Home Funding Corp - Alwin Simanjuntak

08/19/2023

𝐃𝐨𝐞𝐬 𝐲𝐨𝐮𝐫 𝐜𝐫𝐞𝐝𝐢𝐭 𝐬𝐜𝐨𝐫𝐞 𝐚𝐟𝐟𝐞𝐜𝐭 𝐦𝐨𝐫𝐭𝐠𝐚𝐠𝐞 𝐚𝐩𝐩𝐫𝐨𝐯𝐚𝐥?

There are several factors that lenders look at that affect your ability to get a mortgage. Your credit score being an important one.

Here’s a breakdown of credit scores and how likely you would be to get approved for a mortgage for each.

🔸𝟕𝟒𝟎–𝟖𝟓𝟎: 𝑬𝒙𝒄𝒆𝒍𝒍𝒆𝒏𝒕 𝒄𝒓𝒆𝒅𝒊𝒕 – 𝑒𝑎𝑠𝑦 𝑐𝑟𝑒𝑑𝑖𝑡 𝑎𝑝𝑝𝑟𝑜𝑣𝑎𝑙𝑠 𝑎𝑛𝑑 𝑡ℎ𝑒 𝑏𝑒𝑠𝑡 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑟𝑎𝑡𝑒𝑠.
🔸𝟔𝟕𝟎–𝟕𝟒𝟎: 𝑮𝒐𝒐𝒅 𝒄𝒓𝒆𝒅𝒊𝒕 – 𝑡𝑦𝑝𝑖𝑐𝑎𝑙𝑙𝑦 𝑎𝑝𝑝𝑟𝑜𝑣𝑒𝑑 𝑎𝑛𝑑 𝑜𝑓𝑓𝑒𝑟𝑒𝑑 𝑔𝑜𝑜𝑑 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑟𝑎𝑡𝑒𝑠.
🔸𝟔𝟐𝟎–𝟔𝟕𝟎: 𝑨𝒄𝒄𝒆𝒑𝒕𝒂𝒃𝒍𝒆 𝒄𝒓𝒆𝒅𝒊𝒕 – 𝑡𝑦𝑝𝑖𝑐𝑎𝑙𝑙𝑦 𝑎𝑝𝑝𝑟𝑜𝑣𝑒𝑑 𝑎𝑡 ℎ𝑖𝑔ℎ𝑒𝑟 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑟𝑎𝑡𝑒𝑠.
🔸𝟓𝟖𝟎–𝟔𝟐𝟎: 𝑺𝒖𝒃𝒑𝒓𝒊𝒎𝒆 𝒄𝒓𝒆𝒅𝒊𝒕 – 𝐼𝑡’𝑠 𝑝𝑜𝑠𝑠𝑖𝑏𝑙𝑒 𝑡𝑜 𝑔𝑒𝑡 𝑎 𝑚𝑜𝑟𝑡𝑔𝑎𝑔𝑒, 𝑏𝑢𝑡 𝑛𝑜𝑡 𝑔𝑢𝑎𝑟𝑎𝑛𝑡𝑒𝑒𝑑. 𝑇𝑒𝑟𝑚𝑠 𝑤𝑖𝑙𝑙 𝑝𝑟𝑜𝑏𝑎𝑏𝑙𝑦 𝑏𝑒 𝑢𝑛𝑓𝑎𝑣𝑜𝑟𝑎𝑏𝑙𝑒.
🔸𝟑𝟎𝟎–𝟓𝟖𝟎: 𝑷𝒐𝒐𝒓 𝒄𝒓𝒆𝒅𝒊𝒕 – 𝑙𝑖𝑡𝑡𝑙𝑒 𝑡𝑜 𝑛𝑜 𝑐ℎ𝑎𝑛𝑐𝑒 𝑜𝑓 𝑔𝑒𝑡𝑡𝑖𝑛𝑔 𝑎 𝑚𝑜𝑟𝑡𝑔𝑎𝑔𝑒, 𝑦𝑜𝑢 𝑤𝑖𝑙𝑙 ℎ𝑎𝑣𝑒 𝑡𝑜 𝑡𝑎𝑘𝑒 𝑠𝑡𝑒𝑝𝑠 𝑡𝑜 𝑖𝑚𝑝𝑟𝑜𝑣𝑒 𝑦𝑜𝑢𝑟 𝑐𝑟𝑒𝑑𝑖𝑡 𝑠𝑐𝑜𝑟𝑒 𝑏𝑒𝑓𝑜𝑟𝑒 𝑏𝑒𝑖𝑛𝑔 𝑎𝑝𝑝𝑟𝑜𝑣𝑒𝑑.

