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Closing Tuesday! Navy Federal 100% Homebuyers Choice Mortgage

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Closing Tuesday! Navy Federal 100% Homebuyers Choice Mortgage

My NFCU mortgage officer called this morning with the most beautiful news: my loan is clear to close! Scheduled for settlement on Tuesday, 11/25, and I couldn't be more excited. 

 

Anyway, I know that I did a lot of searching for threads about Navy Federal's 100% financing, so I thought I'd post a bit about my experience. I'm about to lay down a novel, so here's the TL: DR summary: In a word, it's been amazing. Just a seamless transaction from start to (almost) finish. 

 

First, for the details. Buying a SFH in Washington DC for $290K. 100% financing, 5-5 ARM, initial interest 4.25%. No funding fee. (On an interesting note, I initially applied for the 30-year fixed rate 100% financing. But that loan came back at a much higher interest rate and had a funding fee (I believe it was 1.75%, but my head is swimming). When I did the math and read the terms of the ARM, I decided to switch products). The house ended up appraising for $25K over my purchase price, so I'm actually going in with some equity despite the $0 down.

 

I've been dithering about buying for two years and watching listings like a hawk, but I didn't think I'd be pulling the trigger in the near future. As a result, had quite a few inquiries in the last six months. Probably not wise. Thanks to all the new inquiries and the fact that I'm currently carrying a balance, my score is lower than what's in my sig. Middle score was right around 705, low was 699, high was 72-something. I really wasn't sure how a mortgage app would go because, on the one hand, I have a very secure government job with about $110K in income and have been here for five years. On the other hand, my scores are down a bit right now and I have an appalling amount of student debt (let's just say that it's larger than many mortgages . . . around $200K). To my surprise and happiness, they approved me without fanfare. 

 

Now the timeline: 

  • Oct. 10 - My soon-to-be house was listed. Because I've been sort of looking for so long, I knew that this could be it: it was in one of my target neighborhoods, detached single family (which can be hard to come by in DC), priced competitively, and a fixer-upper (I didn't want to buy a flip with the ubiquitous granite/stainless slapdash renos). 
  • Oct. 11 - I grabbed some friends and went to check out the neighborhood. House was cute on the outside, felt comfortable in the neighborhood. Then I hopped on a plane to go out of town for a few days.
  • Oct. 15 - Back in town, still thinking about the house. I decide to approach NFCU about preapproval. While I'm at it, I contact their RealtyPlus program and request a realtor referral, since I didn't have anyone lined up. A realtor contacts me within minutes. I am initially underwhelmed. (FWIW, I've done a 180 on this point. The realtor they connected me with has been amazing and I give her a lot of  credit for getting this deal done).
  • Oct. 16 - The realtor and I go to check out the house. I love it. It's a fixer-upper that needs a LOT of cosmetic work, but I love it. That same day, I get my preapproval and receive my first phone call from my NFCU loan officer.
  • Oct. 18 - I make an offer. Navy Fed says that they can close the loan in 30 days, so we select 11/25 as a closing date. My realtor and I go back and forth on what to offer (knowing that there were already at least two other offers on the property). At the last minute, she says that her gut is telling her I should drop my offer by $10K. I do. 
  • Oct. 19 - The sellers select my offer. I beat five other offers, and came in less than $5K over the next highest. Seller's agent mentions that they view an NFCU pre-approval as really solid and that that also influenced the seller's decision. 
  • We spend the next few days hammering out contract language and agreeing on terms. My loan officer gets the ball rolling the second we have a completed contract.
  • And seriously, I barely hear from him again. Every time I have a question, he's super-responsive. But he and my realtor handled almost everything behind the scenes. 
  • Oct. 27 - NFCU instructs me to log into their online document system. The bulk of the paperwork for the loan is already there for me to review and/or sign. 
  • Nov. 14 - Loan officer sends me a list of final documents that I need to provide. It is quite modest. Contact info for my last two landlords, most recent paystubs, and a credit explanation letter for a few old lates and all of those new inquiries. (oops). 
  • Nov. 19 - I call my loan officer and ask if I'm really honestly still on track to close on 11/25. He says that he's submitting my file for final underwriting and doesn't anticipate any problems. 
  • Nov. 20 - Clear to close comes in at 10 am. 

Because I used their RealtyPlus program, I'm getting $1600 back a few weeks after closing. They're also covering a portion of my closing costs. And that, my friends, is it. Other than occassionally requesting documents that I had already submitted (which is not a big deal, in my book), they were flawless. Don't know if I just lucked into an extraordinarily good loan officer or if they really are this smooth, but I can't recommend this program highly enough. 

 

(And finally, many thanks to anyone who actually read all of this. I hope it's actually useful to someone). 

