Consumer complaint received 2017-01-23
Product: Mortgage — VA mortgage
Issue: Application, originator, mortgage broker — 
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION (AZ)

On Friday, XX/XX/2017, my husband accessed the USAA website to obtain prequalification for a home loan in order to place an offer on a home we 'd found. We initially asked for a {$250000.00} loan with {$50000.00} down. We were approved! Upon further discussion, we decided to try and get a {$5000.00} cushion to see if we 'd get approved for {$250000.00}. After entering that number, the website asked us to call a mortgage lender for further assistance. My husband called in and spoke with XXXX XXXX, Mortgage lender number XXXX. She ran the numbers and we were approved for the {>= $1,000,000} with {$51000.00} down. That would leave us with a loan amount of {$200000.00}. We made an offer on the home at {$240000.00} for negotiating purposes. After getting to a point where only {$3000.00} separated us and our new home, we decided to call in to see if we could raise our loan amount to {$250000.00}. I spoke with XXXX XXXX, Mortgage Lender number XXXX on speaker phone so my husband could hear. She asked me to hold. I was on hold for a couple of minutes. She came back on the line and informed me there was a problem. She asked a few more questions and told me we were not approved for the {$250000.00}!!! We were approved for much less!!! My husband and I were shocked and upset as we were on our XXXX counter offer for our dream home! After holding for what seemed forever ( 20minutes ) we were told we were only approved for {$140000.00}!! Over {$100000.00} LESS! We were not only approved by the automated system USAA uses, but by a mortgage lender! We CAN NOT how this HUGE mistake could have happened! I asked to speak to a Supervisor and XXXX XXXX XXXX XXXX, mortgage lender number XXXX came on the line. After explaining to him what happened, I asked him to return my call since he needed time to run the numbers again and check with the lenders. After a total of approximately 45 minutes without an explanation, I received a return call from XXXX XXXX. He was very apologetic about the error and would n't 'brow beat ' XXXX XXXX , but would make sure it was addressed. I ask him why the automated system prequalified us if we were only approved for {$140000.00}? He said the online system is flawed and they are aware of it!!!! Yet, it is still online for XXXX military families to endure the embarrassment and heartbreak of such a huge mistake!!! This can not be correct I kept telling myself!!! Someone higher has to be made aware of this egregious and careless mistake!!! After more apologies and no explanation, I am angry that an institution we bank with, have insurance with and was entrusting our future home to would be so careless with our situation!! I turned to Social Media for more answers. There has to be something that can be done about this horrific mistake. After posting a message on the USAA XXXX page, I received a reply that someone would get back to me. XXXX XXXX, Mortgage Lender number XXXX called to assess the situation. After explaining this painful situation yet again, I was told some more information from his USAA counterparts would be needed. I 'd receive another phone call to follow up. Within 24 or so hours, I received that call. XXXX XXXX explained to me that human error happens and XXXX XXXX will be counseled on the matter. Apparently, he is unaware of an error with the automated system ( even though I 'd explained to him XXXX XXXX had informed ME of the error ) that has been a major issue with me in this matter!! When I brought this to his attention, he looked further to see 14 minutes before XXXX XXXX prequalified us for {$250000.00}, the automated system ran our credit report showing it had prequalified us for the {$250000.00}. He agreed it is an error and thanked me for bringing it to his attention as he was n't aware. My problem is the lack of concern USAA showed me and my family during this ordeal. As of right now, the website is still up and running!!!!