Wells Fargo VA Loan (foreclosure, credit report, refinance, banks)

[tarragon]

Hi, We started a VA loan through WF back in April, originally had a closing date end of May...now it's July 8th and still no closing date. Is this normal to take this long? We are not going through an agent in our state of Maine, but through the Minnesota office. Every Monday, we think, :"Maybe this week we will get our closing date". There's always something ...one more thing. The gentleman that did our credit report and paperwork in the beginning is great, it's after him that is very difficult. We have excellent credit, so it hasn't been an issue of credit. For instance, in Maine we do not have termites, but they are forcing us to get a termite inspection. The VA Rep said we didn't need one, but WF seems to think we do! So, we dispute it, they say, "we will give you a waiver" so we go weeks thinking we have that one settled and then just today, they are telling us we need to have it done. This is just an example of the stuff! Then we hear the underwriter that has been working on our loan is away on vacation...Our contract expires July 15th, we started this April 21.

[ShanetheMortgageMan]

Sorry to hear, Wells Fargo is a very big mortgage machine, they have processes which make it difficult to provide individual attention to special situations. I've never heard them take this long though, 3 months is definitely too long in my opinion to get a VA loan unless there were some serious issues with the home, credit, income or employment. Even though VA doesn't require termite reports in Maine (it's considered a "none to slight" risk for termites defined by the International Residential Code) the lender is the one who makes the guidelines. Lenders can never accept less documentation than VA requires, but they can certainly ask for more. If it's not worth losing your closing date over then I'd suggest just getting the termite report.

[tarragon]

Hi Shane, yes we are just going to give in and get the inspection this afternoon. We should have just done it several weeks ago, but WF said that they would waive it, then just of late, changed their minds and closing has to be by the 15th. There has been absolutely no issues with employment or credit. The house we are buying is a foreclosure that is owned by Homesteps. Some of the stuff that WF has had issue with are things that were previously scanned and emailed to them, but the loan documents specialist seems to have lost track of what was what, like we had to send them the water tests twice, that the title stuff wasn't sent and it was....etc., etc., Hopefully this will be over soon! And then after the HUD is put together, Homesteps will have to review. They said they like 72 hrs,

[ShanetheMortgageMan]

I'm sure as long as the docs are at the closing agent by the 15th that HomeSteps will allow a few more days to be able to close. The "losing paperwork" issue isn't just solely a Wells Fargo problem, I've seen it at some of the lenders we use as well. When you have an underwriter reviewing 20-30 loans a day it's easy to overlook a few documents, but if the processor can prove to the underwriter that it is already in the file the underwriter should be able to quickly review and sign it off, not request it to be resent and start the waiting period all over again. Good luck with the rest of things and hope you are able to close on time.

[Momotaro]

Keep us up to date if you can. I am getting a VA mortgage right now, just had appraisal today and will hopefully be closing on July 30th. I am staying pessimistic right now, as things never seem to go right for me.

[lawfull]

My husband who is a 19yr veteran and still active applied for a
VA loan from Wells. 7 days later got the approval. awesome right. They kept asking for more docs we sent them in. Then they ask for his retirement account to show reserves he sent that in too, but since he cannot draw from it unless he's retired, or hardship. The underwriter at wells decided not to use it and now want to issue my husband a denial because of reserves he doesn't even need to use as closing cost. Wells not recommended. especially for our Veterans. Their underwriting overlays are crazy .

[SmartMoney]

It's standard for Big Box Banks to do a preliminary screen.......but don't get too comfortable with that "approval." There are a ton of loopholes with it.

They will probably clear you to close 24 hours prior to your closing. Don't know why, but the way the BBB prioritizes their work, it puts everyone down to the wire.

[zachattack631]

I applied for my VA refinance loan in April. It is now December and the loan has not cleared. They keep telling me that they have lost paperwork or need additional documents. My closing costs have increased from $1300 to $1900 and they attempted to get me to pay for an extension. After speaking with other brokers I was advised the WF cant even give me a loan because the VA requires 10% equity in the home which I dont have for the Re-fi. So thus far Ive been dealing with this for 7 months.

The newest problem is that my mother has access to my accounts in case of deployment etc. Wells fargo now wants a letter from her saying she gives me permission to use my MONEY! This couldnt have been addressed earlier? And of course the broker must not be able to read because she says my statements show I have only $100 in the account when I have well over $1800. DO NOT USE WELLS FARGO!!!

[ShanetheMortgageMan]

zach are you doing a VA IRRRL? If so then you shouldn't need any equity (you don't need equity on any VA refinance, but if you aren't doing a VA IRRRL most lenders these days require 10% equity per an appraisal). You may want to contact your current lender and ask about a VA IRRRL, they should be able to take care of it within a month.