I Rent Because I Cannot Afford to Buy...A Common Misconception
I hear it every day. My friends, family, and colleagues tell me the same thing when talking about buying real estate, "I am renting until I can afford to buy a house. I do not have the money for a 20% down payment." If you are a first time home buyer, you are in luck. There are tons of programs and options giving many people the opportunity to purchase a house with a down payment as low as 3.5%. Programs vary from benefiting teachers, first responders, nurses, and all first time home buyers. Many programs are seasonal and only last for certain periods of time, so be aware of that and call a local agent or lender today.
As long as you have the right real estate agent and lender, home ownership can be accomplished easier than you realize. I would never push someone to buy a house if they could not afford something, but why not consult with an agent and see what your possibilities are? How bad can it hurt? After all, renting is throwing money into someone else's pocket while they sit on a couch and get rich off of you living in their property. Put money back into your pocket and create equity for yourself.
Below is a general step by step overview of purchasing a house in SC for those completely new to the process.
Contact Kyla Floyd - Once you have contacted me, I can start the process by searching the MLS for all inventory listed. If financing is how you plan to fund your purchase, you will speak to a loan officer and obtain a pre-qualification letter. There are certain loans available for first time home buyers to help in lowering the down payment percentage and whatever fits your needs.
Look, Look, Look -Narrow the searches you and your realtor have gathered to the properties that meet your criteria and your realtor can schedule showing appointments for you to look at them yourself.
Make an Offer -Once you have found the home you love, your agent will write an offer and send it to the seller's agent. Negotiations will most likely happen, and once both parties have signed the contract of sale, you are officially under contract with the purchase of your home.
Choose an Attorney -In South Carolina both parties are represented separately throughout the transaction to closing. During the process the title to the home will be researched and cleared for your purchase.The attorney will work closely with both your realtor and loan officer (if you choose to finance). An attorney may be recommended by your agent if you do not have any in mind. Once everything is clear, owning a home is one step closer!
Order a Home Inspection -Although this is not a requirement, it is always advised that buyers order a Home Inspection within the time allowed per your contract (usually 10 business days once the contract has been ratified) in order to protect themselves.This inspection report will state any faults with the home. South Carolina Law states that any structural, plumbing, or electrical defects may allow the Buyer to withdraw from the sale without penalty in the event that said items are deemed unsatisfactory and the seller neglects to correct said items or agree on a monetary compensation for the required repairs.
Review the Wood Infestation Report (Commonly referred to as a CL100) -This inspection is most often provided by the seller unless otherwise stated in the purchase agreement. The report will state any concerning moisture levels, wood rot, active or previously treated termites or any other wood destroying organisms. The CL100 will most likely be ordered by the Closing Attorney within 2 weeks of closing as the report is only valid for 30 days. Any issues stated which would hinder the sale of the property must be treated and/or repaired prior to closing.
Schedule Your Final Walk Through -All buyers are given the right to a final walk through inspection with their agent prior to closing. Always do this.
Close -After all necessary steps have been completed and any loan documents are prepared, your attorney will schedule a closing time to review and sign all financial and binding documents. When both parties have signed closing documents the attorney will record the deed into your name as the buyer, at which time you are officially a homeowner!
Hopefully this article sheds more light on the process of buying a home. Call me, Kyla Floyd, for a free consultation if you are thinking about purchasing. I would love to walk you through the process in further detail and be the agent who aids you in owning your own home!