Bryn Mawr, PA · Member since 2015 · 2 posts · 0 votes
Hey BiggerPockets,
I'm graduating in a couple weeks, and I'm looking for a duplex/multi-family home. I talked to Wells Fargo and he told me that everything else I have is good (the money down, job stability, etc.). The only thing he said that is barring me from getting a loan is my credit. I have a credit card with Wells Fargo that I have been prompt with, but he said I needed at least 6 different lines (phone bills, car payments, etc.). If I start those credit payments now, Wells Fargo needs at least 6 months of proof.
I don't want to wait 6 months. Is there a way I can get around that? Are there are local banks or credit unions that don't require 6 lines of credit?
Banks want everything plus 5 things more than that. W just got a motgage for 2 duplexes we bought and every time they asked for 2 things, after they got that information they wanted 4 things more. Everything they asked for generated a new request for more information. It was te worst most exhausting experience. They wanted to know where every dollar we had in the bank came from. I have a small side bussiness and when they saw I took $6,000 out of it they wanted to know why?? They finnally asked me to get my accoutant to say that my taking this $6,000 of my own money did not "Jeprodize" my side bussiness. Who knows what these people were even talking about. My accoutant said it was the dummest thig he ever heard,
Sounds like you don't have much of a credit history and the bank is looking for one to gauge how you'll perform on a loan it extends. I don't think there's a way to 'get around' the credit score - other than potentially putting substantially more down. With regards to your question about local banks and credit unions... the only way to find out is to invest the time and call around. Hopefully, there's a BP poster who knows your area and can point you in the right direction. Best of luck with the deal!
If you're owner-occupying, government-backed loans (Ellie Mae, Freddie Mac, FHA) are great ways to go for first-time homebuyers. Great rates, and you're guaranteed to get one of them.
I'd recommend working with a knowledgeable loan broker, they should be able to find something for you
Like mentioned above. Seek out small local banks or credit unions in your area- their underwriting requirements are sometimes less stringent than the big banks and typically less hassle to deal with.
Wells Fargo is a royal pain to deal with. I dealt with that last year. They gave me every excuse to not get a mortgage for a house. Lost paper work, missed appointments. How do you lose forms that I emailed to you? Or paperwork that I signed at your desk?
I have banked with them for years and still they gave me a hard time for the money in the bank, income, etc.
I ended up just walking away. It ended up working out for me because I needed a new used car anyway when mine broke down.