Under Contract - Navy Federal Homebuyers Choice

[itgirl74]

After making making offers on 2 different houses and losing to cash offers, I am finally under contract on a place that I love. It's almost 5 acres in a rural area with a beautiful barn and fenced pastures (I plan to have chickens, goats, and alpacas). The house needs cosmetic updates but is in fantastic condition. The last 2 months have been an emotional roller coaster ride, so I'm still feeling the joy of getting an offer accepted before I start stressing about the rest of the process.

Here's my timeline:

3/7/19: Obtain prequalification letter from NFCU

3/12/19: Make offer on house #1, declined

4/18/19: Obtain new prequalification with NFCU for higher amount (HBC Jumbo)

4/22/19: Make offer on house #2, declined

5/2/19: Make offer on house #3

5/319: Seller gives me the opportunity to increase offer to match another buyer with a house sale contingency; new offer accepted

The good news is that house #3 is under NFCU's threshold for a jumbo loan, so my rate will be lower. I'm putting 0% down and getting the loan origination fee rolled into the mortgage. I started this process several months earlier than intended, so I need to minimize the amount I bring to closing. But I also found a more affordable house than I wax expecting, so I'll be completely comfortable with the mortgage payment.

Next steps:

5/6/19: Deliver earnest money check to title company

5/8/19: Inspection

TBD: Well (water) inspection

TBD: Appraisal

I'm trying not to worry too much, but I'm nervous about the appraisal because my offer is 10K over asking. Hopefully the fact that I'm in such a hot market helps me finally.

I'll try to keep this thread updated for those who are interested.

[Anonymous]

Thanks for such great detailed timeline! Congrats on your accepted offer! Look forward to following your process. We received our NFCU prequal recently and are trying to find a house. Am hoping it all goes smoothly!

[CreditInspired]

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@itgirl74 wrote:

After making making offers on 2 different houses and losing to cash offers, I am finally under contract on a place that I love. It's almost 5 acres in a rural area with a beautiful barn and fenced pastures (I plan to have chickens, goats, and alpacas). The house needs cosmetic updates but is in fantastic condition. The last 2 months have been an emotional roller coaster ride, so I'm still feeling the joy of getting an offer accepted before I start stressing about the rest of the process.

Here's my timeline:

3/7/19: Obtain prequalification letter from NFCU

3/12/19: Make offer on house #1, declined

4/18/19: Obtain new prequalification with NFCU for higher amount (HBC Jumbo)

4/22/19: Make offer on house #2, declined

5/2/19: Make offer on house #3

5/319: Seller gives me the opportunity to increase offer to match another buyer with a house sale contingency; new offer accepted

The good news is that house #3 is under NFCU's threshold for a jumbo loan, so my rate will be lower. I'm putting 0% down and getting the loan origination fee rolled into the mortgage. I started this process several months earlier than intended, so I need to minimize the amount I bring to closing. But I also found a more affordable house than I wax expecting, so I'll be completely comfortable with the mortgage payment.

Next steps:

5/6/19: Deliver earnest money check to title company

5/8/19: Inspection

TBD: Well (water) inspection

TBD: Appraisal

I'm trying not to worry too much, but I'm nervous about the appraisal because my offer is 10K over asking. Hopefully the fact that I'm in such a hot market helps me finally.

I'll try to keep this thread updated for those who are interested.

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Did your Realtor do a CMA (comparative market analysis)? If recent sales validate your $10K above asking price, you should be okay. 

[itgirl74]

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@CreditInspired wrote:

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Did your Realtor do a CMA (comparative market analysis)? If recent sales validate your $10K above asking price, you should be okay. 

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I think it all happened too fast for that. I've tried myself to find comps, but that is always difficult in rural areas. I see what I would consider comparable homes sold and on the market for about 20K over what I'm paying. Still, I have no experience with this and will be nervous until it's done. But first the inspection in 2 days.

[itgirl74]

I got my appraisal report today, and it came it at purchase price. What a relief. The processor is doing a thorough review of my file before sending it to underwriting. Closing is currently scheduled for June 12, but if things go smoothly it might be a bit earlier. Becasue of this board, I've been able to anticipate what the underwriter might ask for, so I have draft LOEs and backup for deposits and withdrawals ready to go. I'm not sure if Navy will pull my credit again (the initial pull was good for 90 days, but it took me 3 offers to get a house and the deadline is coming up soon). If they do, the only difference they'll find is a card closed by Comenity, probably for lack of use but with no explanation given, as they are known to do. It didn't affect my utilization enough to matter. I always have to worry a little bit, but I'm feeling optimistic that all will be well.

[itgirl74]

I was cleared to close today, before I even knew I was in underwriting. I didn't have to supply any additional documentation. The closing has been moved up to June 6, one week from today! It feels like a dream.

[KatieKatie]

Congrats! Very exciting

[Anonymous]

You're so close to the finish line... very excited for you. Do you mind sharing your interest rate and apr from nfcu? We'll be doing the same loan soon.

[Anonymous]

Congratulations!

[itgirl74]

I am officially a home owner! Because of the weird process in Washington state, I signed documents on Thursday but didn't get the keys until the next day when the lender wired funds and the transaction was recorded with the county. It was anti-climactic compared to what I was picturing, but it doesn't really matter!

Here are a few data points to note for those interested in NFCU:

1. I received a prequalification letter the same day I applied, but that was only because I applied over the phone with a local loan officer. I know that it takes a couple of days when you apply online.

2. Going from under contract to cleared to close took 23 days. I was in no rush and told them at the beginning that I wanted to close in June, not May, because I wanted my first mortgage payment due 8/1. (I still have to pay rent in July.)

3. As far as I know, NFCU did not pull my credit again before closing. The inital credit pull was March 8, I was told it was good for 90 days, and I signed docs exactly 90 days later.

4. My interest rate is 5% with 0% down, 0 points, and financing the origination fee. I think I missed an opportunity to go down by .125% by locking in early, but I don't want to know for sure. My credit file is clean with a mid mortgage score of 794.

Now I have to decide if I want to apply for a few credit cards I've been eyeing for a while. One of those is a NFCU card. Will that make them raise an eyebrow since I just got the mortgage with them?