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What kind of bank does this to our Veterans?


Yesterday one of my clients calls and says he has decided to go with his local bank because the interest rates on their Veterans loan is ¼ lower than anyone else,which is fine by me.I prefer you use a preferred lender because I know it will close then, but, still at least it is a local bank.

This is when the buyer drops a bomb shell on me telling me he only has 90 days to close on a home we haven’t found yet! I asked, “Does your lease end then and you are afraid of having to sign another one?” He informs me that, “No, it is because my bank charges a $250 application fee for Veterans loans and you have to close within 90 days or you will have to pay the $250 again to get a new pre-approval.”

“OK, so in order to get a pre-approval you have to pay them $250, and now we have to manage to find your dream home at a good price, do all the negotiations and close within 90 days?” He asked, “Is that aproblem?” I said, “No, but it means it’s going to really limit what homes you can look atand how good of a deal you are going to get, because now you have time lines that have to be met.”

Basically, this made it impossible to put an offer in on any kind of short sale or foreclosure that he may have wanted to look at, because if we do, there is a very good chance that he will lose his $250.

But,that really isn’t my problem with the whole situation… My problem is how anyone could do this to our Veterans. Our Veterans are the ones that gave us the freedom of speech, the freedom to conduct business as we do, and who made this country great, and you repay them by charging them a $250 fee? To me, this is just wrong and when I find out what bank is doing this to our Veterans, I will call them out on it!

Todd Clark (Principal Broker)
eXp Realty LLC
Comment balloon 20 commentsTodd Clark • March 29 2009 01:56PM


Sounds like a come-on by the banks marketing. Something truly is wrong....

Posted by Mark Watterson, Utah Real Estate over 11 years ago

Todd - I guess THAT is the kind of bank that does that to our veterans!  If you are looking for a short sale or foreclosure, that would definitely be next to impossible to get done. 

Posted by Jason Crouch, Broker - Austin Texas Real Estate (512-796-7653) (Austin Texas Homes, LLC) over 11 years ago

I absolutely agree, to pay a Pre Approval for any type of loan seems a bit out there. Why would anyone pay a lender for a pre approval. It should be part of their or ( His ? Her ) customer service. It seems we're moving farther and farther away from doing business with Good Will in mind.

I have Pre Approved hundreds of prospective Home Buyers and have never charged a Credit Report fee and would never think of charging a Pre Approval fee. This is a cheap trick by the Bank to LOC the Customer in to doing the loan thru them. With this type of modis operendi I would bet your VET will have the rate increased at the last minute.

I would check with the VA and see if this is legal. The VA's website is


Posted by Chuck" The Don" Donato (Keller Williams, Chino Hills) over 11 years ago

Mark - I'm just hoping I can get him talking to my lenders who won't treat him like this.

Jason - I agree especially when I have no control over the transaction, it will be all up to the listing agent.

Posted by Todd Clark, Principle Broker Oregon (eXp Realty LLC) over 11 years ago

Just plain wrong. That bank needs to be avoided. That is no way to do anybody.

Posted by Terry Miller, Miller Homes Group and Tyler Apartment Locator (Miller Homes Group) over 11 years ago

I agree with the American Home Lending comment. I would certainly find out from the VA if this is legal. I help many veterans (being married to one, it's hard not to). Many bank with USAA Federal Savings Bank, and those fine folks in San Antonio would be loathe to ever do such a thing. Paying for pre-approval is a joke. How does the bank qualify the $250? What is that money for? I would be interested in a follow-up to this situation. I hope there is a resolution soon. Today, people should be exploring giving military discounts, not charging extra with time limits. A joke!

Amy's Sweet Signature

Posted by Amy Zender over 11 years ago

Todd - Thanks for your post.  I am aware of a couple of banks that require a $250 fee.  I'm curious now to see if they have a time frame, too.  This could be a problem for anyone looking for a short sale or lender-owned property - not just our Vets!  Thanks for the heads-up on this practice.

