Any USAA Mortgage customers?

[alienb1212]

I've always had great experiences with USAA. Never hesitated in buying any of the auto loan or insurance services, even if their rates were a little higher than the competition, because I KNEW I was going to get good service...and I have.

That is, until I made the mistake of applying for a VA loan through them. From my research, they actually sub-out this stuff to Wells Fargo and/or US Bank. Initially, my processor was very dismissive, and couldn't be bothered to return phonecalls or emails in a timely fashion. I sent a semi-nastygram in an email, very clearly laying out what I expected from her as far as communication, and service. From that day, she's been spot-on, promptly returning calls, emails, and has my confidence that she's doing everything within her power to get this thing done...BUT.


I'm about 36 hours from my closing appointment. I still don't have final loan approval. After looking, (post-application...) at all the absolutely horrible reviews about USAA's mortgage services, it seems this is very typical, and has been for years. I'm really worried and very, very stressed the hell out due to already providing notice to the current landlord, utilities, etc, and taking time off work to move, which is also going to put me through a significant financial loss due to some work missed....

Several calls today have gone unanswered. On their "website" (badly coded, poorly/never updated and never current to where we are in the process) supposedly I'm at "final approval" and everything's good to close, but I have no documents, or any kind of contact or figures from them. WTF!?

Has anyone gotten a mortgage through them before? It's easy to put up a negative review on some anonymous website, I'd love to hear from members here and their experience.

Very stressed the F out, and worried about this whole thing.

[R0N]

I researched them and decided to go with Navy Fed, unlike my realtor, they gave first class service.

[C-grunt]

We used them for both of our VA loans and I found the process to be insanely easy. We also used their home buying program which made it even easier.

Plus they helped me to use my "bonus entitlement" which allowed me to buy another home on the VA loan while I still had my first. Most banks don't know about that and will tell you that you can only have one VA loan at a time. Which is false. Though there are some stipulations.

[philcam]

I've used them twice. My first home loan was sold by USAA to GMAC almost immediately after closing and the service sucked and I swore off USAA mortgage services.

My second time, I reluctantly checked their rates and found them very competitive. That was 2 years ago, USAA still holds the loan and I've been happy with the service.

Both time, closing was done on time as promised.

[C-grunt]

Also after using USAA for my mortgages for 7 years now I've never seen anything about any other bank.

[kwelz]

I am a Realtor. I obviously don't process loans but I deal with lenders every day and have a family member who runs the mortgage department at her bank.

Good lenders and especially good loan officers are few and far between. I have about 4 that I trust and will send my clients to. Outside of those few I am always very hesitant. Stories like yours are almost the norm anymore.

Now, I will say that being 36 hours from closing and not having final approval is very normal even with good lenders. The underwriting audits can go right up to the day of closing. Hell sometimes we are sitting at the closing table waiting for them. And then you have to wait for them to wire funds. Sometimes they will do what is called a dry closing, this is a closing where no funds are exchanged. Talk to your Realtor but my advice is to not let them do a dry closing. Better to extend the closing date by writing up an amendment to the purchase agreement.

You should have the HUD-1 48 hours before closing. But this isn't always possible.

Here is my advise to you. Take a deep breath, a shot of bourbon and then call or text your Realtor. Ask them their advice. Heck just ask them to talk you through it. Our real job isn't selling homes. It is advising and counseling our clients. I have spent 2 hours at 1AM the night before a closing talking a client off the proverbial ledge.




This advice below doesn't help you but in the future here are a few things to do.

• Always deal with a local lender. Even if it is a large bank make sure you are dealing with a person you can go and talk to face to face.
• Ask your Realtor about lenders they trust. I keep my list in PDF form and can email it to anyone at any time. I give them direct contact info not just the banks or mortgage companies name.
• Make sure you have a lender who isn't just working 9-5. Real estate isn't a 9-5 deal. You are worried about things or need info at all hours. Your Realtor is working at all hours. Your lender should be as well.
• Get copies of everything you sign.
• Don't be afraid to ask questions. Do you know the difference between the APR and the Interest rate? How about what and how much your PMI is? The list goes on. Most of us on here are alpha know it all personality types. We don't want to appear ignorant. But trust me there is so much to a mortgage that it makes my head spin. And I do this shit for a living.

