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Old 04-17-2013, 04:17 PM
 
36 posts, read 92,623 times
Reputation: 30

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Hi all,
I was hoping that some of you could provide me with some insight regarding a situation I am facing while trying to refinance my house. Basically, I decided last winter (Dec 2012) to refinance my house since the mortgage rates were so low. The loan is a 80/20 conventional loan that I have had since March 2007. Since Wells Fargo already held my mortgage, I decided it would probably be easiest to go through them to get the refinance done. I turned in all of the needed paperwork the loan officer needed, had my appraisal the first week in January, and my credit scores came back at a 790. Well, I received an email today (exactly 4 months since this whole process started) stating that the underwriters were ready to deny my refinance due to a very simple cosmetic issue that was noted in the appraisal report (one of the staircases in my house is unfinished/ the carpet was ripped up). I was told that I could either fix the stairs or they would deny my loan. I am so frustrated...it just seems like they were looking for the smallest issue in order to deny the refinance. Should I push the issue with Wells Fargo or look for another bank to see if I could get refinancing with them. Or, of course, I could just get the stairs redone All suggestions are appreciated!
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Old 04-17-2013, 04:27 PM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,958 posts, read 19,535,782 times
Reputation: 6389
If their refi department is anything like their short sale department, I would run away as fast as I can.

It seems that underwriters jobs are dependent on finding ways to deny loans. You will probably have to go ahead and fix the stairs. You probably won't be any better off with any other lender.

Good luck!
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Old 04-17-2013, 05:47 PM
 
Location: Between amicable and ornery
1,100 posts, read 1,494,143 times
Reputation: 1479
We started to refi but we were denied because they wanted me to make more income. I've been a SAHM for the past 2 years. Mind you my husband makes a third of our loan on his own. And we have hardly any debt. Credit rating of 760. No car loans, no student loans and two credit cards (maybe $4k) As I was shocked it wasn't approved.

It came to me; what benefit is it to our current lender to refi our loan? We pay on month every time, of course they don't want to make less money. I think the refi program is a shell game to passify a portion of the tax-payers. They surely don't make it easy. I'm getting ready to re-enter the workforce at about 50K per year. I plan to try again before the year is up. But this time my strategy is to shop a different lender and see how that works for me.

Last edited by MAXIALE02; 04-17-2013 at 07:07 PM.. Reason: Not 3x's the loan but a third of the loan. oops.
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Old 04-17-2013, 07:04 PM
 
36 posts, read 92,623 times
Reputation: 30
Quote:
Originally Posted by MAXIALE02 View Post
It came to me; what benefit is it to our current lender to refi our loan? We pay on month every time, of course they don't want to make less money. I think the refi program is a shell game to passify a portion of the tax-payers. They surely don't make it easy. I'm getting ready to re-enter the workforce at about 50K per year. I plan to try again before the year is up. But this time my strategy is to shop a different lender and see how that works for me.
This! It's almost like they couldn't get me on income, debt to income ratio, credit score, assets, so they found the smallest little thing they could to deny (or get me to walk away from) the refinance. I am so irritated right now! Way to honor your loyal costumers Wells Fargo!!!
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Old 04-18-2013, 12:23 PM
 
Location: North Idaho
23,774 posts, read 30,548,684 times
Reputation: 47484
I think you will have to fix that staircase in order to get a mortgage from any bank. So just fix it and get on with your life.

The Federal government is making it attractive for banks to do those refinancings, that is why they are doing them. And they are doing them. They dld a refinance for me and for 2 of my family members.
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Old 04-18-2013, 12:43 PM
 
3,638 posts, read 7,931,884 times
Reputation: 4616
Quote:
Originally Posted by Twenty Five View Post
This! It's almost like they couldn't get me on income, debt to income ratio, credit score, assets, so they found the smallest little thing they could to deny (or get me to walk away from) the refinance. I am so irritated right now! Way to honor your loyal costumers Wells Fargo!!!
Yes, one of the biggest banks on the planet pays salaries to people who literally look for ways to decline revenue while eating up resources.

The home must be resale-ready at the time that you close.
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Old 04-18-2013, 01:19 PM
 
36 posts, read 92,623 times
Reputation: 30
Quote:
Originally Posted by oregonwoodsmoke View Post
I think you will have to fix that staircase in order to get a mortgage from any bank. So just fix it and get on with your life.

The Federal government is making it attractive for banks to do those refinancings, that is why they are doing them. And they are doing them. They dld a refinance for me and for 2 of my family members.
Got an email and they have given me 7 days to get the staircase fixed and the home reinspected...there is no way they are being resonable. Besides, I don't mind repairing anything...it's just that my file has basically sat on someone's desk for the past three months when this could have been taken case of.
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Old 04-28-2013, 11:30 AM
 
12 posts, read 22,886 times
Reputation: 18
Dude, you're lucky.

I applied for a refinance (not with WF). Appraiser noted a crack in the basement foundation, and several blocks of sidewalk needed to be replaced. Not to mention a myriad of smaller issues.

The bank couldn't say no fast enough. The repair costs quoted from contractors are staggering.

But I do agree with you, sitting on it for so long is bogus. You could've had it repaired months ago. Chalk it up to paperwork getting stuck somewhere along the line, get it fixed, and enjoy your new low rate.
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