Re: The Official NACA mortgage thread
06-21-2012 03:20 AM
I went through purchase of new construction. I was NACA Approved in December, went to contract in January and closed in April (property was being built on "spec").
You're right, your approval seems to be good for 30 days. You'll need to be ready to update paystubs and bank statements monthly, and keep up any payment shock savings.
In a purchase of a resale home, NACA would inspect the home before approving the contract. For new construction you won't do the home inspection until completion. The process was smooth with the inspector uploading the report to HAND and a two or three day turnaround. There's some different paperwork for termite protection, and if there's a Homeowners or Condo Assciation some details needed.
The challenges seemed to come from the fact NACA doesn't do many new construction financings so the personnel aren't as practiced in what to inspect. In my case my Mortgage Counselor had to hand off to another counselor in another office for the mortgage process (licensing issues) which made it a bit more difficult.
You'll see several phases. First completing the mortgage application which includes completing the contract review and an initial appraisal. Then underwriting by the lender (mine was CitiMortgage). Third, getting ready to close which involves a title company chosen by NACA, NACA Underwriting, Lender and with the Mortgage Counselor juggling those three parties.
Stay patient, be ready to resubmi things again and again, and you'll get into your new home at a great rate with no closing costs.
Starting Score:11/16/2009 EQ 566 11/16/2009 TU 538
Interim Score: 12/27/2012 EQ 683 09/17/2012 EX (lender) 670 1/01/2013 TU 701
Current Score: 11/06/2013 EQ 708 11/06/2013 EX 702 11/16/2013 702 11/06/2013 TU 729
Goal Score: EQ 740 EX 740 TU 740
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