QUALIFICATION-HOME OFFER..HELP

Home Forums Purchase Program QUALIFICATION-HOME OFFER..HELP

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  • #46003
    MzSheaD
    Member

    I was qualified on Friday 10/28 at the Chicago Achieve the Dream event (soooo worth the 11 hr drive) While at the event both the MC, Underwriting and the Agent conducting the home purchase workshop said to focus on the monthly max PITI amount because those amounts will determine whether or not the home is affordable or if additional interest rate buydown is needed.

    I received the property specific letter and then an email from the new MC that I was assigned to at the event saying that I need $10k in buydown. I ran numbers manually, through the naca site and even through other online mortgage calculators and I have NO CLUE where he is getting his numbers from. @TTrumble PLEASE HELP. I am trying to put an offer in on a home but cant without this property specific letter.

    Monthly Approved PITI $1225
    Listed Asking Price $219,000
    Offer $209,000 + $7500 in closing cost for interest rate buy down
    Counter Offer $212,500 + $7500 in closing cost
    Annual Taxes $800
    No HOA
    Monthly Insurance $66.00 (its an add on to my car so I save)
    Current NACA site interest Rate is 4.375%
    $7500 interest rate buy down $212,500 * 1%=2125 =3.125%

    MONTHLY MORTGAGE PAYMENT $1044

    WHAT AM I MISSING?!?

    #46004
    JHarris981
    Member

    @MzSheaD when I calculate your numbers — $7500 affords you 3.5 points. $7500/2125 = 3.52 (round down = 3.5).
    Each point decreases your interest rate by .25%.
    Each half point decreases your interest rate by .125%.
    3.5 points = a 0.875% decrease in interest, so your new interest rate would be 3.5%
    I input all of your numbers into the calculator or mortgagecalculator.org:

    Loan amount: 212,500
    Down payment: $0
    Interest rate: 3.5%
    Loan Terms: 30 years
    Property Tax: $800
    PMI: $0
    Home Insurance: $792/per year
    HOA: $0

    It gave me a monthly mortgage of $1479.80. If you put down another $10,000, you could purchase another 4.50 points, which would further decrease your interest rate by 1.125, resulting in a 2.375% interest rate. That would drop your mortgage down to $1298.62. So a little over $10,000 would be needed to stay within your maximum PITI of
    $1225. Hope this helps!

    • This reply was modified 2 years, 12 months ago by JHarris981.
    #46023
    pratik
    Member

    @JHarris981, there seems to be a mistake in your monthly mortgage calculation. $212,500 property at 4.375% gives monthly PI of $1061 and add insurance and taxes and that will add ~$136, making a mortgage (PITI) of $1198. With the $7500 buydown (~3.53 points), the interest rate will go down to ~3.493% and the monthly PITI will be $1090. No need to put down another 10000. @MzSheaD, your MC goofed up. Don’t worry about whatever s/he says. Just ask him to submit the bank application :-D. Good luck!

    #46024
    southflorida
    Member

    Here are my numbers:

    – Loan amount:$212,500
    – Each interest point costs $$2,125 and with $7,500 you can but 3.5 points which would decrease the interest by 0.875 resulting in a decrease in the interest from 4.375% to 3.5%
    – If I put in a mortgage calculator $212,500 in a 30 years loan with an interest of 3.5% I get a monthly payment of $954
    – Insurance is $66
    – Taxes is $67 (800/12)

    Below would be the monthly payment:

    954 Mortgage
    66 Insurance
    67 Taxes (rounded up)
    —————
    1,087 TOTAL

    I agree with @Pratik, we are only off by $3

    @MzSheaD Don’t take NO for an answer

    #46028
    MzSheaD
    Member

    Thank you @pratik and @southflorida he did in fact miscalculate 🙂 I made sure to run the numbers in all calculators possible before I even looked at homes. I didnt want to fall in love with something that I couldnt afford. He just kept insisting on the max purchase amount not the monthly amount, but I was able to get it resolved yesterday afternoon thanks to the AMAZING Shawn Cunningham. I am officially under contract. Inspection is scheduled for tomorrow at 3pm.

    #46029
    southflorida
    Member

    OH WOW, That’s great! how many days for closing in the contract?

    #46031
    MzSheaD
    Member

    @southflorida its written for 45 days. Closing date set for December 10th but it was a rental that had been on the market for over 3 months so the seller is quite patient and nice.

    #46034
    southflorida
    Member

    Oh ok, great, I hope things expedite for you, good luck

    #46040
    MzSheaD
    Member

    thank you @southflorida im just glad to see some movement. ANY action is great at this point.

    #46041
    TTrumble
    Member

    Hello all,

    How cool that you got it resolved before I even could look at it! Shawn is truly an amazing guy, and not just where NACA is concerned. We are incredibly fortunate to have him here!

    I’m also very grateful for all the input that @southflorida and @pratik have shared. I’m sure everyone has guessed that I’ve been swamped with the Achieve the Dream events the past few months, and I am extremely grateful to both for their help in keeping things on track. I know the forum has been in great hands. You guys rock!

    With the tour schedule for 2018 winding down (only Philadelphia left) I’ll be able to invest more time here going forward (at least until after the holidays)

    @MzSheaD please make sure to keep us updated on how things are going.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    • This reply was modified 2 years, 11 months ago by TTrumble.
    #46049
    MzSheaD
    Member

    Yes I love me some Shawn! He’s hilarious. I saw you at the Chicago event Mr. Trumble. I was there Friday right before you guys shut down for the evening and I was there volunteering on Saturday. I was the last clap of the night on Friday the 28th.

    #46058
    MzSheaD
    Member

    Has anyone heard of the transaction summary sheet form?

    #46059
    JHarris981
    Member

    @MzSheaD my apologies!! I had all your figures and had calculated your interest rate down correctly, but I think I input the wrong loan amount when I typed it in the calculator. I did get $1087. Glad that all worked out for you. Your file is moving along quickly now!

    #46061
    MzSheaD
    Member

    No apologies needed @jharris981 I appreciate you helping. Attending the ATD was the best decision that I have made so far during this process.

    #46063
    JHarris981
    Member

    @MzSheaD thanks! I love math. Took Calculus in college just for the heck of it, so I definitely don’t want to give anyone wrong figures. 🙂 For some reason I input that the sale price for you home was $300,000. Maybe I was thinking of my dream home. lol I’m glad things are looking up for you!

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