AFFORDABIALITY FORM

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  • #77057
    Livylove35
    Participant

    Hello,

    I have a few questions. I been having issues with my Affordability Form. I became NACA Qualified in September and my Maximum Mortgage Amount on the Affordability Form was very low. My MC informed me that the Underwriter wanted me to pay down my debt (Car Payment: Pay all or up to a remainder of 10 payments). I paid it up to a remainder of 10 payments. Then my files were resubmitted back to underwriting (within the same month/& there was no change to my income). I once again became NACA qualified but this time my Mortgage Amount was approx 35k lower. My MC informed me it was an Error and she disclosed to me what my Maximum Mortgage Amount should be and she also said that she would get the IT Team to correct the issue. She said I was not the only member experiencing this issue. I persistently stayed in contact with my MC by calling and emailing with no response. I even reached out to member services and had them contact my MC. Almost 3 weeks went by and I logged into my NACA webfile yesterday and checked to see if my Affordability Form had been updated. I then noticed everything was the same but the Maximum Mortgage Amount Box (area) was gone. I emailed my MC and she finally responded saying NACA has made changes to the form and that ALL NACA letters no longer have the sale price/loan amount. She also mentioned that I should Please use the Mortgage Calculator on NACA‘s website to calculate what your sale price/loan amount. My question is, Is this what we will have to present to builders etc and will we have to calculate our own Sale Price ?? Pleeeasssee Help!

    • This topic was modified 9 months, 2 weeks ago by Livylove35.
    #77061
    Nelsont
    Member

    No bank for any reason ever underwrites you for a purchase amount even for a car. You are always without exception underwritten for a monthly payment. The purchase amount is given to you as a guideline so you have an idea of where you need to be looking. Interest rates change daily which changes the maximum purchase amount. Taxes and insurance not only change every year but are specific and unique to each house/car/boat etc. Down payment/buydown of course also changes this.

    As long as your maximum monthly payment is where you want it to be then you have an idea of how much house you can afford. Banks/builders/sellers/real estate agents not only know how to figure it out but, would much prefer you have already done your homework and have an idea anyway.

    #77066
    Kristijay
    Participant

    Banks typically approve you for a maximum mortgage amount, but NACA approves you for a monthly payment amount instead to ensure that you are within your demonstrated affordability. You’ll have to ask your MC to provide you with a PSL letter when you are ready to submit an offer. At that time they will check to see if the monthly payment that you are qualified for will cover the PITI of the house that you selected. This will serve as your “pre-approval” to present to the builder.

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