Message 1 of 33
32 REPLIES 32
Established Contributor

Re: Closing Tuesday! Navy Federal 100% Homebuyers Choice Mortgage

Wow! congrats to you! I was thinking of using NFCU 100% financing, would you mind me asking how much out of pocket did you have to come up with? ThanksSmiley Very Happy

What's in my sock drawer? NFCU LOC 15,000] NFCU Cash Rewards 20,000][ Golden 1Platinum Rewards Card 6,600 Discover It 5,000,] {NFCU goRewards 17,500} Barclaycard 1250.00,]Cap one 750.00 ], Watering my garden for the next five years:-)
EQUIFAX 727 EXPERIAN 732 TRANSUNION 743 FICO} STARTING SCORE....554 July 2013
Message 2 of 33
New Contributor

Re: Closing Tuesday! Navy Federal 100% Homebuyers Choice Mortgage

Thanks for the info!

I have been preapproved for a Mortgage with NFCU Homebuyers Choice as well and I am "patiently" waiting for an answer on a offer I made on a short sale property! Been a very longtime dream of mine and I cant say enough about Navy Federal...They are amazing and have been incredible to me the past year!

Congrats on your home! Sounds like you have some work ahead of you, but thats what will make it "your home".

I can only hope my closing goes as well as yours as I am using my own realtor but she really knows her stuff!

Good to know how smoothly your experience went. It doesnt suprise me at all!

Thanks again for sharing..

 

Myfico scores 1.9.15 EQ 657 EX 688 TU 700
NFCU Plat Visa 15,000 | NFCU Cash rewards 15,000 | Lowes 7500 | Fingerhut 1100 | Amazon Store Card 1,500 | Discover IT 1300 | CAP 1 Qsilver 1300 | JC Pennys 1500 | Dressbarn 1100 | Walmart 2500 | Kays Jewelers 500} Mattress One 4500 \ Ashley Furniture 1500 \ American Home Furnishing 2000
Loans:
NFCU Auto 30,000 | NFCU Nav check 15,000 | NFCU Debt Cons 4100 |


Message 3 of 33
Contributor

Re: Closing Tuesday! Navy Federal 100% Homebuyers Choice Mortgage

 


@CreditHealthy wrote:

Wow! congrats to you! I was thinking of using NFCU 100% financing, would you mind me asking how much out of pocket did you have to come up with? ThanksSmiley Very Happy


All told, I'll probably lay down about $4000 -- but this is so variable, I'm not sure it's useful info. Closing costs are a little high in DC (I think mine are running a little over 5%, so not outrageous, but on the high end of the range). But my purchase price includes a $10K seller contribution toward closing costs, which helps a lot. I already put down $3K for my EMD, so I should only need another $1K or so for closing. 

Message 4 of 33
Contributor

Re: Closing Tuesday! Navy Federal 100% Homebuyers Choice Mortgage

Oooh, good luck! I'll keep my fingers crossed for you. I know how painful it is to wait. I think you'll have a great experience with NFCU once you get a contract.  

Message 5 of 33
Established Contributor

Re: Closing Tuesday! Navy Federal 100% Homebuyers Choice Mortgage

Thanks so much for the info! Again...CONGRATSSmiley Very Happy

What's in my sock drawer? NFCU LOC 15,000] NFCU Cash Rewards 20,000][ Golden 1Platinum Rewards Card 6,600 Discover It 5,000,] {NFCU goRewards 17,500} Barclaycard 1250.00,]Cap one 750.00 ], Watering my garden for the next five years:-)
EQUIFAX 727 EXPERIAN 732 TRANSUNION 743 FICO} STARTING SCORE....554 July 2013
Message 6 of 33
Contributor

Re: Closing Tuesday! Navy Federal 100% Homebuyers Choice Mortgage

Wow this is so helpful. I think I'm going to pull the trigger on the ARM as well. In terms of monthly payment, what was the difference between the ARM and the 100% financing. My mid score is about what yours is so its good to know that  right at 700 will still get you 4.25. Did they ask for tax returns? Verify any assets or 401ks? It sounds so easy. You make me want to apply today. I still want to get my utilization a bit lower though first. 

Message 7 of 33
Contributor

Re: Closing Tuesday! Navy Federal 100% Homebuyers Choice Mortgage

is this Navy Federal Credit Union?

 

VA loan?

Message 8 of 33
Frequent Contributor

Re: Closing Tuesday! Navy Federal 100% Homebuyers Choice Mortgage

congratulations!!!  We got a pre approval from them too but they approved us only 93k and we were wanting 100k.... Our closing costs estimate were also almsot 7k!!! which seems outrageous!!!.  I asked the LO, who has not been good, if we could switch to FHA that maybe that would be better for us, and she said she would have to transfer me to someone else.  Does any of you guys know if our approval amount could be higher with FHA?

Equifax: 676 (myfico) Experian: 683(myfico) TransUnion: 689 (Barclays)

Current Goal: 700
Message 9 of 33
Established Member

Re: Closing Tuesday! Navy Federal 100% Homebuyers Choice Mortgage

Can comeone explain what the 5-5 ARM means?  I feel stupid for asking but I won't know unless I do.  I am trying to figure out if we should push to get 5% together for a conventional, but if there is something reasonable out there that would help keep closing costs down (I would like to reserve our cash for moving costs, and initial repairs/emergencies).

 

Also, did you apply to be a member recently or had you already been an established member? 

 

PS:  Congratulations on your new home, how exciting!

Message 10 of 33
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