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The bigger the institution, the more these items will be pushed to the back of the line. If there is anything that requires an explanation, the underwriter may reach for another file again and again, rather than work a file filled with questions or needs more than a brain cell or two. Those files that may be passed by would include, many verifications of employment, say 6 or more in a 2 year period, self employed where income is difficult to follow and there is no cover memo as to how income was calculated, lengthy credit issues that requires complete concentration to match up what is documented and what is not, assets with money flowing through an account co-owned with a niece, and then to mom and then to his greendot card, again, all without a cover memo explaining what the hell is going on. All of these reasons (and many more) can explain why you don't have an approval in hand.....or, it could be they didn't order the appraisal until the last minute and that is the hold up.
Whatever the holdup, it's Monday evening, crunch time. Get on the phone, now, call your loan officer and ask some rather pointed questions. Has an underwriter even seen your file? Is the appraisal in? Do they have everything from the title company to close on Friday? When do they expect your loan to be out of underwriting?
Now, the flip side, and every loan officer has dealt with this......there are the files the loan officer is up front and lays it all out to the borrowers and their agent. Tells them, this is a tough deal, really tough and it could go either way. I can jump up and down and call attention to your file, or, I can let it work it's way through the system naturally. And then we preach patience and recommend the file not be jammed down anyone's throat, which will do nothing more than accomplish a potential rejection, just to shut everyone up. We all have seen files that can legitimately go either way, and it really comes down to the individual signing off on it. If this even comes close to describing your file, listen to your loan officer. And it never fails, these are the loans you have told everyone it's going to be a painful wait and everyone still calls and agonizes every day that there is not loan approval. If that describes you, stop calling, chill. The loan officer wants that loan to close more than you. You will be the first to know it's approved.
(The contract usually sets the closing date. The dates do move around, based on seller and/or buyer request, but it's usually agreed upon first, if it's not the date in the contract).
Thank-you Smart Money and everyone else. I called my loan officer and left a message and an e-mail. No reply!! I then called the mortgage processor and she told me that the file is in "review". I told her that I was closing this Friday and she said in a snotty voice, "I'm well aware that you are closing this Friday". "I can't give you any more information other that it is still being reviewed". What a way to treat people. I am worried because no one is getting back to me. The sellers had their settlement this morning and someone signed the lease to my apt. on Saturday. Can something horrible happen at the last minute? I have given them all the documentation they required, cancelled check of the 7k they needed on the house, another statement of my bank account for the past month, plus all the other tons
of documentation I sent to my loan officer. What could make a loan not go through? I want to make sure I am ready for any upsets.
Kimbey, you have done everything right. You have to understand that in this day and age mortgages are hard to close.
What is bad, however, is that your Loan Officer does not respond to you. I am sure there is nothing he/she can do about it but they need to understand that this is new to you and very stressful and the least they can do is communicate with you.
Edited to add: FHA frowns upon shabby treatment by Loan Officers. Once the file has closed and you still want to, file a complaint with FHA referencing the FHA File Number.
See, this treatment has to stop! How did you get to Wells? Did the real estate agent refer you?
Are you working directly with Wells or is it another broker has told you Wells is the investor?
To answer your question, something can always go wrong at the last minute. I would hope that only ethical people remain in this business and if there was a possibility of you not getting the green light, someone would have prepared you. (Statements "this is not usually how FHA views loans, so it's possible they may not go along with how we are presenting it) In other words, a .....strong hint would have been given. You give no indication of any such hint.
Business is not that great, they should be extending every courtesy - ticked off customers have a way of finding better service.
Let me know how you got to Wells.......then let's see if we can find a way for you to sleep better at night, okay?
I got to Wells Fargo on the recommendation of my realtor. This mortgage person has been nothing but bad news. The home I am buying is 105 yrs old and had chipping paint. The sellers said they could not afford to pay, so I would have to pay. My mortgage person called me and asked me to take out more of a loan to pay for the painting of the home. I said "no way". She then asked me if I would use the $5,000 the sellers were giving me in closing costs to pay for the paint job! It got done and we split the bill, but it gives you an idea of how they have treated a first time home buyer. My realtor told me this girl at Wells was the best around. Anyway, the only thing she said is through my realtor and that was she saw no problems at all and that everything would be ok, but she would not contact me directly, even after several e-mails.
