Our NACA Journey (Home4Three)

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  • #39395
    Home4Three
    Member

    Backstory– we’ve been renting for 8 years but were pretty much fed up with apartment living. Having issues with our neighbors, wanting more unshared space..etc. My DH (dear husband) works full time, while I work Part-time. Both College Graduates. We don’t have joint checking accounts. SInce DH paid off his student loans at the beginning of the year it seemed the right time to make the transition into homeowners.

    Ahead of hearing about NACA we had been working to improving our creditworthiness (paying off cards with balances, asking for credit increases on paid off cards, generally lowering our debts) in order to buy a house. Although at the start of NACA we had “good” credit but we both thought it would be a long time before we actually started the process of purchasing a house due to lack of substantial down payments required for conventional loans.

    NACA OFFICE: Buffalo NY
    Purchase Market: Buffalo NY & Surrounding (Erie County NY)

    Sept 24 2017- Heard about NACA from a friend, who is currently in the pipeline for the program. Talked to my DH about it and he was very much interested.

    9/25- I downloaded the purchase program from NACA website and read it, took notes, did all calculations that were presented in the book. DTI, Mortgage affordability based on our joint income and separate incomes..etc

    9/26- Pulled (1) free annual credit report to check payment history.. on time payments charge offs..etc so we can start addressing issues now. Discovered (1) item in collections just under 2 years old, and we were already aware of two credit cards with Balances.

    9/27- scheduled workshop date for 10/28.- that was the only date that worked with our schedule. Sat down with DH and showed him the “math” for the various scenarios- we made the decision that my husband would apply for the naca mortgage on his own was the best case scenarios My DTI too high(student loans), and missed payments on one student loan.. That would set us back on our quest for a home. We also decided that we would update our wills to have the house included when we got to that step.

    9/28- we begun to gather and scan the documents we needed. Paystubs, W-2s, taxes, landlord contacts..etc Uploaded to Google Drive so we have access to any document every time anywhere. **This was a tip I had read from the forums/youtube**

    10/01/17- Paid off a credit card in full as my husband’s birthday gift.One Card down, one to go.

    10/4- Since we had an idea of our mortgage affordability, based on our current rent and 28% of our gross(technically just DH’s Gross). We decided we knew how much house we could reasonably afford and started looking for open houses that met our minimum requirements within that price range.

    10/7-. Went to 2 open houses, hated both

    10/11- 10/13 Checked out (and then read) 5 books about home buying from the library for more info and tips. We made lots of “must have” “instant rejection” lists. I don’t think I ever read so many books in such a short time. Like I said we were/are very motivated.

    10/15- 3 more open houses, liked 2. Hated 1

    10/19- We signed up for budgeting tool Capital Finance to assist with tracking expenses for Naca Budget and see where we can cut expenses, save money for buy down funds. Currently saving a little over 1k/ month

    10/25- Pulled (1) free annual report to verify pay-off of credit card- as well as no new surprises. All good

    10/28- Attended HBW, realized we don’t have 2015 W-2s anywhere. Husband has changed jobs in 2015. Requested 2015 and 2016 IRS Transcripts there were two options Tax Account & Tax Return Transcripts, Not sure which one NACA needed, so ordered both.

    10/30- Received and logged into web file and uploaded everything and signed everything that I could. Gave login to DH who went to town uploading his pay stubs and bank statements.
    ***We very quickly realized that uploading directly to the webfile was a lost cost and went forward with emailing
    “email*yourmembernumber*@nacalynx.com” was the most reliable way to get things into the webfile. an **

    10/31- called to schedule in-take appointment. Scheduled for 11/1. Contacted Landlord and had our lease switched over to Month-to-Month. Contacted Collections Company to pay off, and the phone number on credit report is not good. Asked all relatives for cash gifts, or home depot gift cards for the holidays rather than boxed gifts.

