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Understanding the Home Buying Process

Whether you’re tired of renting, want to establish a household with a spouse or partner or are relocating to a new city, buying a home can be a nerve-wracking experience. But the decision to buy is a smart move financially. Home ownership is a wise investment, as you’ll earn tax deductions while building equity.

So many choices: what to consider

Before looking at homes, consider what you want in a home, who will live there, how long you’ll stay there and if your needs will change during that time. If you intend to keep the home less than three years, consider resale qualities that will help you sell your home faster in a buyer’s market, including light-colored carpeting, neutral-colored walls, a modern kitchen and bathrooms and a multi-car garage.

Don’t break the bank!

Set up an appointment with a Delaware State Police FCU loan officer to determine the value of the loan you'll qualify for. Generally, a mortgage payment should be less than a third of your monthly gross income, which is your income prior to any deductions. But your loan officer will consider your individual circumstances in determining your qualification amount.
 
Delaware State Police offers both fixed-rate and adjustable-rate mortgages. The interest rate for a fixed-rate mortgage remains the same for the entire life of the loan, often 15, 20 or 30 years. You’ll know exactly what your principal and interest payments will be, but, your total monthly payments may increase as property taxes and insurance rise.
 
The interest rate for an adjustable-rate mortgage (ARM) may vary as the economy fluctuates. At set dates, the lender can adjust the rate. For example, for a 3/1-year ARM, the interest rate will be locked for only the first three years. Usually, ARMs carry two caps—one limits how much the lender can raise the rate at each adjustment, and one limits how much the rate can be raised over the life of the loan.
 
Find out more about Delaware State Police FCU's mortgage program.
 

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