- 1) Complete Pre-Qualification Process with Horn Funding. You will need the following information:
- - Residence History - Last 2 Years
- - Employment History - Last 2 Years
- - Income Amount(s)
- - Banking Information - Account Names and Approx Balances
- - Other misc - Budget / Comfort
- 2) Contact Realtor or Get a Horn Funding Referred Partner
- 3) Gather and submit Documentation Horn Funding Requested
- 4) Start looking for homes in your price range
- - Work with a trusted Real Estate Agent
- - Shop for Homes
- - Submit offer to Seller
- - Go under contract - Submit Earnest Money
- - Get Inspection done ASAP - $300-$600 out of pocket
- - Provide Horn Funding documents by due dates
- - Pass Inspection
- - Order Appraisal $520-$560 paid upfront
- - Get loan conditionally approved
- - Get conditions into Horn Funding
- - Get Appraisal Bank
- - Get Final Approval
- - Sign Acknowledgement of Receipt of Closing Disclosure
- - Closing Ready
- - CLOSE
There is a lot of critical information to understand when obtaining a mortgage loan. The following are some key elements to help you when going through the mortgage application process.
- Provide Needed Information in a Timely Manner - This will help minimize stress throughout the transaction
- Be Open and Up Front About Your Financial Information Lenders need an accurate picture of your financial scenario. All information is considered confidential.
- Don't obtain any new debt during the process - This could negatively affect your qualification
- Keep Money Secure - Don't move money between accounts or withdraw without notifying the lender
- Communicate any changes or updates (Job, Income, Funds, etc) - This will help the lender adjust if needed
- Be Ready for Additional Information Needed - Lending is complex with many decisions and components. There is the need for multiple rounds of 'needed items'.
- Make Decisions That Benefit You and Your Family - Choose the right people to do business with and invite them to align with your families 'best interests'
- Keep all Pages of Paystubs and Bank Statements - Lenders like to 'over-document'
- Document any Large Deposits or Gift Funds - Make copies of all components.
- Talk to the Lender Prior to Paying off Old Debts - Some could have a positive effect on credit and some could be negative
Contact the professionals at The Horn Funding Corp today to gain the critical advice needed for your personal mortgage needs
There are multiple types of Loan Types available. What's right for you is dependent upon your financial scenario. Here is a summary of the Mortgage Products available from The Horn Funding Corp:
FHA Loans are Federal Housing Administration (FHA) insured mortgage loans. FHA is a division of HUD (Housing and Urban Development). Although FHA does NOT provide the funds for FHA loans, they do secure the risk with mortgage lenders. FHA loans have many benefits including lower down payment requirements, higher qualification limits and competitive pricing. FHA loans are available in both fixed rate and adjustable rate options.
VA loans are guaranteed by the United States Department of Veteran's Affairs. VA Loans are designed to benefit the Veterans of the United States Armed Forces and their families. VA Loans have very low down payment requirements (zero down) and allow for higher qualification standards. Additionally, VA loans are very competitively priced and are an excellent option for Veterans. VA loans are available in both fixed rate and adjustable rate options.
Conforming loans, also known as Conventionl Loans are loans that conform to the guidelines established by Fannie Mae (FNMA) and Freddie Mac (FMCC). Fannie Mae & Freddie Mac are government sponsored private enterprises (publicly traded) that securitize mortgage back securities for the purposes of providing mortgage financing. Conforming Loans typically are for borrowers with stronger equity or down payment and stronger credit/income profiles. Conforming loans are available in both fixed rate and adjustable rate options.
Fixed Rate Loans
Fixed rate loans contain an interest rate that is fixed for the life of the mortgage. Fixed rate loans carry the lowest risk of any loan type. To reduce or eliminate long term interest rate risk, a Fixed Rate Loan is highly recommended.
