4 Lending Misconceptions Keeping You From Buying Your Dream Home

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Are you a renter who is looking to purchase a home of your own? If so, you've come to the right place!

By now, you know we only partner with the best. Our preferred lender, Guaranteed Rate, makes buyers dreams come true by meeting with them in person and finding out what is the best fit for them. They are the best independent mortgage lender in America and have a great spread of loan programs, low interest rates, and a fantastic team to help fulfill your loan in the easiest possible way. 

Many of our clients have said to us that they wish they would have made their purchase years ago, instead of renting for a long period of time. With interest rates as low as they are, we want to encourage all the renters out there to buy now! Low rates mean you have more spending power as a buyer, which is perfect for first-time home buyers looking for the right fit.

Many potential home buyers are waiting until they save up for a large down payment to avoid paying Private Mortgage Insurance. The fact is, you don't need to have 20% down to buy. There are many great low down payment packages out there, such as FHA loans (3.5% down) or conventional loans with as little as 3% down. One of the most popular packages is a 5% down conventional loan with no mortgage insurance! 

Nowadays, it's very common for people to monitor their credit. Many people don't want their credit pulled until they are absolutely ready to buy because they fear their score is going to be impacted. This is another misconception - there is no set formula detailing how much your score is impacted by being pulled. If you have pretty good credit as it is, the impact of having a lender take a look at it is going to be minuscule because you've already proven you can manage your own credit risk. If your credit isn't great, give Guaranteed Rate call and they can help you manage it a bit better. 

If you have any questions about the minutiae of lending, or if you want more information about whether you're eligible for a home loan, please don't hesitate to reach out to us. Interest rates are at historic lows, so you don't want to miss out on your chance to make the dream of homeownership a reality.

5 Things Real Estate Investors Need to Know about the Charleston Market

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We have a lot of investor clients here in Charleston, and a lot of clients who are interested in investing in real estate here. Today we are going to discuss the 5 things real estate investors need to know about the market right now. They are:

1.  We have Homeowner’s Association (HOA) fees in many neighborhoods here. They could range from $100 - $3,000 a year. Some neighborhoods also have golf and social club memberships that are required. If you’re buying, make sure you know all the HOA fees associated with your home, so there are no surprises. 

2. Property taxes are higher. If you own a home that is not your primary residence in Charleston, you are going to get charged 3x the standard tax rate. Make sure you take that into account when looking at buying an investment property.

3. Income tax is higher, too. In South Carolina, the income tax is 6-7% if you’re out of state. Make sure you include the amount in your overall calculations.

4. You need a solid insurance quote. Here in the low country, there is a strong possibility that your property will be in a flood zone. Flood insurance rates range from $0 all the way up to several thousand, depending on the location. 

5. Get in touch with a reputable rental management company. They will give you solid occupants and will also help estimate the expenses on your property. 

If you are looking to buy an investment property here in Charleston, give us a call or send us an email. We can’t wait to hear from you!

How Will the Stock Market Affect Charleston Real Estate?

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Today, we'll discuss what the stock market correction means for the real estate market here in Charleston.

Over the last couple of days, the stock market has seen its biggest drop since October of 2008, down 6.6%. These losses are real, and they're making people uneasy. 

However, stock market corrections do not necessarily mean a housing correction will occur. 

The good news is that Charleston's economy is still growing. Volvo is coming to South Carolina, and Boeing is expanding its company base.

The silver lining for real estate is that interest rates have dropped slightly, and the September increase in interest rates has been put on hold. All in all, it's still a great time to buy in Charleston.

Although we don't know what the long-term effects of the correction will be, just remember that no one ever got rich by panicking. If you have any questions, give me a call or send me an email. I would be happy to help you!

Do You Need a Buyer's Agent When Purchasing a New Construction Home?

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New construction home purchases have become a larger and larger segment of the Charleston market lately. Today we are going to talk about buying new homes and if you need a buyer’s agent to do so.

Buying a new home through a builder seems so simple, why would you need a buyer’s agent? For starters, it costs you absolutely nothing to have a professional on your side. If you want to test this, walk into any new construction office and ask them to discount the home by the amount you would have paid a buyer’s agent. They will always say no.

Many buyers don’t know that even with new construction, there is room for negotiation. I got one of my clients $25,000 in upgrades from negotiations alone.

Finally, you have an advocate on your side. Having someone who can talk to builders without involving emotion can be valuable, and they may be able to solve certain problems you are unable to.

Having an agent on your side during a new home purchase not only brings their experience in, but the knowledge that you will have an independent home inspector walk through the home so you know what you’re paying for. Use our experience to make your dream a reality!

If you have any questions for us, feel free to give us a call or send us a quick email. We look forward to hearing from you!

Don't Believe This Common Misconception About Lending Standards

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Recently, we've received a lot of mortgage questions from those of you who watch our blog. So, today we thought we would invite Phil of Movement Mortgage to answer some of them for you!

There is a lot of news out there about how lending guidelines have tightened, and many people now think it's very difficult to get funds. The banks are still giving money, but the requirements for verifying a person's qualifications are stricter than they've ever been. Because of these stricter guidelines, it's crucial to work with a real estate professional and a reputable lender. We've had luck getting loans for people with credit scores as low as 580! Even borrowers with credit scores in the low 500s can get a loan with minor adjustments. 

Getting a loan is all about planning ahead. It's not a matter of if you can buy a home, but when. There are ways to improve your credit score, and strategies for getting loans even if you don't have a great credit score. The most important thing you can do is get the process started sooner rather than later. This is especially true because interest rates are still artificially low, which can't last forever. Most experts expect rates to rise by the end of this year, so it's never too early to begin the borrowing process! Since rates can't go down, it's best to lock in a low rate now before they begin their steady rise.

If you have any questions about this topic, or if you need real estate assistance of any kind, give us a call or shoot us a quick email. We would love to help you in any way possible!

How Can You Make Your Offer Stand out from the Crowd?

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Recently our market has been on fire. Because there is so much activity in the Charleston market, we thought it would be a good time to discuss how to handle multiple offer situations. 

The Charleston market is seeing more and more offers being put in on one home at a time, putting buyers into a bidding war. It's extremely frustrating for everyone involved. No one has a crystal ball, and there are no guarantees that your offer will be accepted. However, there are ways to make your offer more attractive. Here are five of them:

1. Pay cash or get approved through underwriting: In the Charleston market, most buyers are submitting offers with pre-approval letters. In a market this competitive, however, it doesn't mean much. We suggest getting approved through underwriting, which will make your offer look like cash. With just a few provisions, you will be ready to go through with the deal. 
2. Write a clean offer: Focus on the amount you're willing to pay for the house. Don't put in a host of stipulations that might annoy the seller. This will make you look like a far more capable buyer.
3.  Make a list of contingencies: As an informed buyer, you're obviously going to get all the necessary inspections on the house so you know exactly what you're purchasing. Make a list of the contingencies in the contract; this way, the seller will know you're more serious about buying the home.
4. Keep the time frame short: If you are approved through underwriting, you should be able to close in two weeks. Ask you agent to push to get inspections done so that your closing date is shorter than anyone else's.
5. Make it personal: In your offer, include a letter that tells a seller how much you love the house. Include a picture of your family and all the information about why the house is so important to you and your family. Most sellers love their house and want the buyer to love it as much as they do; this personal letter may bump your offer over someone else's.

If you follow these simple steps, your offer will look a whole lot more attractive that those of other buyers. Stay calm, hang in there, and hire an experienced agent to help you make the most of these situations!

If you have any questions, or if you need real estate assistance of any kind, give us a call or shoot us a quick email. We would love to hear from you!