S.H. June & Associates Real Estate BlogRecently posted or modified blog posts in the category - Buying a Homehttps://www.shjune.com/blog/Copyright SHJune.com2024-03-18T12:13:10-07:00tag:shjune.com,2012-09-20:18930Is a New Construction Home Right for Me?Is a New Construction Home Right for Me?
Are you preparing to relocate? While a resale property might be a good option for your home search, consider the advantages of a new construction community tailored to your specific lifestyle needs. <br /><img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/2024_Q1/3-18-2024.png" width="1680" height="945" alt="Enjoy Peace of Mind with New Construction Homes" title="Enjoy Peace of Mind with New Construction Homes" /><br />
The Benefits of Purchasing a New Construction Home
1. Customization Opportunities in New Construction Homes
One significant advantage of buying a brand-new home is the flexibility to create or select a floor plan that aligns with your style and requirements. National home construction companies offer a variety of new homes with modern features.
2. Increase in Value in New Construction Homes
a. Early Offers and Desirability
Making an offer during the initial construction phase can yield benefits for both buyers and builders. Here’s why:
Buyers: By securing a property early, you may negotiate a better deal. Plus, you become part of a community where others have already invested, fostering trust.
Builders: Early contracts demonstrate the community’s desirability, which can attract more buyers.
b. Potential for Appreciation
As more people become interested and new amenities are added, home prices may rise. As we have seen in the past, construction costs can also fluctuate and affect the selling price. Consequently, not only can buying early get you a lower price, but your home could significantly increase faster in value over time. Introductory pricing can lead to a greater return on investment as we have seen in the past decade with home appreciation. This presents a favorable position if you ever decide to sell your home in the future.
Additional Flexibility in New Construction Homes
Buying a home during construction also gives you first pick of a home’s location and the ability to customize certain features. For example, if you want a specific home color or elevation (style), you will be able to choose before your neighbors. During the building phase, your options will not be limited by other completed homes in the area. You can take advantage of working with the builders to make any slight modifications and ensure you move into your dream home.
Other Questions to Consider When Considering New Construction Homes:
Are New Construction Homes Cheaper?
New construction homes can indeed be more affordable than existing homes in certain cases. Here are some key points to consider:
Cost Savings: In some states, like <a href="https://www.realtor.com/advice/buy/how-to-find-a-brand-new-house-that-costs-less-than-an-existing-home/" style="text-decoration: none;">California, Colorado, Utah, and Washington, D.C., homebuyers can save an average of $200,000 by choosing new construction over preexisting homes</a>. Factors contributing to this cost advantage include energy-efficient materials, modern designs, and customization options.<br /><br />
Market Conditions: The current housing shortage has led to increased demand for new construction. Builders may offer competitive pricing and incentives to attract buyers.<br /><br />
Overpricing: However, it’s essential to be cautious. Sometimes builders overprice their properties, affecting the appraisal value. Buyers should research and compare prices to ensure they’re getting a fair deal.<br /><br />
Do New Construction Homes Appraise Higher?
Appraisal values for new construction homes can vary based on several factors:
Quality of Construction: New homes are generally in better condition, which can lead to higher appraisal values. Appraisers consider craftsmanship, materials used, and unique features.<br /><br />
Comparable Sales: Appraisers compare the property to similar homes in the area. A lack of comparable sales can affect the appraisal value.<br /><br />
Market Fluctuations: Market conditions play a role. If the market is volatile, appraisals may differ from expectations.
Builder Incentives: Some builders <a href="https://cohesivehomes.com/do-new-construction-homes-appraise-higher" style="text-decoration: none;">offer financial incentives, impacting the overall affordability of new construction homes.</a>
Is It Good to Have a Higher Appraisal?
<br />Equity Boost: When your home appraises higher than expected, it instantly increases your equity. Equity is the difference between your home’s market value and the outstanding mortgage balance. Higher equity gives you more financial leverage.
Refinancing Opportunities: If you are considering refinancing your mortgage, a higher appraisal can lead to better terms. Lenders often offer lower interest rates to homeowners with substantial equity.
Selling Advantage: When selling your home, a higher appraisal can attract potential buyers. It signals that your property is worth its asking price or more, instilling confidence in buyers.
Negotiation Leverage: In real estate transactions, appraisal values play a crucial role. If your home appraises higher, you have stronger negotiation leverage. You can confidently stand by your asking price or negotiate from a position of strength.
Insurance Coverage: Homeowners insurance coverage is often tied to the appraised value. A higher appraisal ensures that your insurance adequately covers the replacement cost of your home.<br /><br />
How Much Do New Construction Homes Cost in South Carolina?
The cost of building a new home in South Carolina varies. On average:
Building a home costs around $301,840.
Including land costs, permits, and other expenses, the total can reach $451,840.
<a href="https://www.houzeo.com/blog/how-much-does-it-cost-to-build-a-house-south-carolina/" style="text-decoration: none;">The process takes 9 to 12 months.</a>
Why Buy New Construction?
Consider these advantages:
Pristine Condition: New homes require no immediate repairs or renovations. Everything is updated and in good working order.<br /><br />
Customization: Some new construction homes allow customization, so you get exactly what you want.<br /><br />
Energy Efficiency: Modern materials and designs lead to lower utility bills.
<br />Peace of Mind: No hidden defects or surprises after moving in. <br /><br />Enjoy the “Firsts:” Experience the perks of being among the first to move into a new community, from enjoying amenities and watching homes being built to exploring nearby attractions and meeting new neighbors with similar interests.
Conclusion
Consider the advantages of new construction homes carefully. Whether it’s customization, potential appreciation, or being part of a vibrant community, weigh your options and make an informed decision. Contact<a href="https://www.shjune.com/contact/" target="_blank"> S.H. June Real Estate</a>, your trusted experts in SC and NC real estate, to explore your dream property and discover the excitement of new construction living.<br />2024-03-18T11:45:00-07:002024-03-18T12:13:10-07:00S.H. June Real Estatetag:shjune.com,2012-09-20:18400How to Hire a Realtor: A Buyer's GuideAre you planning to buy a home or investment property in South Carolina or North Carolina? One of the most crucial steps in this process is finding and hiring the right realtor. A skilled and knowledgeable real estate agent can help you navigate the complexities of buying property, negotiate favorable deals, and ensure a smooth transaction. This buyer's guide will provide you with valuable tips on hiring the best real estate agent and working effectively with them throughout your home-buying journey.
1. Finding Expert Realtors in Your Area
Before making any commitments, take the time to research potential realtors who specialize in your target area. Online platforms like FastExpert can be excellent resources for finding top-rated agents. Look for agents with extensive experience, <a href="https://www.shjune.com/about/testimonials/" target="_blank">positive reviews </a>from past clients, and local market knowledge.
2. Leveraging Trusted Recommendations and Referrals
Ask friends, family members, colleagues, or neighbors who have recently purchased property for recommendations. Word-of-mouth referrals can provide valuable insights into an agent's professionalism, communication skills, and ability to deliver results.
3. Validating Licensing and Professional Credentials
Ensure that any potential realtor holds a <a href="https://www.shjune.com/blog/what-do-those-letters-mean-after-an-agents-name/" target="_blank">valid license</a> by checking state licensing boards or associations such as the National Association of Realtors (NAR). This step helps guarantee you are working with an authorized professional committed to ethical conduct.
4. Conducting Comprehensive Interviews with Realtors
Don't settle for just one option; interview at least three different Realtors before making your decision. Prepare a set of questions related to their experience in your desired location, their approach to communication and negotiations, and availability during weekends or evenings when you might want viewings scheduled quickly.
5. Assessing Local Market Expertise and Trends
A good realtor should be well-informed about current market trends and developments specific to your chosen area(s). Ask potential candidates about recent sales statistics, <a href="https://www.shjune.com/blog/best-neighborhoods-for-families-in-the-upstate-and-central-south-carolina/" target="_blank">neighborhood dynamics</a>, schools' quality if applicable -- anything that helps evaluate their expertise.
6. Evaluating Clear Communication Skills
Effective communication is key during every stage of the purchasing process. Ensure that your chosen agent demonstrates clear and efficient communication through various channels - phone calls, meetings, or emails - minimizing misunderstandings along the way.
7. Seeking Buyer-Realtor Compatibility for Smooth Transactions
Buying property involves collaboration between you as the buyer and the selected realtor. Take note of each candidate’s style compatibility when discussing important aspects such as negotiation strategies or understanding personal preferences regarding factors like price range or ideal locations.
8. Analyzing Comprehensive Real Estate Marketing Strategies
If you're looking forward only to <a href="https://www.shjune.com/blog/10-coastal-communities/" target="_blank">investment properties</a>, find out how they’ll handle marketing properties. Look into their online presence--do they use professional photography, or virtual tours? Find out whether they extended listings on third-party websites like Zillow, Trulia, SEO optimize blog posts discussing similar listings emphasize even more exposure getting better offers feeling confident their selling refreshing techniques encouraging interest shown properties using creative descriptions depend social media pay-for-click ads further push reach.
9 . Reviewing Realtor Fees, Contracts, and Terms
Understand each candidate’s commission structure payment terms and be sure pricing practices suit the budget. Review contract terms, conditions, and agreements establish firm comprehension responsibilities for both parties involved in evaluating convenience value.
Hiring the right realtor is essential for successfully navigating the complexities of buying property in South Carolina or North Carolina. With extensive research, multiple interviews, thorough evaluations, credibility, and compatibility we can choose expert fit preferences needs. By following these steps and tips, you'll be well-equipped make informed decisions throughout the process leading successful rewarding purchases. Reach out to us at <a href="https://www.shjune.com/" target="_blank">S.H. June & Associates - Real Estate.</a><a href="https://www.shjune.com/contact/" target="_blank"> </a><br />Click <a href="https://www.shjune.com/blog/what-first-time-homebuyer-credits-exist-in-south-carolina/" target="_blank">here</a> for more information on<a href="https://www.shjune.com/blog/what-first-time-homebuyer-credits-exist-in-south-carolina/" target="_blank"> First Time Homebuyer Credits</a> or sign up for <a href="https://www.shjune.com/contact/" target="_blank">personalized assistance</a> for your quest for homeownership!
2024-01-03T12:45:00-07:002024-01-09T10:35:49-07:00S.H. June Real Estatetag:shjune.com,2012-09-20:18396Top Tips For First-Time Home BuyersHow to Hire a Buyer's Real Estate Agent: A Comprehensive Guide<br />Buying a home is an exciting and significant milestone in anyone's life. However, navigating the complex process of purchasing a property can be overwhelming, especially for first-time buyers. That's where a buyer's real estate agent comes in. A buyer's agent is a licensed professional who represents the interests of the purchaser in a real estate transaction. Their expertise and guidance can make all the difference in finding your dream home and securing a favorable deal. In this comprehensive guide, we will explore the key steps and considerations involved in hiring the right buyer's agent for your homebuying journey.
