Re: Still Waiting for Preapprova
09-02-2012 06:21 AM
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.)