Context is VERY important. That statement was made over 1000 years after both of them died. It was referring to who God would use and whom He chose to be in the line of Christ - it had nothing to do with their salvation or lack of it. It doesn't anywhere indicate He chose them to be saved or lost. God chose to put His blessings on Jacob and his line before Jacob was born.

God chose those in Christ before the foundation of the world. Other passages indicate He chose them based on His foreknowledge - of what? Of what they would do with Jesus/the Gospel. Those in Christ - those who would respond - had their names written in the Lamb's Book of Life, and were chosen by God - then He predestined them to an inheritance, to be conformed to the image of Christ, to be glorified, etc.

? None of us are saved by our own righteousness - so I am unsure what you are stating here. Grace is God's unmerited favour - none of us are good enough to be saved, to earn it or merit it - so we need God's grace to save us. The medium of our salvation is our faith in the Lord Jesus Christ. When we place our faith in Him alone, He saves us, makes us new creatures, adopts us as His children, etc.