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wells fargo pre approved then denied by underwriter 5 months old kid nowhere to go

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Re: wells fargo pre approved then denied by underwriter 5 months old kid nowhere to go

I'm experiencing something similar. I was pre approved through USAA for 165k, got a contract on a house for 152k, then USAA's automatic underwriting process immediately denied me.
I went to Wells Fargo afterwards at the recommendation of my buyers agent. That was back in early/mid November. I sent her everything she said she needed. She was impossible to get ahold of. In late November she needed disclosures signed and said I had to get them to her immediately, so I printed them out and overnighted them to her. Then impossible to contact for THREE WEEKs. The original closing date came and went. After receiving the disclosures shed told me "I don't think you're going to have any problems at all--just relax okay?"
Last Wednesday I suddenly get a call in the middle of sleeping (i work nights) after 3 weeks of unreturned phone calls and emails, it's my LO and her boss saying the underwriters don't like my file (VA loan and I have hardly anything in savings--all my money goes towards debt so I can help my credit--I overpay). They wanted me to write statements explaining my excessive inquiries and lack of savings. They said to be on "pins and needles" for the next 48 hours while they "rallied" to save my loan. Now, four days later, it's Christmas Eve and they're out of the office and still not a peep about my file. I'm supposed to close in 6 days.
Message 11 of 12
Valued Contributor

Re: wells fargo pre approved then denied by underwriter 5 months old kid nowhere to go

Pre-approval means approved subject only to the appraisal of the property.  Are you sure these were pre-approvals (there should have been a commitment letter) and not pre-qualifies, which can be as simple as your breath fogs a mirror and your score seems ok.


Usually a contract for sale has a financing condition and a time limit by which time a commitment letter must be provided.  If the time has passed for that financing contingency or the contingency was removed the seller might try to keep the earnest money.  If the bank gave a commitment and reneged there may be damages against the bank.

BK7 Filed 8/11/2009 Discharged 11/23/2009. Purchased new home 4/11/2012
Starting Score:11/16/2009 EQ 566 11/16/2009 TU 538
Interim Score: 12/27/2012 EQ 683 09/17/2012 EX (lender) 670 1/01/2013 TU 701
Current Score: 11/06/2013 EQ 708 11/06/2013 EX 702 11/16/2013 702 11/06/2013 TU 729
Goal Score: EQ 740 EX 740 TU 740
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Message 12 of 12