prayingforahouse

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  • in reply to: Realtor #9090
    prayingforahouse
    Participant

    In my state, my realtor had it written in to the contract that she got 1% commission and the other 2% commission was to be applied to buyer closing costs. The commissions are paid by the seller so they have to agree to it but since it isn’t affecting their bottom line it should not be a problem with them. As long as it stays within the 6% allowable from the seller then it should be OK.

    What you cannot do is have the realtor collect all the commission and pay you under the table. That is not allowable. We had a housing shortage in my area and looked for months and months for a house. We lost out in many bidding wars so my realtor offered 2% of her commission to buy down our rate so that we could have more selection of houses to choose from and stay with the payment we needed.

    It just all has to be written in to the offer/contact so that is it on the up and up and the title company knows how to apply all funds.

    prayingforahouse
    Participant

    I just wanted to update and let everyone know that we got our clear to close!!! We are set to close on Wednesday and I pray that nothing stands in the way! We are sooooo excited!!!!

    prayingforahouse
    Participant

    Hi Tim,
    Thank you for responding. Yes, I did go into detail regarding the payroll situation in our LOE (except maybe the part about hubby’s boss being insulted etc… I’m not sure I should put that in writing in case his boss ever hears about it and he gets fired for it, too risky).

    The NACA underwriter was satisfied with our LOE and that it met underwriting guidelines because they approved us for bank app after that.

    It is BofA that apparently doesn’t agree with the NACA underwriter. So, we went a step further than our LOE and got the letter from his boss.

    The letter from his boss verified where the deposits came from and he touch on payroll changes. He would not discuss the passing of an employee’s child in the letter as he felt that was private business and not his place to disclose to a third party. I understand this. His letter did verify the deposits and that is what it needed to do, so we were thankful. Apparently, BofA is still not satisfied.

    So currently our MC is trying to get our app approved without the two deposits. I have had extensive conversations with a friend who is a traditional mortgage broker on what underwriting guidelines are with FHA and Fannie/Freddie conventional loans and she says this should not be a problem since we don’t need the money to qualify and close. If it is possible thru a standard broker, why would that not be possible thru NACA or is this underwriter for BofA just being overly picky? Maybe we need to go above this underwriter? That was the suggestion of our broker friend. She said we would qualify for an FHA loan but I don’t want an FHA loan. PMI cuts our buying power down to where we can’t afford anything in our area. We have worked so hard with NACA to get approved with this program.

    I will assume that if I need to write a new LOE our MC will let us know. She knows all the details and she says they are working on it. I just worry because our realtor sold us as “pre-approved, fully underwritten” to the sellers. If this doesn’t go thru, what is the point of all that NACA underwriting? We had a hard time getting people in our area to accept a NACA offer, this won’t help that situation.

    I am still crossing fingers and toes that BofA will allow us to be approved without those deposits. I am choosing to have faith in this program and that we will successfully close on time thru NACA. Thanks for taking the time to respond to my concerns.

    in reply to: membership and volunteering before 1st appt #8366
    prayingforahouse
    Participant

    Hmmmmm, I’m not sure. You can volunteer on the weekend by helping at a workshop. Do they have any of those close to you? I also think you can write letters so maybe that is a good option since that can be done from home. I would ask your MC or try the live chat on the NACA site to see what opportunities are available with your situation.

    I happen to like in office volunteering because it helps my MC out and allows me to build a relationship with the people in the office.

    in reply to: What got in your way of closing #8359
    prayingforahouse
    Participant

    I should say the first deposit is seasoned 44 days this Sunday (tomorrow) which is far longer than Fannie/Freddie require. They require 31 days. Our second deposit will be seasoned 31 days next week.

    However, I am still baffled as to why the NACA underwriter who questioned the same deposits and requested an LOE for them was then satisfied with our LOE and gave us the green light approval for credit access and bank app. They approved us knowing this information and gave us no indication that BofA would then take issue with them. Once we got NACA’s approva on the issuel, we assumed we were fine. I don’t understand the concept of being NACA approved and yet not being approved. There is nothing in our file that is a surprise.

    in reply to: What got in your way of closing #8357
    prayingforahouse
    Participant

    We are just waiting on the appraisal and underwriting approval. The bank app, insurance, ILC and appraisal have been done and no one expects any issues with the appraisal which we should get back on Monday but underwriting has now requested some additional info on two deposits.

    Hubby’s company is small and they have had some payroll challenges so they started cutting live checks for supplemental payments like commissions, bonuses and travel/reimbursement expenses. Salary is pre-programmed in and direct deposited and so far we haven’t had any issues with that but the other things were hand processed with live checks cut and either mailed or handed out directly. They have no stub and we forgot to make copies of the live checks but they are consistent in timing and amounts with past deposits and we wrote LOE’s each month with our bank statements when we turned those in. Bank of America seems to be questioning only two of the deposits now after NACA cleared them and approved them. NACA made us write an additional LOE for them and they seemed satisfied and gave us the green light for the bank app along with our re-qualification but BofA seems to want more.

