What First Time Home Buyers In Florence SC Need To Know
Buying a house of our own is one of the proudest moments in our lives. A decision of such significance requires thorough research and careful consideration. If you’re a first time home buyer looking for a place of your own in Florence, South Carolina, you might have already faced the trials and tribulations of making the right real estate decision. If the sheer number of vacancies and adverts making the rounds overwhelms you, availing my services can offer you some much-needed insight about the ins and outs of Florence real estate.
Essential Steps of First Time Home Buyer in South Carolina
Novice homebuyers should take the following actions while deciding on their property purchase in Florence. Loan program options are open to residents. They can enjoy zero down payment loans through USDA. Vets can avail VA loans, which don’t need cash down payment.
Tidying up your credit score should be your priority to improve the chances of your loan application to be granted. The safe rating is somewhere above 600, although a few lenders accept scores of 580 and above. If you don’t have the required credit score, focus on improving it before trying to take a mortgage. Remember that you’re eligible for one free credit report from Equifax, Experian or TransUnion every year.
Browse interest rates from different lenders nearest to you. Base your decision on the attributes of the offer and the reputation of the lender from the Better Business Bureau. Focus on getting yourself pre-approved. After choosing a lender, provide income documents along with your latest pay stubs and tax returns from the last two years. Preparing a realistic budget is of paramount importance. Don’t base affordability against the provided sum. Know your limits and stay within them.
Begin your home shopping early but don’t take any actions that might weaken you financially. Lenders will check whether you made lavish purchases, took new installment loans, etc. before closing your loan deal.
Your Possible Options:
A South Carolina FHA loan is a government-backed option for some buyers who have a limited upfront fund. It consists of 3.5% down payment with a minimum credit score of 580. Monthly Mortgage Insurance of 1.75% upfront loan amount submission is required. Property guidelines are adhered to through home inspection.
For a first time home buyer moving into rural areas, zero down payment loans backed by USDA are available. You should check with the USDA website to ensure that your area is eligible for these loans. Buyers can receive up to 102% financing depending on home inspection with a minimum credit score of 620. Monthly mortgage insurance of 2% loan amount upfront submission is needed. Income maximums also apply.
As of December 21, 2016, the 30-year and 15-year fixed loan programs have mortgage rates of 4.40% and 3.67%. The 5/1 ARM rate is 3.50% for variable rates. A first time home buyer should consider these figures while calculating his/her finances.