There are always case-by-case scenarios, so don’t let your credit score discourage you from buying a home. Work with your mortgage broker (Me😊) on a realistic game plan to ensure you’re making the best choice for your unique situation.

08/18/2023

Welcome to the Q & A extravaganza! 🎉 Today’s burning question: ‘𝐀𝐦 𝐈 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥𝐥𝐲 𝐜𝐚𝐩𝐚𝐛𝐥𝐞 𝐨𝐟 𝐚𝐟𝐟𝐨𝐫𝐝𝐢𝐧𝐠 𝐚 𝐡𝐨𝐦𝐞?’ 🤔 Let me help break it down:

1. 𝑩𝒖𝒅𝒈𝒆𝒕 𝑩𝒐𝒏𝒂𝒏𝒛𝒂: Assess your income, expenses, and savings to ensure you’re financially ready for the home-buying adventure! 📊💸
2. 𝑪𝒓𝒆𝒅𝒊𝒕 𝑪𝒓𝒂𝒛𝒆: Keep an eye on that credit score – higher numbers can unlock better mortgage terms and interest rates! 🔓📈
3. 𝑫𝒐𝒘𝒏 𝑷𝒂𝒚𝒎𝒆𝒏𝒕 𝑫𝒆𝒍𝒊𝒈𝒉𝒕: Save up for a solid down payment, making homeownership more attainable and affordable! 🏡💰
4. 𝑫𝒆𝒃𝒕 𝑫𝒂𝒛𝒛𝒍𝒆: Aim for a healthy debt-to-income ratio to demonstrate you can handle mortgage payments with ease. 🌟📉

Remember, knowledge is power – and you’ve got this! 💪

08/18/2023

𝐃𝐨 𝐋𝐞𝐧𝐝𝐞𝐫𝐬 𝐑𝐞𝐪𝐮𝐢𝐫𝐞 𝐚 𝐇𝐨𝐦𝐞 𝐈𝐧𝐬𝐩𝐞𝐜𝐭𝐢𝐨𝐧 𝐟𝐨𝐫 𝐌𝐨𝐫𝐭𝐠𝐚𝐠𝐞 𝐀𝐩𝐩𝐫𝐨𝐯𝐚𝐥?

Securing home financing can feel overwhelming. Lenders ask for a lot of information not only about you, but the property too. It’s their job to make sure the collateral is worth what you’re paying so they don’t get in over their heads if you default.

One question that comes up often is whether lenders require a home inspection.

The short answer is ‘they don’t.’ Here’s why.

𝑾𝒉𝒚 𝑳𝒆𝒏𝒅𝒆𝒓𝒔 𝑫𝒐𝒏’𝒕 𝑹𝒆𝒒𝒖𝒊𝒓𝒆 𝒂 𝑯𝒐𝒎𝒆 𝑰𝒏𝒔𝒑𝒆𝒄𝒕𝒊𝒐𝒏

Lenders usually don’t require a home inspection because the home appraisal tells them what they need to know. The appraisal tells the lender a home’s market value. In other words, if they had to take possession of the home and sell it because you stopped making your payments, would they make enough money?

That’s what lenders care about.

This, however, doesn’t mean you shouldn’t get an inspection.