Adjustable Rate Mortgages (ARMs)
ARMs are loans that have interest rates that are subject to adjustments throughout the life of the loan. Typically, the benefit of an ARM mortgage is lower rate. However, there is long term interest rate risk. When considering an Adjustable Rate Mortgage, please evaluate all potential negative scenarios.
Prepayment Penalty & Negative Amortization
Some loans have a prepayment penalty (fee to pay off the loan early) or Negative Amortization (excess interest is added to the principal balance of the loan). The Owners of The Horn Funding Corp want to express their disagreement with these loan features. The Horn Funding Corp believes that these types of loans are NOT in the best interests of homeowners and should be avoided. The Horn Funding Corp has never closed nor plans to ever offer loans with Prepayment Penalties or Negative Amortization.
Contact the professionals at The Horn Funding Corp today to dialogue about which Mortgage Product is best for your long term housing goals.
Buying a home is a major decision for people. Our goal is to make the process simple and in 'The HomeBuyer's BEST INTEREST'. There are many considerations to evaluate during the home buying process. Location? Schools? Costs? What's the payment going to be? What's my down payment? What can we afford? These are all questions you should be answering prior to committing to a home purchase. At Horn Funding, our goal is to provide as much information to you as possible. To HELP you make the proper decision for you and your family.When buying a home, there are 5 major considerations lenders evaluate to be able to provide financing:
What are the overall patterns of your credit? What is your FICO score? Do you have any derogatories or judgements? Bankruptcies or Foreclosures? How much credit do you have? How Responsible have you been in the past with your credit obligations. These are all questions to expect in the interview process of obtaining a mortgage loan. Poor credit does NOT automatically disqualify a buyer from obtaining a loan. However, the stronger the credit, typically the better the rate and closing cost offer. Remember, each homebuyer is unique. Let the professionals at The Horn Funding Corp educate you and your family about how credit affects the process of obtaining a mortgage loan.
How long have you been on the job? What type of work do you do? Are you self-employed? Do you earn commissions or bonuses? Are you full time, part time or seasonal? Have you changed jobs recently? These are all important questions that a lender could ask. Typically, lenders will try to document a 24 month work history.
Lenders have specific calculations to determine the qualification level of your purchasing power. These calculations are based upon your current debt monthly payments and your proposed house payment compared to your monthly income. Lenders use the terms Debt To Income. Lower debt to income levels are preferred. A good target debt to income percentage is 40%. IE., typically if your debt to income is below 40% you can qualify for the house purchase.
FUNDS FOR CLOSING (AND AFTER)
How much is available for down payment? Where are the funds coming from? How long have you had these funds? How much will you have after closing for reserves? Typically, lenders want funds for the close to be seasoned. In other words, you have had these funds for more than 2 months. However, there are exceptions. Gift Funds from family members are allowed on certain loans. Bonuses or strong income can be used (if it can be documented). Note, that short term loans, credit cards or family loans are NOT acceptable sources of Funds For Closing.
What is the value of the property? How is the condition? Does the property have special characteristics such as acreage, multi-units, or special zoning? Lenders require an appraisal that will answer the majority of these questions. In addition, there are other items that are needed such as Title Insurance and Homeowners Insurance
Contact the professionals at The Horn Funding Corp today to dialogue about how to purchase your next home.
Choosing the correct lender for your mortgage needs is very important. The Horn Funding Corp believes in 'Values Based Lending'. This means The Horn Funding Corp makes decisions based upon your best interests. The Horn Funding Corp strives for the following on every loan:
- - On-Time Closings
- - Consistent Approvals
- - Efficient Underwriting
- - Turn-Times
- - Low Interest Rates
- - Low Closing Costs
- - Making Decisions that always benefit our clients
- - Offering Products that are in alignment with our clients 'long term' goals
- - Communication
- - Satisfied Client Experience
- - 'The Right To Ask For Referrals' - Must be earned by The Horn Funding Corp throughout the transaction
The Horn Funding Corp will assist you in all of your mortgage needs with the utmost honesty and integrity. Contact a Horn Funding professional today to start the process.