Quicken Loans Mortgage a scam?

liaoyu03 · Joined: 09 Sep 2007 Posts: 141 0.48 Dollars($)

I have been mortgage shopping and was approved from two mortgage companies so far one of them being Quicken Loans but get this they want me to give them a credit card number and want to charge $500.00 to it before I even find a house! The other mortgage company I don't have to send in the payment until I have found a house and sent in the purchase agreememnt! I have read on the rip off reports that people never get their money back from Quicken Loans either they seem like a rip off to me.

larry · Joined: 27 Jun 2007 Posts: 2911 403.68 Dollars($)

Hi Liaoyu,

Welcome to the forum.

When the Quicken Loans Company is charging you the money even before finding a house, you should not deal with them. Moreover, when you have already found from the rip off report that this company do not return the money to the borrowers, it means that they are scams and there is no point to go ahead with them. Rather you should stay away from such company.

domainforsale · Joined: 10 Sep 2007 Posts: 7 0.00 Dollars($)

maybe anytime they ask for money u should know it is a scam..

Samantha

Hi Liaoyu,

Welcome to the forum.

I don't understand one thing - why do they need your credit card number? It's better not to give it to the mortgage company. And, it's good that you haven't signed a deal with them yet. I personally feel you should explore loan options offered by some other company. And there's one way out. You can check out their reliability at the Better business Bureau.

hope this helps...

God bless you.

Samantha

Niicss · Joined: 03 Oct 2005 Posts: 807 118.35 Dollars($)

liaoyu03 · Joined: 09 Sep 2007 Posts: 141 0.48 Dollars($)

thank you.
I have never heard of a mortgage company asking for your money before you are even find a home! I think I will stick with my local mortgage lender they don't want the deposit until I have sent in the info for a house I have agreed to purcase.

Guest 0.10 Dollars($)

Yes Liaoyu,

Even I think it is better if you stick with your local mortgage lender as they have not asked you for the deposit like the quicken loan company. It is better if you avoid such companies that ask for some deposit even before you find the house.

miller_st · Joined: 17 Jan 2007 Posts: 917 168.82 Dollars($)

lenny · Posted: Thu Sep 13, 2007 7:27 am Post subject:

I have heard of Lender taking a application fee or a lock deposit, however this typically does not take place until you have found a home and are ready to move forward with the lender. This is an approach from them to assure they gain your business. Once you have place a large deposit you are not going to be willing to walk away from it. At this point you will find them offering rates no where near what you may have possible originally negotiated on. I recommend going with a local lender who will guarantee your rate and also attend your settlement. Good luck!!

livinginnky · Posted: Sat Sep 15, 2007 10:38 pm Post subject:

What do they want the $500 for?

I always require my customers pay for their own appraisal fees upfront and then credit them back at closing. Most companies do this. The reason being is if a home isn't worth what you are trying to purchase or refinance it for that is you or your realtors responsibility not mine. I don't want people buying overpriced homes and I don't want to have to pay $200-400 to find out. I am a loan officer not an appraiser.

However I wouldn't require a credit card and I would wait to get the money until the appraisal is actually necessary.

If the money is some sort of application fee...well that is just laughable in this day and age. Too much competition. If you ever are told to pay an application fee it probably means you can't get approved and this guy wants to make a quick salvage buck.

Guest 0.10 Dollars($)

Liaoyu,

I think you should go with your local lender.

Guest 0.10 Dollars($)

its because quicken fully underwrites the loans prior to you finding a house.... "pre approvals" are worthless because they are not a guarantee of funds -- so you can get "pre approved", go make an offer for a house you THINK you can get financed for, and then what are you going to do as you go through the process and find out you actually can't close on the loan?

this is how it was explained to me when i dealt with Quicken and they told me they can give me a pre approval but it wasn't a guarantee... so i called 3 other lenders, all of them offered a pre approval, but also confirmed pre approvals were not a guarantee... so i called my guy at quicken back and asked him about their full approval...

no one can approve a loan unless an underwriter certifies your loan and you turn in all of your documentation and have your credit profile checked out... that's a LOT more than just asking someone a few questions over the phone and looking at a credit report... it takes multiple people and is a lot more labor/time intensive... how many companies do you think are going to go through allllll that work when the client isn't even committed to following through on their loan?

long story short, the 500 dollars i paid also paid for my appraisal and title stuff once i did find my house... i was very happy with the company and was glad i got underwritten first... i was originally pre approved by another company for a $400k loan... when i went through the process i found out i could only get $325k because of child support and a 401k loan i was paying back... GOOD THING i didn't waste my time writing offers on 400k size homes because i could have never closed on a home that size anyway.... and there was no way i could have found that out unless i went through the whole process with quicken before hand....

just my two cents!

Guest 0.10 Dollars($)

p.s. all 500 bucks was credited back to me at closing... not a single penny was kept by quicken

adamr6cox · Joined: 28 Mar 2008 Posts: 4 2.10 Dollars($)

it seems like you guys have the same problem we do must be a worldwide trend.

Caron · Posted: Mon Mar 31, 2008 3:21 am Post subject: RE:

Hi dbobby,

Welcome to our forums.

It's good that you shared your experience with us. may be Quicken Loans have a different way of looking at the mortgage process and that's the reason it underwrites loans prior to the buyer even finding a house. The best thing is, you got through the process and shared the actual information which hopefully will clear any doubts on the minds of the people dealing with them. Smile

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