Buying a Columbia SC Home: Finding a Good Lender
When buying a Columbia SC home, you’ll need a large sum of money, and not everyone can afford to pay cash when buying a home. The majority of home buyers need a mortgage to fund the purchase. The buyer would then pay off the debt within a fixed time set by the lender.
Buying a Columbia SC Home – What to Look for in a Lender
There are a lot of lenders you can approach for a loan. They are not equal though so you’ll need to use care in choosing one. To pick the right lender, a home buyer has to keep in mind several things.
If you’re buying a Columbia SC home, one of the first things to look for in a loan is fixed interest rate. This will give you a good idea how much you will be paying off over the entire length of the loan, because it won’t change. You can then determine if you can afford the monthly payments.
In addition to making sure you get a fixed-rate mortgage when buying a Columbia SC home, shop for the best interest rate. Keep in mind, the lower the rate, the longer you’ll have to pay off the mortgage.
A low monthly payment may mean you will spend a long time paying off your mortgage but it will give you more money every month after paying off the mortgage. You never know when an emergency could crop up, and having a lower monthly payment leaves more you can save which can then be used for emergency situations.
Always look at the closing costs. Usually, this will be in the 2 to 3 percent range of the final selling price of the property you are buying. Obviously, the higher the closing cost, the less appealing the loan would be to any borrower.
Watch out for teaser interest rates. This means the lender would give you a low interest rate in the first years of the loan then hike it up in later years. If your financial capability does not improve, you could find yourself unable to afford the monthly payments.
By taking these things into account, you should be able to find the best lender to approach when buying a Columbia SC home. We can help you find a good lender if you find you’re not up for the challenge yourself.