Friday, March 24, 2017

Buying A Home


Things to Consider When Buying a New Home 

Florence SC Homes for Sale wants your homes buying experience to be a good one. If you read this and follow the steps the process should be much easier.

The first thing one will need to consider if thinking about buying a new house is the cost.  Not just the price tag on the house but the move-in expenses as well.  The first expense one needs to think about is the monthly cost which includes the house payment as well as the utilities and up-keep.  Ask the seller what the monthly utilities have been running. Also consider things such as monthly cost in yard maintenance.

Also, you need to consider, will the insurance and taxes be included in the payment or will these be paid separate? If insurance is paid separate then this expense will need to be included when figuring your monthly budget.

There is almost always extra cost when moving into a new home.  Lights and water need to be turned on. If you have never had an account with the utility company you may have to put down a deposit when opening an account.

Then there is the cost of furniture and appliances that are going to be needed.  These alone can run the move-in cost up significantly.

Depending on the house, there may be some upgrade cost.  When moving into a new home, it is prudent to ask the seller to provide a property disclosure. This is a list revealing what he/she knows concerning the condition of the house and what repairs and upgrades the seller did to the house. The disclosure should communicate any repairs that have been recently done to the house or any that may be needed.  
If you are using a Realtor you can give them a list of questions you have about the property. An honest seller will have no problem answering these questions.

Before buying your new house make a list of your monthly budgeted items to determine how these new expenditures will effect your monthly cost of living.

Things to Evaluate When looking at a Potential New Home…

While looking for your new home make sure you pay attention to the neighborhood.  Noticing how the neighbors live may help you make a decision concerning the purchase of your new home.

At sometime while viewing the home make sure you walk the yard.  Check for damage in any fencing   and what repair cost may be to any outside structures.  These should not be deal killers but you need to know the cost of future repairs. 

While you are doing your outside inspection be diligent to check the exterior structure of the home.  Check for rot around the windows and soffit as well as the fascia.

Inside the house, make sure the floor plan is satisfactory to your family's needs. Interior style,color scheme, carpeting, floors and wall coverings are all things to pay attention to.  All of these items can be changed if you don't like them, however, the cost adds up and must be considered.

These closing costs  listed below are typical in Florence, S.C. These quotes are an estimate and not guaranteed as each loan company, insurance agent, and attorneys have different charges. These costs do not include "prepaid items" (see below)

  • Loan Origination Fee: 1% of loan amount
  • Underwriting Fee: Varies
  • Flood Certification Fee: $16-$20
  • Credit Report: $15-$50
  • Appraisal: $350
  • Tax Service Fee: Varies
  • Survey: $265
  • Home Inspection: $200-$300
  • Pest Inspection: $165
  • Attorney Fee: $375-$500
  • Title Insurance: $3 per $1000 plus $25
  • Clerk's Copy Fees: $25
  • Recording Fee's: $10-$25
  • Courier Fees: $25-50

Once again, these are typical fees and closing costs  may vary, however,  it has been my experience that closing costs run between $2000 and $4000.  This will vary depending on the loan amount. 

Items Needed for a Credit Application:

Employment

  • Addresses for two full years
  • Gross monthly income
  • W-2s, if available
  • Proof of pensions, retirement, disability or Social Security
  • Proof of income from rentals, investments, etc.
  • Proof of child support or alimony paid/received
  • Year to date pay stub

If self-employed:

  • Two years 1040 Tax Returns
  • Current year profit and loss statement

Creditors

  • Each creditor's name, address and type of account
  • Account numbers
  • Monthly payments and approximate balances
  • Amount of child care expenses

Banking

  • Names and addresses of saving institutions
  • Account numbers for all accounts
  • Type of accounts and present balances

Miscellaneous

  • List of assets in stocks, bonds, land
  • Life insurance cash value (documented if used as cash down payment)
  • If applicant is selling a home, a copy of sales contracts
  • Buyers Social Security numbers
  • Veterans – Certificate of Eligibility & DD-214
Sells Agreement
  • Copy of contract
  • Instructions on how appraiser is to gain entrance

As the loan process moves forward the mortgage company will almost always ask the buyer to update information such as check stubs and or bank statements just before closing.  This is just part of the normal process and there's no reason to get nervous about them asking.

 Things to consider during the Mortgage Loan Process

Once a buyer has been approved for a mortgage loan there are some precautions he or she should follow.  It is imperative that anyone who's name is on the loan application not allow a credit check by another business such as a car dealer or another loan company during the loan process.  A borrower should never try to gain more credit while in the mortgage loan process as this is likely to slow down or even cause a denial all together.  Applying for more credit will change the borrowers whole financial picture and the mortgage company will cease the process until they are fully assured the the applicant's  “debt to income” percentages are within limits.  For security reasons the mortgage company may wait 90 days or more to begin the process all over again.  Buying a new home can be a very exciting and wonderful experience, however, it must be done the proper way. If a buyer follows the above guidelines the mortgage borrowing process will go much smoother. 

Happy House buying!