I am posting my story not to talk about the ongoing pain dealing with USAA mortgages, not the application process so i will try to briefly skim over the pains at the beginning. Firstly, I enjoy the ability to go through one agency for everything. I have USAA for auto insurance (17+ years), mortgage and home insurance. I can in no way complain about auto insurance it is amazing. But my home purchase was in the last year. The mortgage process was hellish, especially since i was trying to handle it from overseas and close to the holidays, I spent a lot of money with either the family or my wife flying from Japan to the US to close on the home, rental car, lodging, etc. . My mortgage specialist went on vacation during the holidays (understandable) and her supervisor took over my account after 2 communications of trying to get a letter from the VA,it was easier for the supervisor to deny my loan due to not being able to get information, I mean completely cancelled it. A short conversation, hung up the phone, like we were bothering him because he didn't like how the letter that the VA wrote about proof of residency was stated. The VA rep was like my email and phone number was on the letter why did he not call me? My loan process was cancelled.
I went to Navy Fed and they were like it should not be a problem, not wanting to pay fees all over again and rerun our credit we decided to talk to USAA again. The rep we talked to could not understand why the problem we had could not be resolved with a conversation with the VA or getting the letter rewritten, a manager got invovled, and agreed. We had to restart the entire process they used as much of the former paperwork as possible and obviously the managers issue was not a problem because our loan went through. Even though it was last minute and the closing had to be pushed almost 2 months, to include the day of closing waiting 2 hours for paperwork from USAA to get it done.
We aslo got USAA to provide our home insurance coverage. Together this should make the payments altogether simple, or so we thought. Today Feb 2016 we are about to hit a year in our home. In November all of taxes were not calculated properly even though the information and the amounts were almost the exact same as provided before the process started on all of the pre approvals, and other estimates paperwork. This caused by payments to jump by $800 because of being $4500 short on escrow (my mortgage started in March, so 8 months of payments, being short could have been planned for if it was identified up front) and needing to make that amount up the next year as well. The agent acted like $800 monthly was a small amount of change. Or just pay the lump sum of $4500 and your payment will ONLY increase by $300 a month. Which do you prefer? I would prefer neither i dont have $800 extra laying around and i dont have $300 either after a lump sum of $4500, I would prefer to pay what was quoted to me in the 3 month painful process.
We are working through this, and got some good news or so we thought. Our insurance is about to renew we get a letter from USAA and the new payments are reduced by a little over $200 a year. We think great. Two weeks later we get a letter from USAA saying our insurance deductible is set lower than the amount required for USAA mortgages. I call and im like USAA is providing the insurance, why would you adjust my deductible lower than what YOU require for insurance???? Basically im told i need to pay to reduce the deductible and it will cost all but about $18 of the $200 we thought we would save this year. So in one year ive had to add $4500 and my mortgage payment has increased by $300. and i have saved $1.50 a month on my insurance instead of the $20 a month their letter said originally. Beware of changes i understanding being flexible and that all calculations are not going to be perfect, but i anticipated changes about $100 or less, $800 a month i could may expect changes like that over the course of a year not a month. That could make or break some being able to pay their bills or keep their home.
I think I am about to get screwed. I was told last Wednesday that I was cleared by underwriting. Now, I am scheduled to close this Friday, 9 days after cleared by Underwriting. I get a call today, Tuesday (my closing is 3 days away) and am told that Underwriting denied my loan? WTF? I havean 820 credit score, putting down a large amount. And they have known everything since the appraisal that was sent to me by USAA after they received it on June 8, 2016. Now, with a closing in less than three days, I have to wait until tomorrow to see if Underwriting will change their mind after I clarified something in an email to the processor that she claims was given to her Director who is working with the Director of Underwriting to try to get it approved. Talk about ridiculous. I started this process in April, 2016 and now, 3 days before closing this happens. I am sick to my stomach trying to figure out what to do. There are pets involved that will have no place to stay, I have all my stuff that will have to be put in storage, the seller is moving out by Friday and the house will be in limbo with utilities and everything else. USAA ****-up will end up costing me and others lots of extra money with the delay and now I have to get another mortgage somewhere else. They are losing out on $200,000 in interest over the 30 year life of the loan. Do they really care about veterans and members with over 20 years with them, I don't think so. They should be bending over backwards for someone with my credit score and steady income and not a late payment ever in my life (I am 46). Now I have to figure out the mortgage fiasco and then where to go get my auto and home insurance, move all my retirement accounts somewhere else, and set up direct deposit somewhere else and move all my money out of here. They can prevent that and make money on interest if they just get their head out of their ***. I have to wait until tomorrow morning (Wednesday, 2 days before the scheduled closing for a decision which everyone else is telling me underwriters never change their mind). Well, wish me luck.
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