Ask the Expert

No matter how much research you do on your own to help you prepare for a mortgage, it is normal to have questions.  I have a listed of frequently asked questions below.  Look through the questions and see if they'll help. Have a question about something else? Ask me now!

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1. Can I lock my interest longer than 60 days?
   Yes.  We have an extended rate lock program which will allow you to lock a 30-year fixed rate for up to 1 year.
   
2. When should I apply for a mortgage?
   You should apply for a mortgage as soon as possible.  You are able to apply for a mortgage without a property address.  When working with new construction, the Builder will not start the permit process until you have applied and have been approved for a mortgage.
   
3. What is APR compared to my interest rate?
   Interest rates are used to calculate your monthly payment.  An APR is the interest rate plus any fees added by the lender to borrow money.  The APR will help you compare if a lower rate and higher fee is better than a higher rate and lower fee.
   
4. I am buying a new construction house, should I get a home inspection?
   Buying a newly constructed home required the county to inspect the construction throughout the process.  All mechanical items need to be working at the time of inspections, however a county inspector does not always look for the quality of workmanship.  Your home inspector should take more time on making sure nothing was missed.
   
5. Do I get a discount on my property taxes in DE once I Turn 65?
   Once you have reached the age of 65, and have lived in Delaware for three years, you may apply to save 50% (up to $500) on your school tax.  This credit only applies to your primary residence and must be applied annually.
   
6. Do I have to pay PMI (Private Mortgage Insurance)?
   PMI is required on all mortgages financing more than 80% of the sales price.  However, FHA and USDA will always require mortgage insurance.  VA loans do not charge a monthly insurance but have a financed funding fee added to the loan.
   
7. When is my first payment due?
   Mortgage payments are paid in arrears.  You live in the home for 1 month, then pay on the 1^st of the following month.  For example if you move in August, your first payment will be October, which pays for September’s living.  The days you lived I the home during August will be paid for at closing.
   
8. If I pay off the mortgage early, do I have to pay a penalty?
   No, we do not charge pre-payment penalties.
   
9. Are my taxes and insurance included in my monthly payment?
   Typically you will have the taxes and insurance included.  However, if you have a down payment of more than 20% you can opt to pat the insurance yourself.  If you want to pay the taxes, a small fee at closing will be collected.
   
10. Should I pay cash or take a small mortgage?
    I can create an analysis which will show you the benefits of paying cash or taking a mortgage out.  The choice is different for everyone.  Let me show you the benefits of both.