I have read this thread (http://ficoforums.myfico.com/t5/Mortgage-Loans/Pre-approved-for-FHA-through-Wells-Fargo-then-denied-...) but decided to make a new thread as I did not want to bump up an old topic.
So I was preapproved for a Conventional Loan back in April from Wells Fargo. I did shop around for different loans, and Wells Fargo gave me the best rates. I qualified for 3% downpayment at with a $417,000 loan. My credit score at that time was around 796.
I found the house I liked, and put in an offer (June 16) that was accepted. The property was valued a little bit higher than I expected, but was still a good deal, so I went ahead an put in a little bit of a higher down payment to keep my loan at $417K. Wells Fargo requested that I pay for an appraisal, which was fine. The appraisal came back at $5,000 higher, so great! Free equity!
Now this is where the fun part comes in.. my account goes to Underwriter. My DTI is 44% (still below the requirement of 45%). Underwriter approved my file, but then claimed Fannie Mae rejected it. It was due to my revolving credit, and they told me to close my credit card accounts. I was not okay with this, and then I found on Fannie Mae's website that as of 2015, the revolving credit cards only need to have a balance of $0, rather than closing the accounts all together. I showed this to Wells Fargo, and after reviewing the requirements, they then said second level Underwriter has to approve now... which is still on going. They claimed they are expediting my files, but they are taking longer than the standard time.
This entire process has already taken about 3 weeks already and my seller is upset. The seller threatened to cancel multiple times, but my realtor fortunately was able to push out dates... however today is the final day. Myself, my realtor, and the seller's realtor have been contacting my loan officer and his manager constantly, but they are just beating around the bush.
At this point I pretty much lost all hope, and feel as if I will lost my earnest deposit ($5000). What options do I have now? Just eat the lost? I am not happy with Wells Fargo at all.
