Columbia SC home buying is neither an art nor a science, but somewhere in between. There are a number of factors to consider when you’re ready to buy. In addition, there are some proven strategies that will help you buy a home that is likely to appreciate more quickly. Let’s take a brief look at a few ideas that may give you “more bang for your buck!”

Columbia SC Home Buying: Ideas to Consider

Don’t buy the worst house in the best neighborhood. Many homebuyers assume that a popular neighborhood raises the value of all the homes within that neighborhood. While that may be true in some instances, the simple truth is the worst house(s) in the neighborhood rarely appreciate that quickly. A better approach is to consider buying a reasonably priced house near the hot neighborhood and allow the property values gradually extend to the adjacent neighborhoods. Real estate experts refer to this as the “halo effect.” The halo effect is when one trait influences the perception of the whole. It focuses on a positive trait that makes the entirety seem better. In other words, the attraction of having a popular, desirable neighborhood will give the perception that the immediate surrounding neighborhoods or subdivisions are equally as popular, trendy, or up and coming.

How can you predict the next hot neighborhood? Many real estate professionals say follow popular successful retail chains like Starbucks, Trader Joe’s and Whole Foods. They often open in neighborhoods where home values are on the way up. Experts say homes located within a mile from Trader Joe’s or Whole Foods appreciate faster than in most other areas.

The key is, of course, timing. Often, by the time the hot retailers move into a neighborhood, the values may already be on the rise. That’s why it pays to listen to a knowledgeable, experienced real estate agent who may know about deals or developments that are about to occur.

Choose the financing that’s best for you.
With all the mortgage choices available in the Columbia SC home buying market, it’s easy to take the first one with the lowest interest rate. However, a fixed rate 30-year mortgage may not be right for everybody. In fact, an adjustable rate mortgage (ARM) could be an option worth considering – especially if you don’t plan to be in the home for more than 5-7 years. In addition, an ARM may allow you to save money with a lower interest rate during the initial term. Some home owners have found that helpful in enabling them to afford a more expensive home. Still, other home owners opt for the rate security that a fixed-rate 30-year mortgage offers. The key to making the right decision is to plan ahead, know what your financial plans and capabilities are, and select the mortgage program that best fits your individual situation. Consult a mortgage professional, a CPA, or a financial advisor if you need additional information.

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. Remember, we also post tips daily on Twitter and Facebook. Check us out there too.

Before you enter the Columbia SC home buying market, there are three important pieces of the puzzle you should understand. What do you know about closing costs? How about your credit score? What you know will help you make the best decisions once you find the home you're ready to buy.

Columbia SC Home Buying: What to Know

Tip #1.
Find out how much your closing costs will be. Often prospective buyers are shocked when they find out how much closing costs can be. Knowing in advance an estimate of your closing costs will help you plan better for how much of a down payment and other costs you will be expected to pay.

Most closing costs average between 2%-5% of the mortgage loan amount and cover items such as mortgage fees, appraisal charges, attorney’s fees and home inspections.

If the total amount exceeds what you have available or what you’re comfortable in paying, there are alternatives. One, as we’ll touch on in Columbia SC home buying Tip #2, is to negotiate with the home seller on payment of the closing costs. Another popular alternative is a low down payment loan program that requires as little as 3% down on approved home purchases. In addition, Fannie Mae recently rolled out a mending program designed to assist first-time home buyers. Qualifying purchasers are able to receive up to 3% of the home’s purchase price in closing cost assistance.

Tip #2.
Know which party is responsible for paying closing costs. There is also a fair degree of confusion as to who is usually responsible for paying certain closing costs at the settlement. As mentioned above, often home sellers will agree to pay some or all closing costs as an incentive to prospective purchasers.

Tip #3.
Know the value of your credit score. A popular television commercial depicts the feeling of empowerment a consumer has when they know and understand their credit score. A high credit score gives you a better chance at a lower interest rate when it comes time to take out a mortgage. In addition, your credit score may also affect other credit decisions regarding your home purchase such as the amount of utility deposit you may be required to pay, and even your home owners insurance premium.

There is currently some discussions in the home buying industry that some lenders are considering pulling away from FICO scores. However, it’s safe to assume that until it is known what will replace the FICO score, most lenders will base their credit decisions on the payment history of the debts you owe.

Following these important Columbia SC home buying tips will make your home search more enjoyable and more fruitful — since you’ll be more confident and informed about what is expected of you in the home buying process.

For more Columbia SC  home buying tips see our Columbia SC Homebuying Tips articles to your right just below Columbia SC Real Estate Categories. Don't forget to find us on Facebook and Twitter, too.

Columbia SC home buying just got a little easier, thanks to home buyer education classes. For those receiving down payment assistance, a home buyer education course may be a requirement. Mortgage lenders may also require the course. The classes can be very informative for anyone thinking of buying a home.

Take a Columbia SC Home Buying Course

While some home buyer education classes charge a fee, some are free. They are often available online. A certificate from a HUD-approved agency is needed for lenders requiring classes for borrowers.

The course provides beneficial information about the home buying and mortgage process. Subjects include personal budgeting, credit scores, finding the best mortgages, homeowners insurance, home inspections and how to select and work with a real estate agent.

A recent survey of 1,000 people revealed nearly 75% of consumers think the home buying process is complicated. Recent mortgage disclosure requirements have made it even more confusing.

Experts suggest buyers enroll in the class as soon as they decide to enter the Columbia SC home buying market. Do that, they say, before you select a home or a lender. The class will teach you how to shop for both.

The course can be very important to prospects with credit problems or with little or no credit. Anticipating the questions a lender may ask will empower you and better prepare you.

