topic Re: Wells Fargo asking me to close credit card accounts for mortgage? in Mortgage Loans

Wells Fargo asking me to close credit card accounts for mortgage?

fieldzz — Fri, 17 Feb 2017 15:38:51 GMT

Hi All,

Currently in the process of getting preapproved from Wells Fargo. I used them on my last mortgage and was simple and straightforward. This time around, the person I was talking with on the phone for the preapproval told me to cacel about 6-7 cards to get my preapproval.

I was under the impression that if a card has a $0 balence then they will not take that card into account int the debt to income ratio. To cancel 6-7 cards would obviously impact my FICO score, and doesn't seem like a really good option.

Re: Wells Fargo asking me to close credit card accounts for mortgage?

StartingOver10 — Fri, 17 Feb 2017 15:43:33 GMT

@fieldzz wrote:
Hi All,

Currently in the process of getting preapproved from Wells Fargo. I used them on my last mortgage and was simple and straightforward. This time around, the person I was talking with on the phone for the preapproval told me to cacel about 6-7 cards to get my preapproval.

I was under the impression that if a card has a $0 balence then they will not take that card into account int the debt to income ratio. To cancel 6-7 cards would obviously impact my FICO score, and doesn't seem like a really good option.

^^^Get away from WF. They are awful when it comes to originating a mortgage. The fact that they asked you to close 6 to 7 credit cards in order to get a mortgage pre-approval illustrates the LO's misunderstanding of how FICO scoring works (IMO).

Find a real LO with a mortgage lender that only issues mortgages and doesn't do bank accounts or other banking functions. Stay away from the big box banks - they really have changed their mortgage origination process over the past decade since the mortgage meltdown. Besides, WF has a reputation for issuing the pre-approval and then not being able to actually close the loan. Go to someone trustworthy.

Re: Wells Fargo asking me to close credit card accounts for mortgage?

kc0039 — Fri, 17 Feb 2017 15:51:06 GMT

Really? Why close 6 or 7 cards when you carry a zero balance? I should switch my FHA loans to a different investor as well then.

Re: Wells Fargo asking me to close credit card accounts for mortgage?

DallasLoanGuy — Fri, 17 Feb 2017 20:56:22 GMT

no need to do this.

go to a mortgage broker or mortgage banker. they can preapprove you without closing cards. AND... likely sell your loan to wf