| First time home buyers are typically unfamiliar with the | | | | Haggle for a Lower Interest Rate |
| mortgage process. Thus, buying a home may be | | | | Some home buyers apply for a loan with only one |
| especially stressful for this group. Still, once the loan | | | | lender, and accept their offer without shopping around. |
| closing is over, and the keys are in-hand, the entire | | | | If using a broker, buyers are at an advantage. Aside |
| process is worthwhile. Nonetheless, persons buying a | | | | from finding the best mortgage loan, a broker can |
| home should know a few things about mortgages | | | | supply a home buyer with multiple loan offers. Thus, |
| before beginning the journey. When buying a new | | | | the borrower can review the interest rate quoted by |
| home in Delaware, there are three things you should | | | | each lender, and make a decision based on the lowest |
| know about mortgages. | | | | rate. According to The Office of the State Bank |
| Choosing the Right Mortgage Loan | | | | Commissioner, there are hundreds of non-bank |
| The homeownership rate in Delaware is 72% and | | | | businesses offering mortgage loans in the state of |
| rising. Because of the wide variety of home loans | | | | Delaware. Thus, borrowers have numerous options for |
| available, choosing the right loan is critical. The average | | | | obtaining the best rate. |
| home buyer is familiar with popular loans such as FHA, | | | | Get Pre-Approved for a Home Loan |
| VA loans, etc. However, there are loans available to | | | | Some buyers confuse pre-qualifications with |
| help people with unique situations. For example, are | | | | pre-approvals. Getting pre-qualified for a mortgage |
| you self-employed? Do you have terrible credit? Do | | | | loan means absolutely nothing. Basically, a lender |
| you require funds for a down payment or closing | | | | request information such as income and current debts. |
| costs? If so, a mortgage broker can help borrowers | | | | However, information is not verified, and the loan is |
| find the right loan. Most traditional loans require a | | | | never guaranteed. On the other hand, a pre-approval |
| minimum down payment of 3%, plus 3% - 5% | | | | involves the borrower submitting all income and |
| settlement costs. The average borrower does not | | | | financial documents, and the lender checking their |
| have the funds available. Thus, they must select | | | | credit. By granting a pre-approval, lenders make a |
| mortgage loans with 100% or 104% financing. | | | | commitment to lend the money. |