ETA: Most lenders sell off the loan to a number of larger companies who handle the mortgages. This is the only way mortgages can work. Most banks and mortgage brokers are far to small to be able to do any real number of mortgage loans. Normally here in Indianan you get a list of who they might sell it too. But laws vary from state to state.

[Watrdawg]

I've been in the mortgage business for 22 years. Your experience with USAA is pretty much the norm for them. Their rates are higher than market usually and they cannot close a loan in 30 days or less. Average time is going to be 45-60 days. Being here at Ft. Bragg we specialized in VA loans. However, there is very little difference in the various loan programs. Qualifying guidelines are about the same with a few variances here and there.

If you closing attorney/title company doesn't have a closing package 48-72 hrs in advance of closing then someone has dropped the ball. There is no reason your loan shouldn't have been underwritten in a timely manner unless you, as the client, haven't provided the requested documentation quickly. Not saying that you didn't by any means. USAA's problem is that they do not process, underwrite and generate closing packages in house. Everything is done by another company. At one time PHH did everything for USAA. I guess that has changed. This situation isn't just specific to USAA though. If happens quite frequently with large mortgage companies. As Kwelz said talk to your Realtor about a good mortgage company. Local Mortgage Bankers, not Brokers, can be your best source for home loans. They usually originate, process, underwrite and generate closing packages in house! One of the best things about working with a local mortgage banker is that you can always walk in the front door and speak with your LO or even your Processor if you have questions about documentation or the status of your loan. Kind of difficult to do that with a large bank or out of state lender that works by phone or online.

I'm tooting my own horn here but we are also a great example of what you should look for. We do everything in house. From initial origination of a loan to the final closings. We even have an attorney on site to handle our closings if a client chooses to use them. NC is an attorney state so attorney's handle the closings. Most other states are Title states so Title companies handle the closings. No reason a Mortgage Banker cannot have a Title company on site either. Kwelz is right that most smaller companies sell their loans after closing. We do also. It is too expensive to service a loan and unless you have the economies of scale and a LOT of capital to invest in servicing you are going to sell your loans. It is standard practice and doesn't change the terms of your loan in any way.

My statements have kind of bounced back and forth for the OP and anyone in general but there is no reason for the OP to have had happen to him what did. I'm a USAA member also and they provide many great services but too many members experience the same things that the OP did and still is when it comes to USAA's mortgage side. Shouldn't happen.

[streck]

I used USAA for my VA loan and my experience mirrored yours. We had to reschedule closing twice because of their delays. PHH handled everything for USAA, or so it seemed afterward. It was a mess. They did not get the package to the title company until the day before the final closing. This was 3 years ago....

And then they had the balls to insist that I complete the survey immediately after closing and leave it with the title company. I ripped them a new asshole on that survey and stated that I would not recommend USAA for VA loans.

[No.6]

Best of luck to you in your purchase. I've never dealt with USAA, but I have dealt with Citi Mortgage. A word of advice if you find yourself "sold" to Citi. RUN! Sell the house, burn it to the ground, just stay the F away from them. Lots of problems that I don't want to talk about on a forum, but trust me, do your best never to do business with them.

[Watrdawg]

Best of luck to you in your purchase. I've never dealt with USAA, but I have dealt with Citi Mortgage. A word of advice if you find yourself "sold" to Citi. RUN! Sell the house, burn it to the ground, just stay the F away from them. Lots of problems that I don't want to talk about on a forum, but trust me, do your best never to do business with them.

Your experience is why we do not sell to Citimortgage any more. Chase Mortgage is the same way.