Technology and the digital age has certainly made an impact on the Columbia SC mortgage business. While roughly 90% of prospective homeowners search online for a home, less than 10% of mortgage lenders offer a comprehensive digital mortgage experience. Now, mortgage lenders are starting to enter the 21st Century by gradually reinventing the mortgage process. Here are some ways in which important improvements are occurring.
Columbia SC Mortgage Business – Ushering in Technology
Some mortgage lenders still subject their prospective borrowers to the golden age of copiers, scanners and faxes to assemble and deliver loan application information and financial paperwork. And while the Columbia SC mortgage business has largely been overlooked when it comes to technological advances, it does appear that is changing. Here are the top five ways technology is changing the home mortgage lending process for lending institutions and borrowers.
A better borrower experience.The mortgage lending process from application to closing is, by its very nature, information driven. Some loan files can exceed 500 pages. In an effort to save time, much of the information required by lenders in the Columbia SC mortgage business is available digitally, and applicants can provided bank account information, tax forms and pay stubs online. This not only streamlines the application process for homebuyers, but it also makes the collection and verification steps easier for the lending institution. Since the financial data is independently verified from its source, mortgage lenders are able to more readily confirm that the information is accurate and current, thus saving time in their review and analysis.
In addition, some financial technology companies are offering mobile experiences for prospective borrowers. The mobile apps give the borrowers unique access to the mortgage lending process. The accessibility enables borrowers to stay on top of their documentation needs and requirements, ultimately giving them a better, more satisfying user experience.
Increased transparency. Since applicants don’t have access to their mortgage lenders’ internal systems, they rarely know where they stand during the loan application process. They are then forced to rely on the loan officers to communicate various requirements or updates via phone or email. Some innovative Columbia SC mortgage lenders are now providing information portals for prospective borrowers to be able to see the same information the loan officers do. This improvement in transparency allows borrowers to obtain a complete list of required documentation ahead of time – and to know where they stand with respect to any additional information required. This innovation enables both parties to work together for the common goal of assembling the information in order to get the loan approved and closed in a timely manner.
Making the mortgage process painless. A normal turnaround time for a borrower to receive an underwritten loan approval from a mortgage lender is about 18 days. Overall, it could take roughly 50 days to complete the loan process. Comparatively speaking, in a totally digital world where online shoppers can order an item and get it overnight, 50 days seems like forever.
Technology is helping introduce the mortgage lending process to the modern world. Using a workable combination of intuitive design and direct connectivity, loan applicants are now able to contribute to the process and receive up-to-date assistance from the lending institutions. This makes the borrowers more in control of their own destiny, as well as participating in more of a “team approach” to getting their loan approved.
Digital compliance. Following the housing crash of less than a decade ago, federal regulations required lenders to follow certain lending practices and give their borrowers more disclosure information early in the mortgage loan process. The regulations are designed to allow mortgage lenders to adhere to strict guidelines while limiting negative impact on the borrower experience.
New developments in technology have enabled lenders to automatically send the production and delivery of electronic disclosure information at certain points in time during the mortgage application process. In addition, the natural creation of a digital “paper trail” for audibility and accountability is an offshoot of the new technology.
Money-saving advantages. It’s estimated that it costs around $8,000 for a lender to complete a mortgage from start to finish. Much of that cost is for employees to perform routine, manual tasks such as translating required documentation into email form, as well as the physical tracking of various items on paper documents and forms. In turn, such work inefficiencies are passed through to the borrowers by way of higher fees and other processing or closing costs. Using modern technology can automate manual work and reduce these costs. In addition, lenders are able to increase their efficiency and productivity – passing the cost savings on to their customers.
The advent of workable technological advances in the Columbia SC mortgage business creates faster and more simplified lending interactions. Best of all, the digital “revolution” will likely continue to impact the mortgage industry and improve the borrower experience. While mortgage lending will probably never be a “one-click” process, it can continue to be better, faster and less costly. When you stop and think about it, the digital world has basically spoiled us all. We want – and often expect – goods and services almost immediately. From the digital delivery to a movie or television program on demand, to the ease of online banking, our society has come to expect speed and convenience. It’s only natural that we’d expect the same speed and delivery of improvements in the Columbia SC mortgage business. In addition, mortgage lenders want it, too. That’s why we will continue to anticipate and expect further advances that will make the home buying and home financing process a better experience for all parties involved.
