My wife and I were pre approved for a mortgage loan with USAA. All our financial information was clearly explained in black and white, no gray areas. With that said, we made an offer on a home we were interested to buy since we were assured that we would be backed up by USAA financially, after all we had already been pre approved. Everything was going smooth and fine, seller accepted our offer, the home was well below the amount USAA had pre approved when suddenly to our surprise and after a home inspection had been done and a earnest deposit made, USAA decided to pull back. The reason for denial was based on some of the information that had already been disclosed during the pre approval process. My question and report of a problem is why would a respectful company such as USAA would mislead people in such way... What's the point of the pre approval process??? make customers think that they have been approved and then cutting them off... Even though I really like USAA I'm considering to move to another banking institution... this was a complete waste of my time and personally I felt humiliated....
I had that problem with Bank of America Mortgage. I was preapproved for a 30-year fixed rate fha morgage at 5.25% interest back in August of this year. I signed papers & received a packet in the mail from bank of america only to be disappointed a day after receiving the packet that the underwriters found something that made them deny my loan. They said it was because of a late payment on a department store card that was on my report from January. I was confused because if that was the case then I shouldn't have been pre-approved.
USAA tries to tell everyone that they are a Federal Savings Bank that caters to military, former military and those who support the military. Up until recently I fully believed that this was the case. I have had USAA since I was about 16 years old, through my fathers service to our great country I was “fortunate” enough to be able to get USAA membership. Then once I joined the military I continued to use USAA. I am now out of the military, and contracting for the U.S. military in Afghanistan. I have been in Afghanistan now for 14months. I applied for a home loan through USAA and was approved immediately. I followed all of USAA’s mortgage services representative’s instructions (Sandra Tessitore). I had 45 days from the day the offer was submitted and all of my paper work was filed out, for Sandra to fill me in on any issues that might arise. Several times I emailed her with questions only to receive no reply for several days, or until I got sick of waiting for an email and called her directly. Seven days before I was supposed to close on my house Sandra notifies me that since I am a contractor, I need a letter from my company stating that they will keep me on contract for three years no matter what, and that my pay will stay the exact same ($145k a year). I asked her why it needed to remain 145K when the loan I am going for was only 220k borrowed...her answer that’s what the underwriter wants. No company can guarantee employment for three years and these conniving criminals know it. So due to USAA, and Sandra Tessitore, I am out $2,000 dollars earnest money, the fees they charged to go through this entire process (with the extra points I bought around $600), probably around 20 hours of my times on the phone with them, oh yeah and did I forget to mention a house. USAA is not about helping military and former military get fair deals, they are all about making the quick buck and then dumping you in the trash like last weeks leftovers. If USAA would have told me these ridiculous “regulations” up front I could have had the time to go to a lender that can give loans to those who serve our country overseas and not the thieves at USAA. Once I am back in the states, able to go into reputable bank and insurance company, I will be getting rid of my USAA Performance First Savings Account, Normal Savings Account, Checking Account, Life Insurance, Home Insurance, Car Insurance, and Credit Card. USAA will not care about this because they have thousands of members who are unaware of their crooked practices. I just hope that this review will help fellow contracts know to go through another lender and not make the mistake I did by trusting USAA.
USAA just did the same thing to me with a pre approval and when I called to possibly increase the my pre approval (a measly $5k) they told me I wasn't qualified anymore. My next phone call was to Wells Fargo who apprved me for the same amount. Turns out they also gave me a better interest rate. I will be doing the same thing and dumping all my USAA accounts. I will also be spreading this word along to all my sailors.