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Purchasing a home

On Behalf of | Jul 8, 2019 | Residential Real Estate

When purchasing a home, one of the things Delaware residents have to consider is whether they want to make their mortgage payments biweekly or monthly. If the mortgage payments are made biweekly, the mortgage payoff date will be earlier, and the total interest costs will be lower. With a monthly mortgage payment, buyers are likelier to be paying more interest with a payoff date that is much later than that for a biweekly payment.

It is also important for homebuyers to compare lenders beyond just looking at interest rates. One of the other lender factors that should be considered includes lender fees. While a lot of closing costs tend to be standard with little variation among lenders, other fees for processing, closing, commitment and origination can vary significantly.

When choosing the right lender, homebuyers should also look for those who provide trustworthy advice. Local lenders are likely to be knowledgeable about local customs and laws and may be acquainted with other parties in the real estate or home market, such as real estate agents or representatives for title companies.

People who make a down payment that is less than 20% of the sale price for a home and who are getting a conventional home loan may be required to purchase private mortgage insurance. The amount of PMI that will have to be paid will be based on the borrower’s creditworthiness and the amount of the loan.

An attorney who handles residential real estate cases may assist individuals with the homebuying process. A lawyer may negotiate contract terms for purchase agreements, address title and zoning issues and oversee real estate closings. Attorneys may also help clients who have to address the lack of disclosure regarding a property after it has been purchased.