1. Understand the Importance of Preapproval When Buying a Home
Before beginning your search for a buyer's agent, it's crucial to get preapproved for a mortgage. This step not only helps you understand your budget but also demonstrates to agents and sellers that you are a serious, qualified buyer. By obtaining a preapproval letter from a mortgage lender, you will have a clear idea of your maximum borrowing capacity and any potential issues that need to be addressed early in the process. This knowledge allows you to focus on homes within your price range, giving you a competitive edge in the market.
2. Seek Recommendations from Trusted Sources and Find Your Agent Through Trusted Networks<br />
When embarking on the journey to find a buyer's agent, it's often beneficial to start by seeking recommendations from friends, family, and colleagues who have recently purchased a home. Their firsthand experiences can provide valuable insights into the professionalism, expertise, and effectiveness of the agents they worked with. Ideally, you want to find an agent who has experience working with clients in circumstances similar to yours. Whether you are a first-time buyer, a repeat buyer, or looking to downsize, finding an agent with relevant expertise can greatly enhance your homebuying experience.
3. Online Presence Matters: Research and Vet Potential Candidates
Once you have a list of potential buyer's agents, it's essential to conduct thorough research to ensure they meet your requirements. Begin by examining their online presence, including their website and social media accounts. Pay attention to their closed deals in your specific area and check for online reviews. While a couple of negative reviews may not be a cause for concern, an excessive number could be a red flag. Additionally, verify their licensing status with your state's real estate regulator and check for any disciplinary actions. Consider consulting your local Better Business Bureau's website for any complaints against the agents you are considering.
4. Conduct In-Depth Interviews to Select Your Ideal Buyer's Agent<br />
An interview is a valuable opportunity to assess the work style and experience of potential buyer's agents. Aim to interview at least three agents to compare their qualifications and determine the best fit for your needs. During the interview, inquire about their years of experience, whether they work full-time or part-time, and their current client load. Understanding their typical price range and neighborhoods can also help gauge their suitability for your requirements. Ask about their expertise in handling unique scenarios such as first-time buyers, relocation, or foreclosure purchases. Assess their communication style, availability, and preferred method of contact to ensure compatibility.
5. Request and Check References to Validate Your Buyer Agent's Track Record<br />
To gain a deeper understanding of an agent's performance and client satisfaction, request references from the agents you are considering. These references should include information on recent homes they have listed and sold, along with contact details of their past clients. Reach out to these clients to inquire about their experiences working with the agent, the level of support received throughout the process, and whether they would hire the agent again for future transactions. These firsthand accounts can provide valuable insights into an agent's professionalism, negotiation skills, and overall effectiveness in representing buyers.
6. Trust Your Instincts!
While qualifications and experience are essential, it is equally important to trust your instincts when selecting a buyer's agent. Chemistry and rapport between you and the agent play a significant role in establishing a successful working relationship. If you feel uneasy or incompatible during the interview process, it's best to continue your search for an agent with whom you have a better connection. Remember, buying a home is a significant financial and emotional undertaking, and you want an agent who will provide the necessary support and guidance throughout the process.
7. Review and Understand the Contract Terms and Commission<br />
Once you have selected a buyer's agent, it is essential to carefully review and understand the terms outlined in the contract. The contract should clearly state the agreed-upon terms, including the real estate commission. Traditionally, the seller pays the commission, which is typically between 5% and 6% of the home's sale price, split between the listing agent and the buyer's agent. However, commission rates are negotiable, and it's important to discuss this aspect with your agent. Pay close attention to the length of the contract, aiming for a duration of six months or less, as market conditions can change rapidly, and you want to keep your options open.
Conclusion: Partnering for Success in Homeownership
Hiring the right buyer's real estate agent is a crucial step in successfully navigating the intricate process of buying a home. By following the steps outlined in this comprehensive guide, you can ensure that you find an agent who understands your needs, has the necessary expertise, and can guide you towards finding the perfect home at the right price. Remember to prioritize trust, communication, and compatibility when selecting an agent, as these factors will greatly contribute to a positive homebuying experience. With the assistance of a skilled and dedicated buyer's agent, you can confidently embark on your journey to homeownership.
"In a challenging housing market like today's, having a trusted agent by your side really makes a difference."
2024-01-03T10:32:57-07:002024-01-11T16:38:49-07:00S.H. June Real Estatetag:shjune.com,2012-09-20:18315Renting vs Buying: Guide to Making the Right ChoiceRenting vs. Buying: A Guide to Making the Right Choice
In today's dynamic housing market, the decision between renting and buying a home is a pivotal one. Both options come with their own set of advantages and considerations, impacting your finances, lifestyle, and long-term goals. In this guide, we'll dive into the key factors that can help you make an informed decision, whether you're a first-time homebuyer or considering the flexibility of renting.
Stability and Autonomy
Buying:
Owning a home provides a sense of stability and autonomy. You won't face concerns about rent increases or the possibility of a landlord selling the property. Homeownership grants you the freedom to personalize your space, whether it's painting the walls, updating flooring, or enhancing the landscaping.
Renting:
Renting, on the other hand, offers flexibility. At the end of your lease, you have the option to move elsewhere. This flexibility is ideal for those who anticipate frequent moves or want the freedom to downsize or scale up their living arrangements.
Economic Benefits
Buying:
Homeownership is a significant investment that builds equity over time. Mortgage payments contribute to home equity, offering several future benefits. Home values typically appreciate, providing homeowners with the opportunity for increased equity without additional effort.
Renting:
In some instances, it's worth noting that renting may result in a comparable or higher monthly cost compared to owning the same property. This is due to renters contributing to the landlord's mortgage, enabling them to generate a profit. Despite this, renting provides a distinctive advantage in terms of flexibility. While you may not be actively building equity as a renter, the absence of homeownership responsibilities allows for a more adaptable financial stance. Renters benefit from the ability to allocate funds toward short-term financial goals or investments without the financial obligations tied to homeownership.
Tax Benefits
Buying:
Homeowners can benefit from tax deductions, including deductions on home mortgage interest and property taxes. Access to home equity can also lead to tax advantages. Renters monthly cost will typically cover any annual tax cost. So, not only are renters helping you build equity and paying down your mortgage, but they’re also covering the property taxes, hoa if applicable, and possible repair expenses.
Renting:
Renting avoids the complexity of itemizing tax deductions related to homeownership. Renters don't have the opportunity to benefit from mortgage interest or property tax deductions.
Upkeep Responsibilities and Costs
Buying:
Homeownership comes with maintenance and repair responsibilities, with an estimated budget of 1-4% of the home's value each year. Homeowners bear the cost of repairs and ongoing maintenance but this cost ultimately comes from the “profits” gained from the tenant.
Renting:
Renters enjoy stability with fixed monthly rent payments and are not responsible for property maintenance. When repairs are needed, renters don't have to worry about the financial implications.
Roots vs. Flexibility
Buying:
Homeownership provides a sense of community and a long-term commitment. However, if you’re in a hurry to relocate for some reason, depending on many factors, selling a home can sometimes take a while, making it a less flexible option.
Renting:
Renting offers flexibility, making it easier to move frequently or downsize living expenses. It provides a convenient option for those who prioritize adaptability over a long-term commitment.
Pros and Cons of Renting vs. Buying
Buying a House:
Pros: Security, customization, tax benefits, equity.
Cons: Added responsibility, unpredictable costs, high upfront costs, less flexibility.
Renting a House:
Pros: More flexibility, less responsibility, limited financial complexity.
Cons: Less security, limited ability to customize, no future benefits.
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/December_2023/12-18_blog.png" width="1650" height="900" alt="Renting vs Buying - Am I ready to buy a home or continue renting?" title="Renting vs Buying - Am I ready to buy a home or continue renting?" />
When to Rent vs. Buy
Buying Makes Sense If:
Prioritizing wealth-building.
Planning to stay in one place long term.
Having a good credit score.
Enjoying stable employment.
Saved for a down payment.
Budget allows for unexpected repairs and ongoing maintenance.
Renting Makes Sense If:
Planning to move in the near future.
Employment or credit profile is shaky.
Haven't saved for a down payment.
Not ready to take on homeownership responsibilities.
Making the Right Choice for You
Ultimately, the decision between renting and buying hinges on your individual circumstances, financial goals, and lifestyle preferences. Whether you choose homeownership for the stability it offers or opt for the flexibility of renting, understanding the pros and cons of each will empower you to make the right choice for your unique situation.
Consider consulting with S.H. June real estate professionals, your favorite financial advisor, and local mortgage experts to further refine your decision-making process. Your path to a new home, whether rented or owned, begins with a thoughtful evaluation of your priorities and long-term objectives.
<br /><br />2023-12-18T14:53:32-07:002023-12-18T16:44:01-07:00S.H. June Real Estatetag:shjune.com,2012-09-20:18259What First-Time Homebuyer Credits Exist in South Carolina?Are you a first-time homebuyer in South Carolina looking for valuable credits and incentives? You're in luck! South Carolina offers several programs designed to assist and support individuals embarking on their homeownership journey. Read on to find out more about these exciting opportunities that can help pave the way to owning your dream home.
First-Time Homebuyer Tax Credits
One important aspect of purchasing your first home is understanding any potential tax benefits you may be eligible for. In South Carolina, there are specific tax credits available exclusively for first-time buyers such as:
Mortgage Credit Certificate (MCC): This program provides borrowers with a federal income tax credit based on a percentage of the annual mortgage interest paid. The MCC can potentially save you thousands of dollars over the life of your loan.
To learn more about how these tax credits work and if you qualify, consult <a href="https://schousing.com/library/Homeownership/HomeownershipProgramHandout(06.30.2022a).pdf" target="_blank">South Carolina's Homeownership Program Handout</a>, which contains detailed information directly from the South Carolina State Housing Finance & Development Authority.
First-Time Homebuyer Programs
In addition to tax credits, South Carolina offers various programs specifically tailored to support first-time homebuyers:
USDA Rural Development Loans: These loans are designed to assist low-to-moderate-income homebuyers in rural areas by offering affordable financing options with low or zero down payment requirements.
State Housing Finance Assistance: The state housing finance agency provides resources to help qualified individuals navigate the complexities of purchasing their first homes. These resources include education on budgeting, credit repair assistance, and access to exclusive loan programs.
To explore additional details about these programs and their eligibility criteria, refer to <a href="https://www.usdamortgagesource.com/blog/south-carolina-first-time-homebuyer-programs/" target="_blank">this informative article</a> from USDA Mortgage Source.
Qualifying for First-Time Homebuyer Tax Credits
Navigating the world of tax credits can be complex, but understanding the qualifications can lead to significant savings. For first-time homebuyers in South Carolina, certain conditions must be met:
First-Time Homeowner Status: You are considered a first-time homebuyer if you have not owned a primary residence at any point during the three years leading up to your new home purchase.
