April 16, 2018 at 3:12 pm #41574
After many delays and 61 days we finally closed on 4/13. BUT instead of being the interest rate we fought and saves for the CD had the incorrect rate.
Due to buying in an area where we are below the median household income, we were assured we could by the interest rate to the lowest possible rate. We’ve made it know for the past 2 years this was our intention. We signed the P&S agreement on 2/12, On March 1st we were in NACA’s office to speak with our current(this is our second) MC when she handed us papers to sign with an interest rate 10X’s higher than what we were expecting. She informed us she would file a COC. 3 weeks and 1 week before our original closing day laterwe still haven’t heard anything from her, our CC or anyway from Naca covering this matter. We were forced to push the closing back another 2 weeks due to this mix up and not being able to get our CTC. After many many phone calls and emails we finally received a call back from our MC. After speaking with her we decide to only buy down to .75 instead of our original. 125% like we wanted that way we’ll have a “cushion” in our savings. At that she told us she would put in the COC(again). This was March 20th. Between March 30th and when we received our CTC on April 11(we were supposed to settle on the 12th), we reiterated that the interest rate must be corrected.
When we received our first or many CDs on4/12, it still had the incorrect rate, then it turns out the final CD had an even higher rate then the previous CD, but again we were assured it would be corrected
So on our closing day, literally minutes before we were set to close, we were informed by the closing agent that BOA will not adjust the rate at that time and it would Take 3-5 days to correct their error, we were also told if the sellers didnt want to reschedule closing then they can walk with our $5000 deposit. So it was a pretty much take it or leave type of deal. We were told by the closing agent that someone had to go in manually and change the rate but no one is willing to take responsibility for it. Only thing we were told “there’s nothing we can do”and “we dont know how it was changed”.
So because of naca and BOA we paying and extra $25,000 in interest that could have been avoided. If we would’ve stayed with our original rate qe wanted and were entitled to we’d be paying over 100 grand more in interest.
The moral of the story be diligent, so fall for what they say, only go by what you have on paper. Dont let the send high your final CD the night before because it will be incorrect.
My wife and I are glad we finally were able to purchase our dream home but we are not happy with how things were able and the extra monthly payment we did not budget for. We are pissed with NACA and BOA. We will honor our obligations for volunteering but we will not lie for naca or paint this process as easy and we will definitely inform everyone who inquire how we were “screwed” the night before our closing.
Hope your experience is much better.April 16, 2018 at 3:58 pm #41578
Yikes! I’m so sorry that happened to you! Hopefully this post will serve as advice to others to triple check that CD and start escalating as soon as you see something wrong.
Hopefully they will make this situation right for you both!April 16, 2018 at 4:43 pm #41580
@searching4homes, thank you very much. But it’s typical NACA, they wobt do anything to help us, we were told they were will do redo the CD but it could take 3-5 days, but we lost all confidence in NACA. They couldn’t get in right in 61 days, so we had no faith they can do it in less than a week.the sellers were really understand through the whole process and our realtor was great at putting their mind to ease. But we were afraid either the rate wouldn’t get corrected or mysteriously go up again. We couldn’t take that chance or risk the sellers having enough and walking away.April 17, 2018 at 4:17 pm #41589
The NACA system has sufficient checks and balances in place that what you describe should have been impossible. Please contact me with your name, NACA ID number and Forum screen name so I can investigate.
Online Operations, NACA
email@example.comApril 17, 2018 at 6:11 pm #41600April 17, 2018 at 7:41 pm #41602
@jacobshome You just described my worst nightmare. I hope it can get straightened out.
We are target members and have the same plan to buy down interest rate very low. We are set to close mid May and every single time there is any document with the Interest Rate it has the current market rate listed and not what we want to buy down too. Every single time I reach out to MC and am assured that the interest rate buy down will be factored in at a later step.
It’s frustrating and your story will lead me to be even more detailed and cautious in my reviews of paperwork. Thanks for sharing and good luck getting things figured out.April 17, 2018 at 11:02 pm #41604
@sebryner Everytime something changes that effects my loan terms I get a new loan estimate from BOA. I have gotten about 3 so far. The last one being a change to my interest rate because I am buying down. Are you receiving these loan estimates in the mail? It also may depend on the stage you are in to receive these loan estimates. I am at bank approval and just waiting in my house to be finished.
The loan estimates are VERY helpful.April 18, 2018 at 11:00 am #41605
@flowers1 We just started with the bank last week and have only received one loan estimate that had no buy down factored in.April 18, 2018 at 11:08 am #41606
@flowers1 every estimate I received from BOA always had the original interest rate never my intended buy down rate. I wonder why. But good luck with your purchase.
@sebryner just stay on your MC and CC. Has your file been sent for bank app? I hope you get the rate you’re looking for. Keep me updated with your progress.April 18, 2018 at 4:48 pm #41612
@jacobshome Our status under lender conditions is C&I approved and we are working on some of the lender conditions. We have two remaining(so far) the Bank Appraisal is one of them and that is completely out of our control and they also want a bank statement confirming that the check for earnest deposit was cleared and that is not available from my bank until early next week.April 18, 2018 at 4:58 pm #41614April 18, 2018 at 6:22 pm #41620
Let me clear what appears to be some confusion regarding documents and interest rates while I look into jacobshome’s situation.
Long story short, the interest rate that appears on any form prior to the actual loan application is largely irrelevant. It’s the one that appears on the Uniform Residential Loan Application form (a.k.a “1003”) that counts.
Your base rate is locked in when we receive the Purchase and Sale Agreement for the house. You must have the funds for the buy down documented and accessible at the time of the Bank Application. Those are the two points that really matter regarding buying down your interest rate.
(And don’t forget the form is called a Loan ESTIMATE, after all. By definition it’s not meant to be a specific, final document. That’s what the Closing Disclosure is for.)
Online Operations, NACA
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