Tag Archives: purchase
Update! Are mortgage interest rates starting to rise?

arrowIn comparison, last week’s average rate was 3

38%

  When you compare rates from 30 years ago, rates still remain lower and very attractive for a purchase or a refinance

The average rate on a 15-year, fixed-rate loan was 2

71%

 

 

pmms chartWhen creating any debt it requires you must have a net tangible benefit to you the borrower

 If purchasing a home you must feel comfortable that you will still have a life after paying the mortgage

 If you refinance, then you must see a benefit that saves you both monthly payments, increases your cash flow and provides for a reduction in long term interest payments

 

Housing starts and new construction are up over last year

Existing home inventory for most of Delaware seems to have dwindled from 2012,  which means a return to demand

Some areas in Delaware has seen purchasing has moved from a buyers market to a sellers market

This equates to less negotiation room for buyers

Bottom line, if you are considering buying or purchasing a home,  the timing for you is still good

If you are thinking about refinancing and it makes sense by providing you a tangible benefit, then no time is better than now

(rate source 

” href=”/Contact-Us-/” target=”_self”>Contact us

Let us know, where do you see interest rates going in the near future?

Leave your comments below

 

 

 

Should mortgage rates be lower?

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Delaware Home Sales Strengthened in November

delawareonline

com/article/20121218/BUSINESS/312180058/Del-home-sales-prices-up-November” title=”Wilmington News Journal” target=”_self”>Wilmington News Journalinterest rates at or near record lows

 Keeping interest rates low will be tied to employment dropping to 6

5% and inflation increasing to 2

5%

In other words, if employment drops to 6

5% or inflation creeps upward to 2

5%, this will trigger an increase in rates

 In the past, the largest factor influencing interest rates rising has been inflation

 

Lower interest rates translate into more buying power for you

Lower mortgage rates can give buyers greater purchasing power

 For example let’s look at a purchase on a $300,000 – 30 year mortgage, a 5

25 percent rate results in a $1,656 per month payment

A 3

25 percent interest rate drops the payment to $1,305 per month, or a savings of $351 per month

 This is quite a difference when computed over a 30 year mortgage

 

Sales are up and mortgage rates are down, but can I still get qualified?  
Answer: Yes you can!  

The 3 primary factors that influences home purchase qualifications are:

1

 Income
2

 Assets
3

 Credit score

Bottom line,  if you’re thinking of buying a home right now, then lower mortages rates and attractive housing prices should convince you that now is the time to buy before inflation rises

 

*Rates used in examples are for illustrative purposes only and should not be considered an offer 

 

**Inflation is a rise in the general  This entry was posted in blog and tagged , , , on by .

Considerations before buying a short sale home in Delaware

foreclosed property, delaware, mortgage, short saleYou’ve considered moving, but the home you are buying is either a foreclosed or short sale property.  You’re not sure just how it works when purchasing such properties. The home is priced right, but you need to know more before proceeding.

Listed below are the concerns for buyers who wish to purchase foreclosed or short sale homes:

1.  Home Inspection:   A home inspection is highly recommended on every home purchase, but it is especially important when purchasing a foreclosed or short sale property.

2.  Appraisal:  The home must appraise for the sales price you offer and requires a review by our underwriters to measure the value. Review with your realtor the comparable sales in the vicinity of the new home to be sure the comparable values are in line with your offer.

3.  Time:  When you make your offer, be sure to allow enough time for the lien holder to accept your offer and then additional time to final settlement.  Our experience has shown  60-90 days settlement time is not unusable.

4.  Be Ready:  When you receive the go ahead from the lien holder, be ready to move quickly.  The time it takes to get approved is slow, but once the lien holder agrees to the terms of sale, things move quickly.  Don’t allow the seller to push you beyond the expected time to complete the sale.

5.  Sales Contract:  Have your sales contract reviewed by your real estate attorney.  Make sure the contract includes all disclosures and any known conditions that exist with the property.

6.  Earnest Money:   Be sure your sales contract addresses any earnest money deposited. Copy your earnest money check and keep it in your file for future reference.  Your mortgage lender may also ask for a copy.

7.  Documentation:  You want to make sure you can afford to purchase the home.  If the home needs some “TLC” you may want to see if you have enough additional assets to make the purchase or are you expecting to get a mortgage that addresses those concerns?  Knowing the mortgage programs and getting pre-approved is essential.

8    Attorney:  You want to make sure the home you are buying has a clear, unencumbered title. Hiring a qualified real estate attorney or title agent is very important.  Don’t be afraid to ask for credentials and client testimonials.

