The process to allow a particular contractor to be accepted by Wells only takes about 3-4 business days as long as the forms are filled out properly. As long as the contractor is a full time builder and is licensed and insured with good references, there are typically no issues.
Once a contractor has been accepted by Wells, they are able to do additional projects with limited paperwork as long as their work is satisfactory. Good luck with your project.
I happen to know that Wells Fargo has been working with Home Depot and one other major company - can't think of it now, that they won't even blink an eye at the cost of repairs. My Wells Fargo man (I mention Wells Fargo because around here they are the only ones doing 203K to my knowledge) has told us on numerous occassions that as long as they have a contractors license, insuranc etc., ther should be no problem. They understand that people have relationships with contractors. They just want to be sure that the contractor will not stiff the buyer.