Home Buying in 94110>Question Details

scom57, Home Buyer in San Francisco, CA

Why is WELLSFARGO underwriter making it so difficult?

Asked by scom57, San Francisco, CA Wed Sep 5, 2012

Got pre approved then loan got approved but during final review the underwriter requested again my driver license and now after 5 days is still revieing the file...The underwriter asked again for a copy of the building insurance...3rd time. My banker is pissed, his boss is pissed and the underwriter manager is involved. I am closing escrow on the 7th of September.... Gave a full package with all the docs.... I am trying to keep my eye on the prize but I am pissed

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they're market share is the largest so they just don't have to care anymore. Too big to fail - maybe just too big to do business with!
1 vote Thank Flag Link Thu Sep 13, 2012
Jed Lane; Fog…, Real Estate Pro in San Francisco, CA
I'm sorry to hear that, hopefully everything will work out in the end. I've had nothing but positive experiences from Wells. I use Holly Brand and she has been able to remove contingencies within 11-14 days and close from 23-30 days for my transactions with her.

To a successful close. Cheers.

1 vote Thank Flag Link Thu Sep 6, 2012
Wells Fargo has a reputation for bieng ultra conservative and they don't like to take risky bets on questionable loans.

Therefore, they scrutinize all loan applicants to the tee.

Peter T. Chin Realtor # 01866332
0 votes Thank Flag Link Wed Sep 19, 2012
It has been crazy for the last few years and is just getting calmed down. Loan these days are full document loans that have to be sold on the secondary market and need all i's dotted and all t's crossed. It is a suspision of fraud market so everyting is checked and double checked. The big banks are the worst.
You can buy now with a minimum 580 fico score and qualify for a half percent downpayment program. Most Lenders require a minimum 640 fico score. We specialize in Under 640 Fico Score Loans. Fico scores between 500-579 require 10% downpayment. What was your middle fico score?

Sheryl Arndt, Broker
DRE# 01440252
NMLS# 297251
0 votes Thank Flag Link Fri Sep 14, 2012
Thank you Sheryl, my FICO is 803 and I am putting 40% down on a 1 million home. Wellsfargo contacted me on Friday and now everything is approved. Thank you !
Flag Sun Sep 16, 2012
Tell me about it. Every refi/loan that I've done, I've always gotten an email saying: "Congratulations! Your loan is approved! Now, we just need you to provide these 150 additional documents..."

In my worst experience, despite getting another "Congratulations! Your loan is approved!" email, the underwriter came back right afterwards, and said the loan had to be completely restructured from an owner-occupied loan to an investment loan. I'd have to pay at extra 1.75% in points!
0 votes Thank Flag Link Fri Sep 14, 2012
It is very common to hear this. The loan process starting almost 5 years got much more intense then it was the previous 10 years. The lenders also claim they are backed up due to rates being so low and being flooded with refinances. But it is a very frustrating process with many lenders right now. Things can take very long and massive amounts of documentation can be asked for.
0 votes Thank Flag Link Thu Sep 13, 2012
Instead of being in business underwriting loans, they should have all been allowed to go bankrupt. They are horrible in every aspect and have truly helped to destroy the American economy.

They were rewarded instead of being punished.

Scott Miller
Realty Associates
Boca Raton, FL
0 votes Thank Flag Link Tue Sep 11, 2012
As others have noted, your experience is not uncommon.
There is a reason the Big Banks, Wells Fargo, Citi, Chase, Bank of America and Never Ever Bank of Clearwater FL, are "F" graded. They FAIL in every aspect of lending to home buyers. The horror stories are endless and heartless. Too big to fail banks will pale when compared to the soon to arrive "To big to fail" health insurance companies.

You may want to try and advise EVERYONE you know, and some you don't know, to consider using a local lender who has a history of investing in the community through small business and mortgage loans. Enter your city or zip code and identify the "A" and "B" Graded lenders.

Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group, Palm Harbor, FL
0 votes Thank Flag Link Fri Sep 7, 2012
I agree with everything below....I just have to add that it is a mortgage originators responsibility to manage the transaction and your expectations. Sounds like a little bit of everything. Since when does Wells care about service?

0 votes Thank Flag Link Wed Sep 5, 2012
I just had a client switch from Wells Fargo in August after they were told it would be several weeks for an appraisal to occur. If you want better/faster service, remember, "the squeaky wheel gets the oil." Sometimes you have to advocate with people in regional managment positions if you aren't getting the results you need. That tends to move the process along.
0 votes Thank Flag Link Wed Sep 5, 2012
One of the main reasons why I don't use big national banks for my clients whenever possible. They are just slow, unorganized, and bureaucratic. I mean, I know it is their job to make sure everything with the file is in order, but usually good local lenders can get conditional approvals out of underwriting in 48 hours, and then once all the conditions have been met, only 24 hours. Obviously, you can't do anything about it now because you are already in escrow and you are supposed to close on your house in a day or two, but I wish you the best of luck!
0 votes Thank Flag Link Wed Sep 5, 2012
I'm afraid that your experience sounds completely normal to me. In my experience, Wells Fargo underwrites more than once, often in multiple locations. Although they seem to have the most market share, I have never heard a positive story from a buyers perspective.

You may still close in time, stay in contact with them. You can always get a backup lender (maybe someone local can sprint to the finish line for you?) Maybe Wells will move faster if you have a little competition... The worst !that can happen is that you spend another $400-$800 on another appraisal.

Good Luck
0 votes Thank Flag Link Wed Sep 5, 2012
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