Nelsont

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  • in reply to: Finance Charge #65812
    Nelsont
    Member

    No on the contrary. If I’m not mistaken I believe @mariajohn11 is not referring to the mortgage.

    If you wanted to make double payments you will not pay off your mortgage in half the time due to interest accruing and being added each month. A 30 year mortgage paid 2x (or double payments) per month will take about 18 or 20 years to pay off. Making bi weekly payments (13 monthly payments per year) will take 23-25 years to pay off.

    If you wanted to get a pay off amount in lump sum the bank will have to do a calculation to figure out how to remove the interest. The interested is charged per day and added to the bill at the end of the month. You might have 3 months left on your car loan for instance so you will get charged 3 months interest if you pay it once per month. If you pay it all at once you will get charged only 1 month interest. In some cases you will not get charged this month’s interest because the month has not elapsed yet. In other cases you will. That’s all it means.

    *Side note: if you wanted to pay your mortgage off in half the time you would need to make triple payments. It sounds counter intuitive but it is due to the fact that every day you have the loan you owe the bank an extra daily fee.

    • This reply was modified 2 hours, 5 minutes ago by Nelsont.
    in reply to: Finance Charge #65810
    Nelsont
    Member

    You are charged a fee every month for the loan. This is how the bank makes makes money. Your statement means the bank is going to charge you the fee regardless. Sometimes they don’t. In this case they will.

    in reply to: ATD Rental and employment verification #65799
    Nelsont
    Member

    There are liberties that are taken and corners cut at the event to make sure you have the possibility of qualifying on the spot. Volunteering is a good example. You are required to volunteer before you can qualify. Depending on your situation your MC might allow you to qualify without volunteering as long as you have signed up to volunteer at the next opportunity. At the event you will have the opportunity to volunteer if you want but they can qualify you without it. The caveat is that now you need to volunteer twice before closing instead of once before qualification and once before closing.

    For employment and rental verification they will take as much documentation as you have. You will be assigned a local MC regardless so worst case scenario is you need to wait to get the forms filled out and you can qualify as soon as that happens.

    Your rental company will have a copy of the lease on file. It’s the law.

    in reply to: Closing – NACA 2+ hours away #65796
    Nelsont
    Member

    You should be able to contact the title company. If you know the name you can google their contact info. We got the business card in the purchase workshop so I don’t know why you wouldn’t be able to. In my case the title company was in contact with me throughout the whole process from offer to closing. I called them and emailed them and they called me and emailed me.

    As far as coordination goes you can certainly plan a tentative schedule. But the actual day and time cannot be finalized until the bank sends the paperwork over usually the day before or morning of.

    in reply to: Closing – NACA 2+ hours away #65793
    Nelsont
    Member

    2 hours is usually around the cutoff. Call your local office and see what they say. You might be able to close remote. In most cases there are at least 1 or 2 local offices in each MSA. In some cases there is 1 local office that covers multiple MSAs…Florida and Texas are examples. In those examples you can get exceptions granted. I’m sure there are others too.

    in reply to: Principal Reduction #65789
    Nelsont
    Member

    Principle reduction is a fairly simple concept and takes the place of the standard down payment. There should not be any restrictions other than you must elect principle reduction (because the default is rate reduction) and you must document that you can afford the principle reduction in addition to your MRF. Your seller is able to contribute as well.

    On to your scenario. The appraisal cannot be more than the sale price. Buying down principle does not reduce the sale price it just reduces the loan amount. If the appraisal comes in lower, since you offering above asking price, your only option would be have the seller lower their asking price (or in your case lower your offer). The other thing you can do is dispute the appraisal but with an above asking price offer that probably won’t do you any good unless the asking price was already very low.

    in reply to: BOA Home Grant Program #65787
    Nelsont
    Member

    Well. In 2019 BOA automatically gifted members under 80% a free 1% interest rate reduction. This would be shown on your final closing disclosure as rate reduction to answer your question. In 2018 though citi unexpectedly exited the mortgage lending industry dumping all of their naca clients onto BOA which caused BOA to run out of 2019 allocated naca funds by August. That is when they cancelled the lender match and rate reduction programs. Naca quickly stepped in and forced BOA to compromise on a 0.5% rate reduction for members under 80%.

    In 2020, there has been very little information and pretty much the only things we as forum members know are what people in random cities have mentioned. What I have gathered is the program only seems to be effective in large MSA’s with large populations of low income families. I believe neither of the Carolinas fit the bill and in Florida it would be (IF MY HUNCH IS CORRECT) only Miami.

    Some cities have the rate reduction. Some cities have a buy down cap. I do not know if there is a lender match any more. I wish I could be of more help.

    in reply to: BOA Home Grant Program #65781
    Nelsont
    Member

    If you are below 80% then boa automatically gifts you 0.5% rate reduction in some MSAs. Since January it’s only been a select few MSAs I believe. Pretty much only your MC and local office will know. If you are in one of these areas you I don’t think you can piggyback another boa grant. It’s either one or the other or you don’t have a choice you’re getting the rate reduction and that’s it. I don’t know which of the 2 scenarios applies though as I mentioned it seems to be on a per MSA basis defined by boa.

    If you were looking at grants to begin with and they are not tied directly to the naca program then they should have been applied for and taken into account during or prior to credit access. Once you get to the bank app stage boa underwrites and works the numbers as a final offer. In order to add any grants or additional funding that was not communicated to them at receipt of the bank app would require them to start the process over I believe.

