What Is A Home Buyer Pre-Approval Letter?
First Time Home Buyer Assistance
Hey Reno renters, if you are sick of renting and are ready to purchase your first home, Fannie Mae ,(Fannie Mae is a source of residential mortgage credit in the U.S. that supports our housing economy) is offering a program that will help first time home buyers with closing costs. This program is called the Homepath Ready Buyer Program. Fannie Mae HomePath homes are a small number of Fannie Mae foreclosed properties qualified first time home buyers. Fannie Mae could contribute up to 3% toward your closing costs. This would mean less out-of-pocket money for you and could just be the final component to give you the financial ability to become a Home Owner! So if you are new to the home buying process, you might be asking:
What are closing costs?
Closing costs are fees associated at the closing of a real estate transaction. The closing point is when the title of the property is transferred from the seller to the buyer. Closing costs are incurred by either the buyer or seller. Closing costs very depending on where you live, the property you buy, and the type of financing you are getting. Closings costs might include (but not limited to) things such as:
Credit Report Fees closing costs
Home Inspection Fees
Loan Origination Fees
Upfront tax and insurance fees
So now you are probably asking yourself:
How much are closing costs?
Closing costs average around 2% to 5% of the purchase price of the home. If you are buying a home for $200,000, the closing costs could be $6,000. This does not include the down payment for the home. Luckily, the amount you pay will not be a surprise to you because lenders are required to provide you, the borrower, a Good Faith Estimate of the fees that you will need to bring to closing. The estimate is just that, a ball park figure of what the fees will be but these fees could change prior to closing day. Just before closing, no more than 3 days, you will receive an updated settlement statement that itemizes your settlement closing costs. You will know exactly how much to bring to the title company the day you are scheduled to sign.
Are You Eligible For The Homepath First-Time Home Buyers Program?
To be eligible for this offer:
Buyers must complete the full online training course on Homepath.com and receive the official Certificate of Completion.
Buyer must have completed the HomePath Ready Buyer Training online course and received a completion certificate prior to the initial offer submission to be eligible for the closing cost assistance.
The Certificate of Completion must be attached to the initial offer documents uploaded to HomePath Online Offers.
The request for closing cost assistance must be made at the initial offer in the HomePath Online Offers system. The training cost reimbursement may be included in the closing cost assistance.
The Initial offer must be entered into HomePath Online Offers system on or after April 14, 2015. Properties currently in negotiation or under contract prior to April 14th are not eligible. Offers entered prior to April 14th are not eligible.
The closing cost assistance offer may be adjusted during contract negotiations. Buyers with total closing costs under 3% will not receive the difference as a credit.
Buyer must be a First-Time Homebuyer (did not own a property in the past three years).search and inspection of the house
Buyers must reside in the property as their primary residence within 60 days of closing.
Individual buyers using public funds are eligible. Tenants residing in tenant-occupied properties are eligible.
The property must be listed on Homepath.com and be eligible for the program. I just did a search of local Reno NV homes and found 31 Homepath homes listed for sale.
According to the NationalAssociation of Realtors®, 33% of home buyers were first time home buyers. By offering closing assistance on their properties, Fannie Mae can reach a large number of people who are generally behind and unable to save enough to buy a home. Fannie Mae is trying to contribute to the housing recovery movement and not let folks who want to by get left behind.
If you or anyone you know is interested in this program, or any other home buying program and need help getting started, please let me know. Email me Terrie@terrieleighton.com or send me a text, 775-846-5424 and I can help you get started on owning a Reno home!