HOME by Fannie Mae
To provide further assistance to homebuyers, Fannie Mae created the award-winning app called HOME. While Fannie Mae mortgages are targeted toward lower-income Americans, the app can be helpful to anyone in the process of becoming a homeowner. The app provides a customized and comprehensive outline of all the steps necessary to complete before (and after) becoming a homeowner. It is easy to follow and reduces the complexity of the home-buying process into manageable steps.
The Fannie Mae app simplifies the long and complex journey to becoming a homeowner by organizing the process into 20 achievable steps. It also includes two other useful features: mortgage calculators and a consolidated database of articles and videos about a variety of topics and concerns regarding home buying. The FNMA makes buying a home easy to understand through this app. HOME provides additional resources and succinct explanations with each step.
Every time the Fannie Mae app is opened, you are greeted with a dashboard. The dashboard displays your progress through the 20 steps of the home-buying process, your most recently used calculator and your most recently read or watched article from the Resources section. This sections is a compilation of information sourced from leading real estate sources on the internet.
The checklist provide by Fannie Mae through HOME lists the 20 steps necessary to complete your home purchase. This checklist begins with preparing and securing your finances and ends with instructions on maintaining your new home.
Learn more about the FNMA HOME app in our comprehensive guide.
Financial Prep Steps
The first step to becoming a successful Fannie Mae home buyer and owner is preparing for the purchase financially. This multi-step section helps you gain an understanding of your current financial state. The first step suggested by the Fannie Mae app is to determine the maximum price of a house that you can afford with your current income and payments. In addition, this section informs you of necessary considerations on understanding your finances. HOME by the FNMA recommends obtaining a credit report, saving for the down payment, choosing a mortgage lender and possibly seeking housing counseling depending on your situation.
Home Search Steps
After you gain an understanding of your finances, the Fannie Mae app recommends that you begin your home search. This involves starting your search with finding different communities and neighborhoods. Fannie Mae advises making a list of things you want and need in a home, getting a real estate agent and finally searching for budget-appropriate homes.
Home Purchase Steps
This section outlines the multiple steps required to finally purchase and move into your new Fannie Mae home. The first step involves making an offer to the current homeowners. It is essential to consult with your real estate agent because he or she understands which factors to evaluate, the paperwork to fill out and how to actually present the offer.
Once your offer is accepted, the Federal National Mortgage Association (FNMA) advises that you hire a specialist to conduct a home inspection. Some homebuyers skip this step because it is pricey, but it is important to know if the home has any current or potential issues like mold or leaks. Then, you must finalize your loan approval with your lender and negotiate terms and your down payment. Finally, you will schedule a time, date and location to close the deal with your lender and agent, get your keys and make arrangements to move in.
Once you purchase your Fannie Mae home, you must create a plan to take care of it. Although you have finally bought your home, there are several steps to take to ensure you stay financially and physically secure in your home. The Fannie Mae app reminds you that it is important factor repairs and renovations into your home budget in addition to your mortgage. Things break and accidents happen, so it is important to set aside money to prepare for wear and tear. At this step, you should also consider disaster preparedness and home insurance policies, as well as learning about loan management and payment options, especially during stressful times.
Download our in-depth guide to get information about the Fannie Mae app and more.
HOME by Fannie Mae offers four different calculators to help you figure out your finances. The first three steps of the checklist involve utilizing the “Afford,” “Purchase” and “Save” calculators. However, you can use the calculators separately from the checklist at any time, and they will remain updated to any new values that you input.
The “Afford” calculator helps you figure out the maximum price of a house that you can afford with your current income, payments and Fannie Mae mortgage preferences. These preferences include your estimated down payment, interest rate and term length. The calculator also asks about the type of house you plan to purchase, the possibility of homeowners association (HOA) or condo fees, home owners insurance and annual property taxes.
The “Purchase” calculator estimates your monthly Fannie Mae mortgage payments. It uses data from the “Afford” calculator in addition to closing costs to produce an overview of your total monthly payments and where your payments go.
The “Save” calculator computes how long it will take for you to attain your Fannie Mae home savings goal for your down payment and how much you will actually need. This calculator uses the data you input from the two above tools and also takes into account how much you can deposit in savings monthly and the potential requirement for post-closing reserves. Some lenders require two to six months of Fannie Mae mortgage payments called post-closing reserves.
The “Extra Payment” calculator helps you determine if an extra mortgage payment will save you money and shorten the time of your loan. This calculator is involved in last step of the entire checklist. This tool takes your FNMA mortgage loan amount, interest rate, length of term, the date the loan closed, mortgage payment type and the amount of extra payment to calculate how much you will save over the term of the loan.
The resources for homebuyers section on the Fannie Mae app contains helpful information to answer your home-buying questions. Information ranges from buying a house while paying off student debt to factors that affect closing. You can find information regarding financial preparation, advice on searching for a home, home purchasing and homeownership. Most information comes in the form of an article, but others are in video format.
What is Fannie Mae?
The Federal National Mortgage Association (Fannie Mae) provides affordable housing finance options for homebuyers and renters. Fannie Mae does not provide original mortgages. Rather, the organization purchases existing mortgages and guarantees them with government sponsorship. Fannie Mae mortgages have a fixed rate and can have a lifespan as long as 30 years.
Who is eligible for Fannie Mae?
Fannie Mae guarantees multi-family and single-family mortgages and loans. To qualify for either type of loan, an applicant must have an income lower than the local average, and the property he or she wants to buy must be worth less than the federal maximum. Further, applicants must have a credit score above 620. However, the minimum required credit score may change depending on how many properties the applicant plans to purchase.