.
He was very professional and personable and we decided to go with them. They needed a $500 'commitment fee' to process the loan which we paid and were told we were pre-approved for the loan and that it was only a matter of underwriting. Eric was very high pressure and hurried us to get the 30 some odd pages of paperwork done that day so we could lock in the rate. Two weeks later, Eric called and indicated that the loan couldn't be done because our debt/value ratio was too low.
He indicated HIS appraiser valued the home at $84,500. The house had been on the market for the past year and two realtors valued the home between $130,000 and $150,000. Zillow and other real estate sites value the home in the same range. AND, we were only borrowing $74,000 so the house is worth more than the loan anyway.
When we first discussed the refinancing, Eric indicated that we could only look into refinancing our first mortgage as the property had been on the market in the past six months, so we agreed to only refinance the first mortgage. However, after we were declined, we spoke to a manager who indicated that we needed to pay off the second mortgage in order for them to approve us for a loan on the first mortgage which was a totally different explanation than Eric gave us. Also, our yearly household income exceeds the debt of the home (including second mortgage) by $70,000 and we both have excellent credit. Quicken Loans is just a scam to get a quick $500.
If you check them out on the internet (which I wish I had done prior to dealing with them) you will see a multitude of complaints indicating a similar situation.
A 'pre-approval' (with the $500 fee) and then a denial, higher interest rate or request for more money. Do not use the company.