3 Tips for First-Time Homebuyers

Are you a newlywed or someone buying your first home? Follow these three tips to make life easier on yourself.

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If you're a first-time homebuyer or a newlywed buying a home, these tips will help you:

1. It's all about the budget: Your house is more than just a mortgage payment. Over time, you'll have to pay for maintenance and insurance. That's why we recommend you pay between 25% and 35% of your household disposable income toward that mortgage payment. 
2. Location, location, location: Think about school districts even if you don't have kids. When the time comes to sell in the future, it'll be easier if you're in a positive school district. 
Think about school districts even if you don't have kids.
3. Communicate about the top features of the home: During our free buyer consultation, we'll get a list of features that you and anyone living in the home would like to have. Then, we compare the lists and merge them into one list of must-haves so we can find your dream home.

If you have any other questions about preparing to buy your first home, give us a call or send us an email. We'd be glad to help!

How Do You Know You’re Picking the Right Mortgage Lender?

Picking the right mortgage lender can be tricky, so here are some of your options to help you choose what’s best for you.

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There are so many options out there in the lending world. You have online banks, brick-and-mortar banks, and non-depository institutions like us. How do you know which one is right for you?

There are different factors to consider, such as rates, fees, and services. Without going from bank to bank to bank, how do you establish that? Let’s examine your options.

With an online bank, you’re a one-time client for them. After your business is completed, they’re not thinking about you ever again, so they don’t have the motivation to service you properly and make the process as easy as possible.

My team can take great care of you.

With brick-and-mortar banks, their end goal is to make you a customer so they can sell you additional products like car loans, IRAs, bank accounts, etc.

With non-depository institutions like us, our goal is to create that continual referral source by providing outstanding customer service, great rates, low fees, and making the mortgage process as easy as possible. 

If you have any questions or are in need of a great lender, please don’t hesitate to give me a call or send me an email. I look forward to helping you!

How Can You Buy a Charleston Home With No Money Down?

Today I'll explain the four best ways to buy a home with little or no down payment.

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Many times we see buyers who are ready to own a home but just don't have the money for a down payment. Did you know you can buy a home with very little or even zero money down? Today I wanted to share the top four ways you can do this in the Charleston market.

Since interest rates are low, it's still a fantastic time to buy a house. These are the ways you can take advantage with little or no money down:

1. VA (veterans) loan: You can buy a home if you're a veteran for 100% financing. 
2. State Housing: This is a grant for your down payment. Depending on your income and the county you're buying in, it could be repaid or it could be completely forgivable. 
State Housing is a down payment grant that can be totally forgivable.
3. USDA: This lets you buy a home in what's considered a rural area. Many areas around Monk's Quarter, Goose Creek, and Summerville are still considered rural because of lines that were drawn many, many years ago. This loan also lets you finance 100% of the price.
4. A gift fund from a relative or family member: This lets you buy a home with a conventional down payment, but you utilize it as a gift from a family member or relative that's applied directly to the home purchase.

At the end of the day, if you have about $1,200, we can get the seller of the home you want to buy to pay the majority of the closing costs. The $1,200 will allow you to get the property inspected and put down your earnest money so you can buy the home.

With a 620 or better credit score and gainful employment, we may be able to help you get into a home with little or no money down. If you have any questions about qualifying or you're interested in buying a home in the Charleston area, don't hesitate to give me a call or send me an email. I'd love to help you out!

Why It's Better to Own a Home than Rent One

Owning a home is better than renting a home for many reasons. We broke down the five main reasons to buy a home instead of renting one.

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Selling your Charleston home? Get a free home value report

There are five main reasons why you should own a home rather than rent one that I wanted to share.

The first reason is that you build equity with each mortgage payment. Say you take out a mortgage for $200,000. Every time you make a payment, that $200,000 balance continues to drop and your equity increases. The second reason is that you enjoy many tax benefits by being a homeowner. At the end of the year when it's time to file your taxes, the interest and other things you've paid can be deducted to release your tax burden.

The third reason is that buying a home is actually cheaper than renting in the long term. Say that $200,000 mortgage we talked about has a $1,200 a month payment, and you have a friend who rents a $1,200 a month home. The following year, your mortgage payment will still be $1,200, but your friend's rent is probably going to go up by $50 or $100 per month, and will continue to increase at that rate every single year. In 30 years, you'll still be paying $1,200 a month, and your friend could be paying up to $4,000 in rent!

