So I am trying to get a HELOC with WF... Their UW looked at my financial, talked to me, and told me my DTI was 23%... My own cal showed 30% ish, but I am OK with 23%...
Credit approval, conditions.... 1 whole week into "final approval" and UW asked to talk to me again because my DTI is above their guideline of 45%.... What?????
Investor · Rocklin, CA · Member since 2016 · 83 posts · 77 votes
9y
Doesn't surpise me, I just closed on a Wells HELOC and it took 60 days and a TON of ridiculous stips(and we have low DTI, good credit and free and clear properties)
My loan officer who usually does our mortgages explained Wells does not do HELOC's in house so that explains the slow underwriting process.
Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
9y
We gave up on a HELOC or cash-out refi of our free and clear investment property. We did find a few, last one was Lima One, who would do them, but the rates, terms and fees we were quoted were just too high to make it worth it for us.
Another update, so the UW sent me an email to decline my application, copying a number of people... At that point, I have got nothing to lose, so I said "but you are still DOUBLE counting".....Lol
I think he is looking for other ways to turn me down... Lol
Going thru all the hardship with this HELOC at 23% DTI and 45% LTV, and still be rejected, and then you read about all these " I went from 1 door to 25 doors within 2 years without money out of pocket", are they lying or am I too stupid?
Or maybe I live on a diff planet earth?
More update - So I finally approached UW's manager and made a complaint on DTI calculation so late in the process, like 8 weeks after the "credit approval"...
Got a long email back from the manager, basically saying their procedure is perfect...Nothing to improve on...
More update - So I finally approached UW's manager and made a complaint on DTI calculation so late in the process, like 8 weeks after the "credit approval"...
Got a long email back from the manager, basically saying their procedure is perfect...Nothing to improve on...
Great!!!!!
Stop going to national brand banks and expecting a different outcome. I have multiple mortgages and they're all with local community banks. Someone out there WILL give you what you want and you don't need to go to a Lima One or CAF that will charge you 10%. Call banks until your fingers go numb but please stop asking WF, BOA, etc. They're hot garbage for REIs.
Investor · Roseville, CA · Member since 2009 · 1k+ posts · 583 votes
9y
@Diane G.People should know that if your an investor , you should never use a bank like Wells Fargo. They hire new people right out of college who have zero experience with finance, investing, taxes and life. You should always use a seasoned mortgage broker who will find you a lender that is right for your situation. My friend tried to refi his house late last year and the appraiser cut the appraisal. The loan officer did not have the experience on how to lower the dti by paying off debt and they could not help him out. I told him what to do and he was able to get the refi completed going the broker way.
@ Gordon Cuffe
Broker rates are way higher than WF and like...
All my rates are 30 year fixed at 4% now on rental property...where do you get that other than big banks?
But I totally agreed that WF UW are very inexperienced... the UW I dealt with even asked me if I am reporting $60k net income on scdedule D, how many I am not reporting that on my main schedule? Lol... my eyeballs almost dropped out.... I can't imagine a UW can be so ignorant !!!!!