My Wells Fargo Bank Teller said when it comes time to get a mortgage, I’ll need at least 3 credit accounts of?

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I was talking to one of the bank tellers or bankers at Wells Fargo, and she was very young and already had a house. She’s in her early 20’s, and she said the first time she tried to get a house, she couldn’t, and she said that lenders will look for at least 3 credit card accounts open for 5 years before lending to you, and that’s why she couldn’t get a loan for her house the first time. Is is true, or is this a bunch of bull she was trying to feed me so that I would open up a credit card with Wells Fargo?

She also talked about how Wells Fargo was an A lender opposed to being a B lender like department store credit cards or credit cards you can open at Target or Best Buy, etc. What was this all about?

Can anyone share their experience with closing on a home with Wells Fargo. I am a first time home buyer with fair credit and income. The most challenging part for getting my loan preapproved was my DTI ratio was high since I have over 50K in student loans. I was suppose to close on my home Nov. 13th but my mortgage consultant at Wells explained that the company was in the process of reorganizing their underwriting/processing department and I would be closing the following friday, Nov. 20. Well here we go, it is now Nov. 24 and we have extended it again to Mon. Nov. 30. As of today, the consultant is telling me that after the underwriter reviewed my file they calculated my DTI and was getting a ratio that was too high to approve. The mortgage consultant has since supplied them with additional information that was already in my file BUT was overlooked and now we are awaiting a second review. This new or overlooked information resulted in my DTI being lowered to approval standards. I have to vacate my current residence by Monday (as I put in notice to vacate 60 days ago when I entered into a contract on the house). I am also receiving downpayment assistance from the county the home is located and that money was ready for closing over two weeks ago. It seems that everything is ready to go but Wells Fargo is taking their time. I am trying to be patient but I don’t want to get denied at the last minute or worse, the seller back out because of the delays.

7 Comments
  1. Reply
    anon
    January 21, 2011 at 7:46 pm

    well now days you need good credit history

    they asked me that same thing if i want to open a credit card i told them hell yea

    instant Approval then i got my card a few days later (Unsecured card with NO credit history) what more could one ask for

    all you got to do is pay in full to get a good credit history to get some of the Highest FICO scores

  2. Reply
    Ted
    January 21, 2011 at 7:53 pm

    When you go to a teller, you should expect your deposits to be posted correctly and the money they hand you to be counted correctly. Period. They are not qualified to give financial advice, and should be ignored. What happened to one person can have a lot to do with their personal situation and not apply to you.

    Any mortgage broker will be happy to talk to you for free about what it takes to qualify for a loan. If you don’t know where to find one, ask a local realtor, who will know several.

  3. Reply
    drive_55_not
    January 21, 2011 at 8:04 pm

    While it is true having open credit cards will have a positive impact on your credit scores, mortgage lenders don’t require you to have a credit card, it just helps your credit mix.

    I’m sure Wells Fargo has put out to their branch tellers to sell their credit products to the customers,

    The ‘A’ lender vs ‘B’ lender, that’s just another marketing tool, when it comes to FICO scoring a Visa credit card is a Visa card no matter who the card is issued by,

    I will agree though, STAY AWAY from the really sub-prime cards like First Premier and the low end HSBC stuff, the fee’s will eat you alive,

    Store cards like Target and JCP … There’s nothing wrong with them and I have a Penny’s card, Guys gotta’ buy cloths also …

    Good luck,

  4. Reply
    gabby
    January 21, 2011 at 9:03 pm

    call the supervisor, i had a bad experience with wells fargo( they kept telling me and my client the same thing)

  5. Reply
    Janice 10
    January 21, 2011 at 9:44 pm

    Contact the supervisor and have them take care of getting the home closed. Best Wishes and Happy Holidays in you new home!

  6. Reply
    Carol
    January 21, 2011 at 10:22 pm

    Hello RKB,

    Sorry for this happening. Buying a home is frustrating and you don’t need this at the last minute.

    But don’t confuse Wells Fargo messing up with the loan person messing up. Your situation can happen at any company. It’s the Loan Officer handling your file, not the company. If your file had been painstakingly put together by the Loan Officer in the beginning, you might not be in this position now. After all, your student loans existed from day one.

    I would think your Loan Officer did not enter the proper monthly payments for your loans in the file. Even if deferred, many lenders require a minimum monthly payment be allotted for them.

    Here’s what you might do IF the student loans tank your loan. (I’m presuming you are getting a FHA loan.) If you have other monthly debt on your report, see if you can get a “gift” from a relative to pay off other debt to bring down your ratios. Probably no need to pay student loans since the payments are usually very low relative to other debts. For example, suppose you had a car note for $ 300 per month with 12 months remaining. If you could get a gift to pay that off, you would deduct $ 300 from your monthly expenses.

    Talk to your Loan Officer to make certain you cover your options. Don’t just wait for the underwriter to come back and say no. Have a backup plan.

    Good luck.

  7. Reply
    Simpson G
    January 21, 2011 at 11:03 pm

    Have your real estate agent call and light a fire under this guy’s butt. If he’s still dragging it out, the agent can call his supervisor. If it’s still isn’t working, the agent should continue to climb the ladder until they find someone who can get this done.

    This is what you pay your real estate agent for (what the seller pays her for).

    You still need to be involved and plugging away as well, but the agent can sometimes get stuff moving where you can’t.

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