Summary:

There are some great buying opportunities on the market at this time.  Usually there is a reason behind why a property is being offered at a below market price.  As buyers, you’re key question to ask is whether or not you can tolerate the possibilities of dealing with uncertain issues that may arise during the purchase transition.

If you have further questions, just click on the button below or give us a call at 302-266-9500 or toll free 877-266-9500.

Contact Sam!

What documentation is needed to obtain a mortgage?

mortgage pre-approval

Getting a pre-approval before the buying process can be beneficial for several reasons

For one, it can give you an idea of how much you can afford when you are looking for a home

When you have found the right home, one of our mortgages consultants will let you know what you need to do next

First, you will fill out an application and provide details like your work history, social security number and previous addresses

Our mortgage consultants here at Delaware Financial Capital Corp

will also pull a credit report

This helps to make a determination on whether you qualify for a mortgage

Along with your application, you will be required to provide additional

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aspx” title=”documentation,” target=”_self”>documentation, which one of our mortgage consultants will go over with you

Often times this is required for those borrowers who are self-employed or receive non-employment income

If either applies to you, you will be asked to provide tax returns and any other tax forms like a 1099

 

At Delaware Financial Capital Corp here in Newark, DE, we are committed to help you through your entire mortgage process

  To speak to one of our mortgage consultants today, please call 302-266-9500 or click on the link below and get started!

 

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Is there a benefit in purchasing a home listed as a Short Sale?

imagesCAQAXS1JMany banks are still experiencing a large amount of seriously delinquent loans on their books and many are turning to short sales to dispose of properties as opposed to foreclosures. The reason being is that short sales are faster and less costly for lenders to dispose of delinquent loans. 

What exactly is a Short Sale?

As defined by Wikipedia, a short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property and the property owner cannot afford to repay the liens’ full amounts, whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt.  Any unpaid balance owed to the creditors is known as a deficiency.  Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans, unless specifically agreed to between the parties.

What does this mean for you if you are in the market for a new home

This ramped up approach by the lenders will present more opportunities to purchase a home that may be an attractive sales offering for new buyers.  Short sales homes most notably are available at or considerably below market prices.

RealtyTrac is predicting that 2012 will be a record year for short  sales.  “Short sales are growing and will grow explosively over the next year, ”said Charlie Engle, RealtyTrac’s director of business development.

If you purchase a home that is a Short Sale, how do you qualify for a purchase mortgage?

From a buyers perspective, there is no difference between purchasing a short sale home versus any other sales listing.  You see a house you like, make an offer to purchase.  Next, the lender will review the offer and either accept or deny your sales offer.

Purchasing a short sale home can sometimes take a little longer to purchase vs. a normal purchase.  Basically there are a couple of reasons for time delays: 1.  It takes time for the lender to approve your offer.  Lenders are getting much better with this than in the past. 2.  Clearing title may delay the settlement.  Always hire a professional title settlement agent and be represented by an attorney at settlement.   The title agent will perform a lien and title search to make sure you have a  clear title and there are no liens against the property that will come back to haunt you after purchasing  the home.   We recommend you always purchase “Owners Title Insurance” when purchasing not only a short sale, but any property.  Owners Title Insurance will provide you with the extra security necessary if someone knocks on your door and presents an unsatisfied lien on your new home.

There are opportunities abound for clients who are looking to purchase their primary residence, second home, or investment property, especially home that are considered short sales.  Your timing could never be better and the window of opportunity is open!  Look for 2012 and extending into 2013 to see more and more short sales hitting the real estate market.

If you want to talk to one of our mortgage consultants, please call (302) 266-9500 or simply click on the button below to fill out our online contact form.

 

questions-contact-our-mortgage-speciali

 

 

 

 

How to get pre approved for home loan?

purchasing your new home is to get an idea of how much house you can afford to purchase

We make it easy!  Pre-Approval is an easy process and assesses your income, assets, current debt structure and credit worthiness

Taking the time to get pre-approved is your best bet when shopping to purchase your home

  Getting a pre-approval shows your Realtor or Selling Agent that you are a serious and qualified buyer

  This process also saves you time, by making sure you are looking for homes you can reasonably afford to purchase

  Our friendly family staff is here to make sure your buying experience is pleasant and seamless as possible

  Your next step –

defcc

com/preapproval-form/”> on line Pre-Approval Form,  you will hear from one of our mortgage consultants within 24-hours or less to discuss your submission and your next step to home ownership

After our free over the phone consultation, we will move on to the next step by issuing your pre-approval letter

Along with getting pre-approved, there will be a choice of the programs that will meet your needs and qualifications

  Below is a list of the programs we offer for you to choose from:

Our team here at Delaware Financial Capital Corp

will assist you once you get pre-approved to determine which program is best for you


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Are you Ready to Purchase a Home? – How much can you afford?

describe the imageIf you rent the home you live in or thinking about upgrading to a larger home or moving to another area, then the right planning can help you to purchase a home.

