Consumer complaint received 2024-08-11 00:00:00
Product: Mortgage — VA mortgage
Issue: Closing on a mortgage — Delays with the closing process
Company: Mortgage Research Center, LLC
State: OH

Complaint narrative:
I called Veterans United in XX/XX/year> to discuss prequalification and the necessary steps to pursue buying a home. I discussed my case with a loan officer who determined that I initially qualified for a VA loan lower than I wanted for a home and discussed how to increase what I am eligible for. In XX/XX/year>, I contacted them again and with my partner 's income included received preapproval for a VA loan up to $ XXXX. I understand that my partner is a travel nurse and has a very complex case for loan inclusion. I proactively reached out and clarified exactly what was needed from us and Veterans United prior to us looking for homes. 

We found a house and our offer was accepted on XX/XX/XXXX with a closing date set for XX/XX/XXXX, XXXX weeks out. We notified Veterans United who began their process for loan approval. We were very responsive and provided all requested information same or next day throughout the approval process. They conducted an incredibly and frustratingly thorough approval process where we provided XXXX line items and XXXX different documents worth of information, most of which triggered further questions that required further revision and additional documents. While I understand the need for additional information and thoroughness to submit for a VA loan with a non-veteran additional person on the loan, they did not request the needed information in a timely manner and instead nearly every other night they would request XXXX to XXXX additional items of clarification that would then trigger them to request more in the next few days. 
They were so focused on completing the VA loan correctly that they did not concern themselves with the timeline or submit it for VA approval by XX/XX/XXXX, and did not notify me of the delay. They fixated on the loan details, dragged out the process, and ignored what effects this would have on me as a buyer. In essence, they were unable to do their job as a lender who had issued preapproval for a loan. 

I contacted Veterans United on XX/XX/XXXX to verify that we were approved for the loan and clear to close on the scheduled closing date of XX/XX/XXXX, and was told that despite us providing all of this information and doing it so responsively, they still needed more information before they could submit to the VA for approval which would take up to XXXX additional days. I had to reach out to them to find out that they needed at least until the end of the month to finish loan approval, and could not give me a specific date to change closing to. The job of a lender is to work with the buyer to achieve loan approval within the agreed timeframe, and to notify all parties to any changes or delays. They not only extended out their data gathering for over XXXX weeks, they did not inform me that they were not going to meet closing until I contacted them. I now have to pay to extend my current lease, provide additional funds requested by the sellers due to delay of closing, risk losing the home and earnest money that I paid, and go through the emotional and personal hardship that this has caused. They never got to the point where they submitted the file for VA approval. 

I'm a reasonable person and truly was diligent about providing all information needed when needed and followed up with them to ensure everything was set for the closing date. I even called and asked XXXX weeks prior to closing if we could bypass some requirements by decreasing my XXXX or other ideas to make the process more hassle free. I was told that the VA loan was the best way to go, no changes were needed by us, and we were nearly done with the process. I was misled, and after paying them to do the appraisal for the home, inspections and additions they said were required by the VA, and now additional costs of delay, I feel like I was paying money into a process that had no intention of getting me a loan. I called their escalation team and explained the situation. I was told that I was far enough along that the only thing they could do was to talk to my loan coordinator and officer about the lack of communication that caused the unexpected shock of not meeting the closing day. I had already discussed this with them and with no other recourse available to address these concerns, am now entering this complaint. 

I went with Veterans United instead of other lenders because of what I thought was their understanding of the VA loan. They do not understand how to coordinate VA loan requirements, by exceeding the closing date and not notifying myself or realtor risked both my earnest money amount and me losing the home, and with an extension now accrued extra costs to me. I truly hope that no other veteran ever has to go through this painful process with them.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation