Approval Amount Error

Home Forums Purchase Program Approval Amount Error

This topic contains 7 replies, has 4 voices, and was last updated by  southflorida 16 hours, 50 minutes ago.

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  • #47214

    Tiffany1513
    Member

    I was approved back in October. PITI $955. I found a home but I was about $30 over the qualified amount. I could not figure out the tax rate % on the NACA Calculator and my real estate agent could not figure it out either. It defaults to 12%. Can someone help me with this?

    My agent put in the request for the property specific letter. My MC comes back stating I am not approved for the home because my PITI is $827. I have asked her about this a few times and she would not answer the question. All of my paperwork states $955. I asked where is she coming up with $827?
    I then receive an email stating the system is defaulting to $955 and she will have to get back with me.
    How does this happen? This has been going on since October. I have been looking at homes all of this time and they are not in my price range.
    Is this normal?

    #47216

    TTrumble
    Member

    Hello Tiffany1513,

    Changing the tax rate oon the mortgage calculator is done by clicking on the downward pointing arrow at the right side of the box. That opens up a drop-down menu from which you choose the tax rate taht most closely matches that for your area. If for some reason you do not see the arrow, you may be using an incomepatible web browser. Internet Explorer is always the preferred browser (though I use it with Google Chrome all the time).

    Your questions reagrding the qualification amount will have to be taken up directly with your counselor. These are all questions for which you should be consulting directly with your counselor as she is the one who can tell you the reason for the discrepancy (“defaulting” to $955 jsut doesn’t sound right). It would also be in appropriate for me to get directly involved regarding the approval amount, so again, your counselor is the go-to person for the answer to your affordable monthly payment figure.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #47228

    southflorida
    Member

    @tiffany1513 property taxes are public records, you can go to your county’s property taxes website and find out the annual taxes of the property that you would like to purchase, whatever annual tax the current owner is paying now is what you will inherit as your tax payment, that amount will change the following year for various reasons. However, for your qualification affordability, the current owner’s annual taxes is what will be used, just divide that amount by 12

    #47283

    I ran into this same issue. My qualification letter stated $875 but when I sent the property specific letter for a property to my counselor, I was advised I was only approved for $725. Which I couldn’t understand because I was paying $920 per month in rent on-time.

    My mortgage goal was $875. I was advised of some kind of glitch that made the letter default to $875 but my actual approval amount is $725. My counselor stated she had to file a trouble ticket to get me a correct qualification displaying approved amount.

    I was so frustrated. Didn’t want to wait for a review again so I tried finding homes within that price and had no luck. Finally after a month I requested for a review. I had to write a letter explaining why my approval amount should be increased along with my file being sent back to underwriters. This was submitted early June 2018. A couple weeks after that I got an update about my qualification amount being increased to $875.

    #47285

    Tiffany1513
    Member

    @ambitiouslady7
    This is what is happening to me right now! I also could not understand why I was approved for such a low amount. I pay $1,070 now on time each month and was approved for $827.
    I had to go above my counselors head to get someone to give me an answer. He apologized for the glitch. He literally just emailed my MC to tell her to reschedule me to do a review. He said I am still qualified but he needs to get me resubmitted for an increase. He also saw that the underwritter calculated my student loan payment wrong. He said that once I update all the normal stuff…bank statements, paystubs..etc, they should see that the payment amount is lower and being paid on time each month. My level of frustration is high but to have someone finally answer my questions was a real relief. Thank you for letting me know I was not alone. The person I spoke with said the review will take about a week. I tried to look for homes in the price range they gave me too and could not find anything that was not in a bad neighborhood. Either way….I lost the home I was trying to get.
    At least I have answers though.

    Thanks everyone for your input.

    #47287

    @tiffany1513 You are so welcome. I experienced your post, so I understand what you’re feeling. I think I cried in the car one day from frustration. Trying to look for homes within my first approved amount was stressful. All the homes were in bad neighborhoods or the houses were very out of date with needed repairs.

    I lost the first home too. The house went under contract the next day. So, I decided to do new construction and hopefully I can close by the end of this month after this appraisal issue.

    Funny story, my daughter came home with a birthday invitation from one of her classmates last week. Guess what? This is the family that bought the house. Relived this painful memory for a second, lol. Happy for them though, they are a nice family.

    #47289

    Tiffany1513
    Member

    @ambitiouslady7 I completely understand. I have been crying my eyes out and I just want some answers and guidance on what to do. I still believe in this program and I have come too far to give up. This year I will put my kids in a home. 🙂
    Oh what a story that is! Wow!! Good luck on your new construction. I will be praying for us both.

    #47318

    southflorida
    Member

    I understand the frustration, I went through the same feeling various times of losing what at the moment I saw as “THE ONE” but I eventually was able to close on the perfect one, I can’t explain in words how happy I am about my house and I am sure all of you will have the same feeling eventually, your perfect house will be waiting for you at the right time, everything happens for a reason, don’t give up and be patient, you will make it.

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