Stop Paying Rent Forever! Part II 6 Helpful Tips To Help Save Delaware First-time Homebuyers Money And Anxiety.
Stop Paying Rent Forever! Part II
Adjustable Rate Mortgage’s (ARM’s) are typically very low at the beginning but can escalate quickly. These are good for short-term purchases, but long-term mortgage holders are typically better off with a fixed rate.
If you can afford it, you may consider a fifteen-year mortgage. Typically the monthly payments are 20% higher, and you cut off half the duration of your loan. Additionally, your credit will play a big part in what program will be offered to you. “A” paper, lender lingo for an applicant who has perfect credit, may find a low rate with very little down. But if you have some credit history problems, you may find that to put more money down.
4) Clean Up Your Credit
By getting pre-qualified, you will be made aware of any potential credit problems in your credit history. Don’t despair if the credit report is not stellar. Even if an incident cannot be taken off your report, by knowing the background of your financial history your lender may be able to put your financial situation in a better light when submitting the actual loan application.
Review your credit report carefully. It is very common for non-payments to be listed that are not even yours. Your mortgage professional will help you address problems showing up on the credit report. Many times, a simple letter to the creditor explaining the circumstances at the time of the incident will rectify the situation. However this may take a few months.
5) Get A Realtor
As a Delaware Real Estate first time homebuyer, the biggest mistake you can make is believing that you can save money by not using a Realtor ®. Although the seller pays the commissions, some listing agents will tell you they can represent both you and the seller fairly. While in some cases this may certainly be true, it’s better to be safe than sorry. Get a real estate agent that represents your interests solely. A buyer agent will make sure the home is inspected properly, do diligence on any hidden discovery and more times than not the money they save you on negotiating the price of your new home will more than pay for their service.
6) What Do You Want In A Home?
There will be many decisions as you start this process. Your Realtor will take you to several different homes, some you will like, some you won’t, but most will land somewhere in between. Decide now what features you feel are “necessities” in a home and which features are items that would be “nice to have”. This list will change the farther along you go, but will be extremely useful as you begin to look at homes. It will also be useful to your Realtor so they can better qualify the homes that they you will like.
Please call or email as you have questions 302.249.6665 Mariya@TheOldfathergroup.com, Dustin@TheOldfatherGroup.com www.ExtraordinaryDelawareRealEstate.com