When purchasing a new home, you will most likely need a mortgage loan. Therefore, you will need a reputable lender to take care of those needs. Choosing a lender can be a daunting task as there are so many that offer home mortgages. You want to make sure you choose a lender whom you can trust to take care of your mortgage. USAA is a popular company that provides mortgages.
USAA stands for United States Automobile Association and was established to insure automobiles for Army officers. Since that time, the company has expanded to provide other types of products to consumers, including mortgages. Since many of the members of the association are military members or retired military members, the most popular loan offered by the USAA is the VA loan.
A VA loan is insured by the Federal Government and offers loans to military personnel or retired military personnel. You can get this loan with no down payment, as the VA pays 100% of the loan cost. USAA also provides conventional loans. This loan is not insured by the Federal Government, and they are usually for people with good to excellent credit. They have a minimal down payment amount, but they might take a little longer to process than other loans. If you need a larger amount, USAA offers jumbo loans.
With USAA, you can get a 15 year or 30 year loan. If you choose a 15 year loan, your payment amount will be higher, but you will repay the loan sooner. USAA charges a .50% origination fee. There are no fees for underwriting or documentation. To qualify, the lender prefers a score of at least 620.
One of the positive things about USAA is that some people can qualify for a streamline loan, which equals less paperwork. You can get this if you obtain a VA Interest Rate Reduction Refinance Loan.
The company is trying to get a system which will allow the entire mortgage process to be done online.. It would only takes around 3 minutes to get prequalified for a loan, and you can upload all documents needed, but for now, you must apply over the phone. You will be connected with a representative who will walk you through the process. If you work with a USAA real estate agent, you can get up to $6000 in rewards.
The bottom line is that USAA is a reputable company; however, customer reviews are less than average. People complain about the long wait times and delayed closings. It is not yet up to date with online technology, but they are working on it. Having said that, the company does offer numerous advantages, so they are work checking out. Before you apply for a loan with USAA, you might want to look around to see what other companies can offer you.