Consumer complaint received 2022-08-03 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: NAVY FEDERAL CREDIT UNION
State: NJ

Complaint narrative:
On XX/XX/XXXX I consulted with Navy Federal Credit Union, which I have been a member since XXXX, before applying to inquire about a mortgage. I specifically wanted to if my student loans ( which are in good standing ) would keep me from getting a loan. 
After speaking to a representative for approximately 20-30 minutes and him advising me that I should not have any problems since I had never been in default. I then applied and was pre-approved for a {$370000.00} mortgage based off of my based off of my debt to income ratio to include my student loans ( I have a copy of the pre-approval letter ). 

I found a condo ( new build ) that turned out to be less than the amount that I was originally pre-approved for ... the amount of the condo is {$340000.00}. After 21 days and fulfilling requests made by NFCU ( adding additional money to the down payment ( additional {$500.00} to already {$18000.00} down ) as well as paying off additional credit cards ), they denied me saying that my debt to income ratio was too high. It makes no sense to me that I can be pre-approved at a larger dollar amount ( {$370000.00} ) with a higher interest ( 7.5 % ) rate on XX/XX/XXXX and then no longer qualify ( denied ) with a smaller loan amount of {$340000.00} and a lower interest rate of ( approximately 5.5 % ). 

I don't understand how both decisions that have been made have been done with the same documentation. When I applied for the mortgage loan on XXXX XXXX  the questions that I asked which granted me the pre-approval were the exact same ; one in particular, my student loans. 

Currently everyone who has a student loan is in forbearance ( COVID relief ) with a zero payment ... ending on XX/XX/XXXX in which everyone will begin repaying on XXXX XXXX unless the President extends it. At that time, my Income Driven Repayment plan will begin, also at a XXXX payment. This was applied for and approved through the Financial Student Aid government website. The Navy Federal Credit Union ( NFCU ) requested that I get a letter from XXXX XXXX showing that my monthly payments will be zero... which I did. In fact, you've ( NFCU ) has requested that I pay an additional amount into my escrow... which I did ; NFCU requested that I pay off additional credit cards... which I did. All of this took place within 20 days or so ; at the same time that I am packing to relocate to VA to start my new job.

One of the main issues with this is that I relocated to another state for a new job... so this is all on a timeline and the condo that I had selected was to be done in XXXX which is the approximate date that i had given the movers to deliver my things. Now that NFCU has now denied me, it has put me at a terrible inconvenience and have now inconvenienced others because of their last minute decision. I've gotten rid of furniture that I would need if I had decided to rent ( again ). 

I've been a member of NFCU since XXXX  and since then, I've applied and approved for an auto loan ... at that time my student loans were much more ( I later decided not to refinance my car through the credit union ) ... NFCU has never had any issues with me or my accounts. I am so disappointed with how this has been handled.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation