topic Re: Denied Wells Fargo Mortgage with 647 score in Mortgage Loans

Denied Wells Fargo Mortgage with 647 score

Anonymous — Thu, 04 Dec 2014 23:18:21 GMT

I have been looking to purchase a home, but did not have any luck being approved by a lender because of a low credit score. After getting my score up( mid score- 647), I decided to apply for an FHA loan with Wells Fargo. I was told that I needed at least a 600 credit score and at least 12 months of no late payments, which I qualified for. After almost a month of waiting for an underwriter's decision, I was told that my loan was denied. The loan officer said that I basically need to stay on my job longer and just continue making on time payments.

This news was very discouraging and I am unsure of my next steps. I have a good job. I recently graduated college, and have been working as a teacher for a year now. I have a pretty decent amount in savings. I do have several derogatory items on my credit report, but they all stem from incidents from 2010-2011. I have not had any recent derogatory items.

So now, should I seek a mortgage broker? I have about 5 inquiries already on my report. The previous ones from when I had a below 620 credit score.I hate to keep applying.

Any advice will be appreciated.

Re: Denied Wells Fargo Mortgage with 647 score

StartingOver10 — Thu, 04 Dec 2014 23:46:52 GMT

Not a mortgage broker - go to a mortgage banker. Wells Fargo is not very good at originating loans. They are good at servicing them (IMO). Were there other issues like DTI or anything else mentioned?

Re: Denied Wells Fargo Mortgage with 647 score

Anonymous — Fri, 05 Dec 2014 00:03:00 GMT

The only debt that I currently have are two credit cards, which the balances are kept low and paid down/off every month. The only negative thing is I have 3 collections and 3 charge offs still on my credit report from 2010-2011.

Re: Denied Wells Fargo Mortgage with 647 score

edcampbell613 — Fri, 05 Dec 2014 00:53:53 GMT

I worked at Wells for 5 years, way to many overlays,

You should find a different lender and go over your application,

If it was job time related, he should have let you know at time of application.

Re: Denied Wells Fargo Mortgage with 647 score

ezdriver — Fri, 05 Dec 2014 02:20:41 GMT

Wells Fargo is the last place at which anyone should apply for a mortgage. Apply to a mortgage banker and stay away from the big mega banks.

Re: Denied Wells Fargo Mortgage with 647 score

Anonymous — Fri, 05 Dec 2014 03:59:53 GMT

What makes WF a bad place to get a mortgage - I have a pre-approval from them. I'm starting to see what I think are red flaggs with them but since this is my first time buying a house, don't really know what to look for as signs of trouble and what is normal.

That I have such difficulty getting basic questions answered though, is concerning to me. Any advice?

Re: Denied Wells Fargo Mortgage with 647 score

StartingOver10 — Fri, 05 Dec 2014 11:04:15 GMT

@Anonymous wrote:
What makes WF a bad place to get a mortgage - I have a pre-approval from them. I'm starting to see what I think are red flaggs with them but since this is my first time buying a house, don't really know what to look for as signs of trouble and what is normal.

That I have such difficulty getting basic questions answered though, is concerning to me. Any advice?

Wells Fargo has a history of issuing pre-approvals and then not being able to actually close the loan. In my area, the fall out rate is close to 80% which is huge. It may not even be a borrower issue that prevents the closing, but a WF overlay or incompetence in taking the mortgage application. It is so bad in our area that if you make an offer with a WF pre-approval, you are very likely to have your offer turned down because the agents know that WF has such a high fall out rate. No one wants to go through the purchase process and then not close at the end - most especially the buyer.

The fact that your LO can't answer basic questions is a huge red flag for your loan. Find someone else to originate your loan. Its very possible the loan will be sold to WF anyway for servicing. They seem to be good at servicing

A knowledgeable and experienced LO is critical to the process. You are better off going to a mortgage banker where they can underwrite and fund their own mortgage loans directly. A mortgage banker only handles mortgages - they are not selling you bank accounts, credit cards or other credit products. A good mortgage banker has immediate and direct access to his/her underwriter in case there is an issue that they need to clarify during the application process. Stay away from the big box banks and you will have a much better experience and actually close at the end.

