PattiMace.com

The Senate passed the 700 Billion dollar Bailout of Freddie Mac and Fannie Mae today.  I am curious if everyone out there knows what these companies do and why the Government stepped in to help out.

First, to help clear some of the confusion, these two companies are mortgage guarantors.  Fannie Mae was created back in the Great Depression by Roosevelt’s administration to back loans by private banks in order to make homeownership more assesible.  Years later the government allowed Fannie Mae to be privately managed. Freddie Mac was created by the government to keep Fannie Mae from becoming to big.

Fannie Mae and Freddie Mac guarantee more than $5 trillion in mortgages, almost half of those in the United States, With many of the mortgages defaulting, the companies are, in effect, bankrupt.  These two companies are such a large part of our financial system that failure of one or both would be detrimental Nationally and Globally.

This takeover was put in place to protect us, the taxpayer. How, well the U.S. government will be creating more demand in the marketplace by buying Fannie and Freddie mortgage bonds, homeowners and buyers should start seeing lower mortgage rates.  This may become one of the best times to purchase or refinance your home.

 Once your offer has been accepted on the home you would like to purchase one of the things that is suggested is for you to get a home inspection. What is a home inspection? Well, one of the best ways to understand the property’s condition is to hire a qualified home inspector. It is recommended you contact and interview at least two to three different home inspectors in order to find one that will meet your individual needs.  Inspectors are familiar with the building codes and will help look for flaws in the home your are purchasing.

The following are some important questions to ask before making your final selection;

1. How long have you been in the home inspection business?
2. What are your qualifications?
3. Are you a member of any inspection organization or association?
4. How many resale home inspections have you completed?
5. If I hired you today, when would you be available to complete my inspection?
6. What will the inspection cover?
7. How long is your average inspection and how long after it’s completed will I receive my report?
8. How much will the inspection cost?
9. May I attend my inspection? May my real estate agent also attend?
10. Do you provide estimates for repairs and improvements?
11. Can I contact you post-inspection for any questions?

These are just a few questions and you may have more but hopefully this will help you when it is your time to need a home inspection. 

Talk to you soon, Patti