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If you have knowledge, let others light their candles with it.
Winston Churchill
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Mortgage Center / Financing 101
Back to Home Page | Financing
Tips | Mortgage Calculators
Getting
Started
Is buying a home the right decision for you? How do you get started? How much
house can you really afford? You will find the answers to these questions in
this section, which details the steps you and your Fannie Mae lender partner
will take to help you qualify for a mortgage.
Fannie Mae does not lend money directly to consumers. Instead, we make funds
available to mortgage lenders. Lenders who work with Fannie Mae have a broad
array of mortgages to offer consumers.
Owning a Home
You will face many decisions when buying a home. We can help you find a Fannie Mae lender partner who will work with you to choose a mortgage that suits your needs.
When you are thinking about buying a home, you may want to consider the many advantages to homeownership:
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You enjoy being part of a community and a neighborhood.
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Houses can increase in value over time, which means you increase your net
worth.
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As your home appreciates in value, you build equity in your home. This equity
works for you if you decide to take out a home improvement loan or home equity
loan. Increasing equity also increases the amount of cash you may receive if
you sell your home in the future.
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Real estate is an important part of a diversified financial portfolio.
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The interest you pay on your home mortgage is often tax deductible.
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Homeownership offers more flexibility to make changes to your living space,
such as painting your walls or putting in new carpeting.
There are added responsibilities that come with homeownership:
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You are responsible for fixing and maintaining the exterior, such as roofing,
windows, and landscaping; and the interior, such as carpeting, plumbing, and
painting.
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You may need to purchase basic household items such as a lawn mower, garden
tools, and major appliances.
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Upkeep on a house can be time consuming and costly.
Your Credit Record
Having a good credit record means, among other things, that you pay your rent and other bills on time. Having less than perfect credit, however, doesn't mean you can't get a mortgage loan. Fannie Mae offers a variety of mortgage products for potential home buyers with less than perfect credit.
Whether your credit is perfect or not, you should know some terms about credit before you meet with your mortgage company:
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Credit bureaus compile a record of your debts and how you have repaid them.
They gather their information from credit card companies, banks, department
stores, and other firms. This information makes up your credit report.
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Your credit history shows how well you have paid your debts in the past.
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Capacity is your financial means for repaying your debt.
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Capital indicates whether you have enough money for a down payment and closing
costs.
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Collateral serves to protect the lender if you fail to repay the loan.
As part of the mortgage loan process, your Fannie Mae lender partner will request a credit report, so it's advisable to review a copy before you meet with your lender in case there are errors. If there are discrepancies or errors in your credit report, you should contact the credit bureau to correct them.
If you fail to make your mortgage payments on time, you could lose the home you worked so hard to purchase.
How
Much House Can You Afford?
Select Our New Homes
Home Buyer Tips
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