I am shocked and dismayed at this experience buying a home with USAA. This is the third home I have bought. The first was with USAA , the second with a local bank, and this one with USAA again. The first time I used USAA everything went very smooth. I provided the information they needed, they believed what I provided and we closed on time (even though we had to mail the documents back and forth from overseas).
Fast forward 10 years and this experience is absolutely horrible. I've been with USAA for 15 years. I make more money than I ever have in my life. I have a credit score in the 790-800 range. I'm using the VA loan and still putting 15% down. This is a very low risk loan from USAA's perspective. I feel like an absolute criminal with the amount of back up information USAA wants to see. Apparently they have a loan checklist that can be audited buy their auditors and they care more about checking every single little box on their checklist than they do about customer satisfaction. So, I get it the housing market has changed, but when you have assets that can be liquidated to cover all closing costs and down payments, a high credit rating, and you have provided all of the statements to back this up, then there should be no further questions.
With regards to the VA loan paperwork, I uploaded the certificate of eligibility showing I was exempt from the finance fee, but the USAA loan processor still made me fill out an application for a COE. When I told her I already uploaded the actual COE, she said she had to have the application in the file even if I already had it. This is just one of many documents that I had to provide that was unnecessary.
I also had to provide several documents multiple times eventually resorting to uploading them to my "to do" list and emailing it to the processor. Once I uploaded all my documents, my "to do" list always showed the status as "under review" or "in progress" while USAA put their nice little green checks after all their "to do" items.
I finally called the loan processor to discuss what was going on. She basically said that her "review team" and her had to make sure they did everything they needed to do to make sure the auditors were happy. When I asked what was more important the auditors or the customer, she said she had to follow USAA's standard processes and she didn't have the authority to change the process. I asked if I could speak to somebody higher up at USAA that could recognize this was a low risk loan and move things forward and she wouldn't transfer me or give me anybody else's name. She just kept saying that she had to follow the process.
I too as many others wish I would have read the reviews better before moving forward. This has been my absolute worst homebuyng experience and I will never use USAA for a mortgage again. Frankly, their lucky I haven't closed all my accounts and moved to another company. When I threatened to do that to the loan processor she had no reaciton whatsoever, other than to say we don't want to lose your business. It didn't create any sense of urgency on her part.
I have reponded to your other comment here, but wanted to apologize again for the push back you are experiencing. I have sent your comments and situation up the chain in the mortgage department and someone should be in touch to make sure going forward we meet and (hopefully) exceed your expectations. Thank you for taking the time to share your thoughts here, it will help us improve!
First off using up your VA loan guaranty for anything more than a 0% down payment is foolish. You're already paying for mortgage insurance you might as well take the 100% loan instead of the 85%. Secondly yes, the documentation matters. VA is very strict about the documentation required to be in the file and there is a specific checklist that needs to be adhered to. I don't work for USAA but I know the procedures and the VA will not buy the loan or insure the mortgage if documents are missing, customer preference doesn't matter, you don't like providing extra documentation? Don't get a government loan!! (FHA and VA)
Also, any mortgage over 80% is a "high risk loan" because anything above 80% requires mortgage insurance in one form or another, so you're flat out wrong about that. The housing market is not what determines the documentation requirements, its federal regulations put in place by the 2009 housing market crash which did away with the laxed documentation requirements you're yearning for, expecting to provide no proof beyond simply having assets is laughable since the lack of due diligence is what caused the crash in the first place. Your loan officer should have laid out the expectations a little better as you are mostly upset because you only wanted to provide only the docs that you felt like handing over as opposed to what was required. Getting a loan for thousands of dollars and utilizing government dollars on top of that is a big deal and your experience is pretty standard procedure from the looks of it, quit crying.
So I'm not going to debate on here the merits of USAA or the VA or government requirements for a loan. It is done. I got the loan. I have the house. Just want to point out some facts. I used the VA loan and put money down because I didn't want to pay PMI and didn't have enough to put down 10% but I wanted to put some money down to reduce my payments and still get the house I wanted. Call it foolish but that's what I did and I have no regrest. Second, I used USAA and the VA loan on the first house I purchased and did not have to provide these documents, so yes the government may require them now but they didn't the first time I used it with the same bank. Maybe my expectations were not in alignment with a federal loan post housing market crash. Finally, I didn't object to providing any of the documentation. What I objected to was providing the documentation and USAA continually asking for more (often times ridiculous information) i.e. they can see all the money in my accounts but they wanted account statements. They wanted statements from my investment accounts both before and after the transfer of money for the down payment was made to my USAA accounts. In my opinion all they need to see is the money in my account.
So whatever, I cried and it got things moving although I still closed late. Good luck my friend with your next mortgage experience. If it is with USAA, I hope yours is better than mine.