Tri-Valley Mortgage News

 Bay Area, Ca Real Estate-Fannie Mae HomePath Loan Info, Cari Anderson, Diversified Mortgage Group

The Fannie Mae HomePath Loan is for homes currently owned by Fannie Mae. The biggest draw to this type of financing is that there is no appraisal required since Fannie Mae already owns the property and has set the sales price. Also to the buyers advantage is the fact that many of these homes are priced under market value, so purchasing such a property gives the buyer built-in equity immediately!

However there are some things that you may not be aware of: both pro and con with this type of home and financing. Below are some important points to consider. If you would like more details about HomePath financing, you can check out my earlier blog post here.

Things to be aware of:

•  A home inspection is a MUST: Although many Fannie Mae-owned homes have had repairs made to increase the home's marketability, Fannie Mae sells these homes in "as is" condition. This means that they do not accept responsibility for any problems that may arise after the purchase is complete. Therefore, it is up to you, the buyer to investigate the overall condition of the property and determine if it is up to your standards. You may also want to purchase a home warranty to further protect yourself.

• Sell your current home first: If you are considering purchasing a HomePath home and already own a home you wish to sell, get it sold first. Fannie Mae will not accept any offers where the sale is contingent upon the sale of your current home

 Perks you may not have heard about:

• You must be pre-approved before you make an offer: In order to get a purchase offer approved by Fannie Mae, you must be pre-approved by a qualified lender. If you wish to take advantage of HomePath financing you will need to first get in touch with a HomePath lender who can ensure you can obtain a loan for the property. I have the ability to actually get you fully approved before you make an offer. Being fully approved versus being pre-approved can be a huge advantage when submitting a purchase offer!

• Choose your own title/escrow company: A little known perk about buying a HomePath home is that you can select your own title/escrow company to assist in the settlement. Many times a buyer will be asked to use the title/escrow company that the seller's agent selects. When making an offer, check with your lender or real estate agent to see what company they would recommend. They usually have long-established, harmonious relationships with a particular company that they can truly vouch for when it comes to service. A title/escrow company is a major player in any purchase transaction and it is to your advantage to use one that your lender or agent trusts.

• Fannie Mae has just extended its 3.5% incentive program for homes purchased (closed) by June 30, 2010. They will credit you 3.5% of the purchase price of the home which can be used towards closing costs, Whirlpool appliances or a combination of both!

If you would like more information about HomePath homes in your area you can visit www.homepath.com

If you are interested in HomePath Financing, I can help you get fully approved before you start your home search. With no appraisal required Diversified Mortgage Group can close your loan in as few as 15 days!