May 6, 2016 at 12:23 pm #32518HurryUpAndWaitMember
Can someone, anyone (especially Tim) help me with this issue. I was going to use a traditional FHA loan, so I signed a P&S agreement MONTHS ago (12/2015 to be exact…new construction). We put the FHA loan on hold to see if we can get a better deal with NACA (BTW: it’s much better deal).
Will this be an issue, since everything says do not sign a P&S until after qualification? My file is back in underwriting (long story) but I have been told we should be qualified and credit access by the end of next week, since we’ve already found our home and our file doesn’t need to be updated between today and next week.
ThanksMay 6, 2016 at 1:19 pm #32520TTrumbleMember
Okay, first things first:
Do not sign a P&S until after qualification!
That having been said, you would likely be considered an exception to the rule. Since you aren’t going to close until construction is finished, nobody’s going to turn the dogs loose on you! 😉
The reason we have the rule is simply because going out and signing a P&S before getting qualified through NACA is an invitation to disaster. Since the NACA program is a character-based lending program, it takes everyone a different length of time to qualify. The last thing you want is to sign the P&S, then find out something is going to delay your qualification, possibly for months!
Provided you are correct in getting qualified next week, you got a lucky break. Normally though you would be taking a huge risk that can not only result in a huge disappointment, but cause you to forfeit earnest money and more.
So while you will probably be okay, I’ll say it again for everyone else: Do not sign a P&S until after qualification!
Online Operations, NACA
firstname.lastname@example.orgMay 6, 2016 at 2:11 pm #32527HurryUpAndWaitMember
Thanks Tim for the reply! We’re not scheduled to close per contract till end of May, but the seller has already informed us that due to weather this winter they are behind at least a month.
I am just happy to hear that we won’t be turned away because we already have one signed.
I am also one to ADMIT that I am the far from closing BUT “Close to CLOSE crazies” I worry about everything!
And the 72 hours we’re waiting for underwriting feels like a month. 🙂
But we’re moving along and besides gaps in communication, I think we’ll be alright!
- You must be logged in to reply to this topic.