Income Limits: Your eligibility for tax credits may be subject to income limits, which can vary based on the specific program and your filing status.
Staying updated with the most current tax credit information is crucial. For the latest details on how to qualify for these beneficial tax credits and to understand what you might be eligible for, visiting dedicated resources such as <a href="https://homebuyer.com/learn/15000-first-time-home-buyer-tax-credit" target="_blank">homebuyer.com</a> can provide valuable, up-to-date information.
Down Payment Assistance Opportunities in South Carolina
For many aspiring homeowners, saving enough money for a down payment can be challenging. However, there are noteworthy down payment assistance programs available in South Carolina:
In 2023 specifically, eligible applicants may have access to up to $15,000 in down payment assistance. This government initiative is designed to make it easier for individuals purchasing their very first home to cover down payment and closing costs.
To delve deeper into this topic and explore current offerings and opportunities regarding down payment assistance within South Carolina's real estate landscape; review this insightful resource<a href="https://dc.statelibrary.sc.gov/server/api/core/bitstreams/1567c84b-7192-498c-b31d-2d71ac7f0eb5/content" target="_blank"> here</a>.
At S.H. June Real Estate, we specialize not only in providing exceptional real estate services but also in guiding prospective homeowners like you through each step of achieving your dreams while maximizing benefits like those discussed above!2023-12-08T12:49:00-07:002023-12-08T15:46:40-07:00S.H. June Real Estatetag:shjune.com,2012-09-20:18257Homeowner Tips: How to Balance Your FinancesHomeowner Tips: How to Balance Your Finances
Owning a home is a significant milestone, but it's equally important to manage your finances effectively to maintain your lifestyle and prepare for the future. Whether you're a first-time homeowner or looking to refine your financial strategy, understanding the 50/30/20 rule, honing essential money management skills, and following key steps can help you achieve a balanced budget. Here's your guide to financial stability as a homeowner.
What is the 50/30/20 rule?
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/December_2023/12-8_blog.png" width="1920" height="1080" alt="How to start budgeting your money if you want to buy a house soon" title="How to start budgeting your money if you want to buy a house soon" />
This rule is a straightforward way to structure your after-tax income into three categories:
Needs (50%): These are essential expenses like mortgage payments, utility bills, groceries, and insurance.
Wants (30%): This category includes non-essential items such as dining out, entertainment, and vacations.
Savings or Debt Repayment (20%): This portion should be allocated toward building an emergency fund, making investments, and paying off debts.
By following this rule, you can create a balanced approach to managing your household finances.
What is the best way to balance your home budget?
To effectively balance your home budget:
Track all your expenses for a month to get a clear picture of your spending.
Categorize these expenses according to the 50/30/20 allocation.
Reassess periodically: budgets are not set in stone.
Online tools from <a href="https://www.homeowner.com/personal-finance" target="_blank">homeowner.com</a> can help you easily track your income and expenditures.
What are the 7 skills on how to manage your money?
Effective money management involves more than just tracking expenses; it also requires mastering certain skills:
Budgeting
Understanding financial principles
Strategic saving
Wise Investing
Responsible borrowing
Long-term planning
Critically evaluating spending habits
For tips on setting a realistic budget that incorporates these skills, visit <a href="https://www.nerdwallet.com/article/finance/how-to-budget" target="_blank">nerdwallet.com</a>.
What are the 3 steps to managing your personal finances?
Here are three foolproof steps:
Assessment: Review all your finances – assets, liabilities, and income – to determine where you currently stand.
Planning: Set clear financial goals for the short and long term.
Execution: Implement your financial plan with consistent discipline.
For more on saving for a house, check out <a href="https://www.rocketmortgage.com/learn/how-to-save-for-a-house" target="_blank">rocketmortgage.com</a>, or visit <a href="https://smartasset.com/checking-account/top-10-money-management-tips" target="_blank">smartasset.com</a> for additional money management tips.
As a current or future homeowner, you've already made a significant investment in your future by purchasing your home; now it's crucial to manage the rest of your finances with as much care as you chose your ideal home.
Need extra help? Our real estate brokerage, S.H. June & Associates, is always open not just for meeting real estate needs but also for providing necessary financial advice for homeowners like you!2023-12-06T12:32:00-07:002023-12-08T13:48:35-07:00S.H. June Real Estatetag:shjune.com,2012-09-20:18232Navigating Home Buying in a Shifting Interest Rate LandscapeNavigating Home Buying in a Shifting Interest Rate Landscape
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/December_2023/Home_Buying_and_Changing_Interest_Rates_.png" width="1920" height="1080" alt="Affordability Challenges: Rising Interest Rates and Higher Monthly Payments" title="Affordability Challenges: Rising Interest Rates and Higher Monthly Payments" />
The landscape of home buying has undergone a notable transformation in recent years, particularly in terms of interest rates. From the upper 2% and 3% range pre-COVID, we now find ourselves in an environment where interest rates hover around 7%. In this blog post, we'll explore the impacts of this shift on homebuyers, both positive and challenging.
Affordability Challenges at 7% Interest Rates
One of the most significant impacts of the rise in interest rates is the effect on the affordability of homes. Let's illustrate this with a simple example: financing $300,000 at 3% for 30 years would result in a monthly principal and interest payment of $1,265, a lower payment compared to financing the same $300,000 at 7%, resulting in a payment of $1,996. The higher payment at the 7% rate means buyers may need to consider a lower purchase price to keep their monthly payments within a comfortable range.
Lower Purchase Price and Reduced Competition
Despite the affordability challenges, there are potential benefits to the current interest rate environment. With higher interest rates, the competition to purchase homes has eased. Unlike the frenzied bid wars of the past, buyers now have the luxury of time. This shift allows for a more thoughtful and less pressured home-buying process, giving individuals the opportunity to thoroughly assess properties before making a decision.
Easier Entry for First-Time Homebuyers
First-time homebuyers and those seeking loans can find solace in the decreased competition. The reduced pressure to rush into a purchase makes the market more accessible for those entering the real estate arena. This increased ease of entry may empower first-time buyers to take their time, ensuring they make decisions that align with their long-term goals and financial well-being.
Downsides for First-Time Homebuyers
While there are positives to be found, it's crucial to acknowledge the downsides. Higher interest rates mean first-time homebuyers may end up paying more each month for a home compared to when rates were lower. Additionally, the necessity of a lower purchase price due to higher interest rates adds an extra layer of complexity for those trying to balance affordability and desired features in a home.
The shifting interest rate landscape presents both opportunities and challenges for homebuyers. It's essential for individuals to carefully evaluate their financial comfort zones, considering both the monthly affordability and the potential benefits of reduced competition. As the market continues to evolve, informed decision-making will be key in securing a home that meets both your preferences and financial goals.2023-12-04T14:56:10-07:002023-12-04T17:06:43-07:00S.H. June Real Estatetag:shjune.com,2012-09-20:18160The Ten Commandments for Homebuyers Seeking a Loan: A Guide to Smart Financial ChoicesThe Ten Commandments for Homebuyers Seeking a Loan: A Guide to Smart Financial Choices
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/November_2023/Newsletter_111323.png" width="1238" height="675" alt="Buying a Home and Looking for Loans" title="Buying a Home and Looking for Loans" />
Buying a home is an exciting journey, and securing a loan is a crucial step in making your dream home a reality. However, the road to homeownership comes with its own set of responsibilities. To ensure a smooth loan approval process, we present to you the "Ten Commandments for Homebuyers Seeking a Loan." These guidelines are designed to help you navigate the loan process successfully while maintaining your financial stability.
Thou Shall NOT Apply for New Credit:
Applying for new credit can impact your credit score and create uncertainty for lenders. Before considering any new credit applications, consult with your lender to understand the potential consequences.
Thou Shall NOT Run Up Credit Card Balances:
High credit card balances may affect your debt-to-income ratio, a key factor in loan approval. Keep your credit card balances in check and avoid making significant changes to your credit utilization during the loan process.
Thou Shall NOT Change Jobs or Careers:
Stability is crucial during the loan approval process. Changing jobs or careers can introduce uncertainty into your financial situation. Consult your lender before making any significant employment changes.
Thou Shall NOT Cosign for Others:
Cosigning for someone else's loan increases your financial obligations. This can impact your ability to qualify for the desired loan amount. Prioritize your own financial stability and avoid cosigning during the home buying process.
Thou Shall NOT Make Other Large Purchases:
Large purchases can affect your debt-to-income ratio and financial stability. Before making any significant purchases, consult with your lender to assess the potential impact on your loan approval.
Thou Shall NOT Make Late Payments or Miss Payments:
Timely payments are crucial for maintaining a positive credit history. Late or missed payments can lower your credit score and jeopardize your loan approval. Stay vigilant about your payment schedule during the home buying process.
Thou Shall NOT Close Credit Accounts:
Closing credit accounts can alter your credit utilization ratio and impact your credit score. Before closing any accounts, seek guidance from your lender to understand the potential consequences.
Thou Shall NOT Change Bank Accounts:
Consistency is key during the loan approval process. Changing bank accounts may complicate the verification process. Notify your lender before making any changes to your banking arrangements.
Thou Shall NOT Conceal Debts and Liabilities:
Open communication is essential. Disclose all debts and liabilities to your lender to ensure accurate assessment and avoid surprises during the underwriting process.
Thou Shall NOT Make Large Cash Deposits:
Unexplained cash deposits may raise concerns during the loan approval process. If you need to make large cash transactions, consult with your lender to ensure proper documentation and transparency.
Following these "Ten Commandments for Homebuyers Seeking a Loan" will help you maintain financial stability and increase the likelihood of a successful loan approval process. Remember, open communication with your lender is key. If you find yourself contemplating any actions that may impact your financial situation, consult with your lender promptly. With careful adherence to these guidelines, you can confidently embark on the path to homeownership.
<br /><br />2023-11-20T15:20:05-07:002023-11-27T13:25:42-07:00S.H. June Real Estatetag:shjune.com,2012-09-20:17241Buying a Home in a Seller's Market? Strategies for SuccessBuying a Home in a Seller's Market: Strategies for Success
In today's real estate landscape, many areas are experiencing a seller's market, where demand exceeds supply, making it a challenging environment for homebuyers. However, with the right strategies, you can still navigate this competitive market and achieve success in buying your dream home. In this blog post, we will discuss effective strategies for buying a home in a seller's market.
Get Pre-Approved for a Mortgage
Before starting your home search, it's crucial to get pre-approved for a mortgage. This step not only helps you understand your budget but also demonstrates to sellers that you are a serious buyer. With a pre-approval letter in hand, you can make stronger offers and act quickly when you find the right property.