𝑹𝒆𝒂𝒔𝒐𝒏𝒔 𝒚𝒐𝒖 𝑺𝒉𝒐𝒖𝒍𝒅 𝑪𝒐𝒏𝒔𝒊𝒅𝒆𝒓 𝒂 𝑯𝒐𝒎𝒆 𝑰𝒏𝒔𝒑𝒆𝒄𝒕𝒊𝒐𝒏

You might think since lenders don’t require a home inspection that you should skip it. Don’t!!!

Yes, it’s another expense, but $300 – $500 is a lot better than losing hundreds of thousands of dollars if you find out AFTER you buy the home that it has major issues.

𝑯𝒆𝒓𝒆 𝒂𝒓𝒆 𝒔𝒐𝒎𝒆 𝒌𝒆𝒚 𝒓𝒆𝒂𝒔𝒐𝒏𝒔 𝒕𝒐 𝒄𝒐𝒏𝒔𝒊𝒅𝒆𝒓 𝒂 𝒉𝒐𝒎𝒆 𝒊𝒏𝒔𝒑𝒆𝒄𝒕𝒊𝒐𝒏.

> Get a good perspective on the home’s condition – An appraisal looks at the ‘big stuff’ but doesn’t get down to the nitty-gritty. An inspector will tell you what’s wrong with the home and what its effects could be.

> Learn about mold problems early – Mold can be detrimental to your home and your health. If it’s hidden, it won’t get exposed until you own the home and its growth causes issues. An inspector, however, will catch it right away and advise you on how to proceed.

> Know everything that’s wrong with the home – Sometimes we don’t want to hear the negatives but knowing a home’s roof only has a couple of years or the electrical is out of code is something you’d likely want to know before buying a home.
A home inspection isn’t meant to turn you away from a home. It’s meant to empower your decision. What if there are issues you don’t want to deal with, such as mold growth or an electrical problem?

The lengthy inspection report you get can seem overwhelming, but it will come in handy not only to help in your purchase decision but also if/when you own the home. You can refer back to the report, seeing what was wrong when you bought it to give you insight into what maintenance or repairs the home may need sooner rather than later.

𝑭𝒊𝒏𝒂𝒍 𝑻𝒉𝒐𝒖𝒈𝒉𝒕𝒔

Most lenders (me included) strongly recommend a home inspection. Consider it an investment rather than an expense. You’re investing in the financial future of owning the home. If it’s a bad financial decision, you’ll know right away and you’ll only be out $300 – $500 instead of hundreds of thousands of dollars.

08/18/2023

𝐓𝐡𝐞 𝐁𝐞𝐬𝐭 𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐇𝐨𝐦𝐞 𝐋𝐨𝐚𝐧 𝐓𝐲𝐩𝐞𝐬

Most people need financing to buy a home. Even with a large down payment, you’ll need a loan to make up the rest. Fortunately, you have many options. Mortgage guidelines have loosened up in recent years making it easier for most people to secure a loan.

Here are the top current home loan types for buyers:

𝐂𝐨𝐧𝐯𝐞𝐧𝐭𝐢𝐨𝐧𝐚𝐥 𝐋𝐨𝐚𝐧𝐬

Conventional loans are the ‘typical loan’ most people think of when talking about a mortgage. Contrary to what most people think, though, you don’t need a 20% down payment. Conventional loans require just 3% down for first-time homebuyers and 5% down for subsequent homebuyers.

You do, however, need decent credit. Conventional lenders typically require a credit score of 660+ to secure financing. In exchange for your good credit, you’ll get low rates and fees, and you can cancel any Private Mortgage Insurance once you owe less than 80% of the home’s value.

𝐅𝐇𝐀 𝐋𝐨𝐚𝐧𝐬

FHA loans are government-backed loans. Most people equate them with first-time homebuyers, but they are a great program for any borrower who doesn’t qualify for a conventional loan. FHA loans require just a 580 credit score and a 3.5% down payment. You can have a debt-to-income ratio of as high as 50%, and can even have recent negative credit events and still qualify.

