I applied for a mortgage from "Mountain Mortgage Corp" for NJ state 's First Time Home Buyer program. They gave to the best quote and gave me Good Faith Estimate. I paid a Fee of 595$, for applicaiton fee and appraisal fee. And I gave 1% downpayment of $3230 as a cheque. Just 15 days before the closing they denied my loan and informed me that I do not qualify for the program. They delibratly do this at the end so that you are stuck with them. Then I cancelled the Home Appraisal, which was sheduled a day after.
After the application was denied and after I cancelled the home appraisal, still they went to the sellers home without any appointment or knowledge with me or my agent and did the home appraisal. The reason for this because they dont have to return me the appraisal fee of 300$, if it is complete. The cheque of $3230 was encashed after a week of the denial. I did not know that the 1% goes to the mortgage lender, The owners are husband and wife, Philip Merola and Nora Merola. The Marketing person Philip merola informed me that this amount goes to the state, and you can never lose the money to the state, but later I found that they have encashed this check with the bearer of Moutain Mortgage. Now if I call or email, they do not respond.
Now I am an not sure whether I will get my 3230 and 595 back. This whole thing of application is a scam, they find some point in your documents that will not qualify so that they dont have to refund 595$. Now I am worried how to get the 3230 back. I have applied a month back, and it was only 15 days before the closing they informed me that the loan is denied. They could have informed well in advance so that I had enough time to check with other lenders.
Please think 100 times, before you apply through Mountain Mortgage.
Parlin, New Jersey