As a USAA member for 33 years and also as a Realtor who is a USAA Real Estate Rewards Preferred Agent, I am requesting that USAA Mortgage offer its customers the option to get a Preapproved Letter. Currently, that is not an option. It is their policy to only provide Prequalified Letters to their customers. All the other lenders I use in the Raleigh area offer Preapproved Letters once they have received and verified the required financial documents. As a result, USAA Mortgage customers are at a disadvantage when presenting their offer in this sellers market. As a Listing Agent, I won't consider an offer from a buyer who is not Preapproved. It puts my seller at risk during Due Dilgence that the buyer won't obtain final loan approval.
I encourage everyone that reads my post to call USAA Mortgage and ask them to change this policy. They claim that the new TRID laws prevent them from requesting financial documents from their customers, but all the other banks do it. Keep in mind that buyers that use a VA Loan are already at a disadvantage in a multiple offer situations because the VA prohibits buyers from paying certain closing costs, so those costs are passed on to the sellers. Sellers consider those additional costs when considering the offer. Because of this policy, I often ask my buyers to get Preapproved by another lender and I present the Preapproved letter from the other lender when I present their offer. Once we get under contract, they can select either lender and I always recommend they select USAA Mortgage, especially when the referral came from USAA Mortgage. I want to be loyal to the company I've trusted for all of my insurance needs for 33 years, but I ask that they change this policy so that their customers are better served and able to compete on a level playing field when buying a home.
So totally agree! I have a young realtor who is not jaded enough to realize that we are losing out to other bidders, because we are going with a VA Loan. I asked our new lender (see reasoning below) if we should go conventional and she said that we would be crazy to not use our VA benefits...and then we lost another bidding war.
What is worse, is that for the first time in decades we have to use a lender other than USAA, because they do not do VA Loans on Manufactured Homes. Unfortunately, where we are looking, all the houses that have land, are manufactured ones.
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