Thanks for your response. No, I definitely don't feel as though I got a "fair shake" here. I was actually preapproved via the automated underwriting system by 3 different places (all Level 1 - "Approved - Eligible," all were provided with all documentation/information) but chose to put all my eggs in the Wells Fargo basket because 1) my realtor recommended this particular LO as he said she had worked with another one of his clients, and she communicated well and was quick in turning things around, 2) she was local (other direct lender was in Jacksonville while another was a mortgage broker, not a direct lender), and 3) she convinced me that she would get me the best terms and would stay in constant contact with me.
I have until Friday, Feb. 12 to get loan approval. I was truly hoping that there would be something that would make Wells Fargo honor their loan committment with me, as long as the appraisal and inspections go okay, but I'm getting the impression that there is absolutely nothing I can do. Of course, the Wells Fargo LO told me yesterday she would talk to her processor and see what she could do and "get right back" to me. Well, more than 24 hours have gone by since that time, and she has not returned any of my e-mails or phone calls.
At this point, I have gone back to the other 2 places where I received preapproval and started moving full steam ahead with both of them. As of yesterday, I paid the other direct lender an appraisal fee; they are in receipt of all of my documents, and they came back to me today with additional questions/document requests, which I provided within 2 hours. Yesterday, I asked the mortgage broker to send me updated documents to sign, which she did this morning (had old universal loan application, good faith estimate, etc. based on full purchase price of house - all which were created based on the MLS listing of the house I wanted prior to having a signed purchase contract), and I got all of that information back to her by about 2:30 p.m. Given my current circumstances, I will go with whatever lending agency gets me across the finish line first.
That being said, I have no idea if the sellers will give me an extension or not. The title company the sellers selected is already contacting me and my realtor asking us for the name and address of the lending institution I am using. It seems as though it may be a little late in the game to start completely new with another lender, but I'm desperate. If you think you can help me, I'm more than happy to speak with you.
I did everything by the book to try and get this house. I worked on my credit for 2 years (it's still not great), I told each LO my entire credit history over the phone, leaving no ugly detail out. I did tons of research on the process, shopped for an appropriate loan product and lendor, and I made sure everyone pulled my credit within a 30 day period to avoid a big hit to my already fragile credit. I provided all documentation and sought preapproval before ever making an offer on a house, as I did not want to waste anyone's time by effectively taking a house off the market if I was going to be denied for a mortgage. The sellers were wary of me as a buyer since I was going through FHA and made the purchase offer contingent on financing. I never dreamed that I would be in this predicament, and I hate the fact that their worst fears (and mine) might be realized. It makes me look bad and untrustworthy, and I don't like it at all. If you can help, I'm at your disposal. Just let me know what to do.
Just out of curiosity, what was your FICO scores? I'm sorry to hear this. It sounds totally frustrating. You you have any baddies still on your credit report?
I was in your predictament about 3 weeks ago. Actually, Wells Fargo came to my rescue and I was approved by their Exception Department and Underwriting in 7 days. I was preapproved by Regions in Sept. Found a 2nd HUD house and made a contract on 11/12. After 2 months with Regions, they denied me, this was after they had me request a 15 days extension with HUD. I took a deep breath and immediately contacted by recommendations of my agent, Wells Fargo. The loan officer was great! I closed in 2 weeks and 2 days after I switched and I have a foreclosure that is 3 yrs old and an outstanding judgment that I am making payments on. With Wells Fargo, I was told that I would be denied because if you have an paid or unpaid CO, that is automatic denied if it is less than 7 years old. I have unpaid CO that is for $485 with Wachovia. The LO decided to send it to the Exception Dept. They approved and did not request for me to pay it off. Now, in a couple of months, I am going to make good of it because they made it all possible. I now owe 4500 sq ft home for $139k!!
Do you know why they are denying you? If I can be of any help, let me know.
I am finding it hard to believe that unpaid collections are a cause for automatic denial with Wells Fargo when their LO used the automated loan processing system and gave me an "Accepted-Eligible" notification. I do have old unpaid collections (secondary to advice I received from a financial planner 3 years ago), but my LO was aware of everything on my credit report before we started this whole process, as I told her both on the phone, in writing (explanation of credit letter), and it was on my credit report, which she had pulled. If that were the case, why would she work with me from the beginning of January, before I even put an offer in on a house, to get pre-approval, then tell me to put in an offer, go through all the paperwork for processing, etc.? That would be an incredible waste of time and effort on everyone's part!
I still have not received a clear explanation of why they are denying me, nor even of a clear denial. Once again, my LO is avoiding all my e-mails and phone calls. During my last conversation with her, she said the underwriters made note that they could not use my 2009 tax returns, which meant my debt-to-income ratio, etc. were all off. According to them, since I own an LLC, I have to file business tax returns. This is absolutely NOT true, as I am a single member LLC (sole proprietor), and my LLC is disregarded for tax purposes. I told this to the LO both over the phone and via e-mail. She stated she would contact her processor and get back with me. That was this past Wednesday, and like I said, she is ignoring all of my phone calls and e-mails now.
I had been looking at FHA loans since last August, and have been consistently following the news. FHA loans are getting a lot harder to get, as the government has now told lenders they are 100% responsible for loans that default if they don not fall within FHA guidelines. Some lenders apparently are using their own definition of 'FHA guidelines' that are stricter than they used to be.
Long story short, I found recently that the FHA lender I had been working with actually had nothing better than a regular conventional mortgage, so now I've been working with a lender at Bank Mutual.
The other thing, which I don't know a whole lot about, is the difference between versions of credit scores that you can pull here versus the scores that lenders can pull. I believe that your EX report here is foolproof- but TU can vary because they don't offer the most up to date scores here. The version that lenders use is tougher.
Wishing you the best!
Yes, I was just told by the mortgage broker I am working with (one is a broker, the other is another bank) that although she has been doing FHA loans for 20 some-odd years, she has started to see very unusual things recently. To quote her: "It seems some of the underwriters are just making up rules as they go!" Not very reassuring. I've been following the news, as well, and I know that FHA has gone from the proverbial red-headed step-child to now being the loan of choice for many home buyers, so they are imposing guidelines that are becoming more and more stringent (understandably so, given the current mortgage mess). To the best of my knowledge, my credit scores aren't the issue (but then who knows?!). Anyway, I only have until Friday to obtain funding, so please keep your fingers crossed for me, and I'll do the same for you!