Buying a home is actually cheaper than renting.

The fourth reason to own a home rather than rent one is that you will establish a solid credit history. Every single time you make a mortgage payment on time, your credit score continues to rise, which helps you in other aspects of life like getting better rates on insurance, cell phone payments, and anything else that requires credit.

Finally, homeownership is healthy for families and the community. Just think about what happens in a home – the word "homemaker" comes to mind. Family comes over for holidays, friends come over for a cookout, neighbors become closer, kids are raised in the home, and relationships get stronger. It's truly a wonderful thing.

If you have any questions about homeownership or you're interested in buying a home in the Charleston area, give me a call or send me an email. I'd love to hear from you and help you out.

Should You Buy New or Old in Charleston?

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Today, I’m discussing the advantages and disadvantages of new construction and resale properties when buying in Charleston. Whenever we sit down with buyers for initial consultations, they often know whether they want an older or newer home. 

If you’re interested in an older home, typically it’ll be in a mature neighborhood with developed trees and larger yard sizes on average. Oftentimes, you’ll notice smaller kitchens and bathrooms compared to new construction developments.

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You have the opportunity to choose your add-ons with new construction properties.

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New construction includes full warranties, but sometimes the yard sizes are smaller and the neighborhoods aren’t fully matured. The surrounding community might still be in construction mode, even though your home has already been built. You have the opportunity to personally choose your add-ons, such as flooring, colors, and other features. Additionally, you have built-in equity to a recently built home; the value increased during construction, even though you’re not making payments.

If you’re thinking about buying or selling a home in the surrounding area, reach out by phone or email. I’d be happy to help answer your questions and serve your local real estate needs!

Is Bad Credit Better Than No Credit in the Charleston Market?

Buying a Charleston home? Get a full home search

Selling your Charleston home ? Get a free home value report

I’ve brought in special guest Chris Gonzalez from Tabor Mortgage Group here in Charleston to help us answer the age-old question: Is it better to have no credit or bad credit when you’re purchasing a home?

“We can actually work with both clients, whether you have bad credit or you have no credit, we’re just going to tackle those in different ways,” Chris says. 

For those without any credit, Chris says he can work with rental history, utility payments, and cell phone payments. So, even though you may not be paying anybody, you’re actually building a credit history on your own.

For bad credit, it is a little bit tougher, and the first step they'll take is to pull a credit report and see what’s causing the poor credit score.

The way to start is to reach Chris at 843-810-4821 or at Chris@TaborMortgage.com.

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We can work with both clients, whether you have bad credit or no credit.

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“We will get a credit report pulled, we’re going to review it with you, and then whether you need help or not on the credit side, we’re going to set you up on a plan and give you a timeline so you know when you can get your home purchase completed,” Chris says.

Once you’re ready, Chris will turn you back over to us, and we can help you with your real estate needs!

Thanks to Chris for joining us and teaching us about bad credit vs. no credit. If you’re interested in getting pre-approved reach out to Chris, and if you have real estate questions give us a call or send an email and we’ll get started on a conversation today.

Our Buying Program for South Carolina Heroes

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Selling your Charleston home ? Get a free home value report

Today, I want to mention a special program we offer.

Are you a teacher, firefighter, police officer, veteran, or nurse? If so, we offer a special Hero Home Buying Program. It includes thousands of dollars in down payment assistance.

If you have at least a 620 credit score, and you can afford $800 per month, we want to talk to you. This is a limited time offer throughout the state of South Carolina. When the funds are dried up, the program is over.

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Are you a teacher, firefighter, police officer, veteran, or nurse?

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The program is offering up to $10,000 of down payment assistance and an interest rate of 3%. We have several homes available. If you qualify and choose this route, it will be cheaper than renting. It’s an affordable monthly payment without a down payment.

Click here to see if you qualify

We’d be happy to serve you and consider your application if you meet these qualifications. Reach out by phone or email with any questions you might have!

Who Pays What in a Real Estate Transaction?

Buying a Charleston home? Get a full home search

Selling your Charleston home ? Get a free home value report

Today, I’m talking about who pays what in an average real estate transaction in the surrounding area. How much are the entire closing costs for the buyer and the seller?

