Be very careful when you complete the official Wells Fargo loan modification financial worksheet-this application form is tricky. Keep in mind that the information you provide to the bank on this form will be used to decide if you will be approved or turned down. While it may look simple, the fact is that the #1 reason for denial is homeowners not preparing their budget information correctly.
Why will Wells Fargo turn you down for a loan mod? There are many reasons, but the main issues to be aware of are:
- Monthly Income is Too High or Too Low: Your household gross monthly income is an important part of the overall approval criteria. The bank uses this figure to determine your debt ratio, your new target payment and whether you pass the Waterfall Method of Modification. How do you know exactly how much income you need to report? You can verify the requirements by using the Loan Mod Calculator, as system designed specifically to help homeowners apply.
- Monthly Expenses not acceptable: You will need to itemize your household expenses on the financial worksheet, this gives Wells Fargo a snap shot of how much goes out each month, and if your current mortgage is truly a hardship. Not only must your expenses be acceptable, but your net cash flow must pass as well. Use
the Loan Mod Calculator to help you figure this part out-you may need to adjust your expenses up or down to get a PASS.
- Assets: Liquid assets-checking, savings, CD’s, etc (not retirement accounts) will be used in a formula called Asset Ratio-find out if you pass this critical guideline with the Loan Mod Calculator. If you report the wrong amount, you could be turned down.
- Rental Income: if you have other properties, be sure your report the rental income correctly. The guidelines will only allow for a percentage of the income to be counted-use the Worksheet and Calculator to help you figure out this part.
Once you know why the bank will turn you down, it will be easier to make the necessary adjustments to your financial worksheet so that your Wells Fargo loan modification has the best chance of being approved. Remember, the financial information you provide will determine if you pass or not-make sure you prepare it right before you send in your application.Learn how to complete your financial worksheet-use the #1 selling resource for homeowners-The Complete Loan Modification Guide kit and Loan Mod Calculator. This proven system was designed specifically for homeowners, and automatically computes and displays
your own specific income, expenses, assets, debt ratio, cash flow and more. Use this information to fine tune your budget figures so that you PASS every guideline. Get started right away-visit MyLoanModificationCenter.com today.