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For illustration, let’s compare two Columbia SC single family homes for sale in the market. We’ll assume they’re comparable in all the pertinent ways. They’re the same size, the same style and the same age. They’re even located in the same neighborhood. The only difference is in the asking price. Home A is listed at $279,900 and Home B is listed at $265,900. Let’s assume a buyer comes along and looks at both homes and determines that either home would be a great fit for his family. Realistically, which home do you expect will get the first contract offer? Let’s examine several factors worth remembering when it comes to pricing Columbia SC single family homes for sale.
Columbia SC Single Family Homes: Price Right and Sell
The illustration above, although relatively simplistic, is accurate in the way some sellers view their homes when they list them for sale. While many people may think pricing the home higher than it’s worth may give themselves room to negotiate, in truth such a decision could dissuade a buyer altogether.
A competitively priced home at the outset will likely sell at the higher end of the value range. If it stays on the market for an extended period of time, the lower it ends up in that range. According to Zillow, homes that linger on the market tend to sell for considerably less than their listing price – as much as 5% less after just two months.
Often there’s an ongoing battle between seller and real estate agent. The homeowner has an extremely one-sided opinion of the real estate market, and his experience is likely limited to only one home – his own. Real estate professionals, of course, are equipped with the knowledge and experience of what’s going on in the various neighborhoods in their market. Armed with limited knowledge, some sellers stubbornly over-value their homes – this is particularly the case with homes for sale by owner. Real estate agents have the advantage of knowing that Columbia SC single family homes for sale that are priced right and show well will sell.
Because the real estate market and prospective homebuyers usually respond to new listings in the first several weeks, it’s important to enhance a home’s attractiveness right off the bat. Price the home right and it will sell – especially if you take your agent’s advice on cleaning, decluttering, staging and improving the home's curb appeal. Price it too high or throw it on the market before it’s ready to show and you’ve hurt your chances of a sale. Little or no interest means the home stays on the market longer than it should, newer, more competitive listings are added and your home becomes “old news.”
As an unsold listing loses interest, it usually results in a price reduction – especially after several weeks or months of little activity. In addition, the home may very well develop a stigma attached to a sales price that started too high, was reduced, but still remained unsold. When that occurs, savvy agents and buyers often make an offer that’s even lower than the reduced price. The result isn’t pretty, as sellers risk losing the momentum and advantage of being a new listing on the market for Columbia SC single family homes for sale and quickly surrender their bargaining power.
Add to that scenario the risks of a changing market and you have an even more challenging set of circumstances. Let’s say a seller lists his home in April in an active early spring market. The chances of an overpriced home actually selling can be impacted by increased inventory, an economic slowdown, rising interest rates or other market conditions. Six months later, the price range for the home is substantially lower than it would have been if it had been priced right in April. Therefore, changing market dynamics is an undue risk a seller should take by pricing a home too high.
Continuing the nightmare, let’s assume the house remains unsold on the market. As more time goes by, the sellers may get complacent. Their enthusiasm about selling their once-prized home severely dampened, they become slack in their ability or desire to show the house in its best condition. Curb appeal suffers. Word on the street and in the Columbia SC single family homes market is, the house “has issues” since it’s been on the market for so long without much activity.
Prospective buyers that do show interest end up low-balling the price, testing to see how "motivated" the seller is.
A word of advice to sellers: If you’re serious about selling your home, take pricing it just as seriously. Have a plan in the event your home doesn’t sell quickly. If you find that you and your real estate agent disagree on the price – as long as it’s not a big difference – consider asking the higher amount. However, be prepared to reduce the price fast if you need to, especially if the price range is more in line with the comparably priced homes getting high traffic and multiple offers. Activity among Columbia SC single family homes for sale will likely improve and the market will respond accordingly to a property that is perceived as being priced correctly by a seller who demonstrates they are serious about selling their home.
See more articles pertaining to Columbia SC single family homes for sale in the two sections of articles on Columbia SC Real Estate and Columbia SC Homes for Sale just below Columbia SC Real Estate Categories in the column to your right.
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If you’re like most people, the only time you think about Columbia SC flood insurance coverage is when a natural disaster occurs someplace else – to somebody else. While it’s only natural to have an “out of sight, out of mind” philosophy regarding your insurance coverage, recent events in Louisiana are enough to make us all take notice. Here are some reasons to consider flood insurance to protect your home.
Should You Have Columbia SC Flood Insurance?
