- When a lender approves a mortgage loan, the approval is based on the borrower's debt ratio during the home loan process. The lender approves the loan with the understanding that the borrower has the down payment and closing costs already available. Placing the closing costs and down payment on a credit card not only increases the borrower's debt but also lowers the borrower's credit score.
- The funds at closing are required to be guaranteed funds for immediate disbursement. Credit card companies reserve the right to pull back funds placed on credit cards for up to 90 days.
- Credit card companies charge a fee to the merchant for accepting credit cards. That fee would reduce the funds available for disbursement.
- For these reasons, the Delaware Real Estate settlement practice is to require wired funds into the attorney's settlement escrow account with the understanding that a personal check for the difference up to $10,000 would be accepted to cover any extra costs that the wired funds do not meet.
Why credit cards cannot be used in Real Estate transactions
Overview of real estate investment trusts
Many Delaware residents think that they can't afford to get into commercial real estate investing because they don't have the capital to purchase a property outright. Smaller investors often turn to the stock market because it's seen as the easiest way to share in the profits of a large company.
Having a good real estate agent is important
When people are preparing to buy a home in Delaware, it is very important that they make certain they choose the right real estate agent. Like other professionals, not all real estate agents are the same, and some are simply much better than others.
