Reply
Community Leader
Senior Contributor
StartingOver10
Posts: 3,010
Registered: ‎03-06-2010

Re: Still Waiting for Preapproval

Actually Wells Fargo's system for mortgages is awful.  There are some individual LO's that know what they are doing, but they are few and far between. If you called the 800 number to get your pre-approval, you are more likely to just get what is essentially a phone operator and not a loan officer. They take applications - that's it. They have no power to do anything else. Your file is centrally processed and then moves to underwriting. Your file is not actually reviewed until it gets to underwriting in this type of system.

 

With another lender, the file would be reviewed the entire time - but you have to use an experienced loan officer that knows the underwriting criteria. If something "weird" pops up in your file, they can just get in touch with the underwriter right away.

 

It is not a very good sign for Wells to take 3 weeks on a pre-approval. Did your LO go over your ratios, get your tax returns, paystubs, w-2's etc when you applied? If so, that is better than just a verbal. Good luck. If they say no, use a local mortgage banker. You will get better service AND they will be able to guide you through the issues that need attention so you can get a loan.

 

(BTW, I'm not a lender, but I'm a Realtor. Wells Fargo here has an 80% fall out rate after they have issued the written pre-approval in our area. What that means is - once WF said the buyer was pre-approved, in writing, there is an 80% they won't close the loan in our area. That is beyond huge. It crosses the line into incompetence. The lions share of those mis-guided approvals come from the 800 application number.  Most agents in our area won't accept a WF pre-approval anymore because of their high "non-closing" rate. So, the buyer is then counseled to go to someone else and if that someone else approves them, then their offer is given equal footing. Your area may be different.)

 

Frequent Contributor
phumanr
Posts: 341
Registered: ‎05-29-2007

Re: Still Waiting for Preapproval

Hello-

Thanks very much for this information. I actually applied to another Mortgage company, who has already started to generate a file on me...w2;s, tax returns, stubs, explanation letters etc. He has direct contact with underwritten and feels pretty sure he can close the loan.

 

I have been waiting on a response from Wells, starting next week, will be week 3. I bank with Wells and I am terribly disappointed in the lack of service and follow up on this application. I would advise treat people with dignity and respect and just say NO, and not linger people on...this is uncalled for. Or, give people the reason for the decline so that they will no what to work on.

 

When you go through the initial application and the processor says your ratios looks good, you meet the minimum score, sign the applications and then hear nothing for weeks, this is really unacceptable, but I am preaching to the choir..pardon me on this.

Community Leader
Senior Contributor
StartingOver10
Posts: 3,010
Registered: ‎03-06-2010

Re: Still Waiting for Preapproval


phumanr wrote:

Hello-

Thanks very much for this information. I actually applied to another Mortgage company, who has already started to generate a file on me...w2;s, tax returns, stubs, explanation letters etc. He has direct contact with underwritten and feels pretty sure he can close the loan.

 

I have been waiting on a response from Wells, starting next week, will be week 3. I bank with Wells and I am terribly disappointed in the lack of service and follow up on this application. I would advise treat people with dignity and respect and just say NO, and not linger people on...this is uncalled for. Or, give people the reason for the decline so that they will no what to work on.

 

When you go through the initial application and the processor says your ratios looks good, you meet the minimum score, sign the applications and then hear nothing for weeks, this is really unacceptable, but I am preaching to the choir..pardon me on this.


I'm glad you decided to switch to another lender. You will find the service is better.

What is really funny (or odd) is that Wells Fargo can't originate mortgages very well at all, but they end up buying a bunch of mortgages that are originated by others so you may even end up with Wells as your servicer! Who knows....its possible. Good luck It sounds like you are on the right track now.

Member
shenny07
Posts: 12
Registered: ‎07-27-2012

Re: Still Waiting for Preapproval

Finally got a response from the loan officer yesterday, 3 weeks after signing the loan docs....

 

She said the underwriters put the loan in "suspense" until I supply more information with a small list a additonal required paperwork none of which seemed like a huge deal until I got to the end asking for my W2's from 2008??

 

It said I needed W2 from 2008 and 2009 - showing that I made more than $1,909.00 per month. Which I am not sure I can provide, I bartended and not sure what I made on paper to be honest but most of it was tips.  I dont even know where to go to find out, I tried to go to tax act to look at previous years tax returns to check but they do no go back that far.

 

I cant believe they want W2 from almost 5 years ago? I mean be they time this settles it will likely be 2013. Why in the world would they need W2's that old? They didnt ask for my husband W2's from that long ago? Does that seem a bit extremem to anyone else?

 

Anyway I am not sure what we are going to do at this point, if I cant provide the W2's I guess we will just. but we are planning a baby and I will be taking some time off work so does that mean I will have to wait 5 years after I go back to have enough W2's to apply again? Ugh sooo bummed.

 

 

Established Member
WINNING
Posts: 40
Registered: ‎06-30-2011

Re: Still Waiting for Preapproval

Oh no! That IS extreme!  It kind of makes you feel like they are trying to find a way to deny you.  I've never heard of such a thing and I hope a LO or someone jumps on here to explain the reasoning behind this. 