    11/1- In-take appointment. Spoke to MC about the collections, he suggested we contact the original lender- we did and had that taken care of same day. Payment history was great. Action plan included (3) LOEs. Saving $400/month Shock Payment and MRF of $3,800 as well as uploading credit card statements, paper budget sheets and tax transcripts once received. Follow up Phone appointment scheduled for 11/9/17 DH Requested copies of 2015 W-2s.

    11/2- uploaded requested statements, paper budget sheets, W-2s and LOEs. Received and signed NACA Affordability Document for PITI of $1,356

    11/3- Recieved 2015 & 2016 Tax Account & Tax Return Transcripts

    11/4- Uploaded Tax Account Transcripts to Web-File

    11/5- saw 3 open houses today, found one we really liked. We emailed the details over to MC to see when he can submit us to underwriting.

    11/6- MC emailed back said that the house was definitely in our affordability range and that he would submit us to underwriting ASAP and will keep scheduling close appointments to make sure we have everything we needed. Follow up still scheduled for 11/9

    11/8- Received Gift of $2,450 for MRF(& Verification of Gift Letter). Uploaded form letter to Web-file.

    11/9- (Appointment 2) MC reviewed the documents we uploaded since 11/1 and came back with a few things- still, needed copies of receipts/confirmation for payoff (already had sent), Tax Return transcripts, copy of the LOE uploaded (already uploaded), and bank statements and paystubs. MC is also still waiting on Rental Verification, I gave MC the rental office fax number, and had MC send the Verification that way as well. Called Rental Office to let them know to look out for it. MC also said that needed 30 days of my paystubs- even though i’m not on the loan (just a household member) as per our budget I pay for gasoline for our car and other misc expenses- sent those over straight away.

    **SIDE NOTE**The Phone “appointments” for our NACA Office seem to be scheduled time to review our uploads/documents/emails and they call or email us back with next steps, missing docs, answering our questions. Not sure if this is how it works for other offices. But we were waiting by the phone just to get an email at our appointment time with needed documents.***

    Follow-up (in-person) set for 11/14 to turn in documents and sign papers.

    11/10- Uploaded Tax Return Transcripts to webfile, received NACA affordability document

    11/11- More open houses, hate all of them for one reason or another

    11/14- (appointment 3) MC emailed in the AM before appointment that our W-2s weren’t adding up. Turns out he was missing a few. Sent mine over again. DH couldn’t reupload his because he deleted the copy thinking he had saved it on the google drive- turns out he didn’t. Had to request from his HR again.Apparently I had to be at the appointment too to sign paperwork, Wasn’t aware of that. Follow-up set for 11/15 s

    11/15- (appointment 4) uploaded 2015 W-2 and “request for tax return transcript” form. MC stated that he received employment verification and the dates were wrong. MC sent this to me via email. I informed him that DH left employer 1 in mid 2015, went to work for employer 2. Left Employer 2 in mid 2016 and went back to Employer 1. Therefore the start dates for Mid 2016 were correct for Employer 1. MC said would need a letter from Employer 1 stating as such because it will bring up a question for underwriting. Also MC stating that our W-2s are not adding up (short in W-2s about 2k from what was listed in our taxes) but he will submit to underwriting tomorrow as it may not cause an issue. Follow up set for 11/16

    11/16- (appointment 5) Submitted to Underwriting, now the wait begins

    #39416
    TTrumble
    Member

    Hello Home4Three,

    You are off to a VERY impressive start!

    Excellent job pulling your own credit report in advance to deal with any unexpected issues, gathering documents early, keeping them on Google Drive, dealing with the collection, etc. You set a great example of how to get the process started.

    The only bumps in the road I foresee are:

    The discrepancy in income between the W-2’s and the tax return. Regardless of what your counselor said, you WILL have to resolve that. If the figures don’t match up it will definitely throw up a red flag with the underwriter, as that will bring you to a dead halt if that should reach the bank. You need to find the reason for the discrepancy and provide a Letter of Explanation. Even if it was a simple addition error by your tax preparer, that’s a big enough difference to warrant filing a Form 1040X (Amended Tax Return) with the IRS once you find the source of the problem.