The tradeoff for FHA loans is you’ll pay mortgage insurance for the life of the loan, unlike conventional loans, you can’t cancel the insurance once you owe less than 80% of the value.

𝐕𝐀 𝐋𝐨𝐚𝐧𝐬

VA loans are government-backed loans for military members. If you served at least 181 days during peacetime and had an honorable discharge, you may be eligible. The VA loan has the most flexible guidelines and doesn’t even require a down payment, they provide 100% financing.

VA borrowers need a 620+ credit score and can have a debt-to-income ratio as high as 50%. The VA is also lenient about any recent negative credit events.

VA loans don’t charge mortgage insurance, but there is an upfront funding fee that all veterans pay.

𝐔𝐒𝐃𝐀 𝐋𝐨𝐚𝐧𝐬

If you’re a low to a moderate-income family with good credit but you can’t qualify for any other loan program, the USDA loan may be a good option. You’ll need at least a 640 credit score and your total household income must be less than 115% of the average income for the area.

You must also prove you don’t qualify for any other loan program and that you’ll live in a USDA-designated rural area.

𝐁𝐨𝐭𝐭𝐨𝐦 𝐋𝐢𝐧𝐞

Choose the mortgage loan that is right for you. A mortgage can last for 15 to 30 years, so look at your options carefully. Whether you have a 20% down payment or 3%, as long as you have decent credit and stable income, there are loan programs available for you.

Your mortgage is one of the most important pieces of the puzzle when you’re thinking about homeownership. Evaluate your options early and get as many quotes as possible to get the most affordable loan for your needs.

08/17/2023

What happens if you waive mortgage contingency?

Waiving your mortgage contingency means that you agree to forfeit your earnest money deposit if you fall short of the terms in your sales contract.

A contingency waiver may make sense if you want your offer to appear more attractive to the seller.

08/17/2023

Don’t let your fears hold you back from what you want. Tackle them one bite at a time until you reach your goal. If that’s buying a home, then outline each baby step that will get you one inch closer to what you’re after.

Just remember to keep breathing and keep moving forward.

08/17/2023

𝐂𝐡𝐨𝐨𝐬𝐢𝐧𝐠 𝐭𝐡𝐞 𝐑𝐢𝐠𝐡𝐭 𝐌𝐨𝐫𝐭𝐠𝐚𝐠𝐞: 𝐅𝐢𝐱𝐞𝐝 𝐯𝐬. 𝐀𝐝𝐣𝐮𝐬𝐭𝐚𝐛𝐥𝐞 𝐑𝐚𝐭𝐞

Ah, the age-old question: to fix or not to fix? When it comes to mortgages, that is. Choosing between a fixed and adjustable rate can be like deciding between a lifetime supply of free pizza or tacos (not an easy feat, I know).

✅ On one hand, fixed-rate mortgages offer stability and predictability, like a loyal dog that always greets you at the door.

✅ On the other hand, adjustable-rate mortgages can be more flexible and adaptable, like a cat that can fit into any box or bag (seriously, how do they do that?).

𝑺𝒐, 𝒘𝒉𝒊𝒄𝒉 𝒐𝒏𝒆 𝒊𝒔 𝒓𝒊𝒈𝒉𝒕 𝒇𝒐𝒓 𝒚𝒐𝒖?

Well, it all depends on your individual needs and budget. Do you prefer the security of a consistent monthly payment, or are you willing to take a bit more risk for potential savings?

Either way, just make sure you read the fine print and do your research, because there’s nothing worse than realizing you’re stuck with a mortgage that’s more like a bad blind date.

08/16/2023

𝐖𝐡𝐚𝐭 𝐈𝐬 𝐚 𝐑𝐞𝐯𝐞𝐫𝐬𝐞 𝐌𝐨𝐫𝐭𝐠𝐚𝐠𝐞?

A reverse mortgage is a loan designed for homeowners over the age of 62 to convert a portion of their home equity into cash.

