I have been monitoring USAA mortgage loan reviews on different boards. It appears that USAA mortgage ratings have fallen due to lack of customer service. Their other products are still well liked. What might be another good mortgage company We might be for a VA loan?
I went through a local mortgage company when I originally got my VA loan and it got sold to Well Fargo. I have since then refinanced with them and everything went very smoothly. WellsFargo Mortgage has been a pretty good experience for me
I ended up putting in an application for refinance with WellsFargo back in early October and locked in my refiance for 15yrs @ 4.0% APR with 0 points (credit score 750). My original loan was a 30yr @ 5.5% APR with 0 points (credit score 650). Since WellsFargo already owned my loan, I did the Streamline Refinance with them.
It seems like lots of people are having issues with USAA mortgages, especially va loans. Check out
USAA Mortgage Reviews and you will see that a lot of the 1 star reviews center around VA Loans from USAA.
I just want to give you my input on this as I am going through USAA right now attempting a VA No-No. (No Money Down -No Closing Costs).
I would have to say so far everything has went very smoothly. I too, like you all here, have done my due diligence on USAA Mortgages, and have read the reviews. I currently have a USAA MC, a car loan, all insurance, investments, and bank accounts with USAA. I do have loans with other banks as well.
In regards to the poor reviews. I have noticed the complainers usually are not telling the whole story, but whining because things didn't go their way and this is to be expected. I'd be upset if my mortgage fell through, especially if I could have avoided it.
Most of the complaints are regarding mortgages being sold to a third party, or when a customer tried to refi/modify and they were denied.
USAA does sell their mortgages. They do not keep them in house, they indeed originate the loan, but not service it. How else are they going to keep their insurance low, fees low, and all other rates low if they are bombarded with mortgage debt?
Other complaints are such as having to pay home owners insurance and property taxes into an Escrow account.(Very common if you have a LTV higher then 50 percent, correct me mortgage gurus)
Mortgage payment:1000.00/ month
Homeowners Insurance 100.00/ month
Property Taxes 100.00/ month
Total payment of 1200.00/ month and only one payment made per month not three.
Your Homeowners insurance and property taxes go into a secured account and are paid when due, may be referred to as an impound account or escrow account.
Those are the two biggest complaints.
The other complaint is refi, or a modification. People just can't seem to understand that it isn't always the banks fault when they can't refi or get a mod.
This group of complainers are usually people who have bad credit due to whatever situation, and are mad the bank wont work with them because they are under qualified in one or all areas. Well heck I wouldn't either, especially when you are asking for 100,000, this is common sense. This will lead us back to 2008!
In regards to the escrow account with the homeowners and property taxes. Some people think that their total payment cannot rise, well that depends. Its true if you sign a 30 year fixed and your payment is 1000.00/month, it will not rise. However, property taxes and homeowners insurance can rise taking your now 1200/ payment combined with insurance and taxes to about 1600.00/month (just an example). Homeowners insurance can inflate or deflate and many factors are considered, Including your credit. Property taxes go with the market, they can go up and they can go down. So, its true that your mortgage payment cannot rise (unless you singed an adjustable mortgage, and that is your fault if you did, you signed it not me), but your taxes and insurance can rise, making your total monthly payment larger then it used to be.
I say for those people who read the fine print, do their homework, and plan, they too can have success with any lender. Those that are trying to rush, cut corners, lie, hide info, and don't do their homework are usually the complainers about how the bank screwed them, when they really screwed themselves. There are sometimes where banks **bleep** up, and computers **bleep** up, but its far less then the actual customer doing something to get their loan denied.
I am certain that the complainers that are leaving bad reviews on Any bank fall in one of those areas listed.
I have not had any complaints thus far with USAA Mortgage, and I am waiting on an appraisal and final loan approval which should come by the 1st of March with a close date at the end of March. I have had a very smooth process (almost concerning, according to all the bad reviews), but I have prepared for over two years for this. I have read a lot, and questioned a lot. If I have any problems with USAA that are certainly not my fault, or feel like they are deceptive I will let you all know. Until then, the process has been good for me, but may not be for everyone and that's with anything. What works for me, may not work for you.
