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Top 5 Mortgage Companies in the US: No. 1 Wells Fargo

February 19, 2013

Author: Allison K.Watkins

Wells Fargo is among one of the top, and biggest mortgage lenders in America. The company was founded on 18th March, 1852 in New York City. In 1998 it merged with a Minneapolis-based Northwest corporation. Ten years after this merger Wells Fargo bought Wachovia for a price of $14.8 billion.

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Wells Fargo ranks as the number one mortgage lenders among banks, and insurance companies of the United States. Within the U.S more than one out of three home mortgages in United States originates through Wells Fargo. The mortgage company has assisted almost seven million borrowers to either buy a home or to refinance an existing mortgage.

What resources does the company have for the borrower? How does the company evaluate the mortgage application? There are many questions a borrower has before he opts to choose a mortgage company. Here are some questions answered about Wells Fargo.

Q. How do you know where to start when applying for a loan as a first time buyer?
Ans. Buying a home is a very serious undertaking and, it could prove a drastic mistake if not done in an organized manner. If you are applying for a mortgage or home loan through Wells Fargo, they have software for first time homebuyers named My FirstHomeSM. It is an interactive program which guides first time homebuyers through every step of the process.

Q. What specific resources does Wells Fargo have for first time home buyer?
Ans. Wells Fargo assists the first time homebuyers by providing a lot of free resources.

1. Informative content:
Wells Fargo is focused on helping its existing and new customers. In lieu of this they have content that is broken down into specific categories. What loan should they opt for? What are the available options they have? Wells Fargo has a learning, and planning centre which helps you get the answers to these and a lot more questions.

2. My FirstHomeSM:
My FirstHomeSM is an interactive and informative program that is basically meant to guide the buyers through the mortgage process. It covers almost all the point of views one should have before buying a home.
3. Wells Fargo Lift Program:
There are two lift programs Wells Fargo runes, namely CityLIFTSM and NeighborhoodLIFTSM. With the help of these programs, Wells Fargo offers qualified borrowers help in making the down payment.

Q. How does Wells Fargo evaluate your application?
Ans. The evaluation of your application is the biggest step of your mortgage process because; once the lender approves your application you only have to take care of the red tape. These are some of the top factors Wells Fargo considers while evaluating loan application.

1. Reasonable Income:

You must have a consistent source of income so that, they can be sure you can make the monthly payments of your loan. There is no specific restriction as to what constitutes ‘income’. It can be your 9 to 5 job salary or you can show your other income sources.

2. Good Credit History as well as Score:

We all know that the credit score influences the loan approval process but when it comes to Wells Fargo, you also have to have a good credit history. They need to ensure that you are reliable and, make your payments in terms of bills, credit cards and previous loans (if any) on time. If you do not have a good credit score or good credit history or both, they will eventually decline your loan application.

3. Assets and Ready Money:

Suppose you have been jobless for past few years and, get a job for a year or more. You are now earning money from reliable source, and you also have good credit score and history. However, you do not have money available for the down payment. What will happen? The bank will turn down your application. You usually need 20 percent of the total amount you owe- when you apply for loan. It will help your application process flow smoothly.

Q. What should be your minimum credit score be if you want to apply?

Ans. Usually the minimum credit score that most of lenders ask for is 680. However, it varies from lender to lender and bank to bank. According to an article related to the credit score interpretation on the official website of Wells Fargo “One lender may offer lower interest rates to people with scores above, say, 680; another lender may use 720, and so on. Talk to your Wells Fargo loan officer for guidance.” If your score is 680 or above you are in a good position to get a mortgage loan approval.

Q. What is the minimum and maximum amount that you can get as mortgage?

1. Wells Fargo Home Equity Account (Home Equity Line of Credit):

If you will be choose this option, the range you can get for your home loan is between $20,000 – $500,000. This can be either a fixed rate loan or adjustable rate loan.

2. Home Equity Loan:

Choosing this option, the maximum and minimum amount of money that you can borrow will change. You can get a mortgage loan as low as $10,000 and as high as $3 million. However, you can only get this loan through a fixed interest rate loan.

Q. Is Wells Fargo Home Mortgage Better Business Bureau (BBB) Accredited?

Ans. Talking about Wells Fargo in general, it meets BBB accreditation standards and it has B+ ranking on a scale of A to F. However when it comes to home mortgage of Wells Fargo, it is not accredited with BBB. However, as a company that is not based completely online, it does not need to have BBB accreditation to be reliable.

Q. What are your available mortgage loan options with Wells Fargo?

Ans. Wells Fargo provides you the following options for home mortgage loans.

1. Fixed Rate Mortgage:

With this option, you can get make predictable monthly payments as the mortgage rate will be fixed and, your monthly payment will not rise with market fluctuations.

2. Adjustable Rate Mortgage:

By choosing this option, you may get lower monthly payments but, with market fluctuations your interest rate may change.

3. FHA/VA Loan:

You can calculate your monthly payments in the early years of the loan. Also, you can get refinance option if you have limited equity in your home.

Q. When does Wells Fargo report a mortgage to Bureaus?

Ans. It depends on the situation and varies from person to person. Usually, it has been seen that Wells Fargo takes 3.5 months to report mortgage issues to Bureaus. For instance, if you closed your loan on March 30th, you will most probably see the acknowledgment of your loan from bureaus on your credit report in mid or end of July which is about 3.5 to 4 months.

Q. Difference between Wells Fargo and other companies?

Ans. Take for instance a small comparison of Wells Fargo with Bank of America (BOA) to know the factors which makes it the leading company.

1. Number Of Branches:

Wells Fargo has six thousand six hundred and one branches whereas; the BOA has five thousand and six hundred branches only.

2. Available Accounts:

If you go to Wells Fargo, you will find almost every type of account available including a Gift Cards account.

3. States Served:

Wells Fargo serves every state of America except the following six.

1. Vermont 2. Rhode Island 3. Maine 4. Oklahoma 5. Missouri 6. Massachusetts

Bank of America does not have branches in eleven states of America:

1. Wyoming 2. Virgin Islands 3. South Dakota 4. Ohio 5. North Dakota 6. Nebraska 7. Montana
8. Mississippi 9. Guam 10. Alabama 11. Alaska

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