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!

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 Add Value to Your Mt. Pleasant Home?

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Today, we want to share some improvements you can make to your home that will get you your money back! 

The top three areas to focus on to get a good return on your investment are the kitchen, bathroom, and laundry room. If you plan on making improvements now, before selling in 5-10 years, you need to establish a budget. A good rule to abide by is to avoid spending more than 10% of the value of your home on your kitchen. 

If you're in a $500,000 home and you plan to spend $50,000, it probably won't be enough to gut the entire kitchen and put in a new one. However, you can get the biggest bang for your buck by refinishing or replacing cabinet doors! If you don't have granite countertops, we highly recommend having them installed. If you don't want to go with granite, just ensure it's a solid surface countertop!

Paint colors are also very important. If you're going to sell the home, you want to have neutral tones throughout the house. Colors that appeal to the widest range of people are your safest bet. Even with backsplashes, you want to be a bit conservative. Don't do anything over the top and you should be fine!

Trends are always changing and can be hard to follow. The best way to know what's hot at any given moment is to call a professional who has experience in home improvements! If you have any questions about adding value to your home, don't hesitate to reach out to us. We're always here to help you!