Posted by Marlene Bridges, Laguna Homes|Laguna Condos|Laguna Real Estate (Village Real Estate Services, Inc.) over 11 years ago

Hi Todd, I would be wary of referring anyone to USAA (although I am a USAA member) since they offer incentives for home buyers and sellers to use their preferred realtors.  I think that program is called Movers Advantage.  Your lender sounds like the best solution.  Let us know what happens.

Posted by Shirley Parks, Broker, 210-414-0966, San Antonio TX Real Estate (Sands Realty 210-414-0966) over 11 years ago

I have never heard of such a thing!!!

Posted by Kelly Willey, Florida Keys Luxury Sales, Marathon, Key Colony (Coco Plum Real Estate, Kelly Willey, FLORIDA KEYS) over 11 years ago

Wow....all smoke and mirrors in packaging.  With an ultimately negative affect for the vets paying a price.  Too bad....they could be heros, like our vets, but really end up hurting them.


Posted by Larry Bettag, Vice-President of National Production (Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001) over 11 years ago

American Home Lending - I was certainly amazed and the good news is I sent my client a copy of this post to him and he has now called my preferred lenders. One of them was actually able to beat this banks "GREAT RATE" and not charge him a dime for the pre-approval..

Terry - As soon as I meet with my buyer on Monday, I'm getting the name and calling them out on this practice of stealing from our veterans.

Posted by Todd Clark, Principle Broker Oregon (eXp Realty LLC) over 11 years ago

Amy - That is a lot of very good questions. In Portland it could be going to the anti-war movements we have here. 

Marlene - It is more than a could be a problem, it is a problem!

Posted by Todd Clark, Principle Broker Oregon (eXp Realty LLC) over 11 years ago

Shirley - Thanks that is good to know. This buyer is pretty darn happy with me right now as I just saved him some serious money and also listened to his needs when no one else would.

Kelly - Either had I before Friday, that is why I was so upset that a bank could do that to our veterans.

Larry - The sad part is they couldn't even live up to their other promises!

Posted by Todd Clark, Principle Broker Oregon (eXp Realty LLC) over 11 years ago

None of the lenders I work with charge a dime for a pre-approval.  Sounds like a lender to drop from any prefered list.

Posted by Cindy Jones, Pentagon, Fort Belvoir & Quantico Real Estate News (Integrity Real Estate Group) over 11 years ago

I have never heard of this. What can the justification be?

Posted by Terry & Bonnie Westbrook, Westbrook Realty - Grand Rapids Forest Hills MI Re (Westbrook Realty Broker-Owner) over 11 years ago

Cindy - This lender isn't on my approved list and never will be! Our veterans should be given discounts and hugs for their service not back door charges.

Terry - I would love to find out, but I doubt there is one besides to line their own pockets.

Posted by Todd Clark, Principle Broker Oregon (eXp Realty LLC) over 11 years ago


Looks like they are trying to get closings the wrong way.  this is not the way to treat ppl. regardless of any desperation.

Posted by Rebecca Levinson, Real Estate Marketing and Online Advertising Consultant (Real Skillz-Clear Marketing for Your Real Estate Vision) over 11 years ago

Todd! Wait, is that a standard thing for VA loans?  I have never heard of anyone paying for a pre-qual. I am not even sure that is legal in CA!

Posted by Cristal Drake, Realtor - Fullerton Real Estate (Prudential California Realty) over 11 years ago

Todd- I am glad you got the buyers to go to your preferred lender. I hate it when they go to their own great deal found lenders who just screw them over.

Posted by Katerina Gasset, Get It Done For Me Virtual Services (Get It Done For Me Virtual Services ) over 11 years ago

Rebecca - I will never let people use this bank if they treat our veterans this way, it is just wrong!

Cristal - It certainly is not a standard thing for VA loans, it maybe at that bank, but no where else.

Katerina - That is certainly what that place was trying to do to them!

Posted by Todd Clark, Principle Broker Oregon (eXp Realty LLC) over 11 years ago

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