If you can buy down points at the beginning of you loan process, it will reduce your interest rate. But buying down points is not always an option. Ask your Lender.
Finding the right lender is key for a 1st time homebuyer. You can pay down your interest rate by adding points but it typically is costly to do that! Usually 1 point cost (1% of loan amount) for each 1/4 point rate drop. Most 1st time buyers don't have that kind of money so I think finding the best lender is the better answer for making sure you get the best deal. I would be happy to help you when you are ready to start discussing all aspects of purchasing a home in DE :)
RealtorÂ®, Keller Williams Realty
Direct: (302) 312-6093
Office: (302) 299-1100
Fax: (302) 299-1200
1521 Concord Pike, Suite 102
Wilmington, DE 19803
Certified Mortgage Planner
Primary Residential Mortgage, Inc.
There are state and local programs but the criteria depend on your income. Check my web site for more information (under For Buyers).
You definitely qualify for a mortgage based on your scores so your next step may be to contact a lender and get the ball rolling. I have a lender in my office if you want the info. And yes, paying points will lower your interest rate.