TRYING TO UNDERSTAND NACA PROCESS

Home Forums Purchase Program TRYING TO UNDERSTAND NACA PROCESS

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  • #64989
    vonny2421
    Member

    RECEIVED MY LOAN ESTIMATE WITH THE NEW INTEREST RATE OF 3.125%! REALLY HAPPY ABOUT THAT.

    BUT I NOTICED THE RATE LISTED HERE IS NOT WHAT IT WOULD BE ONCE MY BUYDOWN IS APPLIED.

    AT WHAT POINT IN THIS PROCESS IS THE BUYDOWN APPLIED ON PAPER? SHOULD THAT HAVE BEEN REPRESENTED ON THIS LOAN ESTIMATE?

    I ACCEPTED AND NOW IM FEARFUL I MIGHT’VE ACCEPTED THE WRONG THING. I DO SEE MY SELLERS CREDIT LISTED AND MY BUYDOWN BUT ITS LISTED IN THE CLOSING COSTS AREA AND NOT LISTED TOWARDS THE RATE.

    JUST TRYING TO UNDERSTAND.

    #64990
    Nelsont
    Member

    Final closing disclosure. The last document you will receive from the bank just prior to closing. The clear to close needs to be issued for you to get this. This is not a naca process though it is a mortgage lending industry process. You are fine. You did the right thing.

    #64991
    vonny2421
    Member

    SO DOES THE LOAN ESTIMATE ACCEPTANCE LOCK MY RATE?

    #64992
    Nelsont
    Member

    For all intents and purposes yes. You have 3.125% plus buy down. Your rate cannot go up.

    The reason your rate isn’t shown with the buy down applied is because this is a standard template form and the money listed as down payment/closing costs and seller assistance would normally go to those things. As a naca member it doesn’t; it gets automatically applied to the purchase of points (buy down), which, under normal circumstances is an additional fee and separate transaction. You will get documentation later on in the process that shows the points you purchased as well as the final rate after the points.

    #64994
    vonny2421
    Member

    OK GREAT THANK YOU

    #65034
    MROCTOBER
    Participant

    @vonny2421 do you have a payment shock, if so, can you share?

    #65038
    Nelsont
    Member

    Everyone has a payment shock. It is a requirement. It is the difference between your maximum monthly payment (usually 31% of your gross monthly income) and your current rent. There is a minimum of $200 though if the difference is small.

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