Work with a Knowledgeable Real Estate Agent
Partnering with a skilled and experienced real estate agent is essential in a seller's market. Look for an agent who has expertise in the local market and a track record of success. A knowledgeable agent can guide you through the competitive landscape, provide valuable insights, and help you make strategic offers to increase your chances of success.
Be Prepared to Act Fast
In a seller's market, time is of the essence. Desirable properties often receive multiple offers within a short period. To stay ahead of the competition, be prepared to act swiftly when you find a home you love. Keep your schedule flexible, attend showings promptly, and be ready to submit an offer as soon as possible. Delays can cost you the opportunity to secure your dream home.
Make a Strong Offer
In a competitive market, making a strong offer is crucial. Work closely with your real estate agent to determine the optimal offer price based on market analysis, comparable sales, and the property's condition. Consider offering a larger earnest money deposit or including an escalation clause to outbid other buyers. However, it's important to set a budget and avoid getting caught up in a bidding war that exceeds your financial limits.
Be Flexible and Willing to Compromise
Flexibility is key in a seller's market. Be open to compromise on certain aspects of your dream home. You may need to adjust your expectations regarding specific features or be willing to consider properties that need some renovations or updates. By expanding your search criteria, you can increase your chances of finding a suitable home in a competitive market.
Stay Positive and Patient
Buying a home in a seller's market can be a stressful process, but it's essential to stay positive and patient. Be prepared for potential setbacks, such as rejected offers or being outbid on properties. Remember that the right home will come along, and it's better to wait for the right opportunity than to rush into a decision that may not align with your long-term goals.
In conclusion, buying a home in a seller's market requires a proactive and strategic approach. By getting pre-approved, working with a knowledgeable agent, acting fast, making strong offers, being flexible, and maintaining a positive mindset, you can increase your chances of success. Remember, the right home is out there, and with the right strategies, you can navigate the challenges of a seller's market and find your perfect place to call home.2023-07-11T07:00:00-07:002023-10-31T15:18:54-07:00S.H. June Real Estatetag:shjune.com,2012-09-20:17243Buying a Home After Bankruptcy: Steps to Rebuilding Your FinancesRebuilding Your Finances After Bankruptcy: Your Path to Homeownership
Experiencing bankruptcy can be a challenging and overwhelming situation. However, it's important to remember that it's not the end of your financial journey. Rebuilding your finances and eventually purchasing a home is possible. In this blog post, we will discuss the steps you can take to rebuild your finances and position yourself for buying a home after bankruptcy.
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/July_2023/Credit_Score_Check_-Know_Your_Financial_Status.png" width="1920" height="1080" alt="Credit Score Check -Know Your Financial Status" title="Credit Score Check -Know Your Financial Status" />
Evaluating Your Credit Post-Bankruptcy: Restoring Your Financial Standing
After bankruptcy, it's crucial to assess and understand your credit situation. Obtain copies of your credit reports from the major credit bureaus (Experian, Equifax, and TransUnion) to review your credit history. Look for any inaccuracies or errors that may be negatively impacting your credit score. Dispute any incorrect information to ensure that your credit report reflects your current financial status accurately.
Strategic Budgeting for Financial Stability and the Road to Homeownership
Creating a comprehensive budget is essential for regaining financial stability. Evaluate your income and expenses to determine how much you can realistically save each month. Prioritize essential expenses and cut back on discretionary spending. Allocate a portion of your budget for saving towards your future home purchase. Sticking to your budget will help you build a solid financial foundation.
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/July_2023/Rebuilding_Credit-_Steps_Toward_Mortgage_Eligibility.png" width="1920" height="1080" alt="Rebuilding Credit- Steps Toward Mortgage Eligibility" title="Rebuilding Credit- Steps Toward Mortgage Eligibility" />
Creating a Safety Net: The Significance of an Emergency Fund
Building an emergency fund is crucial to protect yourself from unexpected expenses and financial setbacks. Aim to save three to six months' worth of living expenses in a separate account. Having an emergency fund demonstrates financial responsibility and provides a safety net during challenging times. Lenders will view this positively when considering your mortgage application.
Restoring Your Credit Score: A Roadmap to Mortgage Eligibility
Rebuilding your credit score is a critical step in preparing to buy a home after bankruptcy. Start by paying all your bills on time, as payment history is a significant factor in determining your credit score. Consider applying for a secured credit card or a small personal loan that you can manage responsibly. Make consistent payments and keep your credit utilization low. Over time, these positive actions will help improve your credit score.
Expert Mortgage Guidance for Homebuyers with a Bankruptcy History
When you feel ready to explore homeownership again, seek guidance from a knowledgeable mortgage professional. They will help you understand the specific requirements and loan options available to individuals who have experienced bankruptcy. Be prepared to provide the necessary documentation, such as proof of income, bank statements, and a solid explanation of the circumstances that led to your bankruptcy.
Saving for a Down Payment: Tactics for Prospective Homeowners
While it may be more challenging to save for a down payment after bankruptcy, it's still an important step in the homebuying process. Set a savings goal and work towards accumulating the necessary funds. Explore down payment assistance programs or consider alternative options such as FHA loans, which often have more lenient requirements for borrowers with a bankruptcy history.
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/July_2023/The_Power_of_Budgeting_-Your_Path_to_Homeownership.png" width="1920" height="1080" alt="The Power of Budgeting -Your Path to Homeownership" title="The Power of Budgeting -Your Path to Homeownership" />
Persistence and Patience: The Cornerstones of Success After Bankruptcy
Rebuilding your finances and buying a home after bankruptcy requires patience and persistence. It's essential to stay committed to your financial goals and make responsible choices. As time passes and you demonstrate financial stability, lenders will become more willing to consider your mortgage application. Remember that rebuilding your finances takes time, but with perseverance, you can achieve your goal of homeownership once again.
In conclusion, buying a home after bankruptcy is possible with careful financial planning and diligent efforts to rebuild your credit. Understand your credit situation, develop a budget, establish an emergency fund, rebuild your credit score, work with a knowledgeable mortgage professional, save for a down payment, and maintain patience and persistence. By taking these steps, you can rebuild your finances and position yourself for successful homeownership after bankruptcy.2023-07-02T07:00:00-07:002023-10-16T12:02:29-07:00S.H. June Real Estatetag:shjune.com,2012-09-20:17174The Pros and Cons of Buying vs. Renting Buying a Home in South Carolina: Pros and Cons
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/July_2023/Local_Insights_-South_Carolina_Housing_Choices.png" width="1920" height="1080" alt="Local Insights -South Carolina Housing Choices" title="Local Insights -South Carolina Housing Choices" />
As individuals reach the stage of independence and consider their housing options, one of the significant decisions they face is whether to buy a home or continue renting. Both choices come with their own set of advantages and disadvantages, and it's essential to carefully evaluate the pros and cons before making a decision. In this blog, we will explore the benefits and drawbacks of buying and renting, helping you make an informed choice that suits your needs and circumstances.
Buying a Home: Pros and Cons
Pros of Buying a Home in SC:
Long-term Investment in South Carolina Real Estate: Buying a home is a significant investment that can potentially appreciate over time. As you pay off your mortgage, you build equity, which can provide financial stability and serve as a valuable asset in the future.
Stability and Customization: Control Your South Carolina Home: Homeownership grants you a sense of stability and control over your living space. You have the freedom to customize and personalize your home according to your preferences and lifestyle without the restrictions imposed by landlords.
Tax Advantages for South Carolina Homebuyers: Homeowners may be eligible for certain tax deductions, such as mortgage interest and property tax deductions. These tax benefits can help reduce your overall tax liability and increase your savings.
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/July_2023/Why_Buy-_Building_Equity_in_South_Carolina_Homes.png" width="1920" height="1080" alt="Why Buy- Building Equity in South Carolina Homes" title="Why Buy- Building Equity in South Carolina Homes" />
Cons of Buying:
Financial Commitments in South Carolina Real Estate: Purchasing a home requires a substantial financial commitment. You need to save for a down payment, cover closing costs, and budget for ongoing expenses like mortgage payments, property taxes, insurance, and maintenance.
Location Ties: Owning a Home in South Carolina: Owning a home ties you to a specific location, making it more challenging to relocate quickly for job opportunities or lifestyle changes. Selling a home can be a time-consuming process, and the real estate market's fluctuations may impact your ability to sell at a desirable price.
Property Maintenance in South Carolina Homes: As a homeowner, you are responsible for maintaining and repairing your property. Unexpected repair costs can arise, and you must allocate time and funds to address these issues.
Renting a Home: Pros and Cons
Pros of Renting:
Flexibility and Mobility: Renting in South Carolina: Renting offers greater flexibility and mobility, allowing you to easily relocate when necessary. This is particularly advantageous for individuals who anticipate job changes or prefer the freedom to explore different areas.
Affordability: Starting Fresh in South Carolina Rentals: Renting typically requires less upfront financial commitment compared to buying a home. You don't have to worry about saving for a down payment, property taxes, or maintenance costs.
Maintenance Relief: Renting Benefits in South Carolina: Renters are generally not responsible for major repairs or maintenance expenses. If something breaks or malfunctions, it is typically the landlord's responsibility to fix it.
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/July_2023/Renting_in_SC_-Flexibility_and_Mobility_Benefits.png" width="1920" height="1080" alt="Renting in SC -Flexibility and Mobility Benefits" title="Renting in SC -Flexibility and Mobility Benefits" />
Cons of Renting:
Equity Concerns: Renting in South Carolina: Unlike homeowners, renters do not build equity or ownership in the property. Monthly rent payments do not contribute towards long-term asset growth or potential financial gains.
Limited Control: Personalization Challenges in South Carolina Rentals: Renting often restricts your ability to make significant changes to the property, such as renovations or modifications, without the landlord's consent. This lack of control can hinder your ability to create a living space that fully suits your preferences.
Budgeting for Rent Increases in South Carolina: Rent prices can increase over time, subjecting you to rising housing costs. These increases may affect your budget and make it challenging to plan for long-term financial goals.
Choosing between buying and renting a home is a personal decision that depends on various factors, including financial stability, lifestyle preferences, and long-term goals. Buying offers potential investment returns and a sense of stability but requires a significant financial commitment. Renting provides flexibility and reduced responsibility but lacks equity building and personalization options.
Consider your current financial situation, future plans, and lifestyle requirements when making your decision. Carefully evaluate the pros and cons outlined above to determine which option aligns best with your needs and aspirations.2023-06-29T07:00:00-07:002023-09-22T10:21:39-07:00S.H. June Real Estatetag:shjune.com,2012-09-20:17173Exploring the Rise of Co-Living Spaces for Young Professionals<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/July_2023/Co-Living_-_Real_Estate_Trends_in_South_Carolina.png" width="1920" height="1080" alt="Co-Living - Real Estate Trends in South Carolina" title="Co-Living - Real Estate Trends in South Carolina" /><br />
As young professionals step into the world of work, they are faced with the challenge of finding suitable and affordable housing options. In recent years, a new trend has emerged in the real estate market that caters specifically to the needs of this demographic: co-living spaces. In this blog, we will explore the rise of co-living spaces for young professionals nationally and how they are reshaping the real estate market.
