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Old 03-15-2013, 07:39 AM
 
4,015 posts, read 4,852,381 times
Reputation: 3897

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I can't believe the number of hoops I've had to jump through during this loan process.
I make a good income, have 7 figures in financial assets, have an 800 credit score, and they're still asking me for additional documentation on almost a daily basis. I've become very frustrated with the process and didn't hold back in letting them know this. They even asked me to write a letter explaining why I'll make as much commission in my new job as I did at my old job. WTF!

Of course, the guy who I was working with to get the loan is non-existent now when it comes to getting email replies so I'm sure he's just churning/burning applications right now.

Anyway, even though I'm getting a great rate on a jumbo 30 yr, I'm still pissed and at this time, wouldn't recommend Wells Fargo to friends/family.

(by the way, when you hear 'PITA' in the future, you heard it here first!!)
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Old 03-15-2013, 08:06 AM
 
Location: Cary, NC
31,591 posts, read 55,295,005 times
Reputation: 30145
I have a local Wells Fargo banker I will recommend to anyone in my area.
Hassle-free, attentive, responsive.
Timely, with good rates and clear explanations.

All lenders need what seems like excessive documentation. The underwriters are still under the gun for so many foreclosures.
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Old 03-15-2013, 08:08 AM
 
5,605 posts, read 4,158,119 times
Reputation: 12338
Quote:
Originally Posted by lenniel View Post
I can't believe the number of hoops I've had to jump through during this loan process.
I make a good income, have 7 figures in financial assets, have an 800 credit score, and they're still asking me for additional documentation on almost a daily basis. I've become very frustrated with the process and didn't hold back in letting them know this. They even asked me to write a letter explaining why I'll make as much commission in my new job as I did at my old job. WTF!

Of course, the guy who I was working with to get the loan is non-existent now when it comes to getting email replies so I'm sure he's just churning/burning applications right now.

Anyway, even though I'm getting a great rate on a jumbo 30 yr, I'm still pissed and at this time, wouldn't recommend Wells Fargo to friends/family.

(by the way, when you hear 'PITA' in the future, you heard it here first!!)
Your experiences are in no way unique or limited to just Wells Fargo Mortgage. We've bought and sold 8 properties over the last 30+ years and the one 2 years ago way far and away the most complicated and painful. Like you, we were ideal candidates with 50% down, 800+ credit scores, 15-30 years with our current jobs and we had to jump through hoops we didn't have to when we were buying our first property.

Welcome to mortgage lending post housing bubble. And PITA has been around forever. Sorry, I didn't hear it here first.
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Old 03-15-2013, 08:45 AM
 
4,015 posts, read 4,852,381 times
Reputation: 3897
Quote:
Originally Posted by UNC4Me View Post
Your experiences are in no way unique or limited to just Wells Fargo Mortgage. We've bought and sold 8 properties over the last 30+ years and the one 2 years ago way far and away the most complicated and painful. Like you, we were ideal candidates with 50% down, 800+ credit scores, 15-30 years with our current jobs and we had to jump through hoops we didn't have to when we were buying our first property.

Welcome to mortgage lending post housing bubble. And PITA has been around forever. Sorry, I didn't hear it here first.

And PITA has been around forever. Sorry, I didn't hear it here first.[/quote]
damn! Thought I'd coined new acronym.
However, a group of friends and I did come up with 'Heisman' about 20 years ago...as in "she gave me the Heisman". I actually heard it on a TV show not too long ago and was like, "hey, we made that up in college!" ha ha

As far as the mortgage goes, yes, it's getting frustrating. I can't imagine how someone with bad credit/work history, disorganized records, etc can make it through this process.
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Old 03-15-2013, 09:07 AM
 
Location: Boise, ID
8,011 posts, read 22,499,039 times
Reputation: 9212
I know someone who has a 820+ credit score, 7 figures in the bank, owns 7 or 8 rental properties already, worked at the same job for like 30 years, and was putting 30% down on a rental purchase, and he was DENIED for a loan by the first lender he went to (not WF). I still don't understand who they loan to if not to this guy. He went to a different lender and was approved immediately.

