As February begins to unfold, many people are starting to think ahead toward spring. Some are planning their gardens in their minds while others are booking their stay at a vacation home on the beach. There are also many people throughout the country who hope to buy a house, and perhaps have added South Carolina to their list of potential locations.
There are several important issues to know about buying a home in South Carolina. While most of these issues are relevant to all potential buyers, they are especially noteworthy for first-time buyers. There are many prime real estate locations throughout the state, and Columbia is one of them. Keeping the information provided in this post in mind can help you have a smooth purchase transaction.
When you buy a house in South Carolina, an attorney must be involved
South Carolina real estate laws require an attorney’s involvement in the closing process. The attorney performs numerous tasks, such as conducting a title search and ordering a survey if the buyer requests it. If you are the buyer, you will likely be responsible for the attorney’s fees. However, you will also be the one who gets to choose the attorney.
Several ways to avoid private mortgage insurance (PMI)
There are two basic ways to avoid paying PMI when you buy a house in South Carolina. If you’re a first-time buyer, you are exempt from PMI if you make a down payment of 20% or more. If you’re not a first-time buyer, you can avoid PMI by making a cash offer on a home.
Alternative options available if you can’t afford a big down payment
If you’re struggling to come up with funds for a down payment, you’ll want to explore various options that may be available to you, including the SC Homebuyers Assistance Program, the Conventional 97 loan program, and Federal Housing Administration loans, as well. If you (or your spouse, if you’re married) are a military veteran, the United States Department of Veterans Affairs may be able to provide support to help you qualify for a home purchase without a down payment.
Qualifications for a South Carolina mortgage loan
If you are 18 or older, you are legally permitted to buy a house in South Carolina. One of the most common issues that delay or impede a closing is difficulty obtaining mortgage loan approval. To avoid such problems, it’s helpful to understand four qualifications that most lenders are looking for when considering whether to loan you money to buy a house.
The following list includes basic mortgage loan qualification factors:
- You must demonstrate the capacity to carry a loan by having a debt-to-income (DTI) ratio of 36% or less.
- A lender must be convinced that you have sufficient capital (funds) before offering you credit.
- You must have collateral that the lender can repossess if you default on your loan.
- Your chances of obtaining mortgage approval are best if you have a high credit score.
If the seller accepts your offer and a lender approves your mortgage loan, you can usually expect to settle at closing within 35 days. Working with an experienced buyer’s agent is the best way to simplify and expedite the process.