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Wells Fargo Home Mortgage / mortgage loan application

1 TX, United States Review updated:

My husband and I were pre-approved for a conventional mortgage loan three weeks ago. I have just graduated with my PhD, and am starting a post-doc fellowship position that will last for 2 years. I asked whether the fact that I had just graduated and started a new job would present any concerns about my "loan worthiness" and was told not to worry. We thought that underwriting would be no problem, due to the pre-approval, our respective credit scores of 760 and 810, the fact that we have zero debt, can bring 20% down payment, and because our assets are greater than the purchase price of the home. We entered into a contract on a house based on assurances from our loan officer that we were a "slam dunk" application and should anticipate no issues with underwriting- she was 100% sure we'd get our loan. We proceeded with the home inspection and the appraisal, and all other aspects of the contract fell into place. We were looking forward to our closing date and taking possession of the home.

The application went to underwriting-- and was denied. Why was it denied? It seems that the income I receive does not count towards qualification, because it doesn't show "evidence of continuance" for a period of at least three years. This is absurd. I have a grant-funded guaranteed position for the next two years, and that income cannot count toward my application. Moreover, our assets are greater than the requested loan amount. Because of this, I expected to be viewed as a low-risk loan applicant. If we wanted to, we could just outright buy the house, but I'd rather use my assets to continue building toward retirement. So thanks Wells Fargo. Now I've either wasted $1200 on appraisals, inspections, etc. on a house I can't get a loan for- or I have to liquidate all my assets so I can buy it outright.

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Comments

  • To
      21st of May, 2009
    +1 Votes

    After pre-approvable, committment letter, three trips to the underwritters and being told everything was "no problem" Wells Fargo could not get the information to the title company on time to close, so after being told everything was just fine the loan processor advised me to request an extention, which I did at the cost of an additional $225 dollars. The very next day after the extention approval, I called the loan processor and he said, oh by the way, the underwritters denied your loan, remember this is after the underwritters have looked three times, they suddenly discovered that I will lose part of my income in 2 1/2 years (they had the information from day one) and since my income would change in less than three years they would not give me the loan.They have tried to tell me this is an FHA guideline, but this is not true. So, because of these stupid a** people I have lost about $2000 and wasted six months of my life between looking, finding, and loan processing. four things I will do...sue them for all monies lost, report to the BBB, remove all of my money from their low-life ### stinking bank and cut their credit card to pieces in from of everyone at their local bank.

  • Ke
      10th of Jun, 2009
    +1 Votes

    My husband and i are going through a similar problem. We found the house of our dreams and called Wells Fargo for a pre approval letter, it came back with no problem!!! our credit scores are 780 and 760 the loan rep told us this loan will be an easy loan. We applied for this loan on april 25th 2009 today is june 10, 2009 and it is our commitment date, we still have not recieved our approval they keep asking us for more income documentation. We are self employed and only have one year of taxes for our business they knew this information when we applied and now it seems to be a problem. Our income is substantial and we are putting 30, 000.00 down. My home that i sold is scheduled to close on June 22, 2009 i have no where to live and still can not get an answer from the bank, they keep calling and requesting information we already gave them. We have also spent about three thousand dollars throughout this process and here we sit with out that money and no where to live this mortgage company is a scam and have put us out if anyone knows what i can do to recover my money or legal course of action against them i would appreciate the information!!!

  • Am
      8th of Nov, 2010
    0 Votes

    I did the same. I applied to Well's Fargo for a loan 6 months ago. I was approved all was going well. I paid for Appraisals Inspection and even made repairs this month because( it is a short sale) and answered all of their 24 conditions over 45 days ago. I have extended closing 3 times. I submitted all of their request and proof of income two years back and 3 years forward. Then they sent 7 more conditions two weeks ago. Met them again. Now closing is set for the last time next week.
    We call them and they say they never got the condition from a week ago, but since they did get one of them they need a letter from the CC Company. How can they not get it but still request something irrelevant off of the documents they say they didn't receive. As of this week the seller will no longer wait so I will lose $3000. I have been in limbo for 7 months and told that this will go through be patient, don't apply elsewhere. We are locked on the rate and everything. There has got to be some accountability here. This is false advertizing that is causing monitary damage to would be homeowners as well as undue emotion distress. I even paid of f a loan with Wells per their request and promise to close last month and I have old and always current lines with them as well as 6 bank accounts. My income, credit and ratios are perfect according to the underwriters. I have been with them for over 10 years!!!.

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