    House hunting this early is almost certainly going to lead to you being very disappointed. Not only are you not authorized to go house hunting until after you are NACA Qualified, with the extremely quick turnaround on homes in the present market, any home you become seriously interested in will probably be gone before you are able to make an offer. Add in any unforeseen delays such as that income discrepancy may cause, and it virtually guarantees getting your heart broken by losing a house you were hoping for.

    You are absolutely right about the “phone appointments” being time your counselor blocks out to work on your file. Telephone counseling is only done by our Remote Counseling department at our National Counseling Center. Officially, your counselor is not supposed to do that, but we realize that setting that time aside on occasion does help keep up with their huge workload.

    Overall, you are off to a great start. Stick with it, remember our mantra of “Patience and Persistence”, and don’t let the little bumps in the road get to you.

    Make sure to keep us updated!

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #39466
    Home4Three
    Member

    11/18- Found folder with 2015 tax information.Reviewed taxes with a fine tooth comb and found typo in two sections

    11/20- Filed IRS 2015 1040X form to correct discrepancy (typo) in 2015 taxes. Sent copy to MC- will provide MC with updated transcript once available from IRS- Hoping this doesn’t slow our file down

    11/22- (appointment 6) File came back with a couple of conditions on 11/20 one of them for the mismatched W-2s and tax return, MC addressed with 1040x form that I provided. Other conditions didn’t require us to do anything, housekeeping conditions for file “cleanliness” Resubmitted to UW 11/22 (The house we liked is still on the market, but we are still keeping our options open just in case)

    • This reply was modified 2 years, 11 months ago by Home4Three.
    #39482
    Swtneka3
    Member

    Fingers crossed you get qualified soon and that house is still on the market. If it’s meant to be yours it will be!

    #39491
    TTrumble
    Member

    Hello Home4Three,

    BRAVO! Great job of staying ahead of the curve! Next step… Getting that qualification from the underwriter. I’m eager to see the next “installment” of your story!

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #39576
    Home4Three
    Member

    11/23- Paid Collections account have been reflected as paid in full on Credit Report, nice boost in credit score

    11/29- Emailed and left a voicemail for MC looking for an update no reply by evening. Called NACA office and scheduled follow up for 11/30

    11/30- (Appointment 7) NACA office called that MC is out sick. Rescheduled follow up appointment for 12/1 at 10:30 am

    12/1- (appointment 8) MC emailed 10:35 to say that system went down during a 9:30 am appointment and working to catch up. No call or email back before the end-of-business.

    12/2- two open houses popped up in our neighborhood. We checked them out… nothing exciting

    12/4- No call or update from MC. Called NACA office and made next available appointment for 12/6 at 9:30 am (starting to feel disheartened and anxious TBH from lack of communication from MC )

    • This reply was modified 2 years, 11 months ago by Home4Three.
    #39582
    TTrumble
    Member

    Hello Home4Three,

    “starting to feel disheartened and anxious” – not allowed! 🙂

    This is just a bump in the road. Give your MC a fair chance to catch up from the illness and the system outage. If you haven’t heard anything by the end of the day tomorrow (Tuesday) email me and I see about sending your MC a reminder.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #39609
    Home4Three
    Member

    11/5- No call or email from MC, although I did send an email questioning some grants I came across

    11/6- Received a call from NACA office to confirm our 9:30 phone appointment. It’s an hour later, no call or email from our MC. We’ve called and emailed practically every day- with lots of difficulties trying to reach our MC.

