Entering the Columbia SC home buying market can be an interesting and rewarding opportunity. In order to fully understand the home buying process, it's important to spend some time doing research on the market. Here are a few points to consider as you prepare to embark on your house hunting safari.
Columbia SC Home Buying Tips
Gain knowledge through research.
No doubt you've heard that buying a home is probably the largest purchase the average person will ever make. As such, it's important to spend time becoming familiar with the homes in the neighborhoods you're interested in and their price ranges. Start your Columbia SC home buying research by viewing online homes for sale. In addition to the Multiple Listing Service (MLS) you can also check various real estate websites such as zillow.com or trulia.com.
Pay attention to the numbers.
Unless you've recently won the lottery, you will probably need to borrow the money to purchase your home. Many prospective home buyers think the mortgage loan process is a daunting task, but it's really not. However, if you're not prepared it can be a little challenging. The first step is to determine what you can afford to pay each month. Then you can use that monthly payment amount to back into a sales price you can expect to pay. There are online affordability calculators that will assist you in figuring what you can comfortably afford. The next step in the Columbia SC home buying process is to meet with a mortgage lender — perhaps several — to discuss what loan programs are available to best meet your needs. Plus, you'll want to become familiar with your credit score and discuss down payment options. After you choose a mortgage lender you can work with them to get pre-approved for a loan.
Seek professional help
Before you enter the Columbia SC home buying arena, you can save yourself a good deal of time, effort and maybe money by obtaining the services of a knowledgeable real estate agent. A good agent can quickly and efficiently find the homes in your price range and in your favorite neighborhoods. Your agent will arrange to show you as many houses as it takes until you find what you're looking for.
Equipped with the knowledge you gained from researching the market, fueled by the confidence of knowing what you can comfortably afford and accompanied by a qualified real estate professional, you're ready to make a purchase.
If you've followed the latest Columbia SC home buying trends, no doubt you've heard people say there's no better time to buy a home than now. With mortgage interest rates at very affordable levels, credit availability relatively high and down payment requirements low, it's a tempting combination for many renters thinking of entering the homeownership arena.
For most people, homeownership will be the largest purchase they will probably ever make so it's extremely important to examine the good and the bad of owning a home.
Columbia SC Home Buying Analysis
With the housing market crisis of a few short years ago still in the recent memory of many prospective homebuyers, it's only natural that renters are conservative, cautious and even slightly skeptical. Homeowners caught in the swift current of the market's disaster were swept away by having to quickly sell, move or lose their homes to foreclosure. And millions did.
Still, low mortgage rates make monthly house payments very enticing. So much so that in some markets it's less expensive to pay on a mortgage than to pay rent. It’s an attractive feature of the current Metro Atlanta home buying market. Yet, the conundrum continues: renting provides flexibility and a certain degree of freedom while homeownership can provide equity growth through real estate appreciation.
Why You Should Buy
1) Homeownership is at the heart of achieving the proverbial "American Dream."
2) With every monthly payment you own a little more of your home. Contrast this with rental payments for which you own nothing.
3) Historically over time, a homeowner builds wealth faster than a renter with net worths on average much higher than those of renters.
4) Although there are no guarantees and every home and market is different, statistics show that in the long term real estate values will likely rise or appreciate.
5) Homeownership provides tax benefits to those that choose to itemize deductions like mortgage interest and real estate taxes paid. This can make a huge difference in your tax bill, courtesy of participation in the Metro Atlanta home buying market.
Why You Should Rent
1) You can rent a home, condo or apartment with little, if any, investment in the property. Because you don't own the property, you're usually not responsible for repairs, maintenance or real estate taxes. They all belong to the landlord.
2) As the renter, or tenant, if the property loses market value it's of little or no concern to you.
3) Renting provides several lifestyle advantages that homeowners often struggle with. You have greater flexibility when it comes to relocating since you don't have to worry about selling your home.
So, What's Best For You?
The quick answer is it's all about your personal choice — and no one can decide which is best but you. If you like flexibility and think you may be moving to another city or state in a short period of time, then renting for now may be the better idea. But if you like stability and are ready to accumulate the potential home equity that may accompany owning a home, you should consider entering the Columbia SC home buying market.
