Soooo…. I thought I had to have a certain amount saved in order to be approved by NACA. I was not aware that I needed to save a certain amount each month in order to be qualified for the mortgage rate I wanted. Can I still qualify for NACA, or will they make me wait 3 to 6 months until I build my “payment shock”?
Payment shock resets every month until you close on your house. You need 3 to 6 months to qualify and you need to maintain it every month there after until the keys are handed to you.
This is in addition to the minimum savings known as mrf which to get qualified is the bare minimum and does not include funds necessary to buy down interest rate if you you so desire. Those funds will be added to your effective mrf and need to be in your bank account prior to submitting an offer. Again though that is optional.
Yes. You can look at it like this. Mrf is a baseline while payment shock is a monthly goal.
Mrf includes the money you will be spending. You can’t go below before you buy the house because the whole point to the process is to make sure you don’t get to that point without being financially prepared. You can’t be expected to be able to put up an emd for instance and not dip below your mrf. Maybe you can. That’s just not the expectation.
Meanwhile technically you will be expected to save your payment shock. After putting up an emd and paying for inspections it’s very probable at the end of the month your statement balance will be considerably less than last month. As long as you maintain your savings pattern the expenses directly related to buying a house will be subtracted.