#PanicMode Wrong Qualification Amount

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  • #39881

    I will try to make this as short as possible.

    When I initially started this NACA journey I fully anticipated on buying a family member’s home for $160k. I knew some work would need to be done to the property so I gave a desired amount of $190k. Well long story made short, I paid for a property inspection and the property wasn’t worth the headache. On December 7th, I e-mailed my counselor to let her know I would like to change my desired amount from $190k to $250k. She assured me it wouldn’t be a problem so when she sent my loan to underwriting I was disappointed to know she submitted the $190k amount. She once again assured it could be fixed and she would update the underwriter that I wanted a higher loan amount.

    Today, I was qualified (yay), but for $190k! What does a girl have to do get qualified for a higher amount?! Has anyone been successful on updating the loan amount after being qualified? If so, how long did it take? My dream house is on the market and I need it!

    I’ve also been told I have to switch from a remote counselor now that I’m qualified and I’m terrified I have to start all over.

    Gross Monthly Income: $8,128.00
    Monthly Debts: $1,442.00

    Current Rent: $1004.00
    New Desired Amount: $1500.00

    Payment shock has been saved in bank account and through 401K contributions. My 401K contribution alone is $565 per month and my payment shock is $496 per month. If I did this math right, I should qualify for a $1500 payment with no problem.

    Signed,

    Help!

    #39885
    TTrumble
    Member

    Hello Searching4Homes,

    If you’ve read through the Forum at any length at all, you know that I have always preached that the single worst thing you can do is to panic about a bump in the road. The only thing you will accomplish will be becoming your own worst enemy in the process.

    For example, your statement, “I’ve also been told I have to switch from a remote counselor now that I’m qualified and I’m terrified I have to start all over”. Who gave you the idea that you have to start over? I promise that came from nowhere but your own imagination.

    So, step one is to relax. Based on what you described, while it’s irritating (and rightfully so), it’s actually a small problem. Just keep your paystubs and bank statements updated, and we’ll simply have your new counselor submit the file back to underwriting. Email your current counselor, or your new counselor if you know who that is, and copy me on the email. You’ll either get a revised qualification amount or know why.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #39889

    Thanks Tim.

    With your words of wisdom and a bottle of wine I was able to get myself together. 🙂 She e-mailed back this morning letting me know she would give me a call today so hopefully we can get the ball rolling.

    She really is a good counselor, just new.

    #39891
    TTrumble
    Member

    Hello Searching4Homes,

    I got the copy of your email. Please keep me updated.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #39895

    Update:

    Received a call from my counselor as promised, no resolution as of yet. Referred to speak to her supervisor when he’s back in the office next Tuesday.

    Tim – I sent you an email with more details. I’m not expecting you to be a miracle worker and with my luck I wouldn’t be surprised if you told me to kick rocks.

    I’m going to crack open another bottle of wine to calm my nerves.

    #40224

    Update
    Since I’m qualified, I have a new counselor.

    My new counselor e-mailed me yesterday and advised to get resubmitted back to underwriting I must submit the following documents:

    1. 90 Days of credit card statements
    2. Proof of paid rent for January
    3. All pay stubs for January 2018 and December 2017
    4. 2017 W-2
    5. Current bank statement for all accounts.
    6. Updated 4506-T
    7. Current 401K statement that covers October through December 2017

    With the exception of the 401K statement, 4506-T and January bank statement from 1 account (just came out a few days ago), I’m resubmitting everything I’ve already submitted before. I’m trying my best to convince myself I’m not starting over, but it sure does feel like it. 🙁

    #40249
    TTrumble
    Member

    Hello Searching4Homes,

    Brining the documents in your file up-to-date is a far cry from starting over. And as I’ve noted here in the past, a request to resubmit a document is done to help the counselor find the specific document quickly by having it on top of the virtual “stack” of documents in your file.

    Just FYI (and to let everyone know), our software guru is working on improvements to our system that should soon allow you to submit documents to your file in such a manner that they will automatically drop into their proper spot in your file. It will require a little more work on your part when submitting as you will have to fill in some specific information about each document on the upload screen, but it should reduce the need to ask for documents to be resubmitted. We hope to roll out the enhancement in the next few weeks.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    • This reply was modified 4 years, 6 months ago by TTrumble.
    #40285
    pratik
    Member

    Yay @TTrumble,

    GREAT to know the software is getting a facelift. Hope it helps on both NACA members and NACA employees ends!


    @Searching4Homes
    – I think you are good. Your gross monthly income can qualify you up to ($8,128 * 31% = ) $2,519. You want $1,500 qualification, with $1,004 in rent and $496 in monthly payment shock, which you are already doing. So, it will be a breeze.

    Since you want to go for a $160k house (or may be $190k or $250k? House is a liability if you ask me, so cheaper is better – I would INVEST extra money in stocks rather than real estate!), and given your income, I would rather go with a 15 year mortgage with a rock-bottom interest rate buy down and save money on paying on interest. This would be better than 10% ROI (ballparking) investments!

    Best wishes,
    P.

    #40289

    Thanks Pratik,

    I think BOA included our OT and had us around $11k, so I know income is not the problem. We sent out request to our new counselor on 01/11/2018 and currently still waiting on a response.

    Thanks for the advice! We will def. take that into consideration.

    #40406

    Update

    02/06/2018 – I reached out to my MC to see if any additional documents were needed to process my file. He responded and advised if I sent my bank statements and pay stubs directly to him by EOD 02/07, he would have my file submitted to UW on 02/08. My work e-mail would not let me e-mail documents without securing the e-mail so I quickly went to the library to resend documents to his e-mail.
    02/07/2018 – I e-mailed my MC that I submitted an additional pay stub to my Web File and to remind him all documents requested were submitted the prior night. MC responded that he placed all the documents in my file and my file would be reviewed the next day for resubmission.

    02/08/2018 – I had some activity on my file today, so super excited. Hopefully I was sent back to UW today or at least by EOD tomorrow. I plan to call Member Services tomorrow for an update so I won’t nag my MC too much.

    #40435

    Update

    I called Member Services and confirmed my loan was sent to underwriting for the updated qualification amount yesterday. Now it’s just a waiting game for BofA to approve my request! I’m extremely pleased that my counselor followed through as promised this week.

    #40487

    Update

    We were approved for the higher amount!

    #40488
    pratik
    Member

    Yay! Congratulations!

    #40489

    Congrats!

    #40490
    KRM1213
    Member

    Congratulations @Searching4homes

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