I had my first intake appointment this past Wednesday and I am super excited! I will post my journey once I am qualified (hopefully sooner than later).
So I am looking into doing a new construction home which build will not start until March 2018 and is expected to be completed by June/July 2018. If I get NACA qualified in January/February I would obviously want to secure my lot and home by going under contract with the builder as soon as I get the green light from NACA.
So if I am understanding the process… get NACA qualified, attend buyer workshop, see builder to go under contract, submit bank application. At the time of the bank application I would need my full MRF which would include my savings cash, any gift funds, 401k, and seller concessions towards closing.
HERE IS THE QUESTION….. If the bank app is done in February 2018, but the home will not be completed until July 2018
1. What happens to funds I save after my bank application is submitted from February to June/July? Do they just sit in my account, or can I use them for buy-down, closing, etc?
I am asking because I will have a SIGNIFICANT amount saved, including tax refund monies within those 4 months.
It isn’t an “either-or” situation with the funds. While your full MRF must be in your account at the time of Bank Application to prove that you will in fact be able to provide the full amount needed, the money stays in your account until closing (July), with the exception of funds for pre-paids such as inspections, etc.
If your continued savings after the Bank App allow you to buy the interest rate down further than originally stated on the app, a Change of Circumstance form will need to be submitted to the bank with the revised final figures. Please be aware that this will create a delay in receiving your Clear to Close.
The situation you described should have actually been brought up with your counselor during the intake appointment so he or she can factor it into their calculations since it will affect your interest rate and affordability. Please make sure that your counselor is made aware of your plans at your next appointment.