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.
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.
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!
Are you saying that they are using your adjusted gross income? The income that is after all deductions?
Is there anything that caused them to use AGI like business losses, loss from rental properties, deductions allowed under Sch. D, etc.?