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Home Buying How-to-Start

Finding the home buying process confusing? Here are some helpful steps to take.

Buying a house is a rewarding and life-changing commitment that comes with an often confusing monthly mortgage payment. This payment is determined by many variables including the purchase price of the house, the amount of down payment, the term of the loan, the interest rate, required insurance, and taxes.

It will most likely take a nice chunk out of your paycheck for many years to come, so
it’s important to work with a reputable lender like Artisans’ Bank. Here are some tips to
accurately estimate your monthly payment in order to make your pursuit of homeownership
less overwhelming.

Understand What You Can Afford to Spend

Before beginning a house hunt, go over your household budget. Here is a simplified list of items that can set you up for success:

  • Itemize Your Expenses
  • Take Note Of Your Debts,
  • Calculate Assets
  • Any Other Financial Responsibilities?

Pre-qualification is a simple process with your lenders, where they determine how much you
can borrow based on your personal financial information. While this amount is not set in
stone, it will provide parameters for your home search.

Find an Honest, Reliable Realtor

A trustworthy realtor can help steer you in the right neighborhood direction, as well as help
you determine a realistic purchase price for your situation. Realtors can also help connect you
with a mortgage lender, banks, credit unions, mortgage companies or other direct lenders, all
that can provide mortgages.

Mortgage Loans Are Not All Created Equal

Mortgage loans generally fall into two categories: fixed rate or variable rate. Deciding which
type works best for your situation can really make a difference when it comes to your payment
structure or your plans.

  • Fixed Rate Loans: have an interest rate that does not change over the life of the
    loan. This ensures that you will have a steady monthly mortgage payment for the life
    of the loan.
  • Variable Rate Loans: have an interest rate that can change. This means your
    monthly payments are less predictable and can increase, sometimes significantly

Get Pre-Approved For a Mortgage Loan

Once you have done your homework, and you are ready to buy, it is time to get pre-approved
for a mortgage loan. This process requires lenders to review your credit and financial history,
and examine your financial condition, including your salary, bank account balances, credit
history and debts. Pre-approval letters are not loan approvals and are generally only good for
60-90 days.

Ready to take your next steps? Contact an Artisan’s Bank Loan Officer

About Artisans’ Bank

Founded in 1861, Artisans’ Bank (Total Assets of $670million as of 09/30/2023) is a locally
managed, mutually owned, community bank headquartered in Wilmington, Delaware with
12 retail branch locations and 2 community-based lending hubs in Kent and Sussex County.
The Bank offers comprehensive commercial and retail banking services throughout the
State of Delaware and contiguous counties in Pennsylvania and Maryland. Artisans’ Bank
is a member of the Federal Deposit Insurance Corporation (FDIC) and an Equal Housing
Lender. NMLS#774924.

For more information, visit our website at

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