Wells Fargo Identifies Loudoun County As An “At Risk Market”

Wells Fargo just named most of Northern Virginia including Loudoun County as an "At Risk Market". In doing so, they will be limiting the number and types of loan products available and increasing the credit guidelines for borrowers in this area.

This will affect buyers/borrowers by making it harder to obtain a loan. It may also affect current borrowers who have already been approved by Wells Fargo much in the same way Fannie Mae revaluated or even revoked already-approved loans waiting to close.

With credit guidelines and interest rates increasing daily and loan products diminishing, it’s getting harder and more expensive to buy a home by the day. If you’re a buyer on the fence, you may want to think about getting down. If you’re a seller with your home on the market or if you’re on the fence on whether to sell now or wait, you may want to get extra aggressive with your marketing and price or put your home on the market now before it gets even harder for buyers to buy.

Related Articles/Source:

"Wells Fargo: New Tighter Mortgage Guidelines" – Calculated Risk

Buyers – Using A Mortgage Broker May Leave You Dead In The Water

If you are thinking about using a mortgage broker for financing or have already been approved through a mortgage broker, you may dead in the water and without a new home come settlement day. And to add insult to injury, you will most likely be in default and may lose your earnest money deposit.

First of all…what is a mortgage broker? A mortgage broker is a company that does not lend their own money. Instead, they outsource the loan to direct lenders who actually have the money and fund the loan. Examples of direct lenders are Wells Fargo, First Horizon, National City, SunTrust and CitiMortgage.

The part of the direct lender that deals with mortgage brokers, gives final loan approval and funds the loan is called the wholesale division.

So why may using a mortgage broker leave you dead in the water come settlement day? Because more and more direct lenders are closing their wholesale divisions and not going through with funding broker's loans even if the loans have already been approved and are supposed to close in the near future.

Read more