Need some advice for my situation

[Anonymous]

Hello,

I am trying to purchase a home and my main obstacle is I don't have enough cash on hand and I am wondering what my options are. I am trying to buy a home around the 150k range, and I have 6.3k in the bank for closing cost. My middle mortgage score is 725. My gross income is 70k. My hopes were set on the NFCU 0% down loan. But now I am reading horror stories about them being slow. I applied last Thursday on 5/28 and I haven't heard anything from them, I haven't been able to get in contact with the loan officer. In my market houses are moving extremely quickly being listed and sold in a couple days. Without using NFCU I'll have to put this plan on pause and save up some cash. Are there any other options that I'm not considering?

Also, how do I figure out which documents require wet signatures? I read that this depends on which state you live in where would I find out this information? 

[Harvey26]

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@Anonymous wrote:

Hello,

I am trying to purchase a home and my main obstacle is I don't have enough cash on hand and I am wondering what my options are. I am trying to buy a home around the 150k range, and I have 6.3k in the bank for closing cost. My middle mortgage score is 725. My gross income is 70k. My hopes were set on the NFCU 0% down loan. But now I am reading horror stories about them being slow. I applied last Thursday on 5/28 and I haven't heard anything from them, I haven't been able to get in contact with the loan officer. In my market houses are moving extremely quickly being listed and sold in a couple days. Without using NFCU I'll have to put this plan on pause and save up some cash. Are there any other options that I'm not considering?

Also, how do I figure out which documents require wet signatures? I read that this depends on which state you live in where would I find out this information? 

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Have you looked into local CUs or banks alot have first time buyer programs where you can use grants to help with closing costs and down payments

[Peazmom]

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@Anonymous wrote:

Hello,

I am trying to purchase a home and my main obstacle is I don't have enough cash on hand and I am wondering what my options are. I am trying to buy a home around the 150k range, and I have 6.3k in the bank for closing cost. My middle mortgage score is 725. My gross income is 70k. My hopes were set on the NFCU 0% down loan. But now I am reading horror stories about them being slow. I applied last Thursday on 5/28 and I haven't heard anything from them, I haven't been able to get in contact with the loan officer. In my market houses are moving extremely quickly being listed and sold in a couple days. Without using NFCU I'll have to put this plan on pause and save up some cash. Are there any other options that I'm not considering?

Also, how do I figure out which documents require wet signatures? I read that this depends on which state you live in where would I find out this information? 

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Hi @Anonymous.  I am almost ready to close my Mortgage through NFCU.  I was in a very similar situation as you, I had nursed my mortgage scores, but I had very little cash on hand, as I had used most of what I had to pay down debt.  Conventional wisdom would have told me to save up a hefty down payment...BUT, I'm 61 years old and wanted to get a move on homeownership NOW.  Rent is ridiculous where I live and owning a home makes much more sense.  Anyway, enough about me.

I too had heard the stories of NFCU being slow and unresponsive, but because of the 0 down, 0 PMI (military choice) product, I elected to proceed with them, knowing that I may have to prod things along.  My experience, thus far has been very good.  Handling everything remotely, has taken some getting used to, as you can't walk into your loan officer's branch and sit down for a good chat, but....my loan processor has been responsive, considering.  I find that I get quicker responses via email.  She usually responds within 1-3 days.  In her email signature, she has the contact information for her supervisor, and it states to contact the supervisor if I do not feel that I am receiving excellent service.  I applied in December (new build), so there have been periods of time where there is literally nothing happening with my loan package, but my processor has checked in with me via email at least every two weeks during these times to tell me what is going on behind the scenes and ask if I have any questions.

You said you applied, but have not heard anything...did you get a pre-approval notice at all?  If you have not heard anything at all, you can always call customer service and ask for the mortgage department.  They should be able to give you an idea of where your application is at the moment.

As for the documents, look on your NFCU home page, under your Account Summary (this is when you are logging in via computer, not mobile app).  There will be two links eventually. 

1.  The first is the Home Squad application.  There is where you mortgage application documents will be and where you will upload any supporting docs for the application. 

2. When you have a pre-qualify/approval, you should see a link there labeled Mortgage/Equity Application.  In that link you will see documents that have been uploaded for signature.  To the right of each document it will be noted whether the document is for you to view (no signature required); electronic signature needed (you select the link and follow the instructions to e-sign); or to "Ink sign".  If it says Ink sign you will need to print, sign and then upload to the first portal.

I hope this helps some.  So far I have been very pleased with NFCU.  I was able to qualify for the lowest rate on their Military Choice product and pay 0 down, 0 points and 0 pmi.  Yes, I know the 0 pmi translates to a higher interest rate that what I would be getting elsewhere, but I would also have to come up with that out of pocket cash.  For me, NFCU was the best choice....and personally, I don't think 3.825% is half bad (especially since I would not have been able to qualify for a mortgage at any rate 12 months ago).

Good luck, what ever you decide to do...keep us updated!