A first-time home buyers course will help with the following topics:

How does a credit score work? Lenders use credit scores to determine if you qualify for a loan and, if so, what the terms will be. You should know your credit score before taking the class.

Why is a home inspection needed? While most lenders don’t require a home inspection, it’s a good idea to have one to be safe. It will let you know about any needed repairs the home may have. Knowing that up front gives the buyer information that can be used in negotiating the sales price.

How to choose and work with a real estate agent? Since real estate commissions are normally paid by the seller, there is no cost for a home buyer to select and work with a real estate professional. Establish a relationship with the agent you choose and make sure he or she understands what you’re looking for in a home.

How can I save water and electricity in my new home? Because your monthly mortgage payment is just a portion of the cost of home ownership, it’s important to know how to budget for the other costs. Water, heating and cooling, trash collection and other fees will increase monthly expenses. A home owner class can provide money-saving tips.

What costs can I expect when I get ready to close the loan? In addition to the down payment you’ll have to make, you’ll also have to pay closing costs. Items like title insurance, appraisal fees, real estate taxes, homeowners insurance and other costs are your responsibility at the loan closing — unless you’ve negotiated with the home seller to pay some or all of them.

How do I shop for the best mortgage? Mortgage lending programs vary among lenders. Interview several lenders to find out what they offer and what best fits your needs. Then you can provide your financial information for them to perform the underwriting to make sure you qualify.

How do I obtain ownership with another person? Real estate titling varies by state. How the title is set up will determine, for example, whether the co-owner’s interest will transfer to you upon their death, or be left to surviving relatives.

Where can I find assistance with a down payment? There are programs available in some cities that offer grants or loans for down payments for first-time buyers. The class may assist in helping you find those programs as you enter the Columbia SC home buying arena.

Get more Columbia SC home buying tips by finding our Columbia SC Homebuying Tips articles to your right just below Columbia SC Real Estate Categories. Don’t forget to find us on Facebook and Twitter as well.

Once you decide to enter the Columbia SC home buying market you'll be faced with a number of decisions. None will be more important than the choices you make when it comes to finding a lender and a real estate agent. These and other professionals will make the home buying process more efficient and, ultimately, more enjoyable. So, what should you look for in the pros you need?

Your Columbia SC Home Buying Team

Success is a team effort. And choosing the right team can be critical in the home buying process. First, you'll need a mortgage lending professional. In today's market, it's a good idea to get pre-approved for a loan before you spend time searching for a home to buy.

Pre-approval will help you determine the amount you can borrow and the price range of the home you can buy. Interview several mortgage lenders. Find out how much experience they have. How long have they been in the mortgage business? What are their areas of specialty? How familiar are they with the various lending programs available –– especially for first-time buyers or for buyers with small down payments.

Next, begin the process of hiring a real estate agent. Again, meet with several and interview them. Discuss your needs and desires, and find out their level of knowledge and experience in the marketplace or neighborhoods you're interested in. Ask for references and contact them. Check their reviews on various real estate affiliated websites. Lastly, choose the agent with whom you feel most comfortable. The right combination of experience, knowledge, commitment and personal involvement should be your ultimate goal for this key teammate.

Remember, these two team members are here to help, and they work for you. So ask questions if you don't understand something. You'll feel greater confidence as you become more knowledgeable and more familiar with the Columbia SC home buying process.

When you think about "shopping" in December, it's normally in retail stores, not the Columbia SC home buying market.  However, the month of December could be a great time to shop for a new home. This may be especially true for potential buyers who may have been outbid during the more active home buying months.

A Good Columbia SC Home Buying Month

While the majority of home sales occur during the spring and summer, there are definitely advantages to consider the so-called "off-season" of the real estate market.

A compelling reason to make any purchase is value. For sellers just listing their homes or for those whose homes have been for sale for awhile, fewer prospects mean lower offers. That represents a wonderful opportunity for bargain shoppers looking now rather than in peak months.

Real estate experts say a home's selling price may fluctuate during the course of the year by 5-7%. Many of the price variations are predictable. A home generally will be priced higher in the spring and summer than in the winter.

According to RealtyTrac, a publisher of real estate market data, the best bargains are usually found in October, with average sales prices around 2.6% below normal. Other experts say December is the best month to get more bang for your buck. Much of the rationale has to do with the seller's mood, likely to be happier and more generous during the holidays.

Let's examine five reasons to shop for a home in December.

The competition is limited. Most people are busy with the hustle and bustle of the holidays and aren't active in the market then. Fewer potential buyers means less competition and greater opportunity for a savvy buyer.

There are tax benefits. If you're in the market not only for a house, but also for some year end tax deductions, December could be a good month. Purchase and close your home prior to the end of the year and you can deduct the mortgage interest paid, any loan points paid and your pro-rata share of the property taxes from your 2015 income tax return.

Motivated –– even desperate –– sellers. As mentioned above, sellers often are willing to take the best offer they can if their home has languished on the market. They could be especially motivated if they have a contract on another home contingent on the sale of their existing house. In the case of job relocation, the sellers may have to move before the first of the calendar year and may be desperate to sell.

See homes in their "natural light." Shopping for a home in December gives buyers a chance to see homes in their natural state –– without "make-up," so to speak. When trees have lost their leaves, grass is dormant and flowers aren't in bloom buyers can get a better idea of the home's features and uniqueness. In addition, it's a good idea to check out things like drafty, cold areas in the home. They could be signs of faulty insulation or window or door seals needing replacement.

Interest rates are still very low. Despite recent rumblings that interest rates may edge upward slightly, today's mortgage rates are very affordable. And that's good news for anybody entering the Columbia SC home buying market during December.

Happy holidays… and happy home shopping!