Exploring other options

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  • #71232
    Faith81
    Participant

    Hi guys,

    After a very emotional and eventful weekend I realized I may ave to explore other options. Can anyone please tell me if they have ever applied for another loan and came back to NACA? Is there consequences for doing so? I am already qualified but cant get an amount that will get me something in the area I would like to purchase in. Any thoughts and feedback is greatly appreciated.

    #71233
    Nelsont
    Member

    Shopping around is encouraged for any loan. Whether it be for a car a house or to consolidate your student loans most go ahead and see what’s available to you. Going beyond the approval process though kind of puts you at a point of no return.

    Naca is not for everyone. If you have the patience and will to work within their system naca is an unbeatable product.

    I think if you go outside naca you will find that naca is actually approving you for more house.

    Nobody can tell you what is right for you. If you have the money and the difference in approval amounts is negligible but allows you to buy where you want then it might be worth it.

    #71234
    Faith81
    Participant

    Thank you Nelson. I am concerned about them pulling my credit and how that would affect me with NACA. I am honestly scared because I put in so much work and so much energy into NACA. I see the greatness in this program but wanted to see if I have other options.

    #71276
    lisap88
    Participant

    Faith,

    You would just need to write an LOE about any other inquiries but as long as you don’t acquire any new debt, they shouldn’t hold you back.

    #71278
    s20
    Member

    @faith81, you can do a rough calculation yourself first. Other banks give you up to 40-50% of your income before tax (affordability estimation). NACA caps that at 30-35%ish. For example, if NACA monthly payment for mortgage is $300 (30% of monthly income), you can find a bank that gives you monthly payment of $500. That being said, then you need to pay for closing costs, maybe PMI, etc.

    #71279
    CommonCents
    Participant

    I’ve decided to shop around myself. It’s amazing how you can receive a pre-approval letter within an hour versus waiting close to 6 months (or more according to member timelines) for NACA.

    #71281
    Nelsont
    Member

    Actually since the Dodd-Frank act of 2008 a general rule of 43% total DTI with no more than 36% housing ratio is the highest ratio a borrower can have and still get approved for a mortgage loan. And in today’s market lenders are preferring to stay below 36% total DTI with a 28% housing ratio.

    Naca matches up favorably because they use a 40/31 rule which may be lower than the normal 43/36 but, you’ll notice 2 things. That 43/36 includes PMI which is typically 1-2% of the cost of the loan and possibly MPI which is 0.4-1.2% of the cost of the loan. Then of course there is the necessary down payment which maybe anywhere from 3.5% to 20% of the loan cost and closing costs which is in the 2-5% of the loan cost range.


    @CommonCents
    just keep in mind the pre approval does not have any underwriting involved which is why you get it so fast. 30% of all mortgage loans do not close on time and over 50% of contracts that fall through are because a buyer used a pre approval letter and then underwriting denied them.

    • This reply was modified 1 year, 12 months ago by Nelsont.
    #71289
    Faith81
    Participant

    I applied for one pre-approval. NACA is definitely better. Going to continue to try to get thru.

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