Financial Worksheet Question - Wells Fargo

[rickray76]

Hello Everyone!

I received my paperwork from Wells Fargo and I had some questions about my finances that I am hoping someone can answer. I filled it out and showed how much my wife and I brought home from our jobs. Then it asked how much my current mortgage was which is 1532. I then listed most of all of our bills like utilities, car payment, car insurance, gas, groceries, and 2 of the credit cards I am paying. If i take how much we bring home minus the 1532 for mortgage, utilities, etc. I show a positive balance of 600.00 after paying everything except credit cards I am not paying on and my student loans.

My questions are:

1. Should I put on there the credit cards that I should be paying because a) I owe them and b) it would show that I need this modification?

2. I have been putting off paying my student loans because my mortgage is so high. Should I put the student loans on there since I need to pay them or the government can garnish my wages and I would have to do this all again? This also would lower my cash flow.

3. In order for this modification to work, what kind of outcome do I want on this financial worksheet? Do I want to show I have little or nothing if I pay the current mortgage or do I want to show I have enough for what I am paying but wouldn't be able to pay other bills.

Any help would be greatly appreciated.

Thanks!

[heidi79]

So you are showing a $600 per month surplus on net income - all expenses including mortgage? Seems like too much surplus.

Include the minimum payments on the cards monthly, even if you're not paying them, it's still debt and they will pull a credit report.

Also include the monthly minimum payments for the student loans.

The truth about the "outcome" that you need on your financials is really that there is no magic number to dti%, every case is different. The only thing that I can say about this is that you can't be in any type of extremes with either negative or positive net at the end of the month, try to keep between $300 positive and no more than $300 negative. With Wells Fargo it would probably be better to be negative.

[heidi79]

If you are applying for the HAMP modification, then that is going to be less important, did you do your 31% from gross calculation?

[rickray76]

They took my figures on the phone of gross, bills, etc and told me that I was elgibile for the HAMP but If I take 31% of our gross it calculates to more than what I pay now. What should I do then?

My Gross Income 3544.00
Wife's Gross Income 1760.00
-----------------------------
Total Gross 5304.00
* 31%
-----------------------------
1591.20

* My net isn't as good because I have medical, dental, and 401K loan payments that come out of my check.

Also, when you say 300 +/- do you mean not including mortgage or should i have that +/- after paying my current mortgage?


Thanks


Thanks

[illinimike]

* My net isn't as good because I have medical, dental, and 401K loan payments that come out of my check.

I don't have answers, but maybe someone else can comment on my thoughts.

On the phone, they tell me to use gross, but on the Wells Fargo Financial Worksheet, it asks for your net salary. So I would assume you would take out health insurance and 401k loan payments. After this, your DTI is probably higher than the 31%.

My Gross Income 3544.00
Wife's Gross Income 1760.00
-----------------------------
Total Gross 5304.00
* 31%
-----------------------------
1591.20

You said that your mortgage was 1532 / gross of 5304 = 29%, so that seems too low to qualify based on gross.