10 Step Process of Buying a Charleston SC Home
Step # 1: Get Pre-Approved: The first step if you want to buy a home in Charleston is to call a mortgage lender. You will need to discuss your financial situation, tell them how much your income, how much debt you have and how much you are comfortable spending on a monthly basis. Taking it a step further and meeting with the lender to get approved will increase your negotiating power and will essentially allow you negotiate a really good price on a home for you and / or your family.
Step # 2: Wait for a Response: This usually happens very quickly. The seller may accept or reject your proposal. Please remember that a counter offer is a form of rejection and it is all part of the process when buyers buy a home in Charleston. If this happens, your options are to accept or reject their proposal.
Step # 3: Contract Ratification – A deal has been made! –: All details have been accepted by both parties and now there are a few things to begin working on, sometimes simultaneously. It can be a little tricky but this is what we do day in and day out so no need to worry. You are in great hands when working with a BrandName Real Estate Agent.
Step # 4: Time to Hire a Home Inspector: This is never a bad idea, even if the house was just built. You just never know and it is always better to be safe than sorry. Just make sure the inspector is qualified and possibly consider having specialists come in to check the plumbing or the Central Heat and Air depending on how first part goes. Whether you want to buy a single family home in Charleston or a condominium this is what you are going to have to do in order to obtain the peace of mind you need!
If you find deficiencies the thing to do is to propose a list to the seller asking for repairs to be done prior to closing. Remember the seller could accept or reject the repair list you present, in which case you have the right to accept or reject the property. The choice is up to you but the important thing is that you understand what you are going into!
Step # 5: Communicating with the Mortgage Lender: Working closely with your mortgage lender is not a little step when it comes to buying a home here Charleston. The Lender may need additional information or a check to pay for the appraisal for example. The main thing to remember you need to stay focused! If the lender says they need something make sure to get to them quickly as they are in charge of lending the money and will ultimately determine if you will be able to buy a home here in Charleston, SC. If you do not do what they say it will certainly cause delays and in many cases a fall through. We of course do not want this!
Step # 6: Hiring a Real Estate Closing Attorney: Their job is to not only to talk with the lender, but to make certain all of the paperwork details are handled and that the property is free from liens. They do not require any money down and will be paid out of closing and we will of course be there to assist you in overlooking the HUD or settlement statement. Note they charge approximately $350-$500 in total. The process to buy a home in Charleston is fairly straight forward when working with a reputable real estate attorney.
Step # 7: Obtaining Home Owners Insurance: If you want to buy a home in Charleston you will want insurance. If financing the home the bank will require it and if paying with cash it will give you the peace of mind you want! A good first step would be to call whoever you have car insurance through. Make sure to tell them you are buying a home in Charleston and who the closing attorney is so they can provide proof of insurance to the attorney by closing. Remember without insurance it is unlikely the bank will allow you to close. When asked how much coverage you want, tell them the price of the house and they will guide you through how much coverage is usually necessary. There is no need to insure the cost of the land being the land cannot burn down or get wiped out in a hurricane for example. While on the subject of hurricanes make sure when purchasing in the summertime especially to do it quickly and early on in the transaction. This is really important because if there is a named storm off of our coast which is only every two or 3 years even it will be difficult to obtain a policy and ultimately buy a home in Charleston even if it really is just bad rain storm since most insurance companies will not write policies when storms are in the works!
Step # 8: The Walk Through: Once all of these details have been handled it is probably a good time to do a walk through the property. Usually done within 24 hours of the closing this will allow us to make sure the seller left the property nice and clean. In Charleston a quick clean is standard but many people will make sure to have it professionally cleaned. If not there is no need to be alarmed being we can always have cleaners lined up just in case. Honestly this is a usually a stress free process and the walk through can be one of the most exciting and fun aspects of buying a home!
Step # 9: Actual Closing: This is when and where all of the details come together. We will meet at the attorney’s office and he or she will guide you through the entire process. In Charleston it is very common for the seller to use the same attorney as the buyer and will probably be there. If you are required to bring money to closing you will need to bring a certified check made payable to the closing attorney’s firm. We will go over the HUD statement, which explains all of the financial details, how much money you will be spending and how much the seller will make. When beginning the process of buying a home in Charleston your lender will provide a truth in lending disclosure form. Make sure to hold on to this and bring it with you, so you can compare the costs they quoted you. There entire process generally takes between one to 2 hours generally depending on how many times you have been through the process. Naturally a first time buyer will want to ask more questions than a seasoned investor for example.
Step # 10: Don’t Forget, the 4% Owner Occupied Tax Reduction: In a couple of weeks it would be a good idea to go down to the tax records office and apply for the 4% tax reduction. The difference can be is always significant. Sometimes after taking in all considerations your new annual property tax will only be about a third of what it would be at the investor rate. If financing your home your payment will go down considerably and if you are a cash buyer this is going to be a much smaller check you have to write each year.
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