In general, people with better credit, income, assets, documentation, and are organized with have a smoother process then someone who cannot handle money, have credit blemishes, and terrible organization skills. This is to be expected. Garbage in- garbage out.
When making a life altering decision, such as being a doctor, or a police officer or a mortgage applicant all require training. I wouldn't let someone perform surgery on me without checking to make sure they are qualified to do so. Well you shouldn't get a mortgage until you are qualified to do so. To become a successful homeowner requires work, and knowledge, not just signing when told to on the dotted line. YOU MUST ACTUALLY READ YOUR CONTRACT!
I don't think most problems obtaining mortgages are with lenders, I think that they are with the mortgage applicants. Lenders have been trained, they do what they are supposed to do, they follow guidelines, etc. Now if all mortgage applicants did the same, I am certain that 90 percent of the bad reviews would be nonexistent, and the mortgage process would be streamlined like it is supposed to be.
There are bad loan officers, and processors/underwriters, but most of the time it is indeed the customer that is bad.
Like I said, if I have an issue with USAA Mortgage that isn't something that I have control over I will let you know. I am not afraid to speak my mind if it is legit. In my eyes, there isn't one lender better then another, they are all the same really. They are there to make money, and do business. Some lenders may not be the best business decision for you, but it could be for someone else.
If 50 people use USAA Mortgage or Well Fargo, or any lender, all 50 will have a different response, because every one is different, no one has the same exact mortgage app.
Anyway, my .02
Thank you for such thorough information, yesme. One other question. Did you go through their pre approval process and how was that?
No prob on the info. I just hate how when someone goes through a bad situation they want to push blame. Sometimes it is legit to blame someone, but other times its pure spite because they did not get what they wanted. It's comical sometimes.
About the preapproval. I did do the preapproval online. Once I submitted the application online I thought I was going to get an approved or denial! lol (used to credit card and auto loan apps) lol. What actually happens, is you submit the information and then you get a response saying that your app is under review. At this time a customer service rep (first available as this is like an inbound call center) will take the info and run it through automated underwriting. Pending AU (automated underwriting) they may need to call you to just verify some info depending on the complexity of the loan. I submitted an app, then 2 days later I received a call just to verbal verify some assets and income and then was told that I was preapproved for the amount requested. I received a preapproval letter on USAA.com within 20 mins.
The application process was very 'cool'. While filling out the application there were steps, you could save these steps and work on it later. The best part of it was that when you enter you SSN they do pull your credit that very same instance, the next page pops up with all of your credit accounts. The cool thing is that if you know something will be paid off prior to closing (EX: you have a 1000.00 credit card limit and you have a 700.00 balance that is reporting and you know you will pay this prior to closing you can check a box stating that it will be paid off). This will prompt the loan officer to remove it from DTI, if your DTI is a concern. However if you do list something that will be paid off, you must show proof, as it will be a condition on actual final loan approval. So if you do have something that you are going to pay off, make sure you actually pay if off especially if DTI is a concern.
For instance if you are at a 48% back ratio and said that you are going to pay that 700.00 credit card off and puts you down to 40% back ratio, and the loan officer preapproves you with a 40% back ratio. You then find a property and sign a contract, but that 700.00 isn't going to be paid off because something happened, they must resend your through AU, and if you are border line on credit (you aren't, just saying lol), or on reserves the AU may deny your loan, and may need more info, or manual underwriting. So it is best to be up front about everything, it will pay off. My biggest advice is do what you say and say what you do.
Other then that, the process for me has been very smooth, almost too smooth.
Hope this helps,
Out of curiosity, what were your loan stats?
- Type of loan
- Length of Loan
- APR %
Sorry, I'd rather not say at the time. I don't want to boast and something not go through lol. I will let you know when I close though.