Once your Payment shock figure is set, you will need to save it each and every month without failure until you close on your new home.
You must show a minimum of three months of Payment Shock Savings in order to become NACA Qualified. The Payment Shock funds are become part of your Minimum Required Funds that you must have to cover inspections, initial insurance and taxes, one to two months of mortgage payments as an emergency fund, and so on.
If your desired mortgage payment is more than your current rent, then saving it consistently will make all the difference in the world. Remember that Payment Shock is the difference between your current rent and your desired mortgage payment. Saving it consistently, combined with your monthly rent, proves that you can in fact make the mortgage payment each and every month. If you don’t save the payment shock, don’t expect to get approved for a mortgage payment bigger than your rent.