Consumer complaint received 2023-05-16
Product: Mortgage — Other type of mortgage
Issue: Closing on a mortgage — 
Company: WASHINGTON FEDERAL BANK (AZ)

We locked in our one time close construction rate for 90 days on or around XX/XX/XXXX. We were told at the time it takes approximately XXXX days to close. We had a trip planned for XX/XX/XXXX so we asked if that was going to be an issue and we were assured we had plenty of time. As our loan progressed into XXXX, Washington Federal ( XXXX ) flagged my VA XXXX benefits and asked me for proof they would continue for 3 more years. I said the VA doesn't provide that kind of proof, the only thing I have is my benefits summary, which we provided when we applied for a loan. Still, they insisted upon further documentation, and after providing almost 10 years of benefit history and payments from the VA my XXXX benefits were allowed ( although they were not grossed up like they would be per the XXXX XXXX standards, since they explained they were a portfolio lender and didn't follow those standards even though we were directed to them as a guideline ). Regardless, we thought that particular issue was closed at that point. 

As the loan progressed into XXXX, I began to express my concern they were moving too slowly and was repeatedly assured we had plenty of time. Also, we were being pressured to pay for our XXXX XXXX construction permit prior to closing, and I expressed my apprehension as we still did not have final approval and no final numbers. However, on XX/XX/XXXX we went ahead and paid {$15000.00} for our permit, being assured again we had plenty of time to close on the loan before our trip and intervening expiration of our rate lock. 

On XX/XX/XXXX I was notified again my VA XXXX benefits had been flagged by underwriting. The underwriter was using a document dated from the summer of 2021, which was superceded by the benefit summary letter dated from XXXX. In addition, our builder was required to fill out additional line items on a specific form, something about which we had inquired several times at his request and had been assured those were old standards. Nevertheless our builder submitted that document that very same day and we awaited the 2nd decision on my VA XXXX benefits. 

On XX/XX/XXXX we were told we had gotten final approval on our loan as the underwriter was again fine with my VA benefits. I again expressed my concern we would not be able to close in time, and I was told we had plenty of time. When I brought up the 3 day loan disclosure rule I was advised we could wave that, to which I replied I had no intention of waving it as we need time on our end to move money around for closing, and we still didn't have a final numbers. 

On XX/XX/XXXX we received the loan disclosure. I looked it over and communicated to XXXX the XXXX dollars we had paid for the permit fee was not credited toward closing as we had been promised. XXXX took the loan back to processing to fix the numbers, and we received notification midday on XX/XX/XXXX that an updated loan disclosure was en route ( we never received that ). At that point I got an updated closing number via text, and it would require me to move more money to be able to close. Almost exactly the amount we had been made to pay for the construction permit. Reviewing my bank and investment transactions, it would take me until at least the XXXX of XXXX to move the money ( one day to sell the treasury bills, XXXX day to transfer the funds, and then setting up a wire transfer ), which would be the 3 days required for disclosure, but there were no guarantees the money would be there in time. 

At this point I said I didn't see how it was possible to sign on the XXXX, the day before our trip, even if my wife was able, which she wasn't because of a doctor 's appt. I asked what my options were and I was told we could pay an additional XXXX dollars to extend the rate for 15 days or start the process over again. I communicated back I would not be spending anymore money as we should have had plenty of time to close this loan, and there is no guarantee my XXXX benefits wouldn't be held against me a 3rd time up applying for a new loan.