When you’re buying or selling a home, people often overlook how much a transaction will actually cost them. What’s interesting about this is that you can find all kind of calculators online, but every state has different regulations. As a general rule of thumb you have fees that account for up to 1.5%, if you're selling, and 3.5% if you're buying, of your entire transaction. This also includes mortgage fees, attorney fees, deed stamps, title insurance, and homeowner’s insurance. The homeowner’s insurance brings up the percentage for buyers compared to sellers.

If you present an attractive offer to a seller, they might be willing to help you pay for these fees out of their own pocket. This reduces the amount of money you pay out. If you’re a seller, closing costs can come out of a home’s equity. Additionally, you need to consider comission fees for real estate agents, which are between 5% and 7% depending on the services you receive from the agent.

If you’re thinking about buying or selling in Charleston, give me a call or send me an email. I’d be happy to serve your local real estate needs and answer any questions you might have!

Finding the Perfect Charleston Home in the Best School District

Buying a Charleston home? Get a full home search

Selling your Charleston home ? Get a free home value report

Today, I'll review some tips for finding the perfect home in the perfect school district for your children.

Stop talking about it. Get out there and look for the best school! Do some research online and visit. Many schools are happy to have you come by and give you a tour of the campus.

It's important to select a hyperlocal Realtor that knows every market inside and out. That's what I do. I can help you find the perfect neighborhood with the school of your dreams.

If you're interested in a certain neighborhood, drive through it in the afternoon when school lets out. How many students are walking home? How many kids in the area are outside playing, and are they about the same age as your kids?

You can also use the search tool on this blog to define the scope of your home search. Most home search tools let you plug in the price range, city, and zip code. Our home search tool lets you enter the school name or district you're interested in so you can find the best deals in that area.

If you have any questions, give me a call or send me an email. I would be happy to help you!

What Steps Should You Take Before Trying to Buy or Sell?

Buying a Charleston home? Get a full home search

Selling your Charleston home ? Get a free home value report

Today we've got great news for you! The market is getting hot and you've got equity in your home. We are talking about the four things you have to know before you put your house on the market and consider buying another one.

1. A professional evaluation from a Realtor.
   This is the only thing that will tell you exactly what your house will sell for. I can tell you exactly what your home will sell for in the current market and how much money you will have in your pocket when all is said and done.
2. A visit to a lender.
   Once we know how much your home is worth, we can take that information to one of our lending partners to talk about how much you can afford to spend on a new home by looking at the numbers from your sale.
3. Do a market analysis.
   This will help you find the perfect home. It's your chance to get acquainted to the available inventory out there. There may be 2 homes, there may be 20, we will help you find the perfect one regardless.
4. An implementation plan.
   When we get ready to sell your home and purchase a new one, we will have a plan A and a plan B. We will walk you through every step of the process so you can sell your home and buy a new one in comfort, and you don't get stuck owning two homes, or none at all.

If you have any questions for us about buying or selling in Charleston, give us a call or send us an email. We look forward to hearing from you!

Questions to Ask Yourself when Balancing a Home Buying Budget

Buying a Charleston home? Get a full home search

Selling your Charleston home ? Get a free home value report 

Today’s topic involves financial planning when buying a home. We suggest breaking down a budget to avoid difficulties in the future. Firstly, ask yourself the following four questions to help determine your personal budget.

• How much can you afford to spend on a home?
• How much is a comfortable monthly payment?
• How much would a bank be willing to lend you on a monthly basis?
• How does that amount of the bank translate into a listing price?

Next, we have suggestions for you to keep in mind when determining your budget. Here is our advice:

1. Take your overall income and remove your expenses. Identify monthly expenses and add them all up. You’ll want to include anything that might show up in your credit report such as a car payment, student loans, or credit card debt. Subtract those expenses from your total income.
2. Banks lend approximately forty percent of available income. Leftover income goes towards a housing payment.
3. For every seven to eight dollars spent monthly, you have a thousand dollars towards your home. For example, if you want to buy $100,000 home, you’d want a $700 or $800 monthly payment ideally.

If you have any questions about the buying process, or if you need real estate assistance of any kind, please don't hesitate to reach out to us. We would love to hear from you!