What are Co-Living Spaces?
Co-living spaces are shared living arrangements where individuals or small groups of people rent private rooms within a larger property, while sharing common areas such as kitchens, living rooms, and recreational spaces. These spaces are designed to promote community, foster social connections, and provide convenience through the inclusion of amenities and services.
Affordability and Convenience for SC Residents
One of the primary reasons behind the increasing popularity of co-living spaces among young professionals is affordability. Renting an individual apartment or purchasing a home in desirable urban areas can be financially challenging for many. Co-living spaces offer a more cost-effective solution by dividing the rent and utilities among the residents. This shared cost makes it more affordable to live in sought-after neighborhoods and access amenities that would otherwise be out of reach.
Moreover, co-living spaces often come furnished and include utilities, internet, and cleaning services in the rental price. This convenience factor eliminates the hassle of setting up and managing household essentials, allowing young professionals to focus on their careers and personal growth.
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/July_2023/Co-Living_Spaces_A_Housing_Trend_in.png" width="1920" height="1080" alt="Co-Living Spaces A Housing Trend in" title="Co-Living Spaces A Housing Trend in" />
Building Community and Social Connections
Living in a co-living space offers more than just affordable housing; it also provides opportunities for building a sense of community and establishing social connections. Young professionals, especially those who are new to a city or working in a demanding field, can benefit from the built-in network of like-minded individuals. Co-living spaces often organize social events, networking opportunities, and shared activities, creating a supportive environment where residents can meet and collaborate with others facing similar challenges.
Flexibility and Lifestyle Amenities in SC Co-Living
Another significant advantage of co-living spaces is the flexibility they offer. Leases are typically more flexible compared to traditional apartment rentals, allowing residents to have shorter-term commitments. This flexibility is particularly appealing to young professionals who may be uncertain about their future plans or career trajectory.
Furthermore, co-living spaces often include attractive lifestyle amenities such as fitness centers, co-working spaces, communal gardens, and entertainment areas. These amenities enhance the overall living experience, promoting a healthy work-life balance and encouraging a sense of well-being.
Impact of Co-Living on South Carolina Real Estate
The rise of co-living spaces has had a notable impact on the real estate market, particularly in urban areas popular among young professionals. Developers and investors have recognized the demand for these types of housing options and have begun to allocate resources to meet it. Consequently, there has been an increase in the construction and conversion of properties specifically designed for co-living purposes.
Additionally, the growth of co-living spaces has influenced traditional rental markets, prompting landlords to reconsider their strategies to remain competitive. Landlords are increasingly incorporating shared living concepts, offering co-living-style units within larger apartment complexes or repurposing underutilized spaces to accommodate the demand.
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/July_2023/Affordable_Co-Living_Options_for_Young_Professionals_in_South_Carolina.png" width="1920" height="1080" alt="Affordable Co-Living Options for Young Professionals in South Carolina" title="Affordable Co-Living Options for Young Professionals in South Carolina" />
The rise of co-living spaces in the real estate market has addressed the housing needs of young professionals by providing affordable, convenient, and community-oriented living options. These spaces offer a unique blend of cost-effective accommodation, social opportunities, and desirable amenities, making them an attractive choice for many. As the demand for co-living spaces continues to grow, we can expect further innovation in this segment, with developers and investors focusing on creating tailored solutions to meet the evolving needs of young professionals in search of flexible and community-centric housing options.
2023-06-28T07:00:00-07:002023-09-18T08:16:47-07:00S.H. June Real Estatetag:shjune.com,2012-09-20:17172The Impact of Student Loan Debt on Homeownership Rates
The Impact of Student Loan Debt on Homeownership Rates
As high school students prepare to embark on their journey into higher education, one crucial aspect often discussed is the cost of college and the subsequent student loans required to finance it. While obtaining a college degree can lead to increased job prospects and higher earning potential, it is important to consider the potential long-term effects of student loan debt. One such consequence is the impact it can have on homeownership rates. In this blog, we will explore how student loan debt affects the ability of young graduates to purchase their own homes.
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/July_2023/South_Carolina_Homebuyers_-Navigating_Student_Loan_Debt.png" width="1920" height="1080" alt="South Carolina Homebuyers -Navigating Student Loan Debt" title="South Carolina Homebuyers -Navigating Student Loan Debt" />
The Burden of Student Loan Debt: A South Carolina Perspective
Over the past few decades, the cost of college education has risen significantly, forcing many students to rely on student loans to cover tuition fees, books, and living expenses. According to the Federal Reserve, the total outstanding student loan debt in the United States surpassed $1.7 trillion in 2020. This alarming figure underscores the financial burden that millions of graduates carry as they enter the workforce.
Delayed Homeownership in South Carolina
One of the major consequences of student loan debt is the delay it can impose on homeownership. Graduates burdened with substantial loan repayments often find it challenging to save enough for a down payment or qualify for a mortgage. As a result, they are compelled to delay their plans of becoming homeowners, which can significantly impact the overall homeownership rates among young adults.
Managing Debt-to-Income Ratios in South Carolina
When individuals apply for a mortgage, lenders assess their debt-to-income ratio (DTI) to determine their eligibility. The DTI ratio compares the amount of debt an individual carries to their income. Student loan debt, when added to other financial obligations such as credit card debt or car loans, can significantly increase a person's DTI ratio, making it more difficult for them to qualify for a mortgage. This can further impede their path to homeownership.
Overcoming Down Payment Challenges in South Carolina
Student loan repayments can consume a significant portion of a graduate's monthly income, leaving little room for saving towards a down payment. Down payments typically range from 3% to 20% of the home's purchase price, depending on the mortgage program. The lack of substantial savings due to student loan obligations often means that young graduates have to delay their dreams of homeownership until they have paid off a significant portion of their debt.
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/July_2023/Student_Loan_Financial_and_Homebuying_Impact.png" width="1920" height="1080" alt="Student Loan Financial and Homebuying Impact" title="Student Loan Financial and Homebuying Impact" />
Credit History and Access to Home Loans in South Carolina
Student loan debt, if not managed effectively, can have a negative impact on an individual's credit history. Late payments or defaulting on student loans can lower credit scores, making it challenging to secure favorable interest rates and terms for mortgages. This obstacle can limit access to credit and further hinder the ability to purchase a home.
Potential Solutions for South Carolina Graduates
While the impact of student loan debt on homeownership rates may seem daunting, there are strategies that can help mitigate its effects:
Loan Repayment Strategies: Graduates can explore various repayment options such as income-driven repayment plans, loan forgiveness programs, or refinancing to lower interest rates. These strategies can help graduates manage their student loan debt more effectively and potentially free up more funds for saving towards homeownership.
Financial Education and Planning: High schools and colleges should emphasize financial literacy and planning, educating students about the potential consequences of student loan debt and providing guidance on budgeting, saving, and managing credit.
Employer Assistance Programs: Some employers offer student loan repayment assistance as part of their benefits package. Graduates should consider working for companies that provide such programs to alleviate the burden of student loan debt and accelerate the path to homeownership.
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/July_2023/Tips_to_Reduce_Student_Loan_Debt_Fast.png" width="1920" height="1080" alt="Tips to Reduce Student Loan Debt Fast" title="Tips to Reduce Student Loan Debt Fast" />
Student loan debt has become a significant hurdle for many young adults aspiring to own a home. The burden of loan repayments, increased debt-to-income ratios, and challenges in saving for a down payment can delay the achievement of homeownership goals. However, through strategic loan repayment, financial education, and employer assistance programs, graduates can work towards mitigating the impact of student loan debt on their ability to become homeowners. It is crucial for policymakers, educational institutions, and individuals to address this issue collectively to ensure that the dream of homeownership remains attainable for future generations.
2023-06-26T07:00:00-07:002023-09-08T13:07:59-07:00S.H. June Real Estatetag:shjune.com,2012-09-20:16650Don't Go It Alone! The Pitfalls of Bypassing a Buyer Agent in Real EstateBuying a Home in South Carolina: Why a Buyer Agent is Your Best Choice
Approach that Counts: Buyer Agent's Role in Home Purchase
When buying a home in South Carolina, the approach you take can significantly impact your journey. Many prospective buyers are tempted to go directly to the listing agent or an on-site agent in new construction neighborhoods, thinking it will save them time and money. However, this approach can actually be detrimental to your best interests and hinder your chances of securing the best possible deal. In this article, we will delve into the importance of having a buyer agent and why it is essential to seek their guidance when purchasing real estate.
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/July_2023/Learn_how_a_buyer_agents_negotiation_expertise_can_save_you_money_and_ensure_favorable_terms_in_South_Carolinas_real_estate_market..png" width="1920" height="1080" alt="Learn how a buyer agent's negotiation expertise can save you money and ensure favorable terms in South Carolina's real estate market." title="Learn how a buyer agent's negotiation expertise can save you money and ensure favorable terms in South Carolina's real estate market." />
The Listing Agent Dilemma: Unveiling Priorities
When it comes to resale properties, approaching the listing agent directly may seem like a logical choice. However, it's important to recognize that the listing agent's primary duty is to represent the seller, not the buyer. Their role is to secure the best deal for the seller, which means they will negotiate with your interests as a secondary priority. While an experienced and professional listing agent will not be dishonest, they will always prioritize the seller's needs and strive to obtain the best terms for them. By going directly to the listing agent, you are essentially entering into a transaction without your own dedicated advocate, leaving you vulnerable and at a disadvantage.
Decoding On-Site Agents: Navigating New Construction
Similarly, when considering new construction properties, approaching an on-site agent may appear convenient, as they are readily available to provide information and show you the models. However, it's essential to understand that the on-site agent works directly for the builder – who is, in fact, the seller. Their main objective is to secure the best deal for the builder, not for you. While they may be friendly and helpful, their ultimate loyalty lies with the builder. This creates a conflict of interest, as their job is to maximize the builder's profits rather than protect your interests.
Expertise That Matters: Your Buyer Agent's Insights
In addition to the inherent conflict of interest, there is another crucial factor to consider: experienced buyer agents have extensive knowledge of each builder's negotiation tendencies. They understand the intricacies of the new construction market and can provide valuable insights into what terms and concessions are typically negotiable. By working with a knowledgeable buyer agent, you gain access to their expertise, allowing you to navigate the negotiation process effectively and secure a deal that aligns with your needs and budget.
