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Pre-approval on a mortgage question??

I submitted over the Wells Fargo website, per the advice of a mortgage consultant I'm dealing with, a pre-approval mortgage application. It is going on two weeks tomorrow. We are doing things by email for some reason. He pulled my husband and my credit report already and said my husbands is great but there is a $60 collection account from 2007 on mine(which must have just shown up because I just pulled it before we applied) and he said my credit is 639 and there are more restrictive rules under 640. That he doesn't know if I should pay it or not because it could have an opposite effect. I don't know why it would take this long to get an pre-approval letter. We are first time home buyers going for FHA. We only have about $8k to put down so maybe that's it but we have only a car payment which is 1 year left and 1 student loan for 3k we don't rent or own we live with parents so we have no bills. Our dti is like 20% if that. Should we ask someone else? Is this normal? by lilita_631_295 from Wilmington, North Carolina. Jun 22nd 2012 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,722 contributions

There is no doubt going to Wells is your first mistake.. Any local mortgage broker would have had your pre approval in your hands within hours.. Not weeks.. 639 is below the 640, but there are many lenders out there doing loans down to 600 or even 580, so that's not an issue at all... Wells is backed up.. That why it's taking so long.. And if it takes this long just to get pre approved, imagine how bad it's going to be once you actually find a home?? ditch them now and contact a LOCAL mortgage broker, not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Jun 22nd 2012
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Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 1,823 contributions

The problem is you went to one of the big banks. You need to work with a local Mortgage Banker/Broker, rather than one of the big banks or national mortgage factories. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. He/She will have access to loan products of many lenders, not just those of one bank, and can properly guide you. But more importantly, He/She is trained to take a look at the various different options available to you and guide you into the one that makes the best sense for your situation. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com ~ 888-889-9950

Jun 25th 2012
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Kent Stanton (KentStanton)
#32 ranked lender in North Carolina - 5 contributions

GIve me a call...910-279-3003, we are Guaranteed Rate the second laregest private mortgage lender in America, the score is 1 point lower than needed with most banks, some will do 639, and should be an easy fix. You guys should get closed within 3-4 weeks tops once we get the score to 640.

Jun 22nd 2012
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Kent Stanton (KentStanton)
#32 ranked lender in North Carolina - 5 contributions

By the way I am located here in Wilmington, 5911 Oleander Drive Ste 101

Jun 22nd 2012
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Tammy Troup (tammyt_907_219)
#35 ranked lender in North Carolina - 2 contributions

I would love to assist you with your home loan. Applying on line doesn't offer you the personal assistance needed with first time home buyer loans. You need a local mortgage lender that is experienced in FHA financing as well has an expert with the first time home buying process. Our turn time from qualification to completion and final loan approval is 3 weeks, which is due to working with a local professional that personalizes the service for you rather than being a number to a larger bank. Please feel free to contact me at any time if you would like to discuss this personalized service! Call me 910.539.3147, I am in Jacksonville, NC!

Jun 22nd 2012
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,240 contributions

I believe Wells Fargo now treats "preapprovals" like a preliminary application. Most mortgage officers (myself included) would generate a pre-approval the same day - sometimes within an hour depending on how busy they are. Your 639 score isn't as strong as preferred but we can offer financing down to 620 for FHA loans, the guidelines are just a bit more strict. From what you have described there shouldn't be any issue getting you approved as long as you will have 2 months reserves after closing (and spending your 3.5% downpayment). I can help, just call me at 843-343-6383 or email pdumouchel@primelending.com - good luck!

Jun 22nd 2012
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James Barath (JamesBarath)
#9 ranked lender in Indiana - 351 contributions

Even if you mid-FICO score is 639, Wells Fargo claims they can do home loans with mid-FICO scores down to 500. Since they have not been as responsive and provided the guidance you need as first-time homebuyers, you should withdraw your loan application. They seek out a mortgage banker who will have a vested interest in your success.

Jun 22nd 2012
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#77 ranked lender in Florida - 2,240 contributions

You should really be dealing with a mortgage broker that has many banks to deal with that can find a loan program suited for you.

Jun 22nd 2012
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MIKE CONVIN (mconvin)
#6 ranked lender in Delaware - 202 contributions

hi there: To be honest...I am a direct lender in house and have the priviledge of brokering loans. I suggest seeking a qualified lender or broker meaning an experienced loan officer that is highly knowledgeable with compliance, guidelines & entire loan industry. In reality, it is the person you are dealing with that can complete the job or not. If a pre-approval is taking too long from your loan ofifcer, I would follow up. 2 weeks is lengthly for just a pre-approval....Please note that a pre-approval does not supercede a conditional approval...A conditional approval directly comes from an underwriter after being fully underwritten and can still have conditions to be met while a pre-approval in my experience would just include receiving a full application, pulling your credit report, your 2 current paystubs, 2 yrs tax returns, proof of down payment to provide a pre-approval (an estimate without any full underwriting)....Now If you wanted a conditional approval at the time of applicaton, running DU or LP using the credit underwriting guideline engine called (Total FHA scorecard) would also be a benefit assuring your loan meets the parameters but file still has to be fully underwritten.. This method also supercede a pre-approval.What it comes down to is basically if that loan officer is experienced or knowledgeable. Brokers are middlemen and do have list of lenders they can shop to but when it all comes down to it, a broker can basically issue a pre-approval on their company letter head only not the direct lenders. A broker can do so much but at the end of the day it's the main lender that has the upper hand to be honest. Working with a broker, they pull your credit then once the lender receives your loan package, lender usually pulls their own again also unless the broker is acting as a correspondent lender ....So there are pros and cons working with a direct bank/lender or even a broker but either way it's the person u work with that he or she deals with on the other end as well....wish it was a perfect world.Any questions, please contact me. Mike (703) 505 5300..lending nationwide... NMLS #754875

Jun 22nd 2012
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Steve and Eleanor Thorne (Eleanor Thorne)
#1 ranked lender in North Carolina - 27 contributions

Hey - call us this weekend, we can help you with this. In NC we have money from the NC Housing Finance Agency we can use, and you're golden. You will ALSO get a Mortgage Credit from them! We are in Cary - but we're member of the Hanover Seaside Club, we know Wilmington really well. Sounds like you guys have done all the right things so that you can buy a house! You can do it now! 919 649 5058

Jun 22nd 2012
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