To discover your homebuying potential,  you will want to calculate your:

  • Income
  • Savings
  • Monthly Expenses
  • Current Debt

These factors determine how much of a loan you can afford and how buying a home will affect your monthly budget, once you compute all your expenses.

What is your Income?First you need to determine all of your sources of income. You will need money for your down payment and for your closing costs.  The FHA, VA and other mortgage programs may require smaller down payments.  In some cases the closing costs may sometimes be rolled into the mortgage or you can get seller assistance.Here are a few questions to help you to estimate your financial position.•    What is your average monthly income?
•    Do you expect your income to remain level in the near future?
•    If not, do you expect it to increase or decrease?

 

Use the following income categories to estimate your monthly income:

Income Category

Monthly

Borrower’s Salary

$

Co-Borrower’s Salary

$

Taxable Interest

$

Investment Dividends

$

Other Income

$

How much will you need for your Down Payment?Do you have Savings, Investments, Stocks or other Liquid?Add up your savings. Any money saved can help you buy a home. Your savings can be used to pay the down payment and/or closing costs. You know your own saving habits, the more you save the better and the more you put down on your house, the lower will be your monthly payment.

•    What portion of your income are you saving now?
•    Can you afford to put more money into savings?

Use the following savings categories to estimate your monthly savings.

Savings Category

Monthly

Savings Account

$

Checking Account

$

Retirement Fund Contributions

$

Stocks, Mutual Fund Investments

$

Other Savings

$

              
          
Monthly Expenses – Do you know where your money is going?How much are you spending each month? You can expect your monthly expenses to go up when you buy a home. Will you have enough money to pay the mortgage, insurance and property tax in addition to your other expenses?

Use the worksheet below to calculate the money you currently spend each month.

 

Expense Category

Monthly (current)

Utilities

$

Car Expenses

$

Insurance

$

Medical Expenses

$

Clothing

$

Taxes

$

Entertainment/Purchases

$

Child Support

$

                        
How Much Debt do you Have?Review your current debt obligations.  We examine the ratio of your debt to your income when deciding how much money to lend you.  Consider how additional debt from house payments, added to your existing debt, will affect your lifestyle.

Debt Category

Monthly

Credit Card

$

Car Loans

$

School Loans

$

Alimony

$

Child Support

$

Other Personal Debt

$

Wow! There is a lot to consider when buying a home.  Rest assured, if you are on this page right now you are on the right path.  Please feel free to let us know if you have any questions.

Still have questions?   Just give us a call at (302) 266-9500 or simply click the button below to contact Sam.

 

contact-sam

Are we still in a Buyer’s Market?

delawareonline

com/article/20120515/BUSINESS06/305150009/Delaware-home-sales-stay-iffy-April”>Delaware OnLine, year-over-year sales in April were down slightly from 171 to 168 in Sussex County, remained flat at 116 in Kent County, and jumped from 395 to 420 in New Castle County, according to statistics from the Sussex County Association of Realtors and Trend MLS

Considering where we were compared to where we are now, Delaware homebuyers still have a great opportunity

  Never before have mortgage rates been so good

   The lower the rate, the more house you can qualify to purchase

You might be saying that your house has taken a pretty big hit over the last 3-4 years in reduce value

In reality, everything is relative

  Even though your house is less than in the past, so is the house you are going to purchase

 

The question: Are we still in a buyers’ market?  Yes, I believe, we are still in a buyers’ market and your timing could not have been better than right now to consider a home purchase

If you are a current homeowner, you might think it is a little scary to sell right now

  Timing is everything

  A house priced right will sell! 

The next question:  What is the best selling price for your home when you put it on the market to sell?  This is where a good Listing Agent is worth their weight in gold

  A good listing agent will perform a market study and suggest the right price for you to put your house on the market

 

If you are moving up to a larger home, transferring into Delaware, or a

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com/first-time-homebuyers?utm_campaign=First-Time-Homebuyers” title=”first time homeowners” target=”_self”>first time homeowners everyday!

So let us help you purchase your first home!  Give us a call at 302-266-9500 or email at info@delawarefinancial

com

 

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We want you to stay informed

Click button below to get your free “Homeowner’s Information Guidebook

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