USAA Mortgage... any good experiences?

[brobar]

We are looking to purchase our first home. We will be doing a VA loan. We are torn between going through the builder lender and USAA (which we use for banking, car insurance, renters insurance, etc...). I'm not seeing a log of glowing reviews from USAA customers when it comes to their mortgage department. Similarly, I'm not seeing glowing reviews from the builder's lender either. I'm almost wondering if people are only taking the time to complain but those happy with the process aren't taking the time to review. Or is the new home buying process just so crappy that nobody has anything good to say about any lender? hehe

We love USAA for everything else we've used them for, and are hoping we would be just as happy with their mortgage process. But, I need to hear some positives from other people who have dealt with them first. All I'm seeing so far is complaints.

Anybody have anything good to say about your experience with USAA mortgages?

[BuffCyclist]

Can't really help you out as I don't have a mortgage with them. However, when I bought my house last year we called USAA because I use them for everything too (banking, auto insurance, life insurance, investing), their interest rate was nearly 1% higher than what I could get at a local bank. So, we went with the local bank and then the mortgage was sold to Wells Fargo.

With that said, their customer service on every other product they have is phenomenal so I wouldn't hesitate to go with them if they had a great rate that was competitive with what you could get elsewhere.

[Ashton]

Unless you have money. It's a shitty process. Unless you plan on defaulting on the loan and them having to collect it's purely financial. Lowest rate gets it as long as you pay on time. If you plan on being a buyer that plays the game and defaults then pushes the boundaries of repo... What does it matter? Same outcome.

[brobar]

We have been throwing a lot of money away on renting for 15 years and are tired of it. We've both got really good credit. Based on their website and our credit rating... they are saying we can get between 3.00 and 3.25% depending on points utilization. We thought the convenience of having all of our financial stuff (banking, savings, mortgage, insurance, etc...) all through one point of contact would be convenient. The biggest complaint we've seen through USAA is lack of communication (difficult to get in contact with your loan officer) and them being late (not meeting closing dates) on paperwork.

[ChunkyMonkey]

Current rate on VA is 3.25% w/o points, FHA 3.125% w/o points. If you have the down payment, don't go w/ VA as the upfront fees are high.

[Mick-Boy]

Just FYI, USAA doesn't actually keep the mortgages.

I went with USAA in '07 for the reasons you listed (keeping most of my finances consolidated, great customer service in other areas, etc.). GMAC has my mortgage now. My advice would be to go with whoever gives you the best rate.

I pulled this off the USAA website about 10sec ago



If you have a question about your mortgage ... First mortgage loans originated by USAA Federal Savings Bank are serviced by a select number of financial companies. Please refer to the loan servicer contact information below.
If you have feedback about your loan servicer ... We believe in providing superior service and hold our loan servicers to the same standards. Call us at 1-800-531-USAA (8722) to provide feedback.
Please have the name of your mortgage loan servicer and loan number available when you call.

The loan servicers listed are

GMAC
PHH
US Bank
Dovenmuehle
Wells Fargo
Pentagon Federal Credit Union

[obisean68]

We just bought last May and used USAA. Went through the USAA realtor here in Denver - Coldwell. Fairly painless, as much as buying a house can be. Even got some money back by using their realtor, using the Movers Advantage program. Anyway, we were very pleased with USAA.

[sturn18]

I bought a new house in 07 and financed through the builder, Centex. Of all the houses I have bought or refinanced this was by far the easiest of them all. I believe that they sold the loan to GMAC, but there are generally some advantages to using the builder's lender. The builders used to give you incentives on your purchase such as free upgrades. With the lender and builder being connected, you are more likely to have your closing happen on time when the house is ready. If the house is late getting built, you could lose your rate lock with another lender or have to pay extra to keep it.

That was nearly 6 years ago and a lot has changed in the mortgage industry, but hopefully this gives you some questions to ask of both lenders you are considering.

[brobar]

Another reason we wanted to do VA over traditional is you don't have to carry private mortgage insurance... which would save us an additional $230 a month. That is pretty significant.

[HBARleatherneck]

we bought our "new" house in July with USAA. no problems at all. 0 down. everything went smooth. we wouldnt have had PMI anyway, but that will save some money, if you dont have to pay it.

[brobar]

we bought our "new" house in July with USAA. no problems at all. 0 down. everything went smooth. we wouldnt have had PMI anyway, but that will save some money, if you dont have to pay it.

That is good to hear! Thanks for sharing.

[BushMasterBoy]

I just Googled "USAA mortgage complaints"...seems to be alot of complaints! On the other hand I have USAA insurance home & auto. I saved about $800 annually for being former .mil
I bank at a credit union. Just recently inquired at the credit union of a home equity loan, and they made it seem really easy. I would go with a loan where I could actually visit their office in case there was a problem. I am betting USAA will sell your mortgage to another lender, unless you have in writing they won't. Banks are the biggest scamsters in the nation, plus they have federal backing. Have you checked the Credit Unon rates? I am one of the few that paid cash for my house, so I can't really recommend a lender.

[Shodown]

We bought our home using USAA (VA loan). We had no issues and the Movers Advantage program was awesome. As previously stated, USAA does not actually own your mortgage, but it was transparent to us. I will use USAA for our next house.

[vossman]

USAA did our refi, very easy, they took care of it all and I got $$ back.

[buckshotbarlow]

i've been a usaa custy for 14 years, 2 mortgages and never any problems. Their web site is cludgy at best for running online banking. I recommend setting up their automagic payment plan, then you don't have to deal with it. Custy service is great, and they'll help you out as much as they can. When I sold and refi'd never had any problems...

[Inconel710]

Another USAA member here. When we bought our house in '10 we looked at USAA but ended up doing a conventional with 20% down at Ent FCU. So far, they've kept our mortgage and even modified it when rates went down. The loan mod was cheaper and quicker than a re-fi. YMMV with a VA loan.

[electronman1729]

I tried to go through USAA as well but Wells Fargo had a better interest rate for me. I typically use USAA for everything else BTW.