    So we got a letter from hubby’s boss verifying the deposits came from his company (thankfully he agreed to write the letter because he is one scary dude, lol!) and we submitted the letter to the underwriter but we don’t have any other documentation besides our bank statements. Our personal bank has told us no on three occasions that they do not keep copies of deposited checks (we have a free account and they seem to only offer that service to their commercial business accounts). I am hoping the letter from his boss is sufficient (It wasn’t an easy request as his boss is an ex-marine not an extrovert at all). It does provide sourcing for the deposits though so if that is what they need then the letter provides it.

    We are so stressed at this point. Hubby doesn’t understand why we were told and our realtor sold us to the sellers as not just pre-qualified but fully underwritten and approved if that isn’t really so and he doesn’t understand why NACA underwriters would OK these deposits and info provided for them if BofA would not. We always understood NACA to be more stringent in their underwriting (which is good since that should mean that BofA will approve us too) so I am hoping that I am worrying for nothing.

    I will have to see on Monday what our MC says. So far she has told us not to worry and that this won’t interfere with our closing but I’m still on edge. It has been a long process for us and we just so ready to close. We are willing to sign an affidavit stating we have not opened any new credit/debt to reassure them but they should be able to see that on our credit reports that BofA just pulled. We also have more than enough in savings to cover everything to close without those deposits and one of the deposits has been seasoned for 60 days this Sunday anyway so I’m hoping it will no longer be a concern. Plus, they are not using commissions/bonuses or travel/reimbursement checks (obviously) for our qualification income either.

    I’ve also instructed hubby to never deposit reimbursement or travel checks without making copies first but there is nothing we can do to fix the payroll issue with his company. They are sorting it out (long story but one lady’s son passed and she is out on leave, company has no formal HR department and has now decided to contract with a payroll company/change the payroll process to compensate for this lady who doesn’t appear to be returning to work after her loss). I’m glad they will have an official payroll company instead of relying on an internal person. Apparently we may get two W2s at the end of the year, one from internal payroll and one from the new payroll company, but that’s not a big deal. It will all get sorted out in time but not likely before our closing. However, NACA has 12 months of our financial history, 3 past years tax returns, loads of other information and watched our credit for almost a year so hopefully BofA can see all of that will find hubby’s boss’ letter sufficient.

    We should know on Monday or Tuesday. I am deeply appreciating NACA’s thoroughness now as I hope it helps us get our official approval and we can move to close. While it is a long and sometimes frustrating process, I still believe that NACA is the best product out there and I hope we are stressed for no reason. We should know soon enough and hopefully be closing soon too!

    I

    in reply to: Rates? – Help Tim? #8356
    prayingforahouse
    Participant

    Texas Tea, the most reliable way is to ask your MC. I’ve never been able to get the online calculator to be exactly the same as what my MC gets but I can get it close and I have better luck if I use the total purchase price option instead of the monthly payment option. If you can input the HOA fees, property taxes and insurance and then the current rate (or buydown rate) then you can get your payment by playing with the price of the home until you get the payment you need. I find that method to be more accurate than when I put a payment in but that is just me. Some may have better luck the other way. I have a MAC and don’t use Explorer so that may make a difference.

    in reply to: membership and volunteering before 1st appt #8353
    prayingforahouse
    Participant

    Hi Rides with Christ,

    I agree that volunteering won’t move the actual process along any faster but I am also one of the members that indicated that by volunteering you are able to keep an open line of communication with your mortgage counselor since you will see them when you volunteer. The MC’s also appreciate any volunteer work that you can offer. It is amazing how swamped they are.

    in reply to: NACA GFE #8352
    prayingforahouse
    Participant

    Your mortgage counselor should be able to give you a ball park estimate at the time of bank app and then the title company should give you the exact amount before closing that you will need to bring.

    You should not have to pay any closing costs with a NACA loan. Our loan app docs did list the closing costs but we were told that we only have to bring our rate buydown amount and prepaids (insurance/Prop tax) to closing. We haven’t been given the clear to close yet but I was told when we do the title company or our mortgage counselor will give us the exact amount.

    in reply to: Rates? – Help Tim? #8290
    prayingforahouse
    Participant

    One financial article I read stated “It was the worst one-week performance for mortgage-backed bonds in maybe 50 years. Mortgage rates of all types rose. It was a bad week to shop for mortgage rates, for sure.”

    I think some rise in rates is good to help stabilize pricing but I still hold to the concept that NACA should be able to offer a member the rate it was on the day they signed their offer (maybe with a 10 day cap). Other mortgage companies provide that lock assurance so that people can plan better financially. I don’t understand why NACA can’t work something out like that with their lending partners.

    I’m still praying the financial news of the week drops rates back into the 3’s by the time I get to lock in or that Bank of America simply offers us a lower rate when they approve our bank app.

    in reply to: Rates? – Help Tim? #8280
    prayingforahouse
    Participant

    Hi Tim – for me it isn’t that rates have risen as a whole, it is the time it takes to lock in the rate and how fast rates rose in that time. It has killed our deal. I understand people adjusting the amount of house to buy in accordance to rates BUT that should never hold true for people already under contract. That is insane that we have to back out after we have paid inspection and done all the things our contract has said so far. The process needs to be improved.

