Denied loan with Wells Fargo after being pre-approved....

[Anonymous]

Hello,

Please I hope someone can help me.  In February my husband and I applied for a mortgage with Wells Fargo.  The LO said we were perfect candidates for a new program that they had just started.  They were offfering fha loans to people with credit scores as low as 500.  Our middle score was 597.  Long story short, the turn around time on the entire process was supposed to be 2 weeks after all docs were recieved.  Two weeks came and went so I started to get antsy.  LO said to start looking for houses that he was so sure that everything would go through. I told him that most people dont want you to see their property without a preapproval letter, his response was 'I dont normally do this but I am going to issue you a preapproval"  the amt was 152k.  The next day when we went to get the letter, our LO asked us where were we thinking about moving to.  We told him that we wanted to be close to a new school that my daughter would be starting next year.  He told us he knew someone with a property listed in that area.  The realtor contacted us and said she would show us the property.  We went to see it and we really liked it but it was 174k.  I called my LO and asked us why he would send us to this property when it is way over the amount we were approved for, he goes no problem, come get this "new" approval letter in the amt of 174k.  This was issued 3 days after the initial letter.  Ultimately because of other issues we decided not to get the property, so we found a new one are in the process of negotiating the contract.  Last nite our LO calls and never comes out and says we were denied but he hinted at it.  Now all of a sudden our credit score needs to be over 600.  Now all of a sudden we need to pay our debt down 100 percent, not the 30 percent we were initially told.  Now the one late payment that we have on the account is an issue, there have been no other late payments since 2008. He is also saying that because we pay our rent in cash that it is also an issue, even though he told us a rent verification letter from the landlord would be suffice.  He also went on to say that he believes Wells Fargo new program was nothing more that a publicity stunt and that if he could not find a way to get us approved that he would not send any other clients through this program.  He also told us that people with multiple collections and other issues have been approved because there credit score was over 600.  We have on medical bill collection that is about three years old in the amount of 200.00.  The only reason we have not pd it is because my husbands credit report does not tell who the bill came from, nor does it have any contact info.  The bottom line is that now we have to scramble for financing because we dont want to lose this house, does anyone have any suggestions?

[oneilldn]

Sadly I don't think there is nothing you can do. I don't know why he told you that as FHA minimum requirement is 640 mid score. There is lots of information in this forum to help you fix your credit, be patient and your win at the end.

[MBOhio2]

I'm not sure there are really any other explanations than your LO has been lying to you. He did a lot of very unethical things in the aboved-descripbed story. I believe the absolute minimum required by FHA is 580 and most lenders require 640 with a few doing 620. Therefore, there is no way you would have ever been approved down to 500. Here is what I recommend:

1) Find a new LO immediately

2) Go over to the Rebuilding your Credit Board and list the exact negative items on your CRs - the people there can tell you how best to deal with them to increase your credit score.

[MarineVietVet]

I'm so sorry this has happened to you. If it were me I'd also contact the boss of this so called "LO" and lay out everything you've told us. You can't just let him get away with this sham.

Please let us know what happens with all this.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[Anonymous]

I think before you start paying off accounts, you should have a different loan officer take a look at your credit. I know the service we use has a what-if scenario which gives a good idea of what the scores will go to by paying off/down certain items. I am sure others have the same ability.

Depending upon the loan program available (I am not familiar with the Wells program you mentioned) you will most likely need to get the scores up to a 620 level, which can be done fairly quickly, depending upon the accounts on your individual report. It is hard to say without seeing the actual report.

I am sorry that it may not look great for the purchase of that home. What is your closing date, and will they look at an extension of the date?

You may have some work to do, but hang in there.

[Anonymous]

I would find a mortgage broker that does rapid recoring, it is worth the investment. 

But I can confirm, Wells Fargo will not give a mortgage without a minimum fico of 600, of course, what fico?

TU says my fico is 579.

EQ says it is 589.

Experian says it is 640.

Chase used Experian and said it is 608.

I will beileve Chase, because consumers can not buy the real numbers.

[Anonymous]

I've heard alot of stories regarding Wells Fargo and their "low score" deal.   I have yet to hear one person actually get through with anything that low.  As for your LO I would run away from him as fast as you can!  He should have ran your numbers fist before ever issuing a pre-approval letter.

What I have been told by my LO is that he can get a mortgage through with a mid 620 (we had underwriting approval with 624) but debt has to be 90-100% paid with low DTI, score of 640+ they can be more leinient.

[mamahearts]

Why is this post showing up now?  Looks like this was from April.  ???

[boomhower]

---

@mamahearts wrote:

Why is this post showing up now?  Looks like this was from April.  ???

---

Because john bumped it for some reason.