The tragic flood event in Louisiana is being compared to Hurricane Sandy, according to the American Red Cross. Flood waters have receded now, but many say the worst is yet to come. The highest payout for victims of the flooding is just $33,000 as required by the Federal Emergency Management Agency (FEMA). Sadly, that amount will be a far cry for most people to even begin to regroup, clean up and rebuild. Area experts estimate more than 110,000 homes have been damaged, and losses are expected to exceed $20 billion.
Compounding the disaster is the report that roughly 87% of the damaged homes are within the flooded area, yet only 21% have flood insurance. In other parishes, only about one in eight residences and businesses have flood insurance. The $33,000 maximum under FEMA guidelines is part of a grant program designed to assist homeowners who experienced flooding in the area and didn’t live in a neighborhood where flood insurance was required. The problem, however, may very well be to what extent the FEMA money will help – and what the amount will be.
A spokesman for the Insurance Information Institute, Michael Barry, said he's seen presentations by FEMA public affairs professionals that where the typical payout is going to be in the $9,000 to $10,000 range.
Those homeowners who should probably have flood insurance but don’t must usually rely on their own resources and abilities to rebuild. Many homeowners don’t carry flood insurance because their homes are paid for, and there’s no mortgage lending institution requiring the continued coverage.
The recent developments surrounding the Louisiana flood and others we’ve seen recently, like the devastating October 2015 floods in South Carolina, raise the question of whether you should consider Columbia SC flood insurance. For many, it’s an ongoing question. Of course, floods are common in low lying areas near bodies of water, and by not having flood insurance you’re taking a huge risk if a natural disaster occurs. For most people, the question remains, “What if I don’t live near a lake, river or other body of water… do I still need flood insurance?” The answer may surprise you.
Insurance experts say they receive numerous claims each year from flooding not necessarily associated with homes being located in flood-prone areas. Often it’s the saturation point after extended periods of rain that can be the culprit. When the ground is saturated to the extent that additional rain can’t be absorbed there’s little place for the rainwater – and ground water – to go. Even the slightest low lying areas can be affected with several inches or more of water, and that’s enough to do damage to your home’s subfloor, flooring, carpet and tile.
To further answer the question of whether you should have a Columbia SC flood insurance policy, consider this. Your normal homeowner’s insurance policy doesn’t cover your home for damages caused by rising water. You have to purchase a separate flood insurance policy for that type of coverage. In addition, your Columbia SC flood insurance coverage must be in effect for a minimum of 30 days before you’re protected against a flood. In addition to separate flood insurance coverage, insurance experts recommend adopting a certain mindset when it comes to protecting your home. Many suggest asking yourself this simple question, “If the worst happened to my family’s home, are we protected?” If you said, “For the most part,” that may or may not be enough to answer the question and satisfy your peace of mind.
The simple truth is that almost any area is at potential risk of a flood event. Homeowners in South Carolina, for example, who had lived in their homes for 50 years or longer and never had even remotely come close to experiencing flooding became unwitting victims of the October 2015 flood. That’s the rarity – and danger – of the proverbial “1,000 year flood event.” And, as trite as it may seem, that’s the one you may have to insure against.
The good news is that Columbia SC flood insurance isn’t very expensive. A flood insurance policy is an easy, uncomplicated way to protect your home if a flood disaster occurs. Without flood insurance, even minor flooding of a few inches of water could cost thousands of dollars in damages and repairs. From a pure financial standpoint, flood insurance is much like other types of insurance – you pay for it, and don’t appreciate it until you need it – then, it usually takes but one claim to make you realize the benefit was worth the cost.
The bottom line is this. For peace of mind as well as for the safety and protection of your most valuable asset – your home – Columbia SC flood insurance should be something you consider. If you’re in a designated flood zone and have a mortgage on your home, your lender will require flood insurance. But remember, just because your lender doesn’t require it, that doesn’t necessarily mean you shouldn’t have it or don’t need it. Like other types of insurance, it’s strictly a personal decision. One suggestion, however, before you dismiss the idea completely, take a look at some of the heartbreaking photographs of the recent Louisiana flood and ask yourself this simple question, “What if it happened to me and my family?”
You can find more articles pertaining to Columbia SC flood insurance in the Columbia SC Insurance section of our site below Columbia SC Real Estate Categories in the column to your right.
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A Columbia SC home inspection isn’t just a good idea. It’s imperative if you’re contemplating buying a starter home or “fixer-upper.” Before you buy any house – regardless of its age, size or condition – select a qualified home inspector to thoroughly inspect it and provide you with a complete report. Here are a few areas in your prospective home you and your inspector should check out.
