8 Easy Steps to the NACA Mortgage Program

1 - Homebuyer Workshop

The first step is to attend a Homebuyer Workshop. There are multiple workshops held each month across the country, and each one offers a comprehensive overview of the home-buying process and the NACA Mortgage. Following the workshop, you would want to take the next step by accessing your NACA file online to schedule a personalized appointment with a NACA Housing Counselor.

To access your NACA Web-file: submit the necessary documents, complete the required information, sign the Membership and Authorization forms, and submit your Membership Fee and credit report payment.

2 - Housing Counseling

In your first meeting, the Housing Counselor will answer your questions about NACA as you get started on your journey toward homeownership. The Counselor will review your debt and other payment obligations to determine what steps you need to take for final qualification. You'll receive a thorough budget analysis that examines your income and expenses, aiming to establish a mortgage payment that fits your budget. This budget not only points out potential savings but also suggests ways to cut costs, providing extra funds for your home purchase or other necessities.

After each counseling session, scheduling a follow-up appointment is advisable, ensuring continued guidance until you achieve NACA qualification.

3 - NACA Qualified

Once you are NACA Qualified, you will need to attend a Purchase Workshop which is held every Thursday from 6:00 p.m. to 7:30 p.m. at a NACA office. These workshops are required for all NACA Qualified Members who want to access the NACA Mortgage.

You will need to continue to pay all accounts on time, maintain your income, obtain no new debt, and save the difference between your current housing payment and future mortgage payment each month, until closing. Also keep submitting the most current documents including but not limited to paystubs, bank statements, canceled checks for rental payments, etc.

4 - Home Search

The NACA Qualification remains valid for six months and it is recommended for individuals to utilize this timeframe to search for a home. Requalification is necessary after six months or earlier if circumstances change.

A buyer can work with any real estate agent of their choice (except those removed from the NACA program for determined harmful actions). If using a NACA Buyer’s Agent or Referral Agent, they will discuss preferences, location, house type, and price range. Your agent will aid you in locating suitable properties, negotiating terms, advising on offers, and facilitating discussions on renovations and seller assistance with repairs or the inclusion of repair costs in the mortgage.

5 - Purchase Contract & Ratification

The Sales Contract will be prepared by your real estate agent and stands as a contract, binding both the buyer and the seller to execute the transfer of the home at an agreed price under specific terms. Negotiations with the seller or listing agent may be necessary to determine responsibilities for repairs, and any seller-contributed funds to buy down the interest rate.

Before signing the contract, it is essential to reach out to your Housing Counselor, and provide them with a copy of the MLS and proposed offer amount to confirm that it is at or under your maximum purchase price. This may change due to shifts in interest rates.

Once you have executed the Sales Contract, provide your updated documents to your mortgage counselor. After approval, they will submit your bank application electronically to obtain your NACA Mortgage.

The following items should be addressed in your Sales Contract:

• The correct spelling of your name; the same way it was entered on your NACA documents or as it appears on your picture ID.
• At least 30 days to close from the date of the executed contract.
• At least 45-to-60 days to close for properties requiring significant renovations, as identified on the home inspection, from the date of the executed contract.
• Approved NACA settlement agent to provide settlement services. When using an approved settlement agent, the participating lender pays the settlement agent’s fees and closing costs.
• Closing at a NACA office

6 - Home Inspection

When you are under contract for your property for purchase, it is required that a home inspection is done by a NACA-approved home inspector. They will evaluate the overall condition of the home. They will assess required repairs, code compliance or violations, as well as safety, health, and structural elements.

NACA's Home and Neighborhood Development (HAND) department collaborates to assess property conditions and aid in addressing necessary repairs. In certain circumstances, buyers are allowed to wrap the cost of repairs into the NACA loan.

7 – Mortgage Processing And Underwriting

NACA’s Underwriting and Processing Departments will facilitate the underwriting and processing of your loan. There should be few conditions on your mortgage since any lender issues would have been addressed at NACA Qualification. Once you are NACA-approved you want to make sure of the following:

• Required savings are maintained (i.e. Payment Shock)
• Income is not reduced
• Debts are not increased
• Payments continue to be made on time
• You adhere to other NACA requirements

Due to the extensive pre-application process, almost all mortgage applications receive approval from participating lenders. At this time, you should initiate the search for homeowner's insurance, submit proof of insurance, and conclude all bids for repairs (if necessary). Additionally, a "walk-through" of the property should be conducted just before closing to ensure there is no new damage, the property is vacant and clean, and that you are content with the agreed-upon repairs. The property must remain vacant at the time of closing; otherwise, you will not be able to schedule the closing.

8 - Closing

Closing will take place at a NACA office. You will receive guidance on all expenses due at closing, including pre-paid taxes, pre-paid insurance, etc., along with any other necessary items. If any costs need to be covered by the buyer, you'll be required to bring a certified check made out to the title company overseeing the transaction.

Your closing at the NACA Office will involve you, any co-borrowers, the seller, the lender's attorney or settlement agent, your attorney (if applicable), your real estate agent, and the listing agent. During the closing, you will be signing many documents, including a mortgage, a promissory note, and other disclosures. In case of any questions or issues, your real estate agent, Housing Counselor, or another NACA staff member can assist. It is essential not to agree to close or sign any documents unless you are fully satisfied with all agreements and comprehend the content. Ultimately, at the end of the closing, you will officially own the property and receive the keys.