Pre-approved for FHA through Wells Fargo then denied with 1 week left to obtain funding. HELP!

[TheZealous]

Stanyslaw,

Wow! What a situation you are going through there. I hope that everything will work out fine for you. Hope all the kids are doing well when your family is going through this process of getting the new house. Keep us posted and updated !

[Suffie]

Where did you buy a 4500 sq ft home for $139,000?

[Anonymous]

yesterday after being denied I talked with our realtor so she suggest Bank of America, I was like that's alright because I know they are stricter than most lenders. She said well they can approve you with a 580 score. I said well I guess we can try but the whole time I knew they wasn't going to be able to help. They were to add me as well for the loan. The LO started asking about my credit so i explain about the pell grant being the only recent not paid item everything else says paid as agreed even 1 collection acct I have and that I had a old bankrupt that was dismiss 8 years ago. It's not about your score at all, but what's on your report and as i said before they are too strict wanting you to have that 700-750 worth of credit on the report to consider loaning you money but are quick to say we have no min credit score limit we can approve you; but they won't cause it's not good enough for them. If a person score is around 600-640 we all know it's not good but poor and it's going to be issues on the report but a lot of companies advertize approval for low as 600 knowing there has to be issues there and will turn you away. Phh mortgage did that to my wife  days ago saying they can approve at 600 her score is 614 I never witness a denial so fast in my life less than 5 min and he  was ready to get off the phone I think he hung up on us. these places expecting you to somehow to show a value of 750 on what on the report when the score is poor.

                                                                                                                          Wellsfargo said unpaid collections don't matter which my wife has about 6 of them mainly medical bills but they pre-approved her so I respect Wells honoring that 600 score regardless whatever maybe on your report. We going to stay here our last night tonight in the morning get the truck loading up the few things left put into storage with the rest of the stuff and get our motel resevation setup shop there until hoping to be final approved and  close the loan and move within 2 weeks. If they deny us again we'll call the guy back who has several 4 bed apts apartment avail whom I spoke with yesterday so we pretty much have everything in control. 

[Anonymous]

Stanyslaw,

I am so sorry to hear about your situation. I hope everything does work out for you. I do want to ask you a question though. I used to work in Financial Aid for several years and have never heard of a pell grant showing up on a credit report. Pell grants are directly paid to schools and not students so I am wondering how that got on your credit report. Plus, Pell grants are free funds from the federal government. Its up to institutution you are/were attending if you are eligible and if funds need to be sent back. I am hoping that the financial aid administrator at your school did not "screw" something up on their end because a pell grant definetly should not be showing up on the credit report. Good vibes sent your way!!!

Mike

[Anonymous]

I had withdrew early not being in the classes as scheduled so I have to return it some of it, I didn't get a student loan but only the grant it covered tution/books. the department of education has it listed as a loan on my report but it actually is a pell grant. I hope to pay it back hopefully the end of June make a lower settlement pay it in full. My score was brought down 48 points cause of it. I have been working on my credit for 3 months starting from 571getting to 651 max, now 596 under 600 and this has set me back but the good news is before this I have establish new credit in the last 3 months a regular alltel acct had pre-paid before. I was approved for a credit card which will be added to my report soon, I was approved for an installment loan they report monthly so that will help my score, and finally was approved for furniture credit so by June my score should go up again and once I pay that pell grant i'm thinking around 750 will be my new score range so I can build business credit for some of  the non-profit projects I have plans for in the near future. 

[Anonymous]

We moved out April 28, into a local motel still awaiting wells fargo final approval, the LO said this to my realtor being that we recently submitted a file wells fargo may flagg it and deny it again automaticly. We did nothing wrong, the LO could of notice my name 3 weeks ago the day I turn them in to her and before sending it to underwriters we could of removed my name off her check like we recently had done. I already have a letter typed up for the corporate office ready to send off over night delivery  if we are denied again explaining everything that happened on the lower level of that organization hoping the upper level can correct it. Hopefully we get good news  one day next week from the lower level first!!! 

[Anonymous]

Yesterday I recieved an email from the LO saying the final approval wasn't right out denied but need additional info so I set out to get things from Social security, doctors, section 8 who by the way today re-instated the rental assistance just in case we don't get approved we have 60 day's to use it in the next rental unit. They want our light bill 12 month payment history so we are waiting for it to come in the mail having 15 day's to return everything so hopefully it goes well. We should have everything turned in by friday 

[Anonymous]

Now I'm hooked on this "novel" I sure hope you get the happy story book ending - Please let us know

Really pulling for you!  

[Jazzzy]

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@Anonymous wrote:

We moved out April 28, into a local motel still awaiting wells fargo final approval, the LO said this to my realtor being that we recently submitted a file wells fargo may flagg it and deny it again automaticly. We did nothing wrong, the LO could of notice my name 3 weeks ago the day I turn them in to her and before sending it to underwriters we could of removed my name off her check like we recently had done. I already have a letter typed up for the corporate office ready to send off over night delivery  if we are denied again explaining everything that happened on the lower level of that organization hoping the upper level can correct it. Hopefully we get good news  one day next week from the lower level first!!! 

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What happened in underwriting was not a mistake...so it does not need "correcting."

They called you on something in your file, and you are the one who had to "correct" things. You may get further in this process if you don't blame the bank for something you did.

[Anonymous]

I see someone work's for a bank. You need  not  comment if you don't know the facts obviously you didn't read everything I posted. For your info wells fargo consultant loan officer did make a mistake by not reviewing all the documents that was handed in to her waiting 2 weeks later to discover my name was on my wife award letter. Now if she had did her job 2 weeks before, never submitting anything to the underwriter  and contacted us to have my name removed then risk being flagged the second time submitting the file wouldn't be an issue. This has pushed back the closing date, making it hard to maintain the closing cost downpayment while having to pay motel rent along with other bills/food/gas so her lack of checking the documents has put us into a bind we should of been approved and moved on April 28, 2010. we still awaiting an final decision, and the LO hasn't did anything else like an appraisial; title search, so this may go on another month and the bank who owns the house want this to close by the 21st of may Wels-Fargo is slow as pond water in getting  fha loans approved. We started back in early march.