Request for increase of mortgage amount

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This topic contains 4 replies, has 3 voices, and was last updated by  Nelsont 6 days, 11 hours ago.

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  • #61034

    Tara585
    Member

    Is it possible to put a request in mortgage amount if you have already put in an offer on a house? I requested an increase and went through requalification back in August. It wasnt approved but could be if I provided information regarding my deferred compensation. If my offer is accepted would I need to go through requalification again? Crazy question what happens when going through credit access?

    #61037

    Nelsont
    Member

    In general you can always put in a request for an increase. There are 2 scenarios. One is a change of circumstance. That is basically where your financial situation has changed since you are approved. This will put your contract on hold and cause a delay of at least the time it takes to qualify you which means you will cutting your timeline short and almost definitely will require extensions to be approved by the seller. The second situation is if you are at the max 31% and your current rent is more than 31% but you have little or debt at all and can show good payment history. In this case it is still possible to be approved for more than 31% but less than your rent. If you already went through this and were denied you need to have exactly what they said could help because they really don’t like to increase your piti unless it’s obvious.

    If you got the psl then you were already determined to be able to afford the house based on a quick overview of your finances. You might not be allowed to increase your piti if it’s not necessary. Do you think the house is actually unaffordable?

    Credit access is qualification all over again. It just doesn’t take too long.

    #61144

    TTrumble
    Member

    Hello Tara585,

    The bottom line when requesting a larger approval amount is that you must show a reason to justify the increase, not just because you want to buy more house.

    Once the reason, such as an increase in income, major reduction in expenses, etc. has been shown, the file is re-qualified, though it should be a much quicker turnaround since the majority of the work has already been done for the original qualification.

    As Nelsont noted, Credit Access approval is essentially going through underwriting again, but again is typically faster since the bulk of the work was done at qualification and this is mainly making sure everything in the file is up to date and that there are no new “surprises” that have popped up.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #61156

    Tara585
    Member

    @nelsont and @ttrumble the reason why I was requesting more was because my intial qualification ended up being for my base rent and not the total rent I pay each month. I have to pay for cable and internet with my rent. I dont have the option of not paying it all. So when I orginially requested what I pay in rent I meant the total I pay monthly. I didnt even know there was a base rent that I was paying. With a slightly higher amount I wouldnt need to buy-down my interest rate.

    #61157

    Nelsont
    Member

    That won’t fly I don’t think. The reason is although you are forced to pay in your current situation cable and internet are not necessities and viewed as things you can sacrifice in order to pay your mortgage.

    Only actual debt that has an end date of which you will no longer be paying it and revolving bills directly tied to your health and safety in the house like insurance and gas and electricity will be considered in your affordability.

    It happened to me. If you have things you are paying for and are getting along fine if it’s frivolous like cable and internet the response will be get rid of those bills or you can’t spend as much per month on the house.

    • This reply was modified 6 days, 11 hours ago by  Nelsont.
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