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Mortgage fresh out of Chapter 13


Mortgage fresh out of Chapter 13


I am a few days discharged and have decided to apply for a VA loan. I applied with Wells Fargo because mzware has seemed so far to have a good experience with their app.

My mid score is 642 LO said my file was a bit thin since I have only had secured credit card for 4 months.

LO says it was not an automatic pre approval and that she needs me to submit the following:

Below is a list of the items that I will need in order to get your file submitted for pre-approval.
A complete copy of your Bankruptcy paperwork.
12 months of rent verification.  If you rent from an individual, I would need copies of 12 months of cancelled checks.  If it is through a management company, I can do a verbal verification.  I would just need the phone number of the management company.
2 statements for things that you would pay on a monthly basis.  (cell phone, insurance, utility bills etc)
30 days of paystubs
W2 for the last two years.
2 months of bank statements
The attached documents need to be signed

Is this normal and are my chances of pre-approval ok?

I have 90k income only bills beside child support $912month is utilities, groceries, gas and insurance.

My current rent is 1100 $ month and I had no problem paying that even with the $700 month Chapter 13 payment coming out.

Thanks for looking sorry for the long post.
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Valued Contributor

Re: Mortgage fresh out of Chapter 13

That's pretty typical for a thin file. If you don't have 3-4 active/open trade lines in good standing for 12 months, they look at nontraditional lines of credit such as rent, utility bills etc. I also filed BK twice in 2003 and 2005...a 7 then a 13. I had to provide my Chap 13 filing papers plus the discharge letters for both BK's. The 13 fell off my reports Oct 2012 and the 7 will fall of Aug 2013.

So the paperwork requested is all pretty standard for preapproval. But in my case, I met my LO in the model home one Sat and I handed him all the docs he requested in advance and he entered it all in the computer and then asked for my permission to run my credit and then he told me I was preapproved. The salesman came back in and we walked to his office and sat down to draft up the Contract and sign it.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
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