Cash Out Refi with Wells Fargo

[Lecia Montague]

I am currently trying to do a cash out refi with Wells Fargo and it's been about a month and they still haven't approved the loan. They have all the information they need but stated that it's 'stuck' with a Fannie Mae reviewer because I currently have 5 mortgages. Does anybody know the Fannie Mae guidelines for an investor with 5 mortgages or more? Will I run into this with every big bank ? How are so many investors able to use the BRRRR strategy if this is the case ?

[Jaymie S.]

I don't know the specific guidelines for Fannie Mae. I can tell you that Wells Fargo is a joke in my opinion. I had been given a pre-approval letter after providing a verbal app with one of their loan originators. I then provided them with all documentation and verification for my financials. I obtained an acceptance of my offer on a rental property and WF ordered the appraisal ($600). The day before the scheduled closing (around 30 days later) I received a call from the originator telling me that she had resigned and that the loan was no longer approved. She later told me that she was leaving because she had so many extremely qualified buyers that were denied loans for no apparent reason. I was told that I had not given them all the required documents even though I had a letter from them stating that I had FINAL approval and all needed docs had been verified. I was referred to a local bank that managed to approve this deal and close only 2 weeks later. I have closed on 3 properties since then with this local bank with nothing more than a phone call for approval.