Guaranteed Rate classic Bait and Switch operation: promise one rate in order to draw customers and then switch to a higher rate and additional fees. Chicago, Illinois

I used the LendingTree website to get quotes from different lenders. The rep. from Guaranteed Rate contacted me right away, she was persuasive and courteous. I have started the application and promptly received the package to sigh after I have committed to work with them by paying for the appraisal and locking the rate.

In two weeks the rates started going up substantially and the work on my loan mysteriously slowed down.

The loan officer started to behave very differently. First she asked me for additional papers because they cannot tell if it is HELOC or a fixed rate mortgage. I promptly faxed them all the additional papers. Then she sat on my papers, w/o any communications and explanations. After my multiple emails and phone calls she responded that they need additional appraisal. After all the promised deadlines have passed it turned out that the additional appraisal needed additional work and they are going back and forth with the desk.

I started to become really concerned about the expiration of the rate lock but was promised that the lock will be extended. Then the desk reviewer could not agree with something else and requested additional work.

Finally I was told that my application is ready for closing; however there is a small change-- the locked guaranteed rate cannot be extended. The new rate is more than 0.5% higher than the locked one.

It was classic Bait and Switch operation: promise one rate in order to draw customers and then switch the customer to a higher APR due to circumstances not under our control and additional fees.

I've applied for more than10 loans in the past ten years - this is the first bad experience I've had!

STAY AWAY for your own sake!