First-Time Home Buyer Tips for Real Estate Law
The world of real estate law can be a confusing one, especially for a first-time homeowner in South Carolina. However, when you do find that perfect home, it can be the greatest feeling in the world. The hard part is what comes after. Real estate can be complex, between navigating transactions, closing costs, and understanding the next step no matter where you are in the process. That’s why we’ve compiled a list of first-time home buyer tips to help you when you’re stuck!
No matter where you are in your current journey, there is always something that comes next before you’ve even stepped foot into your new home. From understanding the area’s market to finding the perfect team to get you through, knowing the process can help the process tremendously. To help you get started, here are some first-time home buyers tips for real estate law and transactions.
Understanding the Local South Carolina Market
Before you really start looking, it’s important to decide where you want to look. Your options can change from town to town, including amenities, school districts, prices, and more. Take the time to familiarize yourself with the location you are looking in. Keep in mind the typical price of a home, average listing times, and resources in the area to help you through. There are even plenty of online sources to help you discover local real estate agents, gather neighborhood information, average tax prices, and more.
Know Your Home Budget
Make sure to determine your budget before you start looking. It can be easy to get carried away looking at larger homes without really having the budget to sustain them. Assess your current situation, income, future expenses, and utilities you will need for your new home. This is a great starting point for determining how much you can afford right now, as well as every month after. Mortgage calculators are a great way to play around with numbers and find something that sounds affordable to your situation. A little advice: try to aim for a monthly payment that doesn’t exceed over 30% of your monthly income.
Down Payment Options
When it comes to buying a home, your down payment will ultimately be the most expensive upfront payment you will make. These are usually paid at closing. While people strive for you to put down 20%, that is actually no longer the norm. Most conventional loans only require a down payment of 5% or higher, while Federal Housing Administration (FHA) loans can only require 3.5%. However, as a first-time home buyer, it’s important to speak with your lender and discuss any benefits you may have.
Saving for your down payment is something that should be done before searching for a home. Make sure you are saving regularly and maintaining an emergency fund just in case. It’s also important to keep in mind that the more you put down, the lower your monthly payment will be.
Mortgage Pre-Approval
Congratulations, you’re ready to go! Well, not quite. Before you start your official home search, you must obtain a pre-approval from a mortgage lender to ensure you can pay what you’re looking for. During this process, a lender will evaluate your credit history, any outstanding debts you may have, constant income, and other assets that may play a part in helping you determine your overall loan budget. A pre-approval letter can also be helpful when negotiating with sellers, allowing you to prove financial stability when purchasing a home.
Find Your Perfect Real Estate Agent
While you can go through the process of open houses and showing by yourself, there are no better first-time home buyer tips than finding the perfect real estate agent for you. Someone who is familiar with your South Carolina area can help you navigate the homes for sale and perks of surrounding neighborhoods. They can also help with pricing strategies and networking with other professionals such as attorneys, brokers, and home inspectors.
Open Houses and Schedule Home Tours
It’s important that throughout the home buying process, you seek every opportunity to look at homes. Especially for first-time home buyers, you may not know exactly what you’re looking for yet. Open houses are a great way to quickly look at layouts of home, inspect amenities, conditions, ask questions, and learn what you like. This can be a great starting point before looking for potential matched through your realtor. Take note of important features that you like, and any issues you see to ensure you are looking for them in the future.
Consider Future Resale Value
None of want to buy a home thinking about the next person that’s going to live in it. However, sometimes that exactly what you have to do. While you may have a good ten to fifteen years in your home, it’s important to consider resale value in the future. You want to invest in a home that is going to grow, and eventually make you money in the long run. This is especially important for a first-time home buyer.
The average person buys three homes in their lifetime, so chances are your first home will not be your forever home. Instead, consider factors like location, size, school district, and neighborhood to determine your home’s value as time goes on. There are also tons of internal values to look at. Accents such as crown molding, vaulted ceilings, or hardwood floors are a great selling point that can easily boost your home’s value later down the line.
Don’t Let Closing Costs Sneak Up On You
When you close on a home, it doesn’t include just a down payment. Your closing costs will include dozen of additional charges including lawyer fees, title searches, insurance, escrow fees, and more. This is a great conversation to talk to your real estate attorney about prior to closing.
The price of closing can range from 2-5% of your total loan cost. Make sure to plan for these extra expenses on top of your down payment. Some lenders may offer perks for first-time home buyers when it comes to closing, and would be a great question to ask up front.
Property Inspections
If you are purchasing an already established home, a professional inspection is a must. These inspections come from a third party that will walk through the property and inspect any potential damages or repairs that need to be made proir to purchase. Home inspections typically include roof inspection, HVAC, electrical coding, plumbing, molding, and any other potential dangers to necessary amenities or structure.
If any repairs are needed prior ot purchase, these can be negotiated during your closing to prevent you from having to pay unexpected expenses in the future.
Consult with a Real Estate Attorney
A real estate attorney is a must when purchasing a home in South Carolina. Your attorney will handle all legal documents and contractual obligations including reading over your buyers contract, negotiate repairs, title searches, and address any legal concerns with the transaction.
Seeking the guidance of a proficient attorney is crucial in mitigating risks, safeguarding your interests, and guaranteeing a smooth and successful home purchase.
First-Time Home Buyer Tips with Grand Strand Law Group
Embarking on your first home-buying journey in South Carolina can be both rewarding and challenging. With these first-time home buyer tips, we hope you feel prepared, doing your homework, and teaming up with experienced professionals, you’re set to boost your chances of finding that dream home for you and your family. So get ready to confidently dive into the world of homeownership with Grand Strand Law Group.
Grand Strand Law Group is here to make the home buying process as smooth as possible. With our first-time home buyer tips, we are here to help you every step of the way. Give us a call at 843.492.5422. Learn about how we can help with your estate planning now or in the future.