Quicken Loans Please learn from my experience! Detroit, Michigan

As a first time buyer, I decided to use Quicken based on family and friends saying that it was rated so well by consumers and advertised on TV. I wish I had been more informed before making a decision. 

First of all, they were all too eager to get their $400 deposit. My broker was smooth talking and seemed to be very knowledgeable. He pretended to want to "help me" through the process. DON'T BE FOOLED. They are schooled in how to talk to you. As a matter of fact, out of curiosity, I looked up this guy on Facebook. In his profile picture, there was a screenshot of his computer screen, and below that showed his little "guide" book giving him an EXACT dialogue of how to deal with "problem customers". So don't let their fast talking and quick answers to everything trick you into thinking they really care about you. You are just another pre-determined dialogue. I've included the photo showing this guy's book so you can see for yourself!

Being a first time buyer with minimal funds to go down, he fed me a line about my interest rate. When he locked me in at a higher rate, I was confused, and questioned it... another smooth line to fool me into thinking this was "temporary". It locked in a "range" of rates, he said, and I can change it before closing. He failed to explain what a PAR RATE is, and what POINTS are. When I got paid again almost two weeks later, I discussed changing the rate because I no longer needed a lender credit. That's when he said I COULD get a lower rate, like he told me, but I would have to pay dearly for it in points. So, they were trying keep me at 4% when FHA rates are going for around 3.25% right now for only a $1500 credit. For their "PAR rate" at 3.75% (still higher than what FHA loans have been), it would have cost be almost $6,000 MORE at closing. 

So, being wary of this, I discussed it with my financial advisor friend. He said it looked sketchy to him that the rate was so high when FHA rates are generally lower than conventional loans, and conventional have been around 3.5%. We took it to a banker friend of his, and she made me a sheet with what it would cost to go through their bank. It was SO NICE to speak to someone face to face. AND, even better, she worked it up for 3.25% PAR RATE, NO POINTS, and almost exact same closing costs WITH Quicken's "credit". After presenting this to Quicken, they refused to make any changes. (Hey, they already got their $400, they don't care!) So I politely told them that I would be using someone else and withdrew my application. I am out my $400, but let's be real here... That will be made up in a matter of months with the lower FAIR, CORRECT interest rate. 

So, sorry for the long review. I just want people to be wary before they pay $400 "Good Faith" deposits and RESEARCH well before you lock in their rate. MAKE SURE they give you a good faith BEFORE you give them any money! My new lender did not ask for a single penny prior to providing a good faith estimate and locking. Keep that in mind. If you don't know what you're doing, beware. They will take advantage of you. I have learned so much during this process and NOT trusting Quicken is one of them!