Sorry for the delay on the update.
We received a call from NFCU loan originator saying that due to our BK, they would not approve our loan.
Further, she indicated even with a combined MMS of 697, that wasn't "A credit" that was B.
She further quoted an current interest rate that day for a conventional at 4%! YIKES
I asked about their Buyer's Choice loan as well. She indicated that was an even higher interest rate at 4.5% & at our MMS would require 15% down. Except for the BK of course. Asked if needed an LOE for the BK, she said no that was not needed.
It appears NFCU threshold for approval is quite high & having a BK on your CR is loan they are not willing to approve (ours was 2 months from the 3 year mark).
She said I will send your application to the underwriter & they send you a letter of "adverse action".
I'm thinking, wow, the underwriter automatically denies the loan based on your recommendation alone w/o an independent review of the application submitted?
So there's no discernible difference between a loan originator & an underwriter?
I'm rather glad they didn't approve the loan. We would have NEVER agreed to such an interest rate in this market, even with the 10-15% readily available to put down.
We decided to wait until our BK ages the full 3 years + 1 month (July 8th) & apply elsewhere.
Yes, I called them a few days ago and even the lowest rate was still over 4%. Rates are going up for sure. However, NFCU does rate match so I'm still considering them for my app in two months.