How to Buy a Home in Delaware
From pre-approval to closing day, we'll guide you through every step. Our plan, your roadmap to homeownership.
Preparation
Identify your objectives and get financially ready
Identify Your Objectives
Before you start browsing listings, take time to clarify what you're looking for. Understanding your goals will save you time and help us find the right home faster.
- What is your buying motivation?First home, moving up, downsizing, relocating, investment?
- What price range are you shopping?Consider your down payment and monthly payment comfort level
- What is your timeline?Immediate need, 3-6 months, or flexible timing?
- What are your "must-haves"?Bedrooms, bathrooms, garage, yard, specific features
- Where are you looking to live?Specific towns, school districts, commute considerations
Get Pre-Approved for a Mortgage
Pre-approval is your first major step. It tells you exactly how much you can afford and shows sellers you're a serious buyer. In Delaware's competitive market, offers without pre-approval are rarely considered.
Pre-Qualification vs. Pre-Approval
Pre-qualification is a quick estimate based on basic information. Pre-approval involves a thorough review of your finances and credit, giving you a verified approval amount that sellers trust.
Rush Home Advantage: Verified Approval
Our lending partners offer fully underwritten pre-approvals that verify your income, assets, and credit upfront. This means your approval is nearly guaranteed, making your offers more competitive than standard pre-approvals.
Documents You'll Need
- Pay stubs — Last 30 days showing current income
- Tax returns — Previous two years with all schedules
- Bank statements — Recent statements for all accounts
- Employment verification — Letter from employer or recent W-2s
- ID and Social Security — For credit and identity verification
Understand Your Affordability
Lenders look at three main factors to determine how much you can borrow.
Credit Score Requirements
| Loan Type | Min. Credit Score | Min. Down Payment | Special Requirements |
|---|---|---|---|
| Conventional | 620 | 3% | None |
| FHA | 580 | 3.5% | Mortgage insurance required |
| VA | Varies | 0% | Military service required |
| USDA | 640 | 0% | Rural location, income limits |
Debt-to-Income Ratio (DTI)
Your DTI is all your monthly debt payments divided by your gross monthly income. Lenders typically want to see a DTI below 36%. For example, if you earn $6,000 per month and pay $1,800 in debts, your DTI is 30%.
Need to improve your credit score before buying? Our lending partners offer a free Credit Upgrade program that creates a personalized action plan to boost your score by 10-30 points, potentially saving you thousands over the life of your loan.
Delaware Buyer Assistance Programs
Delaware offers some of the best buyer assistance programs in the region. We help connect you with programs that can significantly reduce your upfront costs.
ONE+ Program
Put down as little as 1% and receive a 2% grant toward your down payment. You start with 3% equity.
RentRewards
Turn 10% of your monthly rent into a credit toward closing costs when you buy.
Down Payment Grants
Multiple programs provide grants for down payment and closing cost assistance to qualified buyers.
Delaware Diamond DPA
Special program for essential workers including teachers, nurses, police, and firefighters.
Program availability, terms, and funding are subject to change. All loan applications are subject to underwriting approval. We provide information about various financing programs as a service to our clients.
Knowing the Delaware Market
Understanding current market conditions helps you make smarter decisions about timing, pricing, and strategy.
- Market analysis — We review active, pending, and sold transactions in your target areas
- Seasonal considerations — Spring typically has more inventory; winter may offer less competition
- Supply and demand — Delaware's tight inventory (around 2 months) means homes sell quickly
- Contract timelines — Most closings occur 30-45 days after contract acceptance
Delaware Advantage
Delaware has no sales tax and one of the lowest average property tax rates in the region at 0.61%. These savings add up significantly over time compared to neighboring states.
Finding Your Home
Search, tour, and make your winning offer
Search and Review Homes
With your pre-approval in hand and objectives clear, it's time to find your home. We use technology and personal expertise to streamline your search.
Online Search Setup
We set up custom searches that notify you instantly when matching homes hit the market.
New Listing Alerts
Receive notifications as soon as new homes are listed—often before they appear on public sites.
Schedule Showings
We coordinate tours around your schedule, often same-day for new listings in hot areas.
Select Your Home
Once you find the right home and location, we move quickly to structure your offer.
Interested in new construction? We have relationships with builders across Delaware and can provide access to communities, floor plans, and exclusive inventory. New construction represents 40% of our business—we know the process inside and out.
Making Your Offer
When you find the right home, a well-structured offer makes all the difference. We help you craft competitive offers that protect your interests.
