Qualification Letter

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  • #66907
    HopefulThisYear
    Participant

    I’m concerned about my maximum mortgage amount on my qualification letter.
    The amount is 20,000 less than what I was expecting and what my counselor said my maximum would be. This is a problem especially since it’s to include the HOA & taxes. This puts a huge dent in things because I can’t afford a decent home in my area with that significant difference.

    My monthly payment is correct.

    Besides buying down the interest rate, what else can I do to get this number up? Can they issue me a new qualification letter afterwards?

    #66908
    Nelsont
    Member

    Don’t pay attention to the amount. Pay attention to your monthly piti. The interest rate is a big driver and it changes daily which could result in a decrease of 20k in purchasing power tomorrow and an increase of 20k in purchasing power the next day. Your letter was drafted with an ESTIMATE based on the current rate at the time which was obviously higher than when you did the calculations yourself.

    You cannot get approved for a higher payment unless you prove more income or less debt. BUT there are exactly ZERO situations in which naca or BOA will use the purchase price of a house as a factor. They will use your maximum piti (which you say is correct) 100% of the time without exception.

    Again, there are several reasons why your purchasing power can decrease and they have absolutely ZERO relation to anything related to you. This is just how the mortgage industry works.

    #67165
    HopefulThisYear
    Participant

    I’m growing frustrated to say the least.

    So after the help of this forum and confirmation from my MC , the maximum mortgage amount on your qualification letter is an “estimate” and NACA approves your monthly PITI, NOT a home price.
    I accepted this response assuming that I could look at homes above this price since it was an estimate and just buydown to meet my monthly payment.

    Heres my issue with this :
    When inputting the numbers ( interest, insurance, and taxes) CLEARLY stated on the qualification letter into the NACA calculator or ANY mortgage calculator, I get a maximum mortgage amount that’s 20,000 higher.
    I understand all of that is variable but wouldn’t the calculations equate to the maximum if that’s the estimates they used?!? I hope I’m making sense.

    At first I accepted that answer, but my agent is telling me she can’t show me a home that’s above my maximum mortgage amount and I’m not understanding why if I can meet the monthly payment after calculating it.

    I intend to buy down the interest but I am waiting on gifted funds so while I understand that can’t be considered till I have to documentation. I’m having trouble understanding how my qualification letter isn’t calculated wrong.

    What’s really frustrating me is that my MC refuses to have a phone call to clear things up quickly. He claims he doesn’t have time. We email but clearly things get lost in translation when it could easily be explained in 5-10 minutes.

    #67167
    Nelsont
    Member

    If your agent is an outside agent then they are not familiar with buy down. They are assuming no down payment and shutting off the idea of lowering your payment any other way.

    As far as the discrepancy, it is possible there is an error if, as you say, every calculator shows this to be true. I’m not sure any of us can help you out without getting into specifics to see where a miscalculation could be – and I wouldn’t recommend broadcasting your finances.

    Maybe @ttrumble can look into your file for you?

    #67168
    HopefulThisYear
    Participant

    My agent is a very experienced in-house NACA agent.

    I’m just confused. It might be a moot point to get it fixed until I get the gifted funds and documentation anyway.
    That doesn’t make it any less frustrating though.

    #67189
    azallin
    Participant

    @HopefulThisYear

    I had a similar issue. I had to get a letter about the gift funds and proof they existed somewhere in an account.

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