I will be a first time buyer. I have an unimpressive credit report and have been working on improving my scores. I have already found the home I absolutely love and went into my credit union last week to find out if I qualified for a mortgage loan. The loan officer reviewed my check stub and my credit report. We went over the questionable aspects of my report. There is a Chapter 13 filing form 2003 that is still showing up on Equifax. It was dismissed and not discharged. It is due to be removed from my file 7/2013. My EQ score as a result of that (I’m assuming) is 563, my EX is 594, and my TU is 651. The loan officer said that according to the system that they use my score is a 601. After going over the report she tells me that I will need copies of my Chapter 13 case, a written statement by me stating why it was dismissed. She also wanted me to clear up about $1600 worth of collections. She asked if I had a down payment and I told her that I was being gifted the down payment. She stated don’t bother we can get you 100% financing with a 2 Year ARM with a 4.25 rate. She also went on to say that I would be approved for 120K and asked if having a monthly mortgage of $800 would be too much for me. It took me 4 days to obtain all the information she requested and to make the payments on the collection items as she recommended. I took her all of the documents today and got slapped in the face with something completely different. Today she tells me that since I have a Chapter 13 case (that’s 10 years old mind you) on my report that I will need a 10% down payment. She stated that she will forward my information on to her supervisor to review…was she blowing smoke up my butt during the original conversation? Should I just hang it up, continue to improve my score and just use the preferred lender when I reach the recommended 640? I really thought I would get the best deal/treatment with my credit union…