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/July_2023/Explore_how_working_with_a_buyer_agent_can_lead_to_significant_savings_while_buying_a_home_in_South_Carolina..png" width="1920" height="1080" alt="Explore how working with a buyer agent can lead to significant savings while buying a home in South Carolina." title="Explore how working with a buyer agent can lead to significant savings while buying a home in South Carolina." />
Myth Debunked: The True Cost of Skipping a Buyer Agent
One of the most common misconceptions is that bypassing a buyer agent will save you money. However, the reality is quite the opposite. When you work with a buyer agent, you benefit from their professional guidance, market knowledge, and negotiation skills. They can help you identify potential pitfalls, negotiate the best terms, and uncover cost-saving opportunities that you might have overlooked. By having a dedicated advocate on your side, you increase your chances of securing a better deal and avoiding costly mistakes. In fact, working with a buyer agent often results in savings or, at the very least, a comparable expenditure to what you would have incurred without their representation.
Empowering Your Home Purchase: Buyer Agent Benefits
In conclusion, the importance of having a buyer agent when purchasing real estate cannot be overstated. Going directly to the listing agent or an on-site agent may seem tempting at first, but it exposes you to unnecessary risks and disadvantages. A buyer agent's primary responsibility is to protect your best interests, provide expert advice, and guide you through the complex process of buying a home. By engaging the services of a knowledgeable buyer agent, you empower yourself with a strong advocate who will work tirelessly to secure the best possible deal on your behalf. Remember, the cost of not having a buyer agent can far outweigh the perceived savings. Invest in professional representation and embark on your home buying journey with confidence and peace of mind.
2023-06-23T11:00:00-07:002023-09-07T10:56:50-07:00S.H. June Real Estatetag:shjune.com,2012-09-20:166495 Compelling Reasons to Have a Buyer Agent When Purchasing Real EstateThe Importance of Having a Buyer Agent When Purchasing Real Estate
Buying a home is one of the most significant financial decisions you'll make in your life. It's a complex process that requires careful planning, research, and negotiation skills. While some buyers believe they can navigate the real estate market alone, the truth is that having a buyer agent by your side can make a world of difference. In this article, we will delve into the importance of having a buyer agent and explore five compelling reasons why they are essential when purchasing real estate.
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/June_2023/Find_Your_Dream_Home_in_South_Carolina_with_a_Local_Buyer_Agent.png" alt="Find Your Dream Home in South Carolina with a Local Buyer Agent" title="Find Your Dream Home in South Carolina with a Local Buyer Agent" width="1920" height="1080" />
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/June_2023/What_is_a_Buyer_Agent_in_Real_Estate.png" alt="What is a Buyer Agent in Real Estate" title="What is a Buyer Agent in Real Estate" width="1920" height="1080" />
Objective and Unbiased Advice
Emotions often run high when it comes to buying a home. It's easy to get swept away by the excitement or become emotionally attached to a particular property. A buyer agent provides an objective and unbiased perspective throughout the process. They can offer you valuable insights and advice based on their experience and knowledge of the market. Whether it's pointing out potential issues with a property, assessing the resale value, or helping you see the long-term implications of your decision, a buyer agent acts as a trusted advisor, ensuring that you make informed choices that align with your goals and interests.
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/June_2023/Navigate_the_South_Carolina_Real_Estate_Market_with_a_Buyer_Agent_who_is_Knowledgeable_and_Experienced.png" alt="Navigate the South Carolina Real Estate Market with a Buyer Agent who is Knowledgeable and Experienced" title="Navigate the South Carolina Real Estate Market with a Buyer Agent who is Knowledgeable and Experienced" width="1920" height="1080" />
Expert Negotiation Skills
Negotiating the terms and price of a real estate transaction can be challenging, especially for inexperienced buyers. This is where a buyer agent's expertise truly shines. They possess extensive knowledge of market conditions, pricing trends, and property values, enabling them to negotiate effectively on your behalf. Buyer agents are skilled in analyzing comparable properties, identifying any issues that may affect a property's value, and leveraging this information during negotiations. With their expertise, they can help you secure the best possible deal, ensuring that you don't overpay for a property and that your interests are protected.
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/June_2023/Navigate_the_South_Carolina_Real_Estate_Market_with_Expert_Negotiation_Skills.png" alt="Navigate the South Carolina Real Estate Market with Expert Negotiation Skills" title="Navigate the South Carolina Real Estate Market with Expert Negotiation Skills" width="1920" height="1080" />
Access to Exclusive Listings and Off-Market Opportunities
When you work with a buyer agent, you gain access to a vast network of real estate professionals and resources. Buyer agents are constantly networking with listing agents, attending industry events, and staying up-to-date with the latest market developments. This network gives them access to exclusive listings and off-market opportunities that may not be publicly available. By utilizing their connections, a buyer agent can help you uncover hidden gems and properties that align with your specific preferences and requirements. This access to off-market opportunities can give you a competitive edge in a highly competitive market, increasing your chances of finding the perfect home.
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/June_2023/Unlock_Hidden_Gems_Access_Exclusive_Property_Listings_in_South_Carolina.png" alt="Unlock Hidden Gems Access Exclusive Property Listings in South Carolina" title="Unlock Hidden Gems Access Exclusive Property Listings in South Carolina" width="1920" height="1080" />
Strong Advocacy and Transaction Management
A buyer agent is your advocate and ally from the beginning of the search until the closing of the deal. They work tirelessly to protect your interests, ensuring that you are well-represented and that your rights are safeguarded. They review contracts and legal documents, negotiate repairs, and ensure that all deadlines and contingencies are met. Their attention to detail minimizes the risk of costly mistakes or oversights that could potentially jeopardize your investment. With a buyer agent by your side, you can have peace of mind knowing that you have a knowledgeable professional managing the intricacies of the transaction.
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/June_2023/Secure_Your_Investment_Strong_Advocacy_and_Transaction_Management_in_South_Carolina.png" alt="Secure Your Investment Strong Advocacy and Transaction Management in South Carolina" title="Secure Your Investment Strong Advocacy and Transaction Management in South Carolina" width="1920" height="1080" />
Efficient and Time-Saving Process
Searching for a home can be an overwhelming and time-consuming task. A buyer agent streamlines the process by conducting a comprehensive search on your behalf, based on your criteria and preferences. They have access to multiple listing services, online databases, and resources that enable them to identify suitable properties efficiently. By narrowing down the options and presenting you with carefully curated choices, a buyer agent saves you precious time and energy. Additionally, they can arrange property viewings, coordinate with sellers' agents, and handle the paperwork, making the entire process more efficient and seamless.
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/June_2023/Save_Time_and_Energy_Let_a_South_Carolina_Buyer_Agent_Streamline_Your_Home_Search.png" alt="Save Time and Energy Let a South Carolina Buyer Agent Streamline Your Home Search" title="Save Time and Energy Let a South Carolina Buyer Agent Streamline Your Home Search" width="1920" height="1080" />
In conclusion, the importance of having a buyer agent when purchasing real estate cannot be overstated. Their expertise in negotiation, access to exclusive listings, objectivity, time-saving abilities, and strong advocacy make them an invaluable asset in the home buying process. Working with a buyer agent provides you with the peace of mind and confidence to make informed decisions, secure the best possible deal, and navigate the complex world of real estate with ease. Make the wise choice and engage the services of a buyer agent – your trusted partner on your journey to homeownership.2023-06-05T11:00:00-07:002023-06-08T13:10:41-07:00S.H. June Real Estatetag:shjune.com,2012-09-20:16340The Grand Strand's Coastal Appeal: Affordable Beach Homes and Diverse Property Types in Horry and Georgetown CountiesIf you've ever dreamt of living near the beach, waking up to the sound of waves crashing, and enjoying picturesque sunsets every day, look no further than South Carolina's Grand Strand.
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/April_2023/Grand_Strand_Neighborhoods_-_S.H._June_Real_Estate.png" alt="Grand Strand Neighborhoods - S.H. June Real Estate" title="Grand Strand Neighborhoods - S.H. June Real Estate" width="1920" height="1080" />
Stretching across Horry and Georgetown Counties, with our real estate company's roots in the area, the Grand Strand offers an idyllic coastal lifestyle that doesn't have to cost a fortune. In this blog, we'll focus on two main points: affordable beach homes in the top coastal neighborhoods of the Grand Strand and diverse waterfront property types to suit every taste. Join us as we explore the best of the Grand Strand's coastal charm, and who knows – you might just find your dream beach home! And for those interested in North Carolina, we've got you covered too!
I. Affordable Homes in the Grand Strand's Top Coastal Neighborhoods
Living close to the ocean doesn't have to break the bank. The Grand Strand, covering Horry and Georgetown Counties, has several beautiful coastal neighborhoods where you can find affordable beach homes. Here are some of our favorite picks:
North Myrtle Beach (Horry County) – With its family-friendly atmosphere and beautiful sandy beaches, North Myrtle Beach is an excellent choice for those seeking a budget-friendly coastal retreat. You'll find a mix of charming cottages, modern condos, and single-family homes to suit your needs.<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/April_2023/Cherry_Grove_Neighborhood_-_North_Myrtle_Beach_SC.png" alt="Cherry Grove Neighborhood colorful beach houses - North Myrtle Beach, SC" title="Cherry Grove Neighborhood colorful beach houses - North Myrtle Beach, SC" width="1920" height="1080" />
Murrells Inlet (Georgetown County) – If a laid-back coastal lifestyle is what you're after, look no further than Murrells Inlet. This quaint fishing village offers a range of reasonably priced homes, from classic beach bungalows to newer townhomes and condos.<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/April_2023/Murrells_Inlet_SC_Seafood_Capital_Community.png" alt="Murrells Inlet, SC Seafood Capital Community" title="Murrells Inlet, SC Seafood Capital Community" width="1920" height="1080" />
Little River (Horry County) – Nestled along the Intracoastal Waterway, Little River offers a blend of historic charm and modern convenience. You'll find affordable housing options, including single-family homes and condos, just minutes from the beautiful North Myrtle Beach shoreline. <img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/April_2023/Little_River_SC_55_Community.png" alt="Little River, SC Suburbs, Active 55+ Community" title="Little River, SC Active 55+ Community" width="1920" height="1080" />
To find the best deals in these neighborhoods, it's essential to work with an experienced local real estate agent who understands the market and can help you navigate the home-buying process with ease. And remember, our real estate company is also here to assist you in finding your dream coastal home in North Carolina!
II. Waterfront Property Types and Features
The Grand Strand's coastal real estate market offers diverse property types to suit every preference and budget. Let's explore some popular options:
A. Single-family homes – From cozy beach cottages to spacious waterfront estates, single-family homes offer privacy and flexibility for families and individuals alike. These properties often come with outdoor living spaces perfect for entertaining and enjoying the beach lifestyle.
B. Condos and townhomes – Ideal for those seeking a low-maintenance lifestyle, condos and townhomes often come with shared amenities like pools, fitness centers, and beach access. These properties provide the convenience of community living while still offering a taste of the coastal life.
