Buying Columbia SC Real Estate: Things to Consider
If you're thinking about buying Columbia SC real estate, perhaps for the first time, we know it can seem like chaos trying to figure out all the things you have to do and the order you need to do them in. We're here to help with a list of things you might not ordinarily think about before buying Columbia SC real estate, but things you definitely should consider.
Before Buying Columbia SC Real Estate
You've probably heard this 1,000 times. So make it 1,001. Get your credit score in order before starting the process of buying Columbia SC real estate.
The higher your credit score, the lower your interest rate will be, which makes your mortgage payment smaller in the long run. If your credit score isn't looking too good (below 660), see if you can improve your finances and boost the score before shopping interest rates.
As long as your credit score is above 580, you can always try for an FHA loan, which can save you some money. If you're looking to raise your credit score, it's all about making payments on time and keeping your debt payments current.
Take some time to get your financial house in order before you go hunting for Columbia SC real estate. Outside of your credit score, make sure you have some money saved. Yes a mortgage is a loan, but it still requires a good chunk of change up front.
Two of the largest items you'll pay for will be your closing costs and your down payment. Closing costs is a general term for many of the services and fees you'll have to pay when getting a mortgage: title fees, inspections, taxes and more are thrown into this. Your down payment is how much you pay upfront on the overall cost of your home – the remainder is your mortgage.
The larger the down payment, the smaller the loan you'll have to pay off. The recommended down payment size is 20% of the total cost of your home, but that's not a required amount. It's hard to give exact advice on savings for your down payment and closing costs, because the amount depends on what your home costs. Have a good amount of money saved, so you have the upper hand when approaching lenders.
Know How Much Columbia SC Real Estate You Can Afford
Know what you're financially capable of before you even start looking for any kind of Columbia SC real estate. Searching for a new home can be like ordering at a restaurant when you're starving – it's easy to overspend. Figure out realistically how much you can afford with your down payment and closing costs, and start searching for homes in areas that will accommodate your budget. There's no point in touring 8-bedroom mansions if you're in a 2 or 3-bedroom starter home bracket.
Buy Columbia SC Real Estate For the Long Haul
To prevent you from making impulse buying decisions when looking at any Columbia SC real estate, decide if the home you're going to buy is going to be one for the long haul, or a temporary move as a stepping stone on the way up to something bigger or better.
Think about all of the changes your life could have while you're living in your new home, and if this home will accommodate your needs long term.
Are you going to get married while living here? If so, are children in the plans? Does the surrounding community seem like it's getting better or worse? Is this a neighborhood you will want to live in at your current age? How about in 10, 15, or 20 years? It's a little weird to get that deep in thinking about your future, but it's a conversation you need to have with yourself, and your partner, if you have one.
We have more articles to help in the process of buying Columbia SC real estate at our Columbia SC Home Buying Tips link to your right under our Columbia SC Real Estate Categories.
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