🗝 Mortgage loan, usually secured by a residential property
🗝 This loan typically does not require monthly mortgage payments
🗝 Allows elders to access the home equity they have built up in their homes

This type of loan is perfect for people who want to complete their retirement funds.
Stop working, start living!

08/16/2023

If you want to fly, give up everything that weighs you down. And remember….Stop doubting yourself, work hard, make it happen!

08/16/2023

Oh, Amortization. Such a big word for such a simple concept. It’s like the Superman of the financial world, able to leap tall buildings in a single calculation.

So, what is it, you ask? Well, it’s just a fancy way of saying you’re paying off a loan over time, like chipping away at a giant block of debt with a tiny hammer.

The catch is, you have to pay a little bit more each month than just the interest, because nobody likes being in debt forever (except maybe those guys on Shark Tank).

The good news is, over time, you’ll start to see that debt block shrink and shrink, until one day, you’ll be debt-free and doing a happy dance like nobody’s watching. So, don’t let the big word scare you off. Embrace amortization like a long-lost friend, and soon enough, you’ll be the master of your financial destiny.

08/15/2023

𝐁𝐞𝐟𝐨𝐫𝐞 𝐘𝐨𝐮 𝐒𝐢𝐠𝐧 𝐭𝐡𝐞 𝐃𝐨𝐭𝐭𝐞𝐝 𝐋𝐢𝐧𝐞

Deciding to commit to a home loan is a monumental financial decision, one that requires careful consideration and due diligence. Here are some tips to ensure you’re adequately prepared before you sign the dotted line:

🗝 𝑼𝒏𝒅𝒆𝒓𝒔𝒕𝒂𝒏𝒅 𝒀𝒐𝒖𝒓 𝑩𝒖𝒅𝒈𝒆𝒕: It’s essential to have a clear understanding of your monthly income, expenses, and your overall financial health. Your monthly mortgage payment should comfortably fit within your budget without jeopardizing your ability to meet other financial obligations.

🗝 𝑪𝒉𝒆𝒄𝒌 𝒀𝒐𝒖𝒓 𝑪𝒓𝒆𝒅𝒊𝒕 𝑺𝒄𝒐𝒓𝒆: Your credit score will significantly influence the interest rate on your loan. Before applying for a mortgage, check your credit report for any errors and take steps to improve your score, if needed.

🗝 𝑮𝒆𝒕 𝑷𝒓𝒆-𝑨𝒑𝒑𝒓𝒐𝒗𝒆𝒅: A pre-approval gives you a realistic idea of how much you can borrow and demonstrates to sellers that you’re a serious buyer. However, remember that pre-approval isn’t a guarantee of final approval.

🗝 𝑪𝒐𝒏𝒔𝒊𝒅𝒆𝒓 𝒕𝒉𝒆 𝑨𝒅𝒅𝒊𝒕𝒊𝒐𝒏𝒂𝒍 𝑪𝒐𝒔𝒕𝒔: The mortgage isn’t the only cost involved in home ownership. Remember to factor in property taxes, insurance, HOA fees, and maintenance costs when determining your budget.

🗝 𝑼𝒏𝒅𝒆𝒓𝒔𝒕𝒂𝒏𝒅 𝒕𝒉𝒆 𝑳𝒐𝒂𝒏 𝑻𝒆𝒓𝒎𝒔: Fully understand the terms of the loan, including the type of loan, the interest rate, whether the rate is fixed or adjustable, the term of the loan, and whether there are any penalties for early payment.

🗝𝑬𝒎𝒆𝒓𝒈𝒆𝒏𝒄𝒚 𝑺𝒂𝒗𝒊𝒏𝒈𝒔: It’s crucial to maintain an emergency fund. Unexpected expenses or changes in your financial situation can arise, and having a safety net can ensure you can still meet your mortgage payments.

Before you sign the dotted line and commit to a home loan, make sure you are thoroughly prepared and understand the long-term implications. Buying a home is not only a lifestyle decision but also a significant financial commitment that requires strategic planning and careful thought.

08/15/2023