Columbia SC Home Inspection: Avoiding a "Money Pit"
There’s a classic 1986 Tom Hanks movie entitled “The Money Pit” in which a young couple sinks their entire life savings into a home that is, quite literally, falling apart. A comedy of calamities ensues as they try to handle each disaster the “money pit” they purchased throws their way.
Typical fixer-uppers are less expensive and offer the best potential growth in value. As a result, they are popular with first-time buyers. While a fresh coat of paint and some landscaping or other curb appeal improvements can help the property, it’s more important to make sure the house is structurally sound. Once that’s determined, further improvements can be made that may potentially increase its value, appearance and livability. The key is to avoid issues in the house that could create your family’s money pit. Let’s look at the benefits of a Columbia SC home inspection in several key areas.
General Structure of the Home
The most important part of any home is its foundation. If it was constructed properly, the home should be on a sturdy foundation, usually reinforced with steel and a concrete perimeter wall below ground with concrete footings. Make sure the structure of the house is straight and solid. Inspect exterior walls to ensure they are plumb and straight – from top to bottom. In addition, the floors should be flat and level. Look for doors that don’t open or close properly or that don’t fit squarely in the door jambs. That could indicate structural problems or settling issues that have created issues. Lastly, the floor should have a solid, sturdy feel to it. If it feels springy or “soft” it could mean the floor joists need greater support or potential repair.
Cracks
Large cracks in the foundation are warning signs. They can often represent structural issues that may lead to expensive foundation repair. If the interior walls in your prospective home have cracks, it could indicate settling or movement has occurred over time. That’s usually caused by unstable or shifting soil or potential drainage issues. Those problems can often be difficult and expensive to solve. Minor cracks above the corners of windows and doors are less worrisome. They can usually be remedied with a little cosmetic work using filler and touch up paint.
Drainage
Your Columbia SC home inspection should also include a closer look into how well your gutters and downspouts operate. Their sole job is to efficiently move water away from the house. Look for signs of drainage problems. Check to see if there are watermarks or moisture near the corners of the exterior walls and lower places near the home’s immediate perimeter. Have your home inspector thoroughly inspect the basement or crawlspace for signs of flooding, standing water, or excessive moisture. Moisture can create a perfect environment for mold. While some types of mold are not problematic and easily removed, other types may require considerable expense. Your home inspector will know the difference and will recommend the best course of action.
Plumbing
Determine whether your fixer-upper’s plumbing consists of copper or steel water pipes. As steel pipes age, they may become blocked with natural sediments which can reduce water pressure and restrict water flow. Here’s a test you can perform to check your water pressure – even the most experienced Columbia SC home inspection professionals do this. Turn on the bathtub spout in the bathroom located the furthest from the water heater. Then, while the water’s running, turn on the bathroom sink faucets and flush the toilet. If the water flow coming from the bathtub spout slows down a good bit, it may be time to re-pipe the plumbing.
Electrical
Another determination you should make in your fixer-upper is whether the house has an outdated and undersized main electrical service panel. Check to see if the main electrical circuit breaker (fuse box panel) has a maximum capacity of 100 amps or less. If it does, it’s undersized for a typical family. In addition, the house should be equipped with 220-volt service. Check to see if there are three main wires from the power company’s pole to the house. If so, the house likely has 220-volt service. If there are only two wires, there’s probably only 110-volt service. Lastly, you can check for 220-volt outlets that accommodate appliances like clothes dryers or electric ovens.
Heating and Cooling
It’s important in your Columbia SC home inspection to determine the approximate age and type of heating system in the home – and whether all the rooms are heated. Look in the attic and walls for insulation. Adding more insulation in the attic usually isn’t a very expensive or difficult task. However, adding insulation in the walls can add up quickly. Have a home inspection professional check by removing electrical outlet covers.
Roofing
The easiest way to tell if your prospective home has a leaky roof is to check for water stains in the ceiling or attic. Instead of actually climbing on the roof to examine the shingles and other materials, we suggest you hire a Columbia SC home inspection professional whose trained to do that sort of work and knows what to look for.
Architecture and Design
One last recommendation is to check out the house’s general layout and architectural appearance. Homes with a distinct style like a ranch-styled home, a Cape Cod or salt box home are perennial favorites. These homes and others are relatively easy to upgrade and perform improvements to – and that work will likely increase the home’s value – turning your fixer upper into a nicely restored older home that will be more marketable when the time comes to sell.