    • This reply was modified 2 years, 10 months ago by TTrumble.
    #39619
    TTrumble
    Member

    Hello Home4Three,

    Your local office experienced some major technical problems between the confirmation call and the scheduled appointment time. You are apparently having some nasty weather there, and I suspect it’s related.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #39670
    Home4Three
    Member

    12/7- There was no crazy weather here in Buffalo. It was just some light snow downtown where the office was located- nothing that would’ve messed up any sort of methods of communication. I Called the NACA office and scheduled for next available appointment with MC for an update on our webfile. Next appointment Scheduled for 12/11/17. Left emails and voicemails for MC

    12/8- Called and emailed MC… later the same day..Web File shows reassigned to another MC?

    12/11- (appointment 10) NACA office called and told us that our MC was no longer with NACA and gave us name of New MC. New MCcalled stated that our file came back from underwriting with more conditions. 3 new LOES, a few documents that we resent. Previous MC never completed VOE. My husband literally said that when he spoke to our NEW MC, that it seemed that our Previous MC just stopped working on our file after 11/22. Next appointment scheduled for 12/20- I feel these conditions would have been easily handled much sooner had we known about them

    12/12- Wrote and SIgned 3 LOE’s, Sent Bank updated Statement/ paystubs,sent previous W-2s, 1040x, participation pledge, Signed VOE forms, signed Budget and Affordability document

    #39707
    Home4Three
    Member

    12/13 Sent more Loe’s to the MC

    12/15- MC Said that he still needs employer contacts for my husband. I sent the employer contacts form over, and emails and fax numbers for who to get the VOE from. Also sent pay stubs and bank statements (it was payday). MC came back that he still needs resolution on our 2015 and 2016 taxes issue as it was appearing to having a missing w-2 according to the underwrite The MC had requested I contact the irs by 800-829-1040 to request additional documents back on 12/11- and I’ve been calling since then and unable to get through a live person. r, Line 7 of the taxes was about $1,560 more than the sum of all the wages we submitted. I spoke to the NACA Buffalo Manager was super helpful and directed me to contact the Local IRS Tax Payer assistance office to try to get some clarification on this for the underwriter. I called the Tax Payer assistance line to schedule an appointment to come into the office and the IRS agent first asked for an explanation of the issue to see if it was something he could help me resolve. I spent 2 hours on the phone with an agent from the IRS who informed me once again, there was no missing W-2 and the underwriter was simply failing to note the “DCB” notation on line 7 of the 1040 form- Which correlates to form 2441 Part 2, line 26 which states that the taxable portion of the unused child and dependant care benefit has been added to line 7 and thus notated as DCB on line 7 of the 1040. He also faxed me a ton of information that I could send to the MC. I sent this explanation and the taxes in its entirety to my MC, along with Record of Account, and W-2 Transcripts from myself and my husband to the underwriter. Record of ACcount shows that 1040x has been accepted and processed by the underwriter and refund check to be sent to us by 12/22. Follow up appointment still scheduled for 12/20

    #39722
    Home4Three
    Member

    12/19- Had to send another LOE for the Gift funds I gave my husband for MRF. Even though my bank had supplied verification of gift letter. Followup scheduled for tomorrow 12/20

    #39739
    ggrau1
    Member

    How did your follow-up go?

    #39751
    Home4Three
    Member

    12/19 (later in the day)- Our New MC is super thorough (and we like that!)he had us write 2 LOEs to clear up discrepancy between Photo ID (ID not reissued since change of address), Current address, and bank account ( Bank statement sent to parent’s house for security) Follow-up scheduled for tomorrow 12/20

    12/20- (Appointment 11) MC emailed to request a copy of December Rent Check, emailed that over right away. My Husband’s Employer needed to write a blanket LOE regarding his Bonuses. MC received employment verifications back

    12/21- MC Re-Submitted our file to Underwriting ** FINGERS AND TOES CROSSED**
    PS. The House we originally really liked is STILL ON THE MARKET

    #39784
    Home4Three
    Member

    12/28- Followup appointment scheduled for 1/2/18

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