    I don’t mean to sound like a negative Nancy but the full funding picture is really something that needs to be figured out or at least in the process when you make the offer.

    in reply to: Insight needed! #65779
    Nelsont
    Member

    Focus on paying down your debt. Even with your part time job you are still only adding a couple hundred to your max piti. If you live in an area where you can get a house for 6 or 700/month that’s awesome! Otherwise your debt should be your priority. Then saving. Good luck!

    in reply to: Insight needed! #65777
    Nelsont
    Member

    If you take your overtime and the 7k from your part time job and disqualify that you are probably looking at low 40s for your full time job right? That’s exactly how your MC calculated.

    1000/month = roughly 30% debt which is 20ish percentage points over the max. Which means your maximum piti is around 12 or 13% instead of 31.

    31% on your base pay for your full time job is around 1050 to 1100. In order to get that your total monthly debt payments combined can be no higher than 250-300.

    Remember overtime will not count if it’s not excessive like your on a 40 hour week 2080 hour year and you work a 50 to 60 hour week 2500 to 3000 hour year. Your part time job should count though.

    in reply to: Insight needed! #65774
    Nelsont
    Member

    For what it’s worth 9% of 55k is about $400. Your total monthly debt payments cannot be more than about $400 combined in order to get approved for the maximum at your current salary (this only includes credit card minimum payments and loans it does not include luxury items such as utilities cell phone bills etc. though those are considered to get the bigger picture especially if they are excessive).

    I also forgot to mention only your full time job counts and not your part time job unless you can prove 2 years of consistent employment and pay (not 10K one year and 3k the next). And overtime doesn’t count either, only your base pay, unless your employer can write a letter on company letterhead explaining your overtime is essentially mandatory and will be essentially permanent for the foreseeable future. If you fall into one of these categories that could also be where the 495 comes from.

    in reply to: Insight needed! #65771
    Nelsont
    Member

    The amount your MC tells is the amount you will be qualified for IF your MC does everything by the book.

    If you do not have everything you need at your intake your MC might do a rough estimate (i.e. take rounded numbers from the budget form) and update it exact numbers once you do have everything you need.

    The calculation is 40% max DTI with no more than 31% being your piti and no more than 9% being debt. For every % of debt above 9 your maximum piti decreases by an equal amount. So if your debt is 13% you cannot be approved for more than 27% unless or until you either increase your income or pay down your debt to the point where your monthly payments are less (paying 80% of your car loan for instance will still get you the same monthly payment you would need to pay your car loan off completely or refinance).

    IF you have 9% debt or less then 55k gross per year is about 4600/per month. 31% of that is about 1400. That would be your maximum piti if you paid your debt down and kept your current income.

    1000/month in debt is a little over 21% debt which means you are 12% over the max. This means your maximum piti will be decreased from 31% to 19% which is a maximum piti of 875.

    495 is about 11% gross income which probably means either your MC made a typo or there was miscommunication. Either way it is strongly recommended if at all possible to pay your debt off or way down prior to buying a house. To have more than double your maximum allowed debt in order to get your maximum approved payment is not exactly where they would like you to be.

    in reply to: Intake appointment #65769
    Nelsont
    Member

    Please see my response to other post. It may be a state law to have your boyfriend on the deed whether he is a borrower or not.

    Your new car should not cause issues. It’s additional new loans that do. As long as you are simply replacing one for another I wouldn’t worry.

    I would not wait until you think you are ready. The way the process works is that even if you are ready you will still have to start from square 1. So if you start now you get ahead of the game and when you are ready you can actually hit the ground running. Otherwise you will be ready and then have to wait 2 or 3 months for an intake appointment and then another month or 2 before you can qualify. Instead start your intake now and get qualified as soon as you are ready.

    in reply to: Rental Verification #65766
    Nelsont
    Member

    @Murry01 your boyfriend will not have to qualify with you. You are certainly allowed to be the only borrower. If he plans on living in the house with you he will have to show his finances. His debt will become yours but none of his income. The only way for his income to count is for him to apply with you and be a co-borrower. The only way for his debt to not count against you is if he has his own separate place of residence. If he is to live in the house with you he might also be required to be listed on the deed even if he is not on the loan. Certainly if you are married and certainly if you live in a community property state – that will override anything NACA says.

    • This reply was modified 1 day, 21 hours ago by Nelsont.
    • This reply was modified 1 day, 21 hours ago by Nelsont.
    in reply to: Rental Verification #65763
    Nelsont
    Member

    @cammiehome no worries! With all that I said I did forget to mention that rental and employment verification are 2 of the biggest causes for hold up for really no good reason. It comes down to the leasing office or the employer’s motivation to answer the phone/fill out the paperwork. If all your MC said is rental verification is pending then I would not be concerned just yet. These things quite often even when they are completely legit and straightforward sometimes just take a while so relax. You should be fine.

    @Murry01 Have your dad write a letter stating you are his child, you have been living at his house (provide address) from (provide exact move in date this will be crucial) to (today’s date – this is also crucial) and that you pay rent (in the amount of) on (the day of each month) and whether or not you contribute to any other household expenses. Then have your dad wet sign and date the letter. This letter will need to updated with a new wet signature new date and new dates of occupancy every time you meet with your counselor so it’s a good idea to have it saved as a form letter. It also makes no difference whether you contribute to household expenses they just want to make sure if you are not then your bank statements don’t show utility bills and if you are then where are those bills?

    • This reply was modified 1 day, 21 hours ago by Nelsont.
Viewing 15 posts - 1 through 15 (of 1,535 total)
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