Consumer complaint received 2023-06-18
Company: NAVY FEDERAL CREDIT UNION
State: MD
Product: Mortgage
Sub-product: VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
On XXXX XX/XX/2023, I called Navy Federal Credit Union to complete a new home loan application over the phone, as my previous pre-approval expired within the last 30 days. Before moving forward with the application, I clarified to the individual helping me over the phone that I wanted to receive a loan estimate with the updated pre-approval letter. The individual processing my application thanked me for mentioning this early in the application process, as he would need to take different steps to generate this requested document. While completing this application, I provided my name, social security number, address, and income information, along with other items of personal information. When I attempted to provide the address to the home I would like to purchase with the pre-approval letter, the loan officer did not respond to the information being provided nor showed interest in obtaining the property address. I let the associate know the property was listed for XXXX and that I wanted to receive a pre-approval letter for XXXX and another for XXXX. During this process, I repeatedly asked to receive a loan estimate. Each time I requested this document, I was told I would need to submit a contract of an offer to purchase to Navy Federal Credit Union. I was told once Navy Federal received the offer to purchase, a loan estimate would be generated. This has been the same story I have received over and over from Navy Federal Credit Union employees of the mortgage lending department throughout the 8-plus months that I have been trying to work with Navy Federal Credit Union . Often, this has prevented me from submitting an offer to purchase or has urged me to withdraw an offer while under contract. In this one significant incident, I requested a loan estimate and unknowingly received a cost estimate where closing costs reflected approximately XXXX dollars. When I was under contract, near closing, the closing costs estimate jumped from XXXX to approximately XXXX. This encouraged me to withdraw my offer, losing nearly XXXX in closing cost expenses. This continued lack of insight into the actual cost of obtaining a VA home loan with Navy Federal Credit Union has hindered my confidence in purchasing a home. The only document loan officers of Navy Federal Credit Union ( except for XXXX and XXXX ) have been willing to provide freely are closing cost estimate sheets ( regardless of a request for an official loan estimate ). The closing cost estimate sheets provided grossly underestimate or overestimate costs associated with closing. In the past, I have expressed my concerns and frustration over not knowing the loan terms for which Navy Federal associates are requesting I submit a purchase contract. To understand the terms of the loan being offered, I would like to receive a loan estimate to compare offers and decide how best to move forward in my home-buying journey. When I completed the application process on XXXX XX/XX/2023, I did not receive a pre-approval letter or an official loan estimate as initially requested. Instead, I was told there was a glitch in the system that prevented a pre-approval letter from being generated and that I could be provided a cost estimate sheet till a contract for an offer to purchase was received. Only one cost estimate sheet ( processed as a pre-approval cost estimate ) for XXXX was generated and added to my home loan portal. 
My name is XXXX XXXX My Navy Federal Credit Union ID number is XXXX My phone number is XXXX

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with non-monetary relief