The old "no one is going to buy a Columbia SC home in the winter" philosophy is gone. At least among serious home buyers it is.
January can be a great time to buy a Columbia SC home, and here's why:
Mortgage rates are low now, although they are higher than they were six months ago, and higher than they were last March, but may be lower than they will be this Spring. The price increases that were common this past Spring and Summer are slowing. Even the Columbia SC area is showing signs of cooling, and we're not talking about the weather here.
There isn't a lot of competition. Most deals were wrapped up before Christmas, or people put off looking until after the New Year. There are still homes on the market, but not as many people gunning for them. This is an advantage to buyers.
To buy a Columbia SC home during the winter can be to your advantage too because most of the home's big systems are put to the test. Heating, plumbing, roof and gutters are all being tested by the weather.
Granted, some of the curb appeal may be missing because grass is not as green and flowers are not in bloom, but fixing up landscaping is a lot less expensive than finding out next winter that your heat doesn't work because you bought when no heat was being used in the Spring or Summer.
Investors are, for the most part, usually not buying homes during the winter months, meaning you'll have less competition to buy a Columbia SC home now as opposed to waiting until warmer weather.
Another factor when considering whether winter is the best time to buy a Columbia SC home is the "Housing Affordability Factor". This takes into account the median price of a single-family home, median family income and interest rates to gauge whether it's a good time to buy. Numbers over 100 indicate that the average American family should be able to afford a purchase, and in May 2013—the most recent data available—the Index showed 172.7, about the same measurement as affordability in 2010 (not considered a particularly impressive year) and a drop from last May's 188.4. While favorable, the current market wasn't exactly considered ideal then.
So if you've been considering buying a home but thought winter might not be the best time, think again. Winter is a great time to buy a Columbia SC home. Call us, we'll explain even more reasons why you should get started now.
If you're thinking about investing in Columbia SC real estate, it's no secret that homeownership requires major financial planning and comes with sacrifices. Experts suggest that you ask the following questions to determine if buying a Columbia SC home is the right decision and how to make the process as smooth as possible.
Is This The Right Time to Buy Columbia SC Real Estate?
The cost of owning Columbia SC real estate is a lot more than just the monthly mortgage payments. Buyers need to be prepared to cover costs like maintenance, decor, repairs, insurance, and possibly homeowner's association fees.
Just because you can get a loan does not mean it's the best thing to do. Buying Columbia SC real estate can be very emotional, but sometimes it's best to wait until things are better positioned in life.
What's really important to you and what things are you really willing to do to save?
Exactly Where Around The Columbia SC Do You Want to Buy?
If you know and understand the Columbia SC real estate market you're buying in, if you know the options to accumulate money, then you can figure out a game plan. This game plan may extend over six, 12 or 36 months.
The amount of time a buyer plans to spend in their new home is important when it comes to recovering closing and moving costs – which can take up to seven years.
How Much Can You Afford?
Lenders need to see sellers can afford the mortgage — long gone are the days of unverified loans. Before looking for Columbia SC real estate, get pre-qualified and know your price limits.
How is Your Credit?
Review your credit history and address any issues. Know what you need to do to build credit if you don't have a lot of it. Without good or enough credit, you may need a cosigner on your mortgage. Good credit not only helps get qualified for a mortgage but it also helps keep the interest rate low on the mortgage.
Have You Saved Enough?
If buying Columbia SC real estate is your goal, it may take 5 or 10 years to be able to save enough for your down payment. Experts suggest putting 20 percent down on a new home. Just because the bank will loan it to you doesn't mean you should take the loan. If you aim for the 20 percent down, the worst you can have is money in the bank.
For more tips and articles concerning buying Columbia SC real estate, click the Columbia SC Home Buying Tips link to your right under our Columbia SC Real Estate Categories.
Buying Columbia SC real estate is still considered to be one of the biggest goals for most Columbia SC residents who don't already own their own home. Saving for the down payment is a big hurdle for many. On top of the down payment, you'll need funds for closing costs as well. But just how much should you save if you're buying Columbia SC real estate?