C. Luxury estates – For those seeking the ultimate beach living experience, luxury estates offer stunning ocean views, high-end finishes, and expansive living spaces. These properties often come with exclusive amenities and access to private beachfront areas.
D. Eco-friendly beach homes – Environmentally conscious buyers will appreciate sustainable design features like solar panels, energy-efficient appliances, and green construction materials in eco-friendly beach homes. These properties combine modern technology with coastal charm for a truly unique living experience.
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/April_2023/Waterfront_Property_Beachf_Views_Beachfront_Condo_SH_June_Real_Estate.png" alt="Waterfront Property, SC Beach Views, Beachfront Condo, SH June Real Estate" title="Waterfront Property, SC Beach Views, Beachfront Condo, SH June Real Estate" width="1920" height="1080" />
The Grand Strand's coastal appeal, spanning across Horry and Georgetown Counties, offers a dream beach lifestyle that's more attainable than you might think. With affordable housing options in picturesque coastal neighborhoods and diverse property types to suit every taste, there's something for everyone in the Grand Strand real estate market. S.H. June & Associates, LLC is also in North Carolina as well, and we are committed to helping you find the perfect coastal home that fits your needs and budget.
So, if you're ready to make your dream of beach living a reality, partner with our knowledgeable local real estate agents who can help you navigate the beautiful coastal communities of the Grand Strand. Take the plunge and dive into the world of coastal living – your dream home awaits! Don't forget to check out our social media channels, explore other informative blogs, or browse our website for properties for sale in the area. Your beach life adventure starts now!2023-04-20T12:00:00-07:002023-04-24T12:15:15-07:00S.H. June Real Estatetag:shjune.com,2012-09-20:15264New Year Resolutions to Help You Find a HomeGreetings as we enter the new year! If you've resolved to find a new home in the coming months, you'll be pleased to know that South Carolina's real estate market is strong, offering a wide range of options for both first-time homebuyers and those looking to upgrade to a bigger home. Whether you're a first-time buyer or seeking a larger property, there are plenty of options available in South Carolina's thriving real estate market.
As the new year approaches, it's a good time to set new goals and resolutions to help motivate yourself and stay on track. Setting goals, whether for your personal or professional life, can help you stay focused and prioritize what's important. By making new year's resolutions, you can set benchmarks for yourself and work towards achieving them throughout the year.
To make the most of your home search in the new year, consider following these five steps:
Start saving for a downpayment: One of the biggest challenges of buying a home is coming up with a downpayment. To make this process easier, start saving as early as possible and consider setting up a separate savings account specifically for your downpayment.
Clean up your credit: A good credit score is essential for getting approved for a mortgage. If your credit needs some work, start by paying off any outstanding debts and making sure all of your credit card balances are at a manageable level.
Get your paperwork in order: When it comes time to apply for a mortgage, you'll need to provide a variety of documents to your lender. Start gathering these documents now, including things like proof of income, tax returns, and bank statements.
Get preapproved for a mortgage: One of the best things you can do to make your home search more efficient is to get pre-approved for a mortgage. This will give you a clear idea of your budget and allow you to make more competitive offers on properties.
Find a real estate agent: A real estate agent can be a valuable resource during your home search, helping you navigate the market, find properties that match your budget and needs, and negotiate the best deal on your behalf.
With these five steps in mind, you'll be well on your way to finding your dream home in South Carolina. Don't let fear or uncertainty hold you back – embrace the opportunity to find a place you can call your own and start making lasting memories with your loved ones.
If you are ready to make your home search a top priority in the new year, reach out to us and we, at S.H. June Real Estate in Myrtle Beach, South Carolina will help you today and start making your home ownership dreams a reality.
2022-12-30T15:30:30-07:002022-12-30T15:59:53-07:00S.H. June Real Estatetag:shjune.com,2012-09-20:1481516 Questions to Ask When Buying a HouseThere are important questions and negotiating strategies to know and execute when buying a house. This process can be extremely daunting and stressful, and what’s worse is that some people even end up regretting their purchase.
Here are some good strategies and tips when buying a house. The questions you ask will reveal a lot of information about your major purchase.
Questions To Ask The SELLERS When Buying a House
It’s important to build rapport with the seller. Be mindful of your attitude and make sure you don’t do or say anything that may annoy them.
1. Why are you selling?
This simple question is a great way to reveal their motivations for moving on, and it’s a great opportunity to open up another thread of conversation topic you may have in mind.
2. What’s your time scale?
Sometimes buyers forget to ask this question. This will actually give you a better idea of how quickly the sellers are looking to move.
3. Have you had much interest?
This is a good question to ask if you notice that the house has been on the market for a while now. You’ll usually ask this question to the real estate agent, but once you’ve built rapport and feel comfortable with the seller, then you can explore this conversation more.
4. Whose names are on this property?
Download the Title of the Deeds and confirm how many people are listed. If there are two people but you are only talking to one person, then it’s definitely good to verify and make sure all parties agree to the sale.
5. What is the age of the major systems and appliances?
Appliances have a shelf life of about 15 years. Knowing the age of the appliances and when the house was built will give you a better idea if there is going to be an associated high maintenance cost.
6. May I have a look at the copy of the tenancy agreement?
If the property has tenants, then make sure that you read the tenancy agreement to avoid any problems with a tenant who may still be living there.
7. What are the neighbors like?
If you’re going to reside in the house you’re planning to buy, then it’s important to consider your neighbors as well.
8. Is there an allocated parking space?
If the property doesn’t have an obvious garage, then ask this question. If the sellers say something along the lines of, “We just always park there,” then you have to double-check because there is a difference between just always parking at a spot versus a specifically allocated parking space.
9. Do you know if there are any tree preservation orders on the property?
This is a question to consider when you are thinking of building on or developing the property.
10. Do you mind if I turn on the faucet/shower to check the water pressure?
If you are buying a unit, consider the water pressure to avoid frustrations in the future.
11. What’s the lowest you’d be willing to accept AND still be happy?
Use this question appropriately when dealing with the seller. You may surprise yourself when they say a lower amount than what you actually had in mind in the first place.
Questions To Ask The REAL ESTATE AGENT When Buying a House
Be responsible and reliable. When buying a home, your real estate professional is not just your real estate counselor but also your negotiator and messenger. They are knowledgeable and even take continuing education courses to keep improving their skills and knowledge to better work with you.
12. How long has this property been on the market?
You can easily answer this question yourself by looking at the listing page, BUT it’s still an important question to ask before it can give you some negotiating power depending on how long it’s been on the market.
13. Why do you think it hasn’t sold yet?
Asking this question is a good indicator to know if something is wrong with the house. It can be from a buyer’s side if they just have bad financing, or it can be because of major structural issues.
14. Is the house in a flood zone?
If the house is in a flood zone and you’re trying to get a mortgage on it, then anticipate for the lender to ask you to make extra flood insurance payments.
15. Which contingencies do you think could be worth getting and which could be skipped?
Too many contingencies in your contract can turn off sellers, so to avoid exposing yourself to excessive risk, ask for guidance from your real estate professional.
16. If I buy it and hand it back to you, what amount do you think I should charge for the rent?
If you are buying a property and then renting it out, then your real estate agent will look at you more favorably especially if they will be handling the property management because it will create another source of income for them. Don’t be afraid to ask this question!
SUMMARY:
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/Home_Buying/B6-_Questions_To_Ask_The_SELLERS_When_Buying_a_House_SH_June_Real_Estate_Myrtle_Beach_SC.png" width="1080" height="1080" />
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/Home_Buying/B6-_Questions_To_Ask_The_Realtor_When_Buying_a_House_SH_June_Real_Estate_Myrtle_Beach_SC.png" width="1080" height="1080" />
If you consider these 16 questions to ask when buying a house, you’ll be well on your way to ensuring that your investment aligns with your goals. You can ask more questions, of course. The bottom line is, you need to be prepared and well-educated. Don’t be afraid to ask because the rapport you build and the information you get will certainly put you ahead of the competition.
Have other questions? We have <a href="https://www.shjune.com/first-time-buyers/" style="text-decoration: none;" data-uw-rm-brl="false">Video Resources available on our website! </a>
If you are preparing to buy your first home soon, the Seth June Team will be more than happy to help answer your questions and get you started!
<br /><br />2022-10-26T11:41:35-07:002022-10-26T12:45:09-07:00S.H. June Real Estatetag:shjune.com,2012-09-20:14763First-Time Homebuyers: How Do I Know If I’m Ready to Buy a Home?Being a first-time homeowner has its advantages, but you must ask yourself, “Am I really ready to buy a house?” This is a big decision to make, and there are many things to consider. However, here are 3 Key Areas that you need to be thinking about as you make this decision.
1. Your Credit Strength
It’s totally okay not to have a perfect score. Life happens and will happen to all of us. As a first-time home buyer, there are ways to get around that. In fact, there are many programs that will help you qualify for a mortgage even if your credit score is in the 500s. However, there are still implications on what a lower credit score will bring to the home-buying process.
A typical credit score is analyzed in points. FICO, which is the most popular scoring model, ranges from 300 – 850:
Bad Credit: 300 – 600
Poor Credit: 600 – 649
Fair Credit: 650 – 699
Good Credit: 700 – 749
Excellent Credit: 750 – 850
Many programs are still willing to work with you with a lower credit score, but you will end up making up for it in other areas. This just means you need to have a lot of cash reserved for this process. These programs may ask you to put in a higher percentage down payment. Keep in mind that you’ll also have to prove to these lenders that you have at least three months worth of living expenses saved.
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/Home_Buying/B05First-Time_Buyers_CreditScore_S.H._June___Associates.png-Compressed.png" width="1080" height="1080" />
Moreover, having a low credit score means they will most likely have a higher interest rate. A higher interest rate means a higher mortgage payment. So what can you do in the meantime to help you be more prepared and ready to buy a home? Use your money where it can help you improve your credit score.
2. Proof of Consistent Stable Income
If you’re buying a house anytime soon, it is highly encouraged NOT to switch jobs. Keep in mind that most lenders will consider your income and employment history when applying for a mortgage.
Lenders like to see that you have the following:
a job history that shows increased pay,
stable work within the same industry, and
jobs that match your qualifications and training.
It’s understandable that life happens and you may be put in a situation where you have to leave your job, but the takeaway is to eliminate any gaps in your employment. You can perhaps take a week or two off, but lenders typically like to see consistent employment for at least the last two years because you will have to show proof with your W-2s.
If you are a business owner, note that it will be significantly harder to get approved for a mortgage if you’re writing off all of your income. Why? Because lenders want to see your tax documents and see that you are running a profitable business based on how much you claimed as income.
