NACA GFE

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  • #7644
    areno
    Participant

    I’m a little confused as to what’s included in this. Is any required rate buydown already included here?

    I thought there were no closing costs with this program, but there are all kinds of costs listed here and the amount seems to be about the same as normal closing costs. Kind of disappointing.

    #7647
    TTrumble
    Member

    Hello areno,

    Not sure what you’re looking at, but there are no actual closing costs. Points, fees, etc. are absorbed by the lenders. That does not mean they are going to take care of other required prepaids at closing such as your fist year of homeowners’s insurance, inspections, etc.

    If you’re disappointed, you’re definitely reading something wrong. The difference is typically several thousand dollars.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #7650
    areno
    Participant

    Our real estate agent is telling us that the origination fee is very high and that the appraisal fee and flood insurance fee are all closing costs.

    #8322
    yuly23
    Participant

    Did you end up paying for all the closing costs listed on the GFE? Nobody at NACA seems to give me a straight answer regarding this and it’s a lot of money vs what I was originally told I should have for closing ($3000 vs 10,000). I’m wondering if all costs on GFE will have to be paid by me.
    thanks for any feedback on this.

    #8331
    hayk
    Participant

    GFE lists all settlement chages, including those paid by the seller and/or lender (such as appraisal fee, NACA broker fee, NACA rehab fee, title insurance, post-close final inspection fee etc…). For this reason the actual amount required to close IS NOT the total amount listed on GFE. Additionally, buying down interest rate especially using own funds can HUGELY mess up the GFE and final HUD-1.

    Also, keep in mind that in most instances it is impossible to indirectly calculate the amount you need to bring to closing by simply subtracting the amount paid by seller and/or lender on your behalf from total settlement charges shown on GFE. (at least this is the case when the lender is Citi).

    The only way to calculate your anticipated closing costs is by adding all the components you’ll be responsible for (such as homeowner insurance for 1 year, escrow deposit, interim interest charge, interest buy-down paid out of pocket etc…). Even then there still might be some charges for which you’ll have a hard time finding an explanation.

    #8350
    areno
    Participant

    So if its impossible to calculate then how the hell am I supposed to get a cashiers check for the amount needed?

    #8352
    prayingforahouse
    Participant

    Your mortgage counselor should be able to give you a ball park estimate at the time of bank app and then the title company should give you the exact amount before closing that you will need to bring.

    You should not have to pay any closing costs with a NACA loan. Our loan app docs did list the closing costs but we were told that we only have to bring our rate buydown amount and prepaids (insurance/Prop tax) to closing. We haven’t been given the clear to close yet but I was told when we do the title company or our mortgage counselor will give us the exact amount.

    #8759
    chaoticallysweet
    Participant

    Sorry for the late tag in, but I just received my update GFE and nearly had a heart attack. I re-read the Naca home purchasing agreement and website. Until I read this thread and Tim’s comment on another thread to call MC and ask “why” like a 4 year until I fully understood what I was signing, I was almost ready to walk away.
    The GFE listed the Naca origination fee, appraisal fee… etc era, etc era fee.

    LOL! I am still at a LOSS as to what is expected of me, but I hope it is NOT what is listed on the GFE!

    #9259
    yuly23
    Participant

    Hi Al,
    Just wanted to give you an update (long over due). The amount of money I had to bring at closing turned out to be less than the $3000. It turns out NACA documents probably have to break down all the fees but we don’t have to pay for them. Unfortunately nobody could clear this up for me and I didn’t find out until my escrow person gave me the amount exact amount hours before I had to bring the cashier’s check. I was able to buy down the rate a whole point which brought up my total due amount but that is a different story. So in short, the GFE is not what you’ll need to bring at closing.

    #9391
    ItsJustMe
    Participant

    We’re finding ourselves in this same situation. Thankfully I had read this thread and was aware that the GFE would be jaw dropping compared to what we are actually expected to bring in. I have asked the MLO several times if the figures in the GFE are accurate, or if we would be receiving a separate estimate with accurate figures, and her response was “Its high because BoF is paying the interest buydown. Adjustments will be made at closing. The GFE is simply an estimate.”.

    Is there any way to get an accurate estimate? I understand that the variance would be several hundred dollars due to interest/taxes, but it seems they could provide a figure that is more accurate than the $30K+ figure I currently have, lol. Something within, say, $1K of what is actually expected of us.

    It seems silly that the GFE is provided in this way, and without an explanation and supplemental estimate taking in to consideration what will actually be expected of us.

    #9408
    TTrumble
    Member

    Hello ItsJustMe,

    You will get the exact amount of funds needed for pre-paids once the Clear to Close is given, since this is the only time a precise figure can be calculated.

    At no point do we state that the GFE figures are what is needed at closing from the member. The GFE is an industry-standard form that is used for every mortgage, regardless of who is paying any or all of the amounts calculated. I’m frequently surprised at how many people misread the GFE in spite of the fact that they have known from the very start that the bank pays the closing costs, including the points, fees etc.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

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