Not Ready to Buy a Home?

Buying a home tops your long-range goals list, but are you ready? As a first-time buyer, you have loads of questions and concerns. After all, a home loan is an obligation for years into the future. You want to make savvy decisions and be comfortable that you’ve negotiated the best deal. On top of that, learning all about credit scores, how to pre-qualify and the difference between pre-qualification and pre-approval. And what are options and closing costs?

Fannie Mae, the Federal National Mortgage Association (FNMA) government-sponsored enterprise (GSE) that serves the mortgage industry, knows what you need to know about buying a house. They’ve put together a course for new homebuyers called HomePath Ready Buyer Education Program.

Enroll now

The online course lets you attend from the comfort of your sofa. After completion, a “graduate” may qualify for assistance up to three percent of the closing cost of purchasing a qualified HomePath property. You won’t end up with an education loan either. Tuition is just $75, and Fannie Mae says it could even reimburse your tuition during closing on your new home. Now that’s a deal!

What you learn

Because the course design has new buyers in mind, you’ll learn to determine how much you can afford to buy and ways to figure out what home is best for you. Making the deal and learning about down-payment options will get you on your way. Finally, you’ll learn to avoid the pitfalls, and all the navigate the paperwork required to close the deal.

How long does it take?

The entire course is nine 30-minute sessions, so along with the quiz at the end (no final exam though), the total class takes about four to five hours. Designed to be intuitive and self-directed, you can work your way through the course over a few evenings, on your lunch hour, or even during your morning commute (provided you’re not the driver, of course!).

How you benefit

In addition to the three percent closing cost assistance and tuition reimbursement, your Certificate of Completion may qualify you up to take advantage of the First Look program. By giving first-time homeowners an exclusive “first look” at newly-listed foreclosed properties, this innovative program serves new home seekers and promotes neighborhood stabilization.

Fannie Mae relies on real estate professionals to follow through on the home-buying process. For more information, express your interest in the HomePath program to your real estate professional.

Choosing the Right Home For Your Family is a Process

When you decide to make an offer on a home, your mind may be flooded with dozens of questions and concerns — several of which may involve money matters, while others are about the condition of the house.

However, if you’ve had the house professionally inspected and made sure your income is sufficient to absorb monthly expenses, than you’ve already taken steps to prevent or at least minimize future challenges.

Since buying a home is such a big investment and there are so many emotional factors that could influence your decision, it’s essential to stay focused, adhere to a budget, and be aware of what you need in order to be satisfied with your purchase.

The Financial Side of Things: Even though a mortgage broker or loan officer may approve you for a large mortgage, only you can determine whether you’d be comfortable making those monthly payments. In  addition to the cost of your mortgage, property taxes, and school taxes, there are also other expenses to consider and include in the equation. If you’re moving into a larger house, for example, the cost of heating and/or cooling your home may be higher than you’re used to. Poorly insulated houses can also have a negative impact on home energy costs.

Another key factor to think about when you’re figuring out the affordability of a potential new home is property maintenance, the cost of HVAC service, and miscellaneous expenses, such as appliance repairs, plumbing leaks, and electrical services. Some neighborhoods, residential developments, and condos also require a monthly Homeowner Association (HOA) fee, which can potentially put a burden on your cash flow situation. A good rule of thumb, of course, is to avoid spending beyond your means. While nobody would dispute the logic of that advice, it’s often a lot easier said than done — especially on an ongoing, consistent basis.

Non-Financial Priorities: The only way to know what you truly want and need in a new home is to clarify your goals, requirements, and wishes. Making lists, discussing it with your partner, and visiting lots of homes for sale will help give you the ideas, the inspiration, and helpful points of comparison you need. Online real estate listings and home improvement websites can also provide a wealth of practical ideas.

In addition to having enough bedrooms and bathrooms to meet your family’s needs, it’s also important to feel comfortable with the quality of the school district, the amount of noise in the neighborhood, and the traffic level on nearby streets. Proximity to recreation, shopping, and other amenities can also make the difference between your ideal home and one which doesn’t quite make the grade. Privacy (or the lack, thereof) is also a major issue which can impact your satisfaction with a real estate purchase. While it’s good to approach home buying with a sense of optimism, the best time to weigh all the pros and cons is before you sign the final papers at the closing table!

How to Prepare Buy Your First Home

You’ve been thinking about buying your first home and it is a very big decision. It is typically not a decision you make overnight instead you need to take the time prepare yourself.  Here are the basic steps that you should follow when it is time to buy a home.

  1. Ask are you ready? Home ownership is quite different than renting. It is a lot more expensive than renting. You will have added expenses and responsibility. There will be expenses like repairs, added utility costs, such as garbage and water, plus taxes and insurance related to your home. You will want to make sure to have an emergency fund, before you purchase your first home.
  2. Shop for a loan. Your first step will be to get preapproved. Knowing how much you can afford will help you to look for homes within your price range.
  3. Figure out how much you can afford. Just because you are preapproved for a certain loan doesn’t mean you can afford that in the real world. A good rule of thumb is to keep your mortgage along with your taxes and insurance between twenty five and thirty percent of your income. You don’t want to be house poor.
  4. Use a real estate professional you can trust.  A good real estate professional will listen to your wants and needs carefully. It is important that you are also educated on the process of buying a home. A good real estate professional will help meet your needs while navigating you through the process and advocating for your best interests.