3. Your Debt Situation
Figure out how much you can safely spend on a house before looking around. You’ll likely see this term often when house-hunting: debt-to-income ratio or DTI. Simply stated, your DTI is a comparison between how much money you owe (your debt) to how much you earn (your income) each month. Generally, lenders prefer to see a DTI ratio of under 40% of your total gross income. You can calculate your DTI by dividing all your monthly debt payments by your gross monthly income.
Your DTI is what’s important to lenders. There are cases wherein people who earn six figures are approved for way less of a house than someone who merely makes $60,000 annually. How could this be? It could be that they have a high DTI ratio which suggests that they already have a lot of debt that they pay with their income, so adding a mortgage could be too financially taxing for them.
<img src="https://assets.site-static.com/userfiles/3090/image/Blog_Graphics/Home_Buying/B05First-Time_Buyers_DTI_S.H._June___Associates.png-.png" width="1200" height="900" />
You’ve probably heard this saying before - it’s not about how much money you make; it’s about how much money you keep after you pay your bills. Just because you received a promotion does not mean you should buy a new car or start spending more on things you don’t need in the first place. The takeaway is to reduce your DTI ratio. A simple way to do it is by simply paying off some debt!
SUMMARY
Here are 3 Key Areas that you have to consider as a first-time home buyer:
Knowing and Improving your Credit Strength. A low credit score just means you’ll have to pay a higher interest rate which means paying a higher mortgage payment.
Have proof that you have a consistent stable income, and eliminate gaps in your employment.
Assess your debt situation and strive to have a DTI ratio of under 40% of your total gross income.
Have other questions? We have <a href="https://www.shjune.com/first-time-buyers/" style="text-decoration: none;">Video Resources available on our website! </a>
If you are preparing to buy your first home soon, the Seth June Team will be more than happy to help answer your questions and get you started!
2022-10-19T10:04:00-07:002022-10-19T10:39:25-07:00S.H. June Real Estatetag:shjune.com,2012-09-20:10578Property Taxes in Georgetown CountyOne of the first questions a buyer will ask is “how much are my property taxes going to be?” In Georgetown County, the answer isn’t that cut and dry. Deciding if you will be using your home as your primary residence or a second home/investment property, is going to help determine the amount of taxes you will pay.
When purchasing a home in Georgetown County, you will automatically be considered at the 6% assessment ratio. If you plan on making Georgetown County area your primary home, then after you close on your new home, you will need to provide proof of residency and your assessed rate will drop to the 4% tax rate. This makes a huge difference!
Provided below is the to the Georgetown County Assessor’s office that shows all the information required to become a primary/legal resident of South Carolina. You’re going to love it!
<a href="http://www.georgetowncountysc.org/Assessor" target="_blank" data-saferedirecturl="https://www.google.com/url?q=http://www.georgetowncountysc.org/Assessor&source=gmail&ust=1619484584718000&usg=AFQjCNETpOxlvv1KtD9AkFuoV8E4H-d7tQ">http://www.georgetowncountysc.org/Assessor</a>
Cities, Towns, and popular Communities in Georgetown County, SC
Andrews, Debordieu, Georgetown, Litchfield Beach, Murrells Inlet, Pawleys Island, Plantersville, Sampit, Yauhannah2021-04-25T17:53:00-07:002021-04-25T18:35:14-07:00Lucy Schneidertag:shjune.com,2012-09-20:10553Property Taxes in Horry CountyOne of the first questions a buyer will ask is “how much are my property taxes going to be?” In the greater Myrtle Beach area, the answer isn’t that cut and dry. Deciding if you will be using your home as your primary residence or a second home/investment property, is going to help determine the amount of taxes you will pay.
When purchasing a home in Horry County, you will automatically be considered at the 6% assessment ratio. If you plan on making the greater Myrtle Beach area your primary home, then after you close on your new home, you will need to provide proof of residency and your assessed rate will drop to the 4% tax rate. This makes a huge difference!
Provided below is the to the Horry County Assessor’s office that shows all the information required to become a primary/legal resident of South Carolina. You’re going to love it!
<a href="https://www.horrycounty.org/Departments/Assessor" target="_blank" data-saferedirecturl="https://www.google.com/url?q=https://www.horrycounty.org/Departments/Assessor&source=gmail&ust=1619484584718000&usg=AFQjCNEekj6N1VV44QoOt3tKwQJISo9Tdw">https://www.horrycounty.org/Departments/Assessor</a>
Cities, Towns, and popular Communities in Horry County, SC
Allsbrook, Aynor, Barefoot, Bayboro, Briarcliff, Bucksport, Carolina Forest, Cherry Grove, Conway, Cool Springs, Crescent Beach, Forestbrook, Gallivants Ferry, Garden City, Green Sea, Ketchuptown, Little River, Longs, Loris, Market Common, Myrtle Beach, Nichols, North Myrtle Beach, Socastee, Surfside Beach, Windy Hill 2021-04-21T11:40:00-07:002021-04-25T18:45:24-07:00Lucy Schneidertag:shjune.com,2012-09-20:10460Is Getting a Home Mortgage Still Too Difficult?<img src="https://assets.site-static.com/userfiles/3090/image/getting-a-home-mortgage.jpg" alt="Is Getting a Home Mortgage Still Too Difficult?" title="Is Getting a Home Mortgage Still Too Difficult?" height="410" width="750" />
Potential homebuyers are always cautioned to be aware of mortgage lending standards and the difficulty they might face when trying to obtain a mortgage. Credit availability is expanding, making it easier to get a mortgage now than it was a year ago. The market is still tight however, and homebuyers should be prepared to shop around until they find a lender who is offering something that will meet the needs of their family.
Mortgage lending companies have high standards so it is important to make sure you and anyone else who will be included on the mortgage have their credit in check. The mortgage market is strict because lenders do not want to be put in a situation where they are forced to repurchase loans that are not paid on. They also do not want to end up in a litigation situation due to loan issues.
What Has Happened to the Number of Mortgages?
Due to the strict nature and requirements of the lending companies, the number of mortgages given out has significantly dropped. A report by the Housing Financial Policy Center at the Urban Institute showed that about 6.3 million fewer mortgages were given out between 2009 and 2015. The reasons behind this statistic are strict regulations and policies. These mortgages would have been granted if the lending standards where more reasonable.
Mortgage companies rely on calculations to determine if a home buyer will become delinquent on their payment. They will not give you a loan if you are too much of a risk for them. Credit history has a huge impact on this decision since lenders can see how often you pay back your debts. The history they receive is extensive. This view into your financial past causes lenders to take less risk when lending to you for your mortgage.
The Effect on the Economy
The housing market is recovering at a slower pace than it should since less potential homebuyers are being offered loans. While the market is still recovering with positive trends, fewer buyers can create a strain on other economic factors like home goods or construction jobs. Bottom Line
After the housing market boom and bust, mortgage lenders became stricter in their lending standards. It is not impossible to get a mortgage loan, but it can still be difficult for potential home buyers. Stay on top of your credit and make sure you and anyone else who is applying are in a good financial position so you can be approved for a loan. It is important to research different companies and their requirements to ensure success in getting a mortgage.2021-04-08T12:08:00-07:002021-04-08T12:11:29-07:00Seth Junetag:shjune.com,2012-09-20:10458Common Things to Look Out for Before Buying Your Dream Home<img src="https://assets.site-static.com/userfiles/3090/image/3-questions-to-ask-before-buying-your-dream-home.jpg" alt="Common Things to Look Out for Before Buying Your Dream Home" title="Common Things to Look Out for Before Buying Your Dream Home" height="410" width="750" />
It is easy to become overwhelmed when you enter the home buying market. Friends, family, colleagues, and even acquaintances will give you their opinions if you are a first time home buyer. While most of them are looking out for your best interest, they are not fully aware of what is happening in the housing market.
It is important for you to be prepared and have your own questions ready. No matter what other opinions you are getting, you are the one buying the home and your comfort level will help make your final decision. Here are three important questions to ask before you purchase a home.
1. Why am I Buying a Home?
Regardless of the finances, it is important to think about what made you want to buy a home in the first place. Usually the reasons don’t have to do with money. Instead, home buyers are focused on how the house will impact their family in the future. A study done by the Joint Center for House Studies at Harvard found there are four reasons people buy a home. Those reasons include schools for your children, a safe environment, more room for your family to grow, and control of your own space.
These factors are the most common reasons people look to buy a new home. When you ask yourself why you are looking to purchase a home, do any of those factors come up? Spend time with your spouse or family members who are involved in this decision and determine why you want a home in the first place. Creating this list will help when searching for a home and can help your real estate agent find the best home for your needs.
2. What is the Trend with Home Values?
Our current economy and housing market is strong. That means home values and mortgage rates are increasing. If you are looking to purchase a home but want to stay within a budget, it may be in your best interest to move quickly. It is forecasted for these trends to continue in an upward motion, causing home values to continue to increase.
3. What About Current Mortgage Rates?
The ticket price is not the only thing you should be concerned with when purchasing a home. Mortgage rates are always changing and can have a huge impact on your monthly payments. Current trends show mortgage rates are rising. This is something to consider if you are debating the right time to purchase a home, since the rates may be even higher down the road.
Bottom Line
You and your family are the only ones who can determine the right time to purchase your dream home. It is important to decide exactly why you want a new home for your family and decide on a budget that will be comfortable moving forward. This budget may affect the amount of time you have to search for a home, since home prices and mortgage rates are increasing. 2021-04-08T12:08:00-07:002021-04-08T12:11:37-07:00Seth Junetag:shjune.com,2012-09-20:10457Will Increasing Mortgage Rates Impact Home Prices?<img src="https://assets.site-static.com/userfiles/3090/image/mortgage-rate-projections.jpg" alt="Will Increasing Mortgage Rates Impact Home Prices? " title="Will Increasing Mortgage Rates Impact Home Prices? " height="410" width="750" />
There has been some discussion recently on home prices in relation to mortgage rates. Some believe if there is a rapid rise of mortgage rates, home prices should decrease. Logically it makes the most sense for the price of the house to drop when interest rates are rising, but this is not always the case.
This theory of home prices decreasing is typically discussed by future home buyers. As a buyer you would like to think if you are paying higher rates on your mortgage, you should be able to see a decrease in cost somewhere else. Unfortunately, these rates are rising because the economy is in better shape. As the economy succeeds, incomes rise, rates go up, as well as the price of the home.
A recent study by the John Burns Real Estate Consulting found mortgage rates have very little impact on the cost of the home. The housing market and price increases are affected by things like job growth in the area and rising wages. Coincidentally, these same factors are causing the rise in the mortgage rates since people can afford to take out more.
Bottom Line
As the economy progresses and strengthens, mortgage rates and home prices will fluctuate. It is a misconception as rates increase, home prices will decrease. Advances in the economy have shown that rates and home prices are more likely to increase together.2021-04-08T12:08:00-07:002021-04-08T12:11:33-07:00Seth June