I asked my MC to re-submit me for qualification at a higher PITI amount. He did and followed up after a few days and asked me to write a letter that explains “that I increased my payment shock savings after paying down debt to prove to NACA that I can afford a higher payment.”
Isn’t it clear that I can afford it since I have been putting it into savings?
I am assuming this letter will be given to the underwriter…is that correct?
Has anyone else had to write one of these? If so, can you share what you wrote?
My MC is very busy, I wrote him back with these questions and I haven’t heard anything back. I don’t want to delay my re-qualification if someone can help me here.
You were originally given a specific Payment Shock figure during the initial counseling appointment and advised that you had to save at least that amount each and every month without fail right up until the time you close on your new home.
The operative word in that sentence are “at least that amount”. Anything over that is great as it adds to your MRF savings and reserves, but isn’t specifically saying that you have deliberately increased your Payment Shock amount.
The letter simply declares and clarifies that you are deliberately saving a larger Payment Shock amount in order to seek a higher qualification. Otherwise, your old Payment Shock amount would still be used and the additional would just be considered “gravy”.
Thanks for the clarification Tim!!! You’re right I was missing the point of the request. Had it been explained the way you just broke it down it would have made sense. I will write the letter and pass it along to my MC now.