Trouble With FHA Approval

[Defender81]

Hello, MyFICO members. I love this forum, and have been reading/ learning for a couple of years. This is my first post, and it's regarding my first real problem since my BK7 DC on 5/2020. I haven't had any trouble attaining or handling credit until this March. I have applied for mortgages with four companies. Three of them tell me that my BK7 either isn't reporting correctly or that it is still open. The fourth (One Trust) insists they have approved me, however, they will only issue me a 'Pre Qualified' cert, not a 'Pre Approved' cert. My BK attourney verified that it is in fact recorded correctly on Pacer. I checked my CRs & TU reports the filed and paid dates correctly, but EQ & EX only report the filed date. I guess I have three Qs. 1) Why has it been so easy to get auto loans, CCs, SL refi, etc w/o question 2) Why wont mort lenders accept my court docs supporting my BK7 discharge 3) How should I go about fixing this problem w/o filing a dispute causing a 'poke the bear' scenario w/ CRAs? Any insight is greatly accepted and appreciated, thank-you.

DPs:

BK7 filed 2/2020 DC 5/2020

Income 124k

D:I 7%

Revolving credit 139k 8% UR

Car loan Seattle CU 18k 376/ mo 4.99%

SL 23k on Biden defer

Fico mort 699 689 684 / Fico 8 684 680 673

[rosco75]

Very odd. My lender asked me for my discharge papers and that was that. They just wanted to verify my discharge date was 2+ years ago. 

Truist gives you a pre qual, and then once you get the ball rolling they send to underwriting and you get a pre approval. I did not use them, but it was very simular for me. I got a pre qual, and then a pre approval like a week or so later. 

[Defender81]

Thank-you for replying. The agent I am using says that a 'pre-qual' letter is a bit weak in the present Seattle-area market. Houses go pending in a few days and sellers tend to balk at weak offers. I'm concerned that if an offer were accepted, One Trust would back-out. Otherwise, it seems they would simply extend a 'pre approval' letter. NFCU, Watermark, & Framework all said my BK7 wasn't reporting correctly & ignored my discharge PDFs.

[VAMortgageGuy]

That's really odd. The only thing I can think of is the other 3 lenders could not get an AUS approval (automated underwriting system) and they won't do a manual underwrite.

Even if the credit bureaus don't show the bk as discharged, we can use your actual discharge paperwork to satisfy underwriting.

As far as pre-approval VS pre-qualified. The distinction between the 2 depends on the lender. As a mortgage banker, I cannot issue a pre-approval letter unless the file has been through underwriting and the bank is ready to extend credit. My "pre-approval" is actually called a pre-qualification even though I review credit, income and assets and run AUS.

As long as the lender did the same, you should be fine.

[Defender81]

Thank-you for the information, it is appreciated. The LO at One Trust told me the pre qual was UW when I asked for a pre approval letter.  He has called a couple of times to see how the 'shopping' is going. I applied to another mort co a few days ago, they too have all of my financial info. I hope to hear from them soon.