[NC_Mtg_Loaner]

Check around with other mortgage banks......

In some instances, credit score over 700 I am quoting and offering 2.75% fixed for 30 years on FHA for a purchase loan.  

[Anonymous]

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@Anonymous wrote:

Hello,

I am trying to purchase a home and my main obstacle is I don't have enough cash on hand and I am wondering what my options are. I am trying to buy a home around the 150k range, and I have 6.3k in the bank for closing cost. My middle mortgage score is 725. My gross income is 70k. My hopes were set on the NFCU 0% down loan. But now I am reading horror stories about them being slow. I applied last Thursday on 5/28 and I haven't heard anything from them, I haven't been able to get in contact with the loan officer. In my market houses are moving extremely quickly being listed and sold in a couple days. Without using NFCU I'll have to put this plan on pause and save up some cash. Are there any other options that I'm not considering?

Also, how do I figure out which documents require wet signatures? I read that this depends on which state you live in where would I find out this information? 

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Have they pulled your credit/given you a hard inquiry yet?

Just wondering when they pull during the Preappoval process since I'll be applying with NFCU in a few weeks. I was waiting on one of our statements to close & show a $0 balance first

[Anonymous]

Hi there,

I attempted to apply for the NFCU zero down loan but my situation isn't nearly as good as yours. I was told it would 3-5 business days to hear from someone. When that time passed, I called the main number and prodded things. Got a call within the hour. We were ultimately denied but like I said, your sitch is way better than ours. I wish I had come here first before applying at NFCU. I would have waited. We are working with another LO now with super good prospects, just wish we didnt have the NFCU ding on our report.

Anywho, GOOD LUCK and the peeps here are amazing at helping. I have learned so much!

[Anonymous]

@Peazmom

Thanks for all the info. I had already filled out all of the documents that they asked for on the website and did all documents and uploaded everything.

I was able to speak to the loan officer today and I mentioned to her that I read online that NFCU had a three month turn around time. She confirmed that. She said she should be able to get to my preapproval today, hopefully.

I’m really put off by that timeline but it looks like I don’t have much of a choice. By that time I would have more money for a down payment to switch lenders though.

@NC_Mtg_Loaner

Yes, I’m aware but as I said the issue with that is I don’t have the cash to cover the 3% down. All I have is the 6300 for closing cost and other fees and inspections.

@Anonymous

Of course they pulled it it’s just like any other application for credit. It’s pulled upon applying. I was initially going to wait for something to drop off my June statement, a loan with a payment of $345 that I paid in full. But with or without it my DTI would still fall within the guidelines, so I went ahead and applied anyway because NFCU is so backed up and they’re also slow. I’d advise you to do the same unless whatever you’re waiting on is putting you over some type of important threshold.

[Anonymous]

@Anonymous

Of course they pulled it it’s just like any other application for credit. It’s pulled upon applying. I was initially going to wait for something to drop off my June statement, a loan with a payment of $345 that I paid in full. But with or without it my DTI would still fall within the guidelines, so I went ahead and applied anyway because NFCU is so backed up and they’re also slow. I’d advise you to do the same unless whatever you’re waiting on is putting you over some type of important threshold.

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Oh I understand. Yes I'm near a threshold from what I've read here about NFCU wanting 740 for a good rate. Middle mortgage score is 736, so I guess there's a slim chance that one more account reporting to $0 would get us 4 points..

Did they share their current DTI guidelines with you? We are sitting at the 39% back end including what the new mortgage would be. I know it's high so we will be having a local mortgage broker trying to work with to possibly get another lender as well

Thank you for your advice, we will apply a little earlier than planned if they are back logged. It will be for a new build, so no rush to close, but we just need that Preapproval letter 😑

[Anonymous]

I didn't ask about any of their guidelines, and she didn't volunteer any, sorry. 

[VALoanMaster]

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@Anonymous wrote:

Hello,

I am trying to purchase a home and my main obstacle is I don't have enough cash on hand and I am wondering what my options are. I am trying to buy a home around the 150k range, and I have 6.3k in the bank for closing cost. My middle mortgage score is 725. My gross income is 70k. My hopes were set on the NFCU 0% down loan. But now I am reading horror stories about them being slow. I applied last Thursday on 5/28 and I haven't heard anything from them, I haven't been able to get in contact with the loan officer. In my market houses are moving extremely quickly being listed and sold in a couple days. Without using NFCU I'll have to put this plan on pause and save up some cash. Are there any other options that I'm not considering?

Also, how do I figure out which documents require wet signatures? I read that this depends on which state you live in where would I find out this information? 

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Hi @Anonymous,

Here are a couple of ideas.

1) Depending on the market, you could ask for seller concessions to cover your closing costs and use the money you have saved for your down payment. You can even offer a higher price to incentivize the seller.

2) If you have a 401K or other retirement account, you can check into taking out a loan against it for your down payment. There are several benefits to doing it this way VS cashing out.