Short Term Plan for Buying Columbia SC Real Estate
Lenders look at your pretax income when determining how to qualify you for a mortgage. When thinking about buying Columbia SC real estate, you should plan on doing the same, using a percentage of your gross income for determining how much you need to save.
Being able to sock away 20 percent of your income could accelerate your home buying plan to the next 12 to 16 months. For example, if you're earning $96,000 per year, that's $19,200 saved after one year. $28,800 saved after a year and six months, which can be plenty of funds to make buying Columbia SC real estate a reality.
Long Term Plan for Buying Columbia SC Real Estate
Putting away at least 10 percent of your pretax income is a great place to start planning for buying Columbia SC real estate. Using the same example of $96,000 of income, that's $9,600 per year allocated for home savings. It would only take an extra year to come up with the same type of cash in the short-term plan's one-year goal.
Saving a percentage of your income is no easy task, especially when you have those months where the money runs out before the month does. It requires diligence, attention to detail and financial discipline to consistently put that money in the bank despite other debts and household expenses.
Remember as you are diligently saving a portion of your income for buying Columbia SC real estate: A lower down payment and lower total cash to close means a higher monthly mortgage payment. Conversely, a larger down payment gives you a lower mortgage payment. Also, the percentage of mortgage insurance lowers if a buyer uses more equity.
Determine Costs for Buying Columbia SC Real Estate
Let's look at a home priced at $500,000. Given certain criteria, $27,500 is what it would take to close the deal. Here's the math:
• $500,000 purchase price.
• $10,000 closing costs (at 2-2.25 percent of the purchase price).
• $17,500 (a 3.5 percent FHA down payment).
• Giving you a total cash payment of $27,500 needed.
If you have been diligently saving for a house, and still have not been able to purchase a property, talk to a lender about getting pre-approved. Perhaps it's time to re-evaluate how much percentage of your income is going to saving versus what homes are selling for here in the Columbia SC area.
To learn more and stay current on buying Columbia SC real estate, as well as tips and information on buying a Columbia SC home in general, check out our other articles by clicking on the Columbia SC Home Buying Tips link to your right under Columbia SC Real Estate Categories.
The Columbia SC home buyer marketplace is changing. Home values are on the rise and mortgage rates are still near historic lows. So for those who have been sitting on the fence, now is the perfect time for you to buy.
Things Every Columbia SC Home Buyer Must Decide On
How Much Can You Afford?
Find out how much you're able to borrow and determine what price range you can afford before you ever start looking for a home. Get a pre-approval letter from your lender to help us, your real estate agents, find a Columbia SC home that will fit within your budget.
Decide Exactly Where You Want to Live
Whether your desired location is based on a particular school district you like, or being closer to work, don't compromise. We will work hard to find the perfect home in your perfect Columbia SC area neighborhood.
Know Your Needs and Wants
Having a garage or a basement may or may not be important to you. However, when it comes time to sell your home, these things will matter. Talk to us about the amenities of the home you're thinking about and how they stack up to the overall market. Decisions you make today could create issues when you try to sell the house later on.
Get an Agent on Your Side
Working with an agent who has your best interests in mind is very valuable. As your agent, we will provide data on the home that will help you determine your initial offer.
Respond With a Sense of Urgency
Be prepared to make a decision quickly after you view a home. Properties are selling very quickly, and we don't want you to miss out on the perfect Columbia SC home because you were not ready to move.
Hire a Home Inspector
A home inspector can save you thousands of dollars down the road. Columbia SC real estate is one of the best investments you can make, but not if you make the wrong choice. Ask us for inspector recommendations, interview a few of them and choose the one you're most comfortable with. Never buy a Columbia SC home without having a home inspection done, NEVER!
These Columbia SC home buyer tips will help you successfully navigate the home buying waters. For more Columbia SC home buyer tips and articles, click over to our Columbia SC Home Buyer Tips section under Columbia SC Real Estate Categories to your right.