topic Re: Wells Fargo loan package sent to 2nd level review in Mortgage Loans

Wells Fargo loan package sent to 2nd level review

Anonymous — Mon, 18 May 2009 14:18:54 GMT

Hello all,

I'm trying to prepare myself mentally for what could be a very disappointed answer on Friday.

After months of submitting paperwork to the underwriter, my loan officer called me today to let me know that the first underwriter was not comfortable approving the loan so the package had to be sent to a 2nd level review. Here are the sticking points:

1) Student loan in forebearance. I thougth I was getting a deferrment so that I could save up more money for my downpayment and have funds available when I first moved into a home. The underwriter did not see it this way.

2) Late payments on electric bill. Nothing over 15 days.

3) Limited re-established credit.

He said my debt to income ratio, savings, and housing payment history were stellar and that he woudl go to bat for me in getting the loan approved by argueing the reason behind my forbearnce and my good points.

Do I have a change in H-E-double hockey sticks in getting approved. Or should I resign myself to purchasing next year? Thanks for your help!!

Re: Wells Fargo loan package sent to 2nd level review

Anonymous — Mon, 18 May 2009 15:16:59 GMT

I'm working with Wells Fargo now. Did you have a pre-approval?

Re: Wells Fargo loan package sent to 2nd level review

Anonymous — Mon, 18 May 2009 15:50:44 GMT

Yes, I was pre-approved with refer?

Re: Wells Fargo loan package sent to 2nd level review

Anonymous — Mon, 18 May 2009 17:08:37 GMT

I will keep my fingers crossed for you. Wells is tough, I just went through them as well on a conventional loan and while I made it through the credit, etc. okay, they nitpicked every friggin thing to death and I had to jump through 1,000 hoops and have a lot of fights to get to the closing table. Not trying to discourage you, just saying I do believe that WF is pretty conservative. If you can't make it through them, perhaps you would do alright with a different lender? Don't give up yet! You could get approved with them, and even still, you could go somewhere else and try again.

Re: Wells Fargo loan package sent to 2nd level review

Anonymous — Tue, 19 May 2009 02:29:52 GMT

Thanks UpUpUp. I'm trying to think positively and I appreciate your well wishes. If I do get bad news on Friday, how long should I wait before trying another lender? WellsFargo took 2 mos in underwriting so another credit review would probably dent my score. A few of my inquiries will drop off later in the year, should I wait until then to re-apply? If I have to. fingers and toes crossed that I don't have to. I'm at a 625 middle FICO score when I checked last month.

Re: Wells Fargo loan package sent to 2nd level review

Anonymous — Tue, 19 May 2009 03:03:38 GMT

The lack of re-established credit along with late utilities (if it is more than 1) is a tough one.

Also, student loan in forebearance is basicly saying I can't afford to pay this. Of course that is a bad sign to an underwriter. that also withdraws what could have been a positive trade line from consideration as if there have not been recent payments it is not a "recent" account.

Do you have strong down payment/reserves.

Also, ignoring one debt to save is not a strong arguement. The underwriter will just think "how is this person going to save up for rainy day fund/repairs/unexpected items if they need their loan in forebearance to save money"

Not trying to discourage you or judge as I made the same mistake with some lates in utilities and the exact same mistake with my student loan prior to buying. I got approved, but that was 8 months ago before things got alot stricter and we had 8500 down payment, 9K concession from sellers, and 35K in 401K for reserves along with decent DTI and ratios.

Message Edited by mickie08 on 05-18-2009 08:03 PM

Re: Wells Fargo loan package sent to 2nd level review

Anonymous — Tue, 19 May 2009 04:50:39 GMT

Thnks for your input mick. I don't have near the reserves you list, which is why I applied for the FHA home loan. The loan's a FHA 203K for 106K and I have 6K saved. At this point, it's probably best to wait and see what the underwriter comes up with. If approved, I go with the house. If not, I'll build my savings up to 10K, maybe establish some new credit and try again in 6 mos as my loan officer suggested.

Re: Wells Fargo loan package sent to 2nd level review

Anonymous — Wed, 30 Nov 2011 00:26:49 GMT

How did it all work out for you? I am going through the same thing write now with wells fargo, the same thing..