Tag Archives: income
YES! You can get a mortgage!

Delaware, Newark, mortgage, credit scoreAre you buying a home in Delaware? Do you need help buying a home?

The more you know about mortgages and what it takes to get a mortgage is your best bet! 

  • Don’t let misconceptions get in your way.  Just because someone you know couldn’t get a mortgage doesn’t mean the same applies to you.

  • Getting through the mortage is a difficult process.  Not really if you work with a knowledgeable and experienced professional.  Take one step at a time.

  • The more you know, the better experience you will have.  True!  Knowing what to do, how to do it, and when to do it are important steps.

Know the 3 Big Issues to Get a Mortgage

1.  Income
Income plays a big part in getting a mortgage. Not so much in how much income you make, but how much will your income afford you to a make a reasonable mortgage payment and still have money left over to pay your other living expenses.

2.  Assets
Having cash or other assets is great.  The cash you have the easier it will be for you to get a mortgage.  But, don’t be discouraged if you don’t have tons of cash,  we have plenty of programs to assist you.  Having some cash is always expected since it demonstrates good financial management.

3. Credit
Having a good credit score is a good indication that you will pay your mortgage and perform on your debt.  Also, the better your credit score, the better will be your interest rate.  Mortgage rates are determined by what is called risk based pricing.  In other the better your credit score, the better will be your rate. 

Finally, having good income, liquid assets (cash) and good credit are the 3 things you want, but, remember, there are many loan programs for borrowers who have marginal credit.  

At Delaware Financial Capital Corp., we can help you get a mortgage.  Our office is located in Newark, DE.  Give us a call at 302-266-9500 or simply fill out the contact form below:

 



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Don’t forget to download your free ebook “Homeowner’s Guidebook”

 



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When refinancing my mortgage – How Can I Determine My Payment Terms?

1254516095q7S3i1When refinancing, determining the right term of your loan is an important decision, after all you want to continue making your mortgage on time, with little or no addred stress to your life. If you are currently in a 30 year mortgage, you most likely would consider doing a 25, 20, or 15 year term, but it it the right decision?

Having spoken to accountants and financial advisers, there are several schools of thought on refinancing.  Many think you should stay in a long term (30) mortgage, while others think going to the shorter term (15) is the way for folks to plan.  Sometimes the decisions are based on your income tax bracket and others, which I have listed below for your consideration:1.  How long do you plan to stay in your current home? 

  • Are you subject to a potential job transfer?
  • Are you considering downsizing in the near future?
  • Is your company going through a re-organization

2. How long have you been in your current mortgage?

  • Does the lower rate make good sense?
  • Have you lived in the house long enough to have some equity built in?
  • Maybe keeping the same term and reducing the rate, makes good sense for your cash flow, releasing more funds to pay down other debt.

3. Can you afford the shorter term?

  • Can you afford shortening the payment; for example from a 30 year term to a 15  year?
  • What is your current debt to income? 
  • How much will you save?  For example, if you have a 30 year term with 25 years remaining and refinance using a 15 year, you have just reduced 10 year of principal and interest savings.  This can be significant, but can you afford the payments?

Here is the bottom line, you are unique. Yes, everyone has their own particular set of circumstances as to whether or not to lessen, remain the same, or even extend the term of their exisitng mortgage. 

At Delaware Financial Capital Corp., our job is to help you ascertain what makes sense for you.  Give our team a call at 302-266-9500!  We will brainstorm with you to see which term makes the best sense for you and your family.

 

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What is a credit score all about?

credit score of some sort

  Your credit score is a numerical value that reflects how well you’ve managed your credit over the last seven to 10 years

Lenders and mortgage underwriters use your score to help them decide how risky you are as a borrower

When lenders extend credit, their primary concern is that you’re capable and willing to repay the debt

They typically look at several factors to make this determination, including income, employment history, existing debt level, and credit score

Your income and debt levels tell lenders how much discretionary income you have and which is  major factor to determine if you have enough money to pay your mortgage

  Your employment history helps indicate how stable you are financially

 In other words are skipping from job to job every month or so

  Your credit score provides your ability to manage your  spending and your repayment habits

Lenders use these factors to decide two things-whether or not to extend you credit, and the rate of interest to charge if a credit offer is made

The better your score, the better your rate and the lower your credit score, the higher will be your rate

It stands to reason that riskier borrowers pay higher interest rates

That’s why understanding and managing your credit score is so important-because making prudent choices and managing it can literally save you tens of thousands of dollars over your lifetime

What is FICO?

FICO scores, developed by Fair Isaac Corporation, are the most commonly used credit scores

Your FICO score is calculated (by way of highly confidential algorithms) from the information contained in your consumer credit report

The FICO scale ranges from 300 to 850, with a higher number meaning less risk for the lender

There are no set levels defining a good or bad score; this determination varies by lender based on its underwriting practices

Generally speaking, a FICO score of 750 or above indicates good credit management skills, while one below 650 is in need of improvement

Wikipedia defines credit scores, “a credit score is a number based on a statistical analysis of a person’s credit files, that in theory represents the creditworthiness of that person, which is the likelihood that people will pay their bills

A credit score is primarily based on credit report information, typically from one of the three major credit bureaus: Experian, Trans Union, and Equifax

Income is not considered by the major credit bureaus when calculating a credit score

Your credit score for pricing is the middle score of the three (3) bureaus;

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Do you know what your credit score is today?  Knowing your score and knowing what the credit bureaus are reporting, is an important step to becoming a homeowner

We’re helping Delawareans purchase and refinance their homes everyday! 

Give us a call at 302-266-9500 or

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