Financing

We’ve teamed up with Leah Odom, the Senior Loan Officer at the Carolina One Mortgage office here on James Island, to get you more information about financing a home – home loans/mortgages, interest rates, credit scores, and tips for getting the loan you need.

Found 17 blog entries about Financing.

how do interest rates affect home buying

As mortgage interest rates go up, home buyers start shopping around with lenders hoping to get a better rate. As they look online, they might gravitate towards the rate that’s half a point lower than all the others. If you come across a rate from a bank you’ve never heard of that seems too good to be true, it probably is!

Right now, we’re seeing a lot of bait and switch tactics online and a lot of non-refundable application fees. Some banks make their money not by the loans themselves but by the fees they charge. They offer a 4% rate and make you fill out the application in order to collect hundreds of dollars in application fees. Then, they tell you that you don’t qualify for that 4% rate, but you can still get the number that’s more on par with

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minimum down payment for a home

We recently had a conversation with a first time home buyer who was living with her parents and working hard to save up a 20% down payment. She didn’t realize that she had already saved three times the amount she needed!

This miscalculation got us wondering…how many home buyers actually know the correct minimum down payment it takes to purchase a home? We thought we’d put together this blog to help other home buyers who are currently saving up their funds!

Primary Residence Purchases

  • VA* and USDA: 0%
  • First Time Home Buyer Conventional: 3%
  • FHA: 3.5%
  • Conventional: 5%
  • Jumbo: 5%

Investment Properties and Second Homes

  • Conventional Second Home: 10%
  • Conventional Investment: 15%
  • Jumbo Second Home: 20%
  • Jumbo
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most common home financing mistakes

You’ve gotten pre-approved with a local mortgage lender, found the perfect home, and negotiated with the seller for a fair price. Your home inspection went well, and the home appraised for slightly more than your contract price. Nothing could go wrong at this point, right?

A recent study showed that 36% of contracts never made it to the closing table due to financing. Although lender issues can arise out of the blue, it’s surprising how many of these problems are preventable. Home buyers often assume that once they’re approved for their home loan, it’s a done deal in terms of financing. However, this is simply not the case. Your approval status is based on the income, employment, debt-to-income ratio, and other factors you had at the time of your

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reasons to pay off your home mortgage early

With most mortgage commitments lasting 20 to 30 years, the financial burden of a monthly mortgage payment can weigh heavily on homeowners. Here are 3 good reasons to pay off your mortgage debt sooner than the bank requires.

Pay for Your Kids’ College Tuition

Imagine being able to pay off your mortgage by the time your kids start college. You would have fewer financial obligations and more cash on hand to help cover college expenses. In 2016, the average college graduate had debts of over $37,000. Even if you only paid part of your kids’ tuition, you could significantly reduce the amount of student loans needed. This strategy could lessen financial stress for your child so that he or she is not burdened with overwhelming debt at the young age of

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credit score programs for home buyers

A home buyer’s credit score helps determine the down payment she’ll make at closing, her buying power (how much she qualifies for), the Private Mortgage Insurance (PMI) premium, interest rate, and the overall monthly mortgage payment. Because credit affects so many aspects of the lending process, every home buyer should care about her credit. It’s amazing how even a 20 or 40 point increase can change the affordability of the home you purchase when the price of the home stays the same. For buyers who can push their credit score over the 680 milestone, we see a substantial improvement in their mortgage options.

I’d like to make very clear that not all credit enhancement programs are trustworthy or effective. In fact, I think probably only a small

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tips on home mortgages

You don’t have to be a mortgage guru to save money on your next home purchase. We’ve put together this list of lesser known facts and tips so that you can gleam some of the best advice we’ve learned in our 12+ years of real estate experience!

  • You don’t need a 20% down payment to eliminate PMI. Private Mortgage Insurance generally costs $65-256 per month. In order to reduce their monthly costs, many buyers try to put down 20% or more to eliminate PMI. However, if you don’t have that much cash to put down, you can opt for a single premium option where you pay a one time amount (and never have to make that PMI payment again). Over the life of the loan, this route usually costs 1/3 of the total amount compared to making the old fashioned monthly
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how to save money for a down payment

For many home buyers, saving enough money for a down payment is the hardest part of the buying process. Some buyers have to wait years until they’ve saved the 3.5% to 5% needed to put down for a mortgage.

In Charleston, housing appreciation runs roughly 6% a year depending on the area, meaning that prices might be going up faster than a home buyer can save each year. With the low rates that we’re still seeing with mortgages and the ever-increasing home prices, it’s important for serious buyers to pinch their pennies or risk getting priced out of the homes they can afford.

The Importance of Time Frame (How Interest Rates Affect Your Purchasing Power)

As a general rule of thumb, a 1% change in mortgage rates produces a 10% change in your

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how to avoid home buyers remorse

Whether you are looking to buy a home in the bustling heart of Charleston or in the private community of Sullivan’s Island, a home may come with more than you bargained after the purchase is complete. Often, your eyes will mask the imperfections of a home until after you have settled in and begin to see the home with a fresh perspective, which can result in a sense of remorse that forces the question of whether you should have chosen a different home.

The real estate professionals of Keadle Real Estate Group seek to inform every client about the ins and outs of a home prior to closing in order to assist our clients with making a wise home purchase. In line with our commitment to every home buyer’s overall satisfaction, here are 4 ways to avoid

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When Is the Right Time To Buy Your First HouseBuying your first house is an exciting adventure, especially when you are looking in or around the beautiful areas of Charleston. However, your enthusiasm must be met with conscious forethought and careful planning. There are many factors that must be taken into account to determine the ideal timing for a first-home purchase. At the Keadle Real Estate Group, we love the homes and communities of Charleston as much as you do, but we also understand that purchasing your first home is a monumental financial leap. To assist you with your home buying strategy, here are 3 factors you must consider in determining when it’s the right time to buy your first house:

  1. Are your finances and career stable? Defaulting on a mortgage can seriously damage your

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cartoon on getting a mortgage

We’ve included below info and tips from the Consumer Financial Protection Bureau that can help you plan for your home purchase:

    • Many Americans don’t realize that Federal laws allow them to get a free credit report check every 12 months from all 3 of the credit reporting companies (Experian, TransUnion, and Equifax). Not only is this a good way to catch identity theft, but it also helps you keep the info on your credit reports accurate and up to date. Correcting mistakes on your credit report can help increase your score in less than 30 days. The authorized, free website to do this is www.annualcreditreport.com
    • Generally the higher your credit score, the less you’ll pay for a mortgage. If you’re several months out from purchasing a home,
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