See more articles pertaining to Columbia SC home buying in the Columbia SC Home Buying Tips section of our site below Columbia SC Real Estate Categories in the column to your right.
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If you think waiting to buy a Columbia SC home until rates or home prices go back down is the smart way to go, you may be waiting for a long time.
With interest rates going up and home prices on the rise, you may think that it might not be the best time to buy a Columbia SC home or even refinance the one you've got. But experts disagree. Should you buy now, or later?
Best Time to Buy a Columbia SC Home is Now
One huge reason to consider now as the best time to buy a Columbia SC home is mortgage rates. They're still around all-time lows now, but the interest rate for a 30-year fixed mortgage is expected to go up to 5 percent by the start of the fourth quarter this year and 5.3 percent by the end of 2015. That's according to a recent forecast by the Mortgage Bankers Association (MBA).
Just a quarter of a point higher interest rate can mean about $100 more each month on a homeowner's loan. For a lot of families, that can be the difference between being able to afford to buy a Columbia SC home or not.
The good news is, credit score requirements for borrowers taking out mortgages to buy a Columbia SC home are easing.
Summer is still the most popular time to sell or buy even for people without children. And it's not just because the weather is nicer. People just know there are more listings on the market during the spring and summer. But from a buyer's perspective, there is more competition from other buyers.
It is a significant purchase to buy a Columbia SC home, but it's still cheaper than renting if you have the means to come up with the down payment and closing costs. Buying with a 30-year fixed rate mortgage of 4.5 percent is 38 percent cheaper than renting in most places. But as mortgage rates rise, that gap will narrow, unless greedy landlords decide to keep jacking up rents to match the interest rate increases.
Get lots of tips and advice for buying a Columbia SC home at our Columbia SC Home Buying Tips section of articles to your right just below our Columbia SC Real Estate Categories.
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Nearly one-third of all Columbia SC homebuyers, and 68 percent of first-time buyers, were 34 or younger last year. Those numbers are expected to grow as millennials now represent the largest share of buyers. But many millennials are making some pretty costly mistakes according to a recent report from the National Association of Realtors. Here are three common and potentially costly mistakes to avoid no matter which age group you fit into.
First Mistake Columbia SC Homebuyers Make
Overestimating what you can afford. First-time Columbia SC homebuyers often focus on the down payment and monthly mortgage amount when calculating how much they can afford and forget to factor in closing and other costs. They often times get to the closing and are shocked by the amount of money they have to pay.
Get pre-approved for a mortgage so you know how much a lender is willing to lend before you make an offer on a home. But keep in mind the amount you're pre-approved to borrow from a mortgage lender may be more than you can actually afford once you factor in taxes, insurance and other costs like condo or homeowners' association fees and maintenance.
Your total monthly payment (including mortgage principal, interest, real estate taxes and homeowners insurance) shouldn't exceed 28 percent of your gross, or pretax, income.
Columbia SC Homebuyers Need to Remove Emotions
Columbia SC homebuyers need to remember to buy with their head and not with their heart. Get too emotionally attached and it can set you up to spend more than you can afford. Make sure to prioritize what you want in your home. Make a list of the most important features, whether you want a certain school district, updated bathrooms, a backyard, etc. Then figure out what you aren't willing to do without. You won't find the perfect home that meets your entire list so narrowing it down to what matters most can help you through your search process.
Columbia SC Homebuyers Need to Plan
Once you've narrowed your search and you're ready to make on offer, check with your agent about the current demand for the home you're considering. Is the home getting multiple offers? Has it been on the market a long time? Will it require a lot of upgrades?
Make sure you get a thorough inspection. Columbia SC homebuyers often don't get an inspector with expertise to check the pipes, the plumbing, or air conditioning. You want someone who knows what they are doing.
Remember to think about resale opportunities. Just because you don't have children, the next family who comes along looking at your home for sale might, and where the home is located in relation to good schools may be the difference in whether they buy your house or not.
We have more tips for Columbia SC homebuyers under our Columbia SC Home Buying Tips section just below our Columbia SC Real Estate Categories in the column to your right.
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