Home Buying in 21225>Question Details

Valerie1, Home Buyer in Baltimore County, MD

I received a commitment letter from Wells Fargo and they gave me a closing date of 4/27/11. They called me the day of denying me. What can I do?

Asked by Valerie1, Baltimore County, MD Sun May 1, 2011

My mid score is 614 and they said the min was 600 for the program I was applying for. Any lenders out there that can help.

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Answers

16
Hi Valerie,

I'm sorry to hear about the stress you're having in buying a home.

We've sold hundreds of Good Neighbor Next Door homes and if you haven't spoken with a new Lender yet, you can call Ken Venick of Equity Mortgage at 410-321-7800.

Please let him know Nishika referred you.

Best wishes!
1 vote Thank Flag Link Mon May 2, 2011
Good morning-
Unfortunately this has been a reoccurring theme with certain lenders. There are those that promote 600 and up and I can do your loan. While programs exist to allow this, the problem is that this is not a slam dunk. The risk tier associated with borrowers have a FICO score below 620 don't allow for a FHA score card accept unless there are compensating factors. Compensating facts would be increased down payment; meaning more than 3.5% from you of your own funds; more than 3 months reserves and a current rental history paying more than what you currently pay. If you don't have any of these compensating factors, then you should focus on getting your score over 620 before making application. DO NOT PAY FOR CREDIT REPAIR.
As for the "commitment from the lender", True commitment does not come until everything is complete, this is a common mistake made by all in the real estate community; lenders included. True commitment is title, loan and appraisal approval. Once you have a "clear to close" and an approved HUD-1 can true commitment take place. Often contracts require a date to remove financing contingency; this does not mean loan commitment. Unfortunately you have no recourse against the lender, accept to request the transfer of the case number and appraisal, before you spend more time and energy make certain that you have had your file reviewed throughly. I would advice you to seek the advise of three lenders, you do not have to have your credit pulled three times; have a copy of your most recent credit report, w2 2010-2009, 30 days paystubs and two months source of down payment; if you have a 401k make certain to provide the most recent quarterly statement as well as the terms of liquidation (contact HR for the terms of liquidation agreement). Talk with all three lenders and listen to the one the makes the most sense. The words "NO PROBLEM" should not make you feel comfortable, they should make you run.
If you would like to call me please feel free to do so
Michael Bendebba
Bank of America Home Loans
240.776.2330
1 vote Thank Flag Link Mon May 2, 2011
Based on what you told me, the commitment appears to be binding on Wells Fargo and should not have been withdrawn. The withdraw of a written commitment is very rare but sometimes happens for internal reasons at the bank that do not reflect negatively on you. If you wish you can file a complaint with the Comptroller of the Treasury which is the government agency that oversees Wells Fargo. But that is not going to get you into that house anytime soon. At the very least they should agree to assign your appraisal to another lender at no cost to you. I will be in touch with you.

Bob McGee
1 vote Thank Flag Link Sun May 1, 2011
Valerie; That is terrible and odd as well. Especially with a commitment letter in hand.
I'm not a lender, I'm a local Realtor, but I assume you have a Realtor representing you in the purchase of this house. Get him or her involved they will solve it, if for no other reason than they have a lot to loose too.
Good Luck,
Richard Peebles
richard121003@gmail.com
1 vote Thank Flag Link Sun May 1, 2011
Hi V,

Other factors go into a loan approval besides credit score. If anything changed while your loan was processing including credit score, debt ratio, new credit or change in employment all of those factors can result in a revised loan approval.
0 votes Thank Flag Link Fri Jun 22, 2012
Do you have a copy of your commitment letter? I bet you are not getting the entire story. I work for Wells Fargo and have yet to see an approved loan turned down. Please call me any time to review your situation and hopefully I will be able to fix your issue. My direct office line is 410.526.1915
Web Reference: http://www.GeneDru.com
0 votes Thank Flag Link Mon May 2, 2011
Do you have a copy of your commitment letter? I bet you are not getting the entire story. I work for Wells Fargo and have yet to see an approved loan turned down. Please call me any time to review your situation and hopefully I will be able to fix your issue. My direct office line is 410.526.1915
Web Reference: http://www.GeneDru.com
0 votes Thank Flag Link Mon May 2, 2011
THANKS BOB McGee for taking time to actually speak with me.
0 votes Thank Flag Link Sun May 1, 2011
Yes, there are lender that will do a 600 for a FHA loan assuming there are no other issues and the ratios are in line. call me.

Bob McGee
AQdvance Realty Timonium
(410) 560-4574
0 votes Thank Flag Link Sun May 1, 2011
People often get confused between a pre-approval letter and a commitment letter. A pre-approval letter means the lender had taken a preliminary look at your income and creditworthiness and has stated that you appear to be qualified. It is not a commitment. If on the other hand you actually received a commitment letter saying that you loan was approved without spelling out any conditions attached to the commitment, you may have the basis for a consumer complaint. However, typically commitment letters have certain conditions. Read them carefully. They may have been the basis for the bank changing their mind. if you want to discuss this further call me.

Bob McGee
Advance Realty Timonium
(410) 560-4574
0 votes Thank Flag Link Sun May 1, 2011
The letter I got had only closing conditions, they said that they couldn't fully verify my rental history and that since I didn't have 12 canceled checks it was not good. Also they said I had a few overdrafts not NSFs just overdrafts, however, they were in the summer of 10 when I was cleaning my credit. I managed to go from 530 545 and 560 to 632 614 and 609 in 6 months. I make 75k per year the house was 82500 (half of 165k) I am a cop and it was a GNND home. Thanks for the answers and advice.
0 votes Thank Flag Link Sun May 1, 2011
Sorry to hear that Valerie! I am also having some challenges with Wells Fargo in my area! Have you tried another bank/mortgage company. Ask Wells Fargo to transfer all the paperwork they have collected, including the appraisal, to another loan officer in your area and get started with another company. Hopefully you have an agent represently you that can help you with this process!
0 votes Thank Flag Link Sun May 1, 2011
Valerie, terrible and that's the whole point of a committment letter. I don't offer those until I am SURE the loan will work. Until an UW has decided no loan is final. Was there a
0 votes Thank Flag Link Sun May 1, 2011
Hi Valerie,

We've been in business for quite some time and have gone through at LEAST a few dozen financing resources. I would love for you to contact Jake Vogel and Tracy Heater...they are AWESOME!

Christensen Financial, Inc. http://(www.CFImortgage.com)
o Better Business Bureau Profile http://bit.ly/CFImortgage
o Jake Vogel and Tracy Heater
o Direct: (410) 205-LEND (5363)
o Fax: (310) 626-9794
o baltimorelender@gmail.com
o let them know Keith & Shannon French referred you!
0 votes Thank Flag Link Sun May 1, 2011
You can apply at another bank/mortgage company. Are you working with an agent? Call me if I can help.

Hilda Whittington
Champion Realty, Inc.
410-991-0588
0 votes Thank Flag Link Sun May 1, 2011
I have a lender I use on a regular basis - she is with Prosperity Mortgage who is Wells Fargo - if you want to email me at dianetaylor@mris.com I will give you her contact info - maybe she can help you out.

Diane
0 votes Thank Flag Link Sun May 1, 2011
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