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Regular Contributor
Denny33142
Posts: 179
Registered: ‎07-12-2011

Called Wells Fargo for Pre-Approval

I was going to wait a little longer to see if i could improve my score but it has been stuck in the 620-640's range for over 6 months now.

 

So i called Wells Fargo and gave the representative the information he needed to process the application, i asked him if it was even worth applying since my credit score was very low, he told me that as long as it is over 600 that i would be in good shape but that it would probably be denied by the system and would have to go though underwriting.

 

As expected it was automatically denied by the system, he gave me my middle score which was 627 and told me that i stand a pretty good chance of getting the pre-approval after the underwriting is done.

 

Bank: Wells Fargo

 

Loan Amount: $70-100K

 

Anual Income: 25K

 

Fico Middle Score: 627

 

 

Wish me luck :smileyhappy: i will post back when they finish reviewing the application.

Regular Contributor
AshCas
Posts: 119
Registered: ‎10-25-2011

Re: Called Wells Fargo for Pre-Approval

Good luck!

 

We're applying for pre-approval through Wells Fargo later today...can't wait!

 

What negatives are on your report that are keeping your score in the 620's?  How recent are they?

Regular Contributor
Denny33142
Posts: 179
Registered: ‎07-12-2011

Re: Called Wells Fargo for Pre-Approval

Only 2 negatives, a collection for a measly $90 and a Paid CO, both are over 2 years old.

 

My score was around 640 2 months ago but my utilization is higher now which lowered the score almost 20 points, i think what killed my utilization is a $400 balance on a $500 limit card.

New Contributor
ceva02
Posts: 61
Registered: ‎01-09-2010

Re: Called Wells Fargo for Pre-Approval

I just went though pre-approval and I'm still alive. :smileylol: Good luck!!


Starting Score: EQ 613
Current Score: EQ 632 TU 647
Goal Score: 700


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Regular Contributor
AshCas
Posts: 119
Registered: ‎10-25-2011

Re: Called Wells Fargo for Pre-Approval

Hey Denny - any update on your pre approval? 

Regular Contributor
Denny33142
Posts: 179
Registered: ‎07-12-2011

Re: Called Wells Fargo for Pre-Approval

Still have not heard anything, should be a couple of days at most.

Regular Contributor
AshCas
Posts: 119
Registered: ‎10-25-2011

Re: Called Wells Fargo for Pre-Approval

Got our Pre approval today!! Super excited to start the house hunt!
Regular Contributor
Denny33142
Posts: 179
Registered: ‎07-12-2011

Re: Called Wells Fargo for Pre-Approval

I do hope i get that Pre-Approval, my middle score is over 620 and i have had squeaky clean credit for the past 12 months with over 50 consecutive on time payments on my tadelines so i do not think that would be an issue.

 

I am honestly more worried about my income than anything else, i do not know if they consider 24K annual income as too little for a mortgage, although i am asking for less than 100k so i really don't know.

Community Leader
Senior Contributor
StartingOver10
Posts: 3,707
Registered: ‎03-06-2010

Re: Called Wells Fargo for Pre-Approval

[ Edited ]

Denny33142 wrote:

I do hope i get that Pre-Approval, my middle score is over 620 and i have had squeaky clean credit for the past 12 months with over 50 consecutive on time payments on my tadelines so i do not think that would be an issue.

 

I am honestly more worried about my income than anything else, i do not know if they consider 24K annual income as too little for a mortgage, although i am asking for less than 100k so i really don't know.


Your question is really a question of Debt to Income (DTI), not of just income.

What the underwriter looks at is the total cost of your new home purchase (also called the front end ratio) and your total debt (called the back end ratio).

 

The elements in your front end ratio include: Principal, interest, real estate taxes, homeowners insurance, HOA/condo fees (if any) and MI (mortgage insurance premium).

 

The elements in your back end ratio include all of the above plus your other debt like vehicle payments, cc payments etc.

 

Each lender has their own maximum ratios they allow which differ between programs. FHA is different from conventional.

 

If you are in the pre-approval stage, the LO is going to make some assumptions on the taxes, insurance etc. Normally your ratios can be calculated in minutes, not days. Wells Fargo is exceptionally slow though. If you are looking for guidence, I really do suggest going to another lender so you can actually get good information. If your zip code is in your name, then you are in Fl. PM me and I will give you a couple of good lenders in the area that can answer your questions right away. I'm a Realtor in S Fl.


 

Regular Contributor
Chbraswell
Posts: 133
Registered: ‎07-02-2012

Re: Called Wells Fargo for Pre-Approval

I Submitted my request for preapproval yesteday so I am hoping and wishing and praying I get it! I am ready to start house hunting! 

Beginning:Explus 630 eq 573 tu 593
Current: EXplus:677 Eq 642 TU 727
Goal: Explus 700 eq 700 tu 800

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