Re: Denied Wells Fargo Mortgage with 647 score

edcampbell613 — Fri, 05 Dec 2014 16:05:42 GMT

Wells has several different channels you can do mortgages through.

1) If you are an employee, they close on time, all loans are processed in MN, they have a great team set up for only employees.

2) 1-800 or apply online and deal with a loan officer in a call center, these are the big problem area, they hire new loan officers off the street sometimes with zero experience. They are pressured by corporate to put numbers in. You can get a preapproval in 15 minutes on a good day. Is it accurate, probably not!

3) Mortgage Bankers, this is the experienced loan officer that has their own processor and underwriter, they close on time but you need to have a portfolio of 100,000 or more in the bank.

4)Branch LO's a little better than the call center, they have good experience but have to deal with centralized processing, they also hire newbies in the industry but not that bad. Depending on the area depends on if you will close on time. My center in the SE was less then 10% of laon were CTC in 25 days

I worked at Wells for 5 years, started in the call center, moved to the branch. First 3 1/2 years it was great, no closing issues, when the rates crashed low, we got busy, real busy. I closed over 100,000,000 in 2010, best month was closing 64 loans 95% refi. My normal speech was "We are locking you for 90 days and it will take all of that, if this loan needs to be extended we will do the right thng and pay for the extensions. Your processor will call you when its time to close near the 80nday mark" kind of harsh but they did not care, the rates were unbeaten. Service was.

If you find a smaller bank or a corresponding lender, that is your best bet.

On a typical cookie cutter customer I can get a CTC in less than 2 weeks and close with no issues in 30 days, I left the big banks and never looked back.

Re: Denied Wells Fargo Mortgage with 647 score

StartingOver10 — Fri, 05 Dec 2014 17:01:14 GMT

@edcampbell613 wrote:
Wells has several different channels you can do mortgages through.

1) If you are an employee, they close on time, all loans are processed in MN, they have a great team set up for only employees.
2) 1-800 or apply online and deal with a loan officer in a call center, these are the big problem area, they hire new loan officers off the street sometimes with zero experience. They are pressured by corporate to put numbers in. You can get a preapproval in 15 minutes on a good day. Is it accurate, probably not!
3) Mortgage Bankers, this is the experienced loan officer that has their own processor and underwriter, they close on time but you need to have a portfolio of 100,000 or more in the bank.
4)Branch LO's a little better than the call center, they have good experience but have to deal with centralized processing, they also hire newbies in the industry but not that bad. Depending on the area depends on if you will close on time. My center in the SE was less then 10% of laon were CTC in 25 days

I worked at Wells for 5 years, started in the call center, moved to the branch. First 3 1/2 years it was great, no closing issues, when the rates crashed low, we got busy, real busy. I closed over 100,000,000 in 2010, best month was closing 64 loans 95% refi. My normal speech was "We are locking you for 90 days and it will take all of that, if this loan needs to be extended we will do the right thng and pay for the extensions. Your processor will call you when its time to close near the 80nday mark" kind of harsh but they did not care, the rates were unbeaten. Service was.

If you find a smaller bank or a corresponding lender, that is your best bet.

On a typical cookie cutter customer I can get a CTC in less than 2 weeks and close with no issues in 30 days, I left the big banks and never looked back.

^^^#1 is interesting. This shows that WF knows what to do, and has a template for the proper team, but is unwilling to do the same courtesy (or even business sense) for their mortgage consumers. Makes me wonder why they feel they can use consumers time and efforts without actually trying to do their end as effectively as they already know how to do.

