Qualification Letter vs Qualification Form

[robins333]

I just got qualified. I will attend the purchase workshop this upcoming Thursday.
I checked my file and it has a qualification form, the max mortgage amount is over 100,000 less than what my MC had me sign earlier in the process. Is this normal? What is the difference between the form and the letter?

[Nelsont]

The difference is explained on page 6 of the purchase workbook which you will receive at the purchase workshop. It’s also available to download on naca.com if you don’t want to wait.

The basic difference is the form shows your personal information while the letter is what you provide to your real estate agent in lieu of a pre approval letter. You won’t get this until after the workshop. This is required by agents to view homes and it’s a way of making sure you attend the workshop by handing it out afterwards.

With that said pay little attention to the mortgage amount and pay extremely close attention to the monthly payment. For a half dozen reasons that you have no control over your buying power can decrease significantly even if your financial picture remains unchanged.

Understanding the form has a maximum mortgage amount lower than you expected. What does it say about the rest of your finances? Particularly the monthly payment.

[robins333]

It is also $700 lower than what I had before. I am actually in a better position than when I started. No more car payments.

[Nelsont]

It’s possible the underwriter was more picky/conservative than your MC and just didn’t accept certain things. You need to reach out to your MC and see why there is such a big discrepancy. Without being just a mistake I would bet there’s a debt being factored in by the underwriter that wasn’t with your MC.

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