Buying Your First Charleston Home!
Buying your first home is a major decision, and the process can be intimidating to the first time homebuyer. Our aim is to provide the information you need to better understand and better prepare for this process to make it less stressful and less confusing. Below is a list of important steps to ensure smooth sailing:
1) Save some money! Gone are the days of No Money Down, 100% Financing loans (there are a couple that are limited in availability). However, you do not need 10%-20% down--you can get into a home with as little as 3.5%. There are other important parts of the transaction you will need money for:
CLOSING COSTS: Generally speaking, closing costs include title and attorney fees, appraisal fees, underwriting and origination fees, and recording fees. They are usually 3%- 5% of the sale price amount. Talk to your Mortgage and Real Estate professional, as some or most of these costs can often be covered by the seller
PRE-PAIDS: These include interim interest, taxes and insurance. These can also sometimes be paid by the seller
RESERVES: Even if you can get all or most of your closing costs paid by the seller, lenders often will require you to have saved up the equivalent of a mortgage paymnt or two. Even if you are not required to have this, it is a good idea to go into your first home with some extra money set aside "just in case".
2) Know your credit! Too often, first timers decide to buy a home, begin the search and apply for financing only to find out that they either don't qualify or they can't afford to purchase the home they want because the only interest rates available to them make their monthly payments too steep. It is important to chack your credit a couple of times every year. You should know your credit at least six months prior to beginning the search for your first home. Be sure to see our credit page for more important credit info and some helpful links.
3) Pre-approval: Early in the process, it is important to align yourself with the professionals that will make the process easier for you: a Realtor and a Mortgage Loan Officer. They will help provide you with answers to your questions and will educate you about the homebuying process. It is important early in the process to get a mortgage pre-approval. A pre-approval will let you know how much home you can afford and how much your monthly payment will be. This process usually only takes a day or two, and it is FREE, with NO OBLIGATION. Another advantage to selecting a Realtor early in the process is that their services cost you nothing! (They get paid by the seller of the home you purchase).
There is so much more to learn about the process to become a well informed consumer. However, starting with these basics, you are well on your way.
This will probably be the largest transaction of your life. It is important to learn as much as you can- knowledge is power!
Be sure to sign up for our FREE First Time Home Buyer E-Newsletter--there is no obligation! Each week you will receive helpful tips and information about the homebuying process, credit, and mortgages.
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Last Updated ( Saturday, 22 May 2010 )
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BUXTON, N.C. -- The last ferry left for the mainland and coastal residents hunkered down at home as Hurricane Earl closed in with 105 mph winds Thursday on North Carolina's dangerously exposed Outer Banks, the first and perhaps most destructive stop on the storm's projected journey up the Eastern Seaboard. 