Buying a Home in Delaware-Are you Ready?
- A lot of times when computing the cost of a mortgage, the mortgage calculators don’t factor in the costs of taxes and insurance. There is also how much debt you have that should be factored in to decide if you can qualify for a mortgage. Keep an eye on the rate as well. People with perfect credit will often get the rate being advertised, but if you have less than perfect credit you may get a higher rate. Buying a home with a higher rate, means higher payments.
- When you buy a home, there is always maintenance involved. For some that may mean unexpected bills that will pop up, when a dishwasher breaks or when a hot water heater leaks. Let’s face it things don’t last forever! One thing to consider should be a home warranty, which may help with some unexpected costs.
- Can you afford a down payment and closing costs? For some conventional loans, that may mean putting down as much as 20%. There are other loan programs available that may need as little as 3%. It always is a good idea to get a pre-qualification from a lender. Don’t think that you must use that lender. When the time comes to apply for a mortgage, you should always interview more than one lender. Although cost is always a reason, make sure you are comfortable with the lender. Settlement on a home sometimes is delayed or even fall through if you have chosen a lender poorly.
- Most lenders are looking for someone who has a consistent work history. If you change jobs a lot, or don’t feel you have job stability this may not be a good time to buy a home.
- One of the biggest concerns of lenders is credit score. If you haven’t had a good history of paying your bills on time, you may not qualify for a loan. This impacts rates for you as well. Another good reason to speak with a lender is they can give you a game plan. They will tell you which bills you should pay off and in what order, to get you into a home faster.
- Are you tired of renting, paying that check every month and getting nothing back at the end of the day? If so, it may be time to consider buying a home.
- No more rent increases! The only time your mortgage payment on a fixed mortgage goes up is if your taxes or insurance go up.
- Will you be staying in the same area? Buying a home means stability. If you have the kind of job where you have to move around a lot, this might not be the time to buy a home.