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Valued Member
brentlamb6708
Posts: 25
Registered: ‎01-28-2011
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Wells Fargo!!!!!

Ok we started this journey about 3 months ago. We brought my score up to 625. Now Wells Fargo pulled my income taxes and are trying to state my income as what was reported as taxable income on my income taxes. Is this a normal procedure? I know everyone says don't go with Wells Fargo but with my score at 6:25 don't really have any choice, and we have a baby on the way so we were hoping to get into a home before the beginning of the year. Do all other lenders go off your reported income after deductions or or is it just a wells Fargo wonderful?

Starting Score: 501
Current Score: 2/04/2012 611
Goal Score: 10/01/2012 720


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Senior Contributor
StartingOver10
Posts: 4,581
Registered: ‎03-06-2010
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Re: Wells Fargo!!!!!

[ Edited ]

brentlamb6708 wrote:
Ok we started this journey about 3 months ago. We brought my score up to 625. Now Wells Fargo pulled my income taxes and are trying to state my income as what was reported as taxable income on my income taxes. Is this a normal procedure? I know everyone says don't go with Wells Fargo but with my score at 6:25 don't really have any choice, and we have a baby on the way so we were hoping to get into a home before the beginning of the year. Do all other lenders go off your reported income after deductions or or is it just a wells Fargo wonderful?

This is normal. The lenders ask for your tax returns for this very reason - to make sure you have the ability to make the payment. This is not just a Wells Fargo policy. However, you should have known about this from the first day you applied and not three months later. That's where Wells Fargo fell down...they didn't get all of your info up front like they are supposed to.

 

Valued Contributor
boomhower
Posts: 1,863
Registered: ‎09-20-2011
0

Re: Wells Fargo!!!!!

This normal.  The days of stated income are long gone. 

Regular Contributor
laronda134
Posts: 143
Registered: ‎12-05-2007
0

Re: Wells Fargo!!!!!

they only asked me for two check stubs and last 2 years w-2. Is this normal?

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Senior Contributor
StartingOver10
Posts: 4,581
Registered: ‎03-06-2010
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Re: Wells Fargo!!!!!


laronda134 wrote:

they only asked me for two check stubs and last 2 years w-2. Is this normal?


You will have to provide the last two years tax returns as well.
Apparently your LO only asked for part of the information, as the process moves to the underwriter they will continue to ask you for info. IMO its better to provide everything up front, but some loan officers would rather drag out the process.

Frequent Contributor
DrJim
Posts: 382
Registered: ‎10-26-2009
0

Re: Wells Fargo!!!!!

First off, I have to say that I was preapproved by NFCU, BB&T and WF.  WF gave us the best deal and service.  Maybe I am an anomaly, but they were wonderful with me.  I had a 709 midscore, VA loan, 3.75% back when that was the lowest you could get, lot's of incentives, no down payment or PMI and I closed on a $416K house with about $2,300.

 

Yes, it is normal for them to get all the documentation they can get post Great Recession.  It looks like you are actually giving them less than I did.  I think we did 3 or four years of tax returns and pay stubs.  UW was a bit of a stickler, but honestly, I thought it was a pretty easy process.

 

Good luck on your hunt and closing!



Starting Score: TU 672 EQ 654 10/20/09
Current Score: TU 775 EQ 783 EX 799 (PLUS)
AMEX Delta Platinum $35K, NFCU Visa Signature $30K, HHonors Reserve Visa $35K, WF $13.5K,
Regular Contributor
cclee
Posts: 223
Registered: ‎08-10-2012
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Re: Wells Fargo!!!!!

Are you saying that they are using your adjusted gross income?  The income that is after all deductions?




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Valued Member
brentlamb6708
Posts: 25
Registered: ‎01-28-2011
0

Re: Wells Fargo!!!!!

Yes they are using my agi which after all of the deductions is a huge difference nearly 20000. I just don't think that all banks use this income. They may use your tax returns to verify income but not use your agi.

Starting Score: 501
Current Score: 2/04/2012 611
Goal Score: 10/01/2012 720


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llecs
Posts: 32,869
Registered: ‎08-04-2007
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Re: Wells Fargo!!!!!

Is there anything that caused them to use AGI like business losses, loss from rental properties, deductions allowed under Sch. D, etc.?

Valued Member
brentlamb6708
Posts: 25
Registered: ‎01-28-2011
0

Re: Wells Fargo!!!!!

Yes we had start up cost for a business we started late in the year but those expenses are not reoccurring as I explained to our lo. So I guess if all other banks will follow in their procedures we will have to wait till the first of the year after we fill our 2012 taxes.

Starting Score: 501
Current Score: 2/04/2012 611
Goal Score: 10/01/2012 720


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