Lenders have very specific boxes they have to fit people into, and if you don't fit in the box, there is a problem. The OP sounds like he recently started a new job, and is paid on commission. Both of those things are red flags to many lenders, currently.

I'd say your agent (assuming you have one) did a poor job preparing you for the current state of the lending process. What you've described is just how it is these days.

(And yes, PITA is an old acronym...I don't even remember when I first heard it, but it wasn't recently)
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Old 03-15-2013, 09:49 AM
 
Location: WA
5,292 posts, read 20,697,476 times
Reputation: 5622
Blame the government for the way loans are processed. Companies will offer the low rates only on loans they can easily sell and to fall into that category they must meet some pretty narrow guidelines used by Fannie, et al.

I am in the same situation with excellent credit, above average assets, wanting a loan on a good property and willing to make the LTV meet their requirements... but because I have been living on savings and investment income for many years I don't fit their profile. I was turned down on a refi of the house I have been in for over six years because without W2 wages I did not have 'adequate income' to qualify.

I spent another six weeks understanding how they currently run the mortgage lending business, so-called underwriting, and another failed application before I spent the time and money to try this again.

After rearranging my finances to have 'repeated taxable income' (IRA disbursements) controlled by the investment firm instead of myself, more years of tax returns, letters of explanation, broader financial disclosure, another appraisal,etc. I am working the process again.

It is not WF that you want to blame... call your representatives in Washington DC and talk about the government distortion of the financial markets.
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Old 03-15-2013, 10:30 AM
 
4,015 posts, read 4,852,381 times
Reputation: 3897
Quote:
Originally Posted by Lacerta View Post
I know someone who has a 820+ credit score, 7 figures in the bank, owns 7 or 8 rental properties already, worked at the same job for like 30 years, and was putting 30% down on a rental purchase, and he was DENIED for a loan by the first lender he went to (not WF). I still don't understand who they loan to if not to this guy. He went to a different lender and was approved immediately.

Lenders have very specific boxes they have to fit people into, and if you don't fit in the box, there is a problem. The OP sounds like he recently started a new job, and is paid on commission. Both of those things are red flags to many lenders, currently.

I'd say your agent (assuming you have one) did a poor job preparing you for the current state of the lending process. What you've described is just how it is these days.

(And yes, PITA is an old acronym...I don't even remember when I first heard it, but it wasn't recently)
I'm the OP and while I did start a new job in Oct, my salary is just under $100k and I can earn another 70 in commissions uncapped. We did just sell a house in Nov and my wife quit working which cut our income by 50% but we should still be very solid borrows.
Maybe they're upset they gave me a 30 yr jumbo at 3.625 and are looking for a way to deny it! ha ha
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Old 03-15-2013, 12:23 PM
 
5,076 posts, read 7,963,229 times
Reputation: 4613
Proces was the same for the lender I used. I believe it's a tactic geared towards uncovering inconsistencies. They tended to ask for the same documents over and over, and ask me to explain them repeatedly, probably just checking to see if I could keep my stuff straight. There were constand phone calls and 'urgent' requests for a little over a week. Very similar to the background check I had to go through for work.
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Old 03-15-2013, 08:47 PM
 
13 posts, read 36,432 times
Reputation: 19
Oh great, if you guys are having problems, in better situations than we are ... we'll never get approved. The last time we bought a home was in 2003, it was so easy we didn't even have to really do anything, the real estate agent did it all, we just signed papers.
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Old 03-16-2013, 10:07 AM
 
Location: NY/LA
3,079 posts, read 2,549,205 times
Reputation: 2380
We used Wells Fargo for our jumbo loan last year. We went through the hoops of providing income and asset documentation for "Priority Buyer" preapproval before we started even looking at houses. In the end, we went into contract on a house that was only around 60% of our preapproval limit and the underwriting was still a huge pain. We closed in 30 days, but I swear I was copying, scanning, e-mailing and faxing almost every one of those days.
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