Key Components of Your Offer
- Purchase price — Based on market analysis and comparable sales
- Earnest money deposit — Typically 1-3% of purchase price, shows seller you're serious
- Contingencies — Protections including inspection, financing, and appraisal
- Closing timeline — Your proposed settlement date
- Special terms — Any requests like seller credits or included items
Discuss Offer Strategies
Every situation is different. We review all disclosures and reports, discuss offer strengths, and position your offer to win. In competitive situations, we may recommend strategies like escalation clauses or adjusted contingencies.
Negotiation
Offers are rarely accepted as-is. Be prepared for back-and-forth negotiation on price, terms, and conditions.
- Counter offers — Sellers may propose different terms; we advise on each response
- Multiple offer situations — In competitive markets, sellers may receive several offers
- Acceptance — Once both parties agree, the contract is executed and we move to Phase 3
Buying Before Selling?
If you need to buy your next home before selling your current one, ask about our QuickBuy program. We can help you get a guaranteed backup offer on your current home, allowing you to make competitive, non-contingent offers on your next purchase.
Under Contract
Inspections, appraisal, and preparing for closing
Immediately After Contract Acceptance
Once your offer is accepted, the clock starts. Here's what happens in the first few days:
- Review and sign Service AuthorizationThis authorizes us to act on your behalf through the transaction
- Select closing attorney and send contractIn Delaware, attorneys handle closings; we can recommend trusted partners
- Submit escrow depositYour earnest money is deposited within the timeframe specified in your contract
- Notify lender to begin loan processYour lender needs the executed contract to move forward with your loan
- Select and contact insurance agentYou'll need homeowners insurance bound before closing
Inspections and Disclosures
Inspections are your opportunity to learn about the home's condition before committing fully to the purchase.
Schedule Home and Termite Inspections
We recommend scheduling inspections within the first 3-5 days after contract. A professional inspector will examine the home's major systems including structure, roof, plumbing, electrical, HVAC, and more.
Review and Negotiate Repairs
After receiving the inspection report, we review findings together and decide on repair requests. Options include:
- Request seller make specific repairs before closing
- Negotiate a credit toward closing costs
- Accept the home as-is
- Terminate the contract if major issues are discovered
Appraisal and Title
Your lender will order an appraisal to confirm the home's value supports the loan amount. Meanwhile, the title company researches the property's ownership history and prepares title insurance.
Every contract has specific deadlines for inspections, financing, and other contingencies. We track these dates carefully and keep you informed. Missing a deadline can affect your ability to negotiate or even cancel the contract.
Final Preparations
As you approach closing, several final items need attention:
- Meet all contingency deadlines — Ensure inspection, financing, and other contingencies are removed on time
- Finalize loan documents — Work with your lender to complete any remaining paperwork
- Receive closing disclosure — Review final loan terms and closing costs at least 3 days before closing
- Schedule final walk-through — We'll tour the home 24-48 hours before closing
- Prepare funds — Arrange wire transfer or cashier's check for down payment and closing costs
Closing
The finish line—sign, celebrate, and get your keys
Final Walk-Through
Before closing, we'll walk through the property together to verify:
- Agreed-upon repairs have been completed
- The home's condition hasn't changed since your last visit
- All included items (appliances, fixtures) are present
- Seller has removed all personal belongings
Closing Day
Closing typically takes 1-2 hours at the settlement attorney's office. Here's what to expect:
Review Closing Disclosure
Verify all loan terms, closing costs, and final numbers match what you expected.
Sign Loan Documents
You'll sign the promissory note, deed of trust, and various disclosures.
Transfer Funds
Wire your down payment and closing costs; the lender wires the loan amount.
Receive Keys
Once everything is signed and funded, the deed is recorded and you get your keys!
What to Bring to Closing
- Valid government-issued photo ID
- Cashier's check or wire confirmation for closing funds
- Proof of homeowners insurance
- Any additional documents requested by your lender or attorney
After Closing: Move-In Checklist
Congratulations on your new home! Here are some first-day priorities:
- Change the locksYou don't know who has copies of the existing keys
- Transfer utilitiesElectric, gas, water, internet, and trash service
- Update your addressPost office, banks, employers, subscriptions
- Locate emergency shut-offsKnow where to find water, gas, and electrical panels
Working Together Again
Our relationship doesn't end at closing. We're here for you long after you've settled in.
- Stay in touch — We provide annual market updates and home equity reviews
- Future real estate needs — Second homes, investment properties, or your next move
- Refer friends and family — We appreciate referrals to people you know
- Share your experience — Reviews and testimonials help us serve more clients like you
Frequently Asked Questions
Common questions about buying a home
Ready to Start Your Home Search?
Let's discuss your goals and create a personalized plan to get you into your new home.