Already Under Contract Before Qualification

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  • #64461

    I know I have seen information from people who went through the program and were under contract prior to Qualification, but now I can’t seem to find those posts. Could anyone point me toward them, or summarize? I know others have switched to NACA from other lenders mid-process (as we ended up doing) but I’m wondering what special things we might need to do. Since it’s new construction, we have plenty of time before closing – about 100 days.

    Obviously we can’t upload our contract within 3 days of signing since that has past (and we tried) so does that mean we need to do it immediately? Or since we have 100 days until closing, is it still that urgent? I know we’ll have to go back to the office (an hour’s drive) to wet sign things and it’s impossible for me to do that in the next two weeks.

    I also saw that a wet signature is required on the P&S, but our builder doesn’t do that – they only do electronic. I know this can all be worked through – we were entirely up front with our MC and UW at ATD, and our MC who got us to qualification, BUT I just found out he was actually a trainee, and with the confusing info I got at our Purchase Workshop last night, I definitely want to call on the Knowledge Base here so that I’m properly prepared to advocate for myself.

    And to be super specific, which day exactly does the interest rate lock? The .25% fluctuation makes a difference of about $10,000 for us on what we need to put down, so it’s definitely nothing to scoff at.

    #64463
    Nelsont
    Member

    I can’t answer the first part.

    Go ahead and docusign your contract. At credit access your MC will print out the entire contract and have you initial next to everyone of your digital signatures.

    Your interest rate locks when you go to credit access.

    Maybe check your math? A quarter percent difference being 10k is like a million dollar house. Naca will not allow the purchase price to be more than roughly 500k in most areas. I know dc is high income but the limit isn’t 7 digits.

    #64466

    Thanks, @nelsont . According to the NACA Calculator, we’d need to put $80,000 toward principal reduction at a 1.625% rate and $70,000 at a 1.5% rate in order to make our monthly payment target. If it were money going toward the buydown, you’d be absolutely right, but we’re already maxing out available buydown (as I understand it as of this moment.)

    #64467
    Nelsont
    Member

    Oh ok. Right now the rate for a 30 year is 3.375 which means the lowest possible rate you can get is 2.125 on a 30 year unless you are considered low income you can get down to 1.625. To get below that you would need to get a 15 year loan or wait to see if the rate drops which I don’t recommend.

    #64468

    Right. We are below the 80% threshold, so I’m counting in the 0.5% rate reduction as well on the 30 year product. I don’t expect the rate to drop – though remain hopeful the grant funding we started this process with returns, even if that’s in vain.

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