You can find more articles pertaining to Columbia SC home inspections in the Columbia SC Home Inspections section of our site below Columbia SC Real Estate Categories in the column to your right.
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Hardly a day goes by without Columbia SC's economy being adversely affected by financial fraud. The reported fraudulent activity ranges from hackers being able to access a business’ computer network to various types of identity theft. Despite new chip-enabled credit cards and the general heightened awareness of phishing scams, hackers are becoming much more sophisticated and consumers are at greater risk than ever. However, there are some proactive steps we can all take that are relatively simple. Let’s take a closer look at how to combat fraud and reduce the frequency of it occurring in Columbia SC's economy.
Columbia SC's Economy: 5 Tips to Fight Fraud
Experts say taking precautionary steps isn't difficult. The problem, they say, is that consumers are literally bombarded with information overload, making it easy to become overwhelmed. Follow these five tips to better protect your financial assets.
Whenever possible, use a chip-enabled credit card. Chip-enabled cards have an added layer of protection built in. They generate a unique consumer code designed solely for one purchase. That prevents a crook from using that information. The only drawback is that not all retailers accept the chip-enabled cards, but they soon will. Analysts say the lag time in card acceptance is primarily the result of the sheer number of banks, credit cards and checkout counters/card readers. A recent survey published by the National Retail Federation showed 86% of retailers expect to have their card readers operational by the end of the year – a number that some detractors claim is overly optimistic. Many retailers continue to await arrival of their terminals, while others have received the terminals, but are waiting for the credit card networks to certify the systems as operationally ready.
Don’t send sensitive information via public wifi or email. Many people make the mistake of assuming that public wifi is safe and secure. It’s not – hence the name, public. Never divulge information such as credit or debit card numbers or other personal or financial information over public wifi. If you must use public wifi, make sure that the site on which you’re conducting business has the “https” designation at the beginning of its url address. The “s” at the end is the optimum level of internet security available. In addition, remember that financial institutions will never request passwords, ATM pin numbers, or other sensitive financial data via email.
Make the switch to electronic delivery of account documents and check online banking and credit accounts often. Another tip to help fight fraudulent activity in Columbia SC's economy is to reduce the chance that paper documents or account statements could be intercepted in the mail or in other ways. Participating in online account access removes that risk. In addition, users can monitor their accounts more often in an effort to see and react to any suspicious activity or transactions. Security experts suggest monitoring your credit card and bank accounts once a week. Be sure to take advantage of free opportunities to sign up for fraud alerts from your financial institution or bank card company. The alerts can be set to notify users if purchases which exceed a certain prescribed amount, or if a purchase is made without the credit card being physically presented. One additional tip for these sensitive financial sites: Make sure your password is more complex than usual, and that you change it frequently. Experts recommend you not use the same password for multiple accounts.
Beware of card skimming. Thieves perform the illegal information gathering act of skimming by putting a device over the credit or debit card slot, allowing them to get information when the card is swiped. If you use a credit or debit card at a gas station, for example, look closely to make sure there’s nothing unusual on or near the card slot. Experts suggest physically touching the ATM or gas pump card slot and slightly jiggle it back and forth. If it moves a little too much, it could be a sign that a crook has attached a skimming device. In addition, cover your hands and fingers as you punch in your pin number. Thieves often install portable cameras nearby or watch through binoculars to try to steal your pin number.
Keep an eye on your mail. Despite having signed up for electronic banking, there are times where financial information must be sent through the mail. If you choose to receive paper documents instead of, or in addition to, electronic correspondence, be vigilant. Make sure what you’re being sent arrives as expected. We know of a situation where an apartment complex’s row of mailboxes was completely destroyed and a recipient of a new credit card was the victim of several thousand dollars in fraudulent charges – all because he wasn’t aware a new credit card was being mailed to him. The thieves only had to call a toll free number on the credit card to activate it and begin making purchases. The credit card company didn’t hold the cardholder liable for the fraudulent purchases, but he had to go through a inordinate amount of red tape in disputing the charges.
One last tip for fighting fraudulent financial activity affecting Columbia SC's economy: If you receive a change of address notice in the mail, call the financial institution or company it was sent from immediately. An address change could be a red flag that someone is trying to commit a fraud in your name. In a worst case situation, a crook could open accounts or purchase financial products in your name with the illegal intent of laundering money. So be vigilant, trust no-one and don’t just assume it couldn’t happen to you – it can and does happen to people every day – in Columbia SC's economy as well as others throughout the U.S.
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