We just closed on a home last month. Our loan was also an FHA thru Wells Fargo. It was the WORST experience I have ever had. We did not realize the loan officer had procrastinated until 3 days before closing when she could not give us direct answers to our questions. She had idicated that everything was "going fine" each time we contacted her to touch base. She even told our seller we were approved -when in fact we were not -THEN we she found out the people had already moved out of the home we bought (we bought from an agent who happened to be selling HIS home)-Then she started saying things like "it would have been wise to wait to move- these things fall through all the time"-WTH?! Anyways the loan ended up being finalized THE MORNING OF THE CLOSING!! After our we finally just got pissed off. I don't know why they do things like that!
My one and only Wells Fargo experience is also my worst... and I have bought a fair number of properties.
3 days before closing... Wells Fargo tells the listing agent they decided the home doesn't meet their stricter underwriting standards... mind you, I was putting 25% down.
The listing agent informs the escrow officer and my escrow is cancelled with no one even bothering to let me know. I complained and was told that there was no reason for me to be upset and that 72 hours isn't enough time to get a new loan.
I was more than upset, which is not normal for me. They even told the seller the deal was off and that is how I learned about it.
For the future... Wells Fargo told me they had my loan application and they could promise expedited loan processing should I find a home meeting their standards???? The "Problem" turned out to be the home had too much land to meet their new underwriting requirements.
So, let me see if I have this right. You haven't even taken title and you have put money into the property? Or is that a tab you have to pay ( and it comes out of the closing allowance?)
Call your realtor to see if she has heard anything. Tell her your mom called your aunt and uncle who are in banking and they are appalled that the loan officer at the bank will not return your call. Your dang relatives are stirring up a hornets nest and you need to know exactly where you stand. (deflect the heat). (also, keep in mind, I don't know if you are being overly patient - I do suspect that is the case - ) They aren't going to let you have one moment of rest. These are the questions you have been asked and cannot answer:
Is the appraisal in and are there any conditions? (it's in, that's how they know about the paint)
Has your loan gone thru DU or LP? (automated underwriting)
When does your lock expire?
Has the underwriter even seen your file?
Where is the file physically underwritten? (that's not a huge point UNLESS they are having problems and then they will think you know more than you do)
Are there any additional conditions they anticipate, but have yet to ask you to provide?
Is everything in from the title company?
Your agent or loan officer may see through your family story, but that really doesnt matter. This is information you are entitle to know, period, no excuses. Sing out if you need an aunt or uncle. I am sure you have at least three of each on this forum alone.
And please let the following sink in and give you courage to demand answers:
THIS IS THE MOST EXPENSIVE INVESTMENT YOU HAVE MADE IN YOUR LIFETIME. YOU DESERVE TO BE ADVISED EACH STEP OF THE WAY WHERE YOU STAND. YOUR REALTOR IS BEING COMPENSATED NICELY FOR THIS SERVICE, AS IS YOUR LOAN OFFICER. IT'S TIME FOR THEM TO REPORT TO THE PERSON IN CHARGE --> THE CUSTOMER!
Thanks so much Smartmoney! I am going to print this out tomorrow at work and ask all these important questions. I'll throw in the aunt and uncle thing.
I don't have much of a family but a made up uncle wouldn't hurt. This is so scary after reading the last post and his mortgage did not go through. I have some old medical bills that weren't paid (2003) that I am still working on getting them removed from my credit report, which is at 701 now. I went to a couple other mortgage brokers and they could not lend me the money because of the outstanding medical bills. My mortgage broker at Wells said I was fine and she could have it manually underwritten. I am worried if this falls through I won't be able to get another loan elsewhere and my locked in rate of 5.5% will go up in smoke and then I won't be able to afford my mortgage. I think I need a valium....lol!!
Hang in there.....and try to remember who is boss. I will tell you a little secret about FHA....medical collections do not need to be paid in full......collections, not judgments. That is HUD's position. Unfortunately, many of lenders have their own, stricter rules. Renriq is a broker I believe and on the east coast.....I don't know if he is online tonight, but I'll send him a DM to reach out to you in case you need an uncle.
Why am I reacting so strongly? Because the lack of common courtesy is disgraceful, I won't even mention business practices. I suspect, being a first time buyer, they have been spoon feeding you, which is wrong. And, an FYI, big banks most definitely react to written complaints to senior level management.....after closing, send your complaint to the highest ranking executive you can find (usually on their website for stockholders). (lol, if I am still fuming, I'll write it for you).
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