ATD Event Likely to Approve

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  • #65531
    niraleah
    Participant

    Hi,

    I wanted to know how likely will I be approved for a home if I attend an event at the end of March. I have been at my job only 6 months. I started out part time but just switched to FullTime this month. By the end of March, I can have close to the MRF saved($7500) I have no debt except student loans ($360/mo).

    Someone told me I need a year at the same job but when I was reading the workshop book it said that it just needed to be in the same field. Prior to this job I’ve worked another job for only 6 months as an RN and prior to that I was in school receiving my degree.

    I also have not been saving the payment shock for the last 3 months because I was making sure to pay debt to zero. So by the time of the event I’ll have saved more than 1 months payment shock. If they view my income they can see ill be capable of doing that. How likely are my chances are of getting approved if I attend or will it be a waste of time?

    • This topic was modified 9 months, 3 weeks ago by niraleah.
    #65533

    If you can’t demonstrate Payment Shock, you won’t be approved that day. BUT, it’s absolutely not a waste of time. You can get weeks or months ahead in the process by going to ATD, and you will be right there with the MC and Underwriter through the process to understand exactly what is going on.

    #65534
    Nelsont
    Member

    You need 2 years w2s and tax transcripts.

    Being close to the mrf doesn’t count. You need to meet or exceed it.

    But yeah the event will still be a great benefit.

    #65535
    niraleah
    Participant

    If I work over time prior to the event to be able to meet the 3 month payment shock amount, will that qualify me?

    #65537
    Nelsont
    Member

    a few things. You are very rarely qualified on the spot relative to the general public unless you have basically been in the mode of trying to buy a house for the last year or 2.

    If you do not meet ALL of these requirements you will not be qualified on the spot:

    2018 and 2019 W2 (not one or the other, BOTH…possibly even 2017 W2)
    2018 and 2019 W2 tax transcript (IRS receipt of proof of paid taxes and filed tax return)
    If you have not yet filed 2019 yet you will either need to AND have IRS process first OR use 2017 tax transcript and W2
    If you have not yet filed for 2019 you may still be able to get qualified BUT you WILL be required to show 2019 when you do
    Continuous employment for the last 2 years with no gaps in employment larger than 2 months
    Gaps in employment of any length must be explained in writing
    The only acceptable gaps are typically short ones associated with switching jobs
    Payment shock: sum total of all of your bank accounts increasing by at least $200 every month
    Payment shock must be maintained until the day you get the keys to your house or lose your qualification or be denied a loan
    MRF must be in your main checking account and not spread out through various bank accounts or stocks (cryptocurrency is not allowed)
    No missed payments for the last 12-24 months
    No account in collections unless you are currently paying it off

    I know that sounds like a lot but, it’s the basis for a smart financial plan. You cannot get a home loan without showing you have a history of being “smart”. Naca is a great program because they not only forgive you for having little or no or bad history but, they also work with you to make sure you know how to turn yourself around if you need help.

    There is no shame in not being qualified at the ATD. The ATD will absolutely benefit you and put you further out into the process than not attending.

    And as far as working overtime you need to be careful. Your income needs to be stable and consistent. Overtime, unless stated in writing by your employer on company letterhead that for the foreseeable future your overtime is pretty much permanent then you cannot use it as qualifying income. You can use it to save extra toward your MRF and also toward your payment shock. But if your counselor reviews your finances and sees that you are only able to meet your payment shock by working overtime then you will not be qualified.

    • This reply was modified 9 months, 3 weeks ago by Nelsont.
    #65538
    niraleah
    Participant

    @nelsont thank you for the advice

    #65541
    Nelsont
    Member

    Payment shock cannot be averaged…think of it as a phantom mortgage payment. If you are short $10 on your mortgage payment this month the bank considers that a missed/late payment. If you double pay this month the bank still requires you to pay next month.

    #65621
    TLM1972
    Participant

    How long has the wait been or average wait time to see a MC at and event? Trying to determine if I need to take a full day off from work.

    #65622
    Nelsont
    Member

    Take the day or two. If you have already had your intake you can skip around. Otherwise you can’t go straight to a MC. I would plan 8 to 12 hours to go through the entire process…each step can only take say 50 people but there will be 200 in line for each step. Usually someone who has never started anything with naca and attends an event in a city with a high percentage of low income families and doesn’t get there at 6am to wait for the doors to open like it’s black Friday will need to come back a second day. There are that many people.

    From the homebuyer workshop you go to upload your files then to an MC then to an underwriter then to the purchase workshop and wait in line between each. This 1 to 2 days however is 2 to 3 months minimum if you don’t attend the event. So it’s a huge benefit.

    #65643
    Peapod0609
    Member

    You will definitely need the whole day in all likelihood. I would try to go as early as possible, too. If you can, get there when the event starts.

    #65648
    TLM1972
    Participant

    If I’ve already attended a workshop and documents uploaded, could I just go straight to a MC and start the process?

    #65649
    Nelsont
    Member

    Yes. But still plan to get there as early as possible and take the day off. The only way for you to not need to take time off is if you leave immediately after your counselling session.

    #65653
    vrundmc
    Participant

    I had everything uploaded, went on the first day of the event, and still waited ~3 hours to see a MC. I was there at 11:30AM and had my qualification by 7:30PM.

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