My husband and I were looking to purchase a home at the very beginning of May. We had some issues with our credit and happened to see an add in one of the Real Estate Source booklets for this particular credit union. They dealt with individuals who had credit issues so we felt that we should check into it. We filled out a pre-approval application and were contacted by the credit union for further information. We got the ok and were told that we had been approved. We were told to locate a home. And we did locate one. After several emails and phone calls to the credit union we were finally able to sit down and talk numbers with them at the beginning of June. For one month we asked questions regarding payments and could never get a straight answer. So on June 5, we got the estimated payment including taxes and insurance. The payment was around $777.00.
We were then advised to sign a contract with the owner of the home. We met with the owners, signed a contract and returned it to the credit union and title company. We were to close on the home on June 24. On June 21, the credit union contacted me and said that the lender had ran me and my husbands credit report again and his scores had fallen below where they needed to be so the deal had to be repackaged. They went off stated income and I had to forward several documents to them. My payment went from $777 to $861. Tough but doable. They let us know that since the loan had to be redone that my interest rate went up and they were doing the loan as 85/10/5. The lender would lend 85%, the credit union would loan 10% and the other 5% would come from us. We did not have that kind of money to work with. So the President/CEO would float the other 5%. They asked us to come in and open a savings account so that the 5% could be deposited into the account. We did so. Then we were asked how soon we wanted to payoff the 5% loan.
They would only go 36 months. So now my house payment jumped to $1039 a month (which I could most certainly not afford.) They advised my husband and I to back out of the deal. We even had our home owners insurance policy set up and we now had to contact the owner after their patience and let them know we could not purchase the home. After investigating into this further, I found out that my husbands credit score was below where it needed to be for us to qualify on May 6 when our credit reports were ran for pre-approval. We weren't qualified to begin with. We were dragged for 2 months and no one was competent or gutsy enough to tell us the truth. They put me and my husband through a rough time and we will never do business with them or advise anyone to do business with them again. I withdrew the money I deposited into the savings account. However, they charged me a $10.00 for a set-up fee and were supposed to refund me that money and I have yet to receive it and probably never will.
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