Before Initial Appointment

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  • #34488
    Jaderade
    Member

    Hi all i have been reading all your helpful posts in this forum and i hope that i can be a contributer as well as benfit from your knowledge.

    My husband attended the workshop last Saturday and we are waiting for our file number.

    Just reading i know there are some things i will want to have ready before our initial appointment.

    1) i have about 3 diff adresses and a name change on my credit. What is the format for these explanation letters?so i can type them up ahead of time.

    2) we are credit card rewards ppl. We use our cards for daily expenses but carry no debt on them, we pay them off every month. Do we need to stop using our cards completely or can we provide those statements?

    3)payment shock. I read about what it is, what situations make it so you dont need it. Is having significant savings in the bank something that will forgo the need for payment shock? Just worried about time.

    4) do we need to have voter registration cards. Is this absolutely necessary?

    5)any nuances i should know about regarding docs to have ready for first appointment?

    6) how many times through this process does NACA or any other company run my/our credit?

    #34492
    smack13x
    Member

    Hi all i have been reading all your helpful posts in this forum and i hope that i can be a contributer as well as benfit from your knowledge.

    My husband attended the workshop last Saturday and we are waiting for our file number.

    Just reading i know there are some things i will want to have ready before our initial appointment.

    1) i have about 3 diff adresses and a name change on my credit. What is the format for these explanation letters?so i can type them up ahead of time.
    You will need to type a letter to explain any address that is not your current address listed on your credit report. You will state the date you moved into that address to the date you moved out month and year, if you never lived at the address state so in the letter.

    2) we are credit card rewards ppl. We use our cards for daily expenses but carry no debt on them, we pay them off every month. Do we need to stop using our cards completely or can we provide those statements?

    Make it as easy as possible for them – only use your debit card from this day forward.

    3)payment shock. I read about what it is, what situations make it so you dont need it. Is having significant savings in the bank something that will forgo the need for payment shock? Just worried about time.
    Download the purchase workbook on the NACA site. You can also read a lot about payment shock on these forums.

    4) do we need to have voter registration cards. Is this absolutely necessary?

    Yes, you need to login to http://www.canivote.org and print out your verification to vote.

    5)any nuances i should know about regarding docs to have ready for first appointment?

    Again, download and read the workbook. Complete the budget workbook, do one volunteer act before qualifying, type a letter stating the correct spelling of your full name and how you want it to appear on your mortgage, 90 days of bank statements, and a letter of explanation for any charge-offs or late payments on your credit report

    6) how many times through this process does NACA or any other company run my/our credit?

    Did a hard pull of all three reports my first appointment

    #34499
    Jaderade
    Member

    Thanks for the answer! I read through the whole handbook and got alot of questions cleared up.

    I didnt see that there is a format for LOE’S anyone have info on that. I want to write an LOE for ANYTHING that I think my be a problem.

    #34502
    smack13x
    Member

    My MC said to address all letters to “Whom this may concern” and make sure all are typed signed and dated.

    #34522
    TTrumble
    Member

    Hello Jaderade,

    The basic theme to answering your questions is “keep it simple”.

    The LOE’s should indeed be addressed “To Whom It May Concern”. Keep the explanations as simple as possible while still providing a clear explanations. “1234 Main Street was my work address for five years. I had the statement sent to that address for a personal credit card account that I used only for business expenses.” or “I lived at 4321 Grand Avenue from June 2007 through September 2009 after I graduated from college and worked at my first job.” or “Mary Jane Smith was my name before I got married in July of 2013. Mary Jane Jones is my married name.”

    Best bet is to give up the credit card rewards until after you close on your new home. Otherwise, you are going to have to do a line by line explanation of your credit card statements for at least three months. Much simpler if we see it all on your bank statement.

    Payment Shock is not based on how much you have in the bank, but how much you save each month. Remember that Payment shock is defined as the difference between your current rent and your desired mortgage payment. Once you buy a home, you will have to make that mortgage payment each and every month without fail for the next 30 years. Saving the Payment Shock amount each and every month without fail is how you prove that you can make that mortgage payment.

    Voter registration is an absolute requirement as long as you are legally eligible to vote. NACA is first and foremost a community advocacy organization, so we tend to subscribe to the old saying, “If you don’t vote, don’t complain about who you get”. (It’s actually shameful that even with the completely insane presidential campaign going on, we will be lucky to see a 55% turnout for the election.)

    Your credit report will be pulled at your intake appointment, and every 90 days thereafter until you close on your home. It will also be pulled at the time your loan application is submitted to the bank and once by the bank after receiving the application.

    For those who are concerned about that affecting your credit score:

    1 – The credit bureaus understand this and consider it essentially one pull.

    2 – Your credit score is the last thing you need to be thinking abut at this time. It’s not part of the NACA process, and you are not going to be applying for any other credit until after you close and are in your new home. So, unless you literally have a National Security Clearance level to maintain, your credit score is completely irrelevant right now.

    3 – Even if it did have an effect, after you are in your new home and create a history of on time mortgage payment, your credit score will go up anyway.

    Other than that, the most important thing to remember is to have patience and persistence. They are the two most powerful tools you will have in this process. Stick with it, no matter what, because it will be worth it.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

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