    We have been looking for 8 months now in approved status and have made 11 offers. We finally get someone to say yes and we do our due diligence by checking with our MC to run the numbers which at that time were 3.625. We did give ourselves a bumper of 1/4 of a percent. Now a solid week later, we still aren’t locked in and rates are up to 4.375 but the underwriter wants our middle initials on the contract so we still can’t lock in. We now have to get an amend/extend. Frankly, it is stupid. Our middle initials are not on our NACA approval or any other NACA document so to delay a lock in for that reason is ridiculous.

    I understand that NACA can’t control the rates and I’m mature enough to know that they fluctuate but the PROCESS itself is putting deals in jeopardy. It just takes too long to lock in after someone makes an offer. That part of the process needs to be re-vamped.

    Our deal is now for all purposes dead and we have to start looking again because our only options are to get NACA to either approve a higher payment (that we don’t want) or we have to literally drain all of our savings (which is financially stupid as it leaves nothing for emergencies) to buy the rate back down to what it was just 7 days ago. Neither of those options are financially smart for us and it is all because of this stupid wait period between offer time and lock in time. Other mortgages don’t have that and they don’t care about buyer’s financial health. NACA is supposed to care. It will be heart-breaking to tell our kids we aren’t getting the house we have fallen in love with, prayed for and they thought was going to be theirs. I’m dreading telling them that news.

    I’m not happy right now and feel a bit lied to at the moment.

    in reply to: Rates? – Help Tim? #8255
    prayingforahouse
    Participant

    Codya – With the exception of two times, I always volunteer on Fridays because that is the day I have available. I typically do 4 hours at a time and I started last fall. I also agree that Saturday workshops are a great way to volunteer too.

    As for it not moving your file any faster, it does help when the people in the office know who you are only because they can communicate easier with you in what you need to get to them and you can take it with you when you volunteer so they scan it in directly. Also, if you are volunteering and someone does not show up for their appointment while you are volunteering, you are readily available with your info to have an appointment to fill that no show spot.

    in reply to: The NACA Forum is Back! #8252
    prayingforahouse
    Participant

    Codya – With the exception of two times, I always volunteer on Fridays because that is the day I have available. I typically do 4 hours at a time and I started last fall.  I do agree that Saturday workshops are a great way to get in hours as well.

    As for it not moving your file any faster, it does help when the people in the office know who you are only because they can communicate easier with you in what you need to get to them and you can take it with you when you volunteer so they scan it in directly. Also, if you are volunteering and someone does not show up for their appointment while you are volunteering, you are readily available with your info to have an appointment to fill that no show spot.

    in reply to: Rates? – Help Tim? #8243
    prayingforahouse
    Participant

    I will say that part of the reason it takes a while to get approval is that the mortgage counselors are just swamped. If I were you, I would offer to volunteer in the office. They appreciate it so much. I’ve actually put almost 40 hours in simply because I like my mortgage counselor so much and know she is really busy. NACA is a good program but it is also in demand. Try volunteering and it will likely speed things up for you. It won’t, however, keep the rates in check.

    in reply to: Rates? – Help Tim? #8239
    prayingforahouse
    Participant

    Yes, Codya it does take too long to lock in. I understand the whole process taking time especially since we have been thru it but something does need to change regarding the time between when a buyer makes their offer and when they can lock in. It is just too long. When we made our offer our mortgage counselor plugged in the numbers and the rate was 3.625%. We were comfortable with our offer and thought perhaps rates might go up to 3.75 but no higher. Unfortunately, we have had to wait for our inspection, wait for the HAND department to give clearance, wait for a multiple offer letter from the listing agent and so on and so on. Just in that 5 day period of time rates have sky rocketed putting our deal at risk. Rates now sit at 4.125% and we may have to back out of our purchase. I can’t imagine how much time it would take if the HAND department had found issues or if the inspector was simply booked up. I do think NACA needs to somehow find a way to shorten that process. I doubt it has been much of an issue in the past as rates were low and movement was small but now with rates being so volatile I think it is something they need to consider for the financial health of their members.

    Sadly too, NACA’s rate isn’t below market rates right now. I’ve been tracking the rates for the past 6 months and typically NACA is below a conventional 30 year rate. Usually, NACA is the same or very close to the 15 year rate and almost exactly the same as the FHA rate but currently NACA much higher.

    As I type, Bankrate.com has the average conventional rate at 3.625, the FHA rate at 3.250 and Fannie/Freddie offers 3.93% while NACA just adjusted their rate online to 4.125%. This adjustment is likely to kill our deal on our house even though everything else is good and we love the house we found. We have a shortage of homes in our area and lots of bidding wars so we were very happy when our offer was accepted.

    I don’t blame NACA as they are at the mercy of the lenders they partner with but I hope they can work something out very quickly with those lenders to remedy this situation. Sadly, I’m not sure it will be quick enough for us 🙁

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