I went through a bankruptcy several years ago, and have been working on Fannie May and Freddie Mack time guidelines, and getting my credit score up in order to buy a home. I had been told by Wells Fargo what criteria I had to meet.
After I had satisfied their expectations, I was approved for a home loan. I spent 2 and 1/2 weeks with a real estate agent, and found a nice home for much less than I was approved for. The home needed a few repairs so I contacted another bank about a home improvement loan. When she learned of my situation, she was surprised that Wells Fargo had pre-approved me because the I had not met the guidelines as she understood them, and she told me why.
I called Wells Fargo and after a 2nd look at my application, they said I was not pre-approved after all and had to wait another year. I asked what would have happened if I had put in an offer, paid for inspections, appraisals, etc., and then found out I was not approved at all. They said they looked at the paperwork incorrectly.
I understand the guidelines, but it is so wrong to come back from a financial ruin situation to be given false hope that you can finally start over. I was pretty bummed out that I was mislead, found a home, and watched it fall apart before my eyes.
Product or Service Mentioned: Wells Fargo Loan.