As to mortgage bankers/correspondent lenders - maybe I am using the term differently than you do Ed. So I will start saying correspondent lenders because that is probably a more accurate description of the type of lender I am referring to when I say 'mortgage banker'.

Congratulations Ed on making the move away from the big box bank to another, better lender - that sounds just like a correspondent lender or smaller regional bank

Re: Denied Wells Fargo Mortgage with 647 score

edcampbell613 — Fri, 05 Dec 2014 17:20:15 GMT

The employee team was a part of wells fargo before the mortgage crash,

Dont get me wrong, big banks want to deliver great service to all customers, But at the centralized platforms, the quality of good was not available when the rates crashed.

The "Home Team" (employee loans) have been with the bank for years, experienced ect.

I had 2 real good builder accounts that I earned. hitting 2.5 mil a month on a 65 bps payplan. then they changed our processing ,by builders left when the loans did not close.

Thanks, It took me a while to find the right place but am happy.

Re: Denied Wells Fargo Mortgage with 647 score

Anonymous — Sat, 06 Dec 2014 03:01:38 GMT

Thanks for the info

Re: Denied Wells Fargo Mortgage with 647 score

Barneygirl — Sat, 06 Dec 2014 13:55:07 GMT

@StartingOver10 wrote:
@edcampbell613 wrote:
Wells has several different channels you can do mortgages through.

1) If you are an employee, they close on time, all loans are processed in MN, they have a great team set up for only employees.
2) 1-800 or apply online and deal with a loan officer in a call center, these are the big problem area, they hire new loan officers off the street sometimes with zero experience. They are pressured by corporate to put numbers in. You can get a preapproval in 15 minutes on a good day. Is it accurate, probably not!
3) Mortgage Bankers, this is the experienced loan officer that has their own processor and underwriter, they close on time but you need to have a portfolio of 100,000 or more in the bank.
4)Branch LO's a little better than the call center, they have good experience but have to deal with centralized processing, they also hire newbies in the industry but not that bad. Depending on the area depends on if you will close on time. My center in the SE was less then 10% of laon were CTC in 25 days

I worked at Wells for 5 years, started in the call center, moved to the branch. First 3 1/2 years it was great, no closing issues, when the rates crashed low, we got busy, real busy. I closed over 100,000,000 in 2010, best month was closing 64 loans 95% refi. My normal speech was "We are locking you for 90 days and it will take all of that, if this loan needs to be extended we will do the right thng and pay for the extensions. Your processor will call you when its time to close near the 80nday mark" kind of harsh but they did not care, the rates were unbeaten. Service was.

If you find a smaller bank or a corresponding lender, that is your best bet.

On a typical cookie cutter customer I can get a CTC in less than 2 weeks and close with no issues in 30 days, I left the big banks and never looked back.
^^^#1 is interesting. This shows that WF knows what to do, and has a template for the proper team, but is unwilling to do the same courtesy (or even business sense) for their mortgage consumers. Makes me wonder why they feel they can use consumers time and efforts without actually trying to do their end as effectively as they already know how to do.

As to mortgage bankers/correspondent lenders - maybe I am using the term differently than you do Ed. So I will start saying correspondent lenders because that is probably a more accurate description of the type of lender I am referring to when I say 'mortgage banker'.

Congratulations Ed on making the move away from the big box bank to another, better lender - that sounds just like a correspondent lender or smaller regional bank

My mom & step-dad just struggled through a WF refi. Should've been a simple streamlined refi, and it almost didn't happen because WF was so completely incompitent. They finally make it through and then no one showed up to closing!!!

I had a mortgage with them before the crash, and they were decent to deal with.... BUT.. and there's the "but" I did not process the loan through them... I went through a mortgage broker, and they locked me with WF as the lender!

MN or not (I live in MN), WF has turned to crap in my opinion.... go talke to a broker, who has MANY options of lenders to lock you in with!!! If all you say about your situation is correct, approval should be easy!