How To Buy A Home Using Fannie Mae HomePath Mortgage Financing - 9 Simple Steps

Buying a Home using the HomePath Mortgage Program from Fannie Mae is similar to buying a home using any other mortgage program. However, you do have to proceed through the process in somewhat of a prescribed order and use "approved" companies and agents to get the job done. Below is a list of steps you'll need to take to buy a home using the HomePath Program.

Steps To Buying A Home Using The HomePath Mortgage Program

1. Contact either a real estate agent or a Fannie Mae approved mortgage company. You can choose any real estate agent to represent you as a buyer, but you to use the HomePath Mortgage program you must buy a Fannie Mae foreclosed home. These homes are represented by a Fannie Mae approved listing agent.
   
   To see if you qualify for the HomePath Mortgage program you must work with a mortgage company who offers the HomePath Financing program through Fannie Mae.


2. Get Pre Qualified for the HomePath Mortgage Program - You will need a pre qualification letter from your Fannie Mae approved HomePath Mortgage Lender to put in an offer on a Fannie Mae HomePath eligible property. To be contacted by an approved lender please complete the form below. Below the form the steps to take continue.



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3. Ask About Down Payment Assistance - If you are a first time home buyer and need down payment assistance talk to your loan officer about available down payment programs in your area - or talk to your real estate agent to see if they know of any (most agents know what is available in their market area). You may be elligible for the $8,000 IRS Home Buyer Tax Credit.


4. Once Pre Qualified Search For A Property - Work with your real estate agent to locate a Fannie Mae HomePath eligible property. These properties are foreclosed properties owned by Fannie Mae or HUD. You will need to check with your real estate agent to see if the home you find is eligible, or go to the Fannie Mae HomePath website and check yourself.


5. Put In An Offer - Once you find a foreclosure home that you like, write up your offer with your real estate agent and present it, along with your prequalification letter to the listing agent of the property you like. You may not have any contingencies on your offer that have to do with your home selling first (if you have a home). In many cases, you are purchasing the home as it is, but Fannie Mae may provide you with Home Warranty Protection offered through Old Republic Home Warranty Company.
   
   Once your offer is in, Fannie Mae will typically have some type of offer acceptance period associated with your property. This means that they will have a window of time to accept, decline or make a counter offer. They might also accept other offers during this time so you'll never know until Fannie Mae lets you know about your offer being accepted or not.


6. Get Your Mortgage Approved - Once your offer is accepted then you will have to apply for your mortgage and go through the mortgage process. You will need to arrange for your down payment of 3%. You may have this in the bank, or you may get a gift from a relative, or a loan, or you may qualify for a down payment assistance program. Make sure you talk to your loan officer in depth about your options.
   
   One thing that is different when using the HomePath program than regular mortgage programs is that you will not have to get an appraisal which should save you around $400.
   
   When you purchase a Fannie Mae foreclosed home the sales price that you offer is considered the value of the home. While this saves you money, you may not know the exact value of your home. You always have the option of having an appraisal done so that you know the value of the home. Most real estate agents will be able to give you a close approximation as to the value of the home before you put in an offer - this is especially true if you use a buyers agent to represent you.


7. Get a Home Inspection - This will tell you if your home is in good shape and what kinds of things are wrong with it. If there are problems with the structure of the home you will most likely want to back out of buying it. Make sure that you have a contingency in your purchase offer to let you out of the contract if the home inspection does not suit you. Talk to your real estate agent about this.


8. Investigate and Purchase Homeowners Insurance - Make sure you shop around to several home insurance companies. Compare the different policies and pick the one that you think best covers you for the least amount of money. Do not get too hung up on the perfect policy as you can change policies after settlement.


9. Go to Settlement - When you get close to settlement you will want to pay close attention to the instructions you get from your mortgage company about your down payment, not spending your money before closing, no charging on credit cards until after settlement etc.
   
   On the day of signing you will most likely bring a certified check to settlement for your closing costs and down payment unless you are working with a grant or HUD approved program. If you are getting down payment and closing cost assistance then they will most likely wire or send your money directly to the title company. Make sure you know what to expect. sign your loan paperwork and get your keys.


10. Move in.