 

Is there anything else you can provide as an alternate?  Can the LO explain why they are asking for this?? I wonder why they can't just order the IRS transcript??  Now I'm upset because this seems outrageous!

 

I really hope that this is not what is holding up your approval...

 

as of today I haven't heard anything from my LO and the outlook is getting very grim....

 

 


Starting Score: 537 (6/2011)
Current Score: Experian 679; Equifax 653; Transunion 664 (My Fico) (4/2014)
Goal Score: 700 across the board (12/31/2014)


Take the FICO Fitness Challenge

Established Member
WINNING
Posts: 40
Registered: ‎06-30-2011

Re: Still Waiting for Preapproval

UPDATE:  Just sent the nastiest of all nastygrams (but in the nicest way) to my LO and put a read receipt on it......  she opened it right away and responded right away saying that a conditional approval for my loan just came across her desk???? Whatever.... now I'm scared to see what the conditions are going to be.... if it is anything like what you've encountered shenny07 then I'm screwed...... Cautiously waiting......


Starting Score: 537 (6/2011)
Current Score: Experian 679; Equifax 653; Transunion 664 (My Fico) (4/2014)
Goal Score: 700 across the board (12/31/2014)


Take the FICO Fitness Challenge

Frequent Contributor
phumanr
Posts: 341
Registered: ‎05-29-2007

Re: Still Waiting for Preapproval

Update:

After going on three weeks, my LO told me that I was denied and that I would get a letter. I am so glad that I decided to go through another lender....so far, seems like this is working out. I had only wished Wells would have given me a denial much sooner....seems like it shouldn't take 3 weeks to reject an applicant.

 

So for you guys who are going through the pre-approval process with lack of response, you may want to explore a back up funding source just in case.

 

Best of luck to all,

Phumanr

New Contributor
hopeful23
Posts: 94
Registered: ‎06-29-2012

Re: Still Waiting for Preapproval

Wow...After reading this entire thread it makes me feel really uneasy about Wells Fargo. But on the upside, we are using a Wells Fargo LO that was recommended to us by our realtor and so far things have been great. He seems very helpful and we applied for the pre approval on Monday Sept 3rd. We were approved for the pre approval yesterday the 6th, and he faxed our realtor the pre approval this morning. He did not however send it through under writing yet. We are only using my husbands credit and income, the only thing is his dti is close to the max of 50% since we are only using his income, but we are paying off two more cards in the next two weeks so he wasn't worried about that at all since we are currently at 49%, and by paying off the two cards it'll put us around 47%. Plus, the 49% estimate is 10 thousand more then we are wanting to spend, so hopefully we don't have to go up that high. 

 

I hope it all continues to work out, we are going with a 203k FHA loan. Just put  our offer in on a house today. We will find out if it's accepted on Monday. Hopefully WF works out for us. Good luck to everyone!

Starting Scores: EQ – 492, TU – 508, EX – 507 (Lender pull March ’12)
Current Scores: EQ – 591 (FICO), TU – 623 (FICO), EX –623 (CS), CK - 621
Goal: 700+ AND no baddies!

Current Cards: NFCU $4000 CL, Cap One $300 CL (secured), Cap One $300 CL. & an NFCU car loan for $18,500
Established Member
WINNING
Posts: 40
Registered: ‎06-30-2011

Re: Still Waiting for Preapproval

That's awful phumnr!!!  I know what you mean by just wanting an answer... your backup plan should go through.... sour grapes..... I have recently heard that 80% of Wells preapprovals don't close when it is not sent through manual underwriting first.  Good luck with your new lender!


Starting Score: 537 (6/2011)
Current Score: Experian 679; Equifax 653; Transunion 664 (My Fico) (4/2014)
Goal Score: 700 across the board (12/31/2014)


Take the FICO Fitness Challenge

Member
shenny07
Posts: 12
Registered: ‎07-27-2012

Re: Still Waiting for Preapproval

I am sorry to hear about your denial, if I had to to all over again I would have never used wells fargo, keep us posted on what happens with the other company.

 

To Winning...congrats on your approval what where the conditions? Hope all goes smoothly!

 

Update on us, Friday I emailed the Loan Officer with a few of the documents that she requested and then asked her if she thought it was abnormal to ask for W2's from 5 years ago? and I acted as though it was completely normal, she said the underwritier told her that our loan was definately a doable deal they just needed to verify my work history because I am in Sales and always have been but in 2010 I was a stay at home mom for a year and before that I had worked 2 jobs in 2007 - 2009 the part time one was not in my sales feild....still doesnt make any sense to me. No matter what I did then I promise I dont have any money left from 2008 that will pay back this mortgage lol

 

anyway not sure what we are gonna do yet, gonna take 60 days to get copies of w2 and it cost 60 dollars per year.....not sure if to wait it out, try another lender or maybe let my husband apply on his own....not sure


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+