Columbia SC Real Estate and Homes for Sale

There may be some help on the horizon for First Time Home buyers in the Columbia SC Real Estate market.  President Bush signed the new Housing and Economic Recovery Act of 2008 back in August, but it takes affect October 1st. The good news is that the new law provides a Tax Credit for qualified First Time Home buyers purchasing a Columbia SC Real Estate Home. 

First off, What is a first time home buyer as this law states?  A first time home buyer is a buyer who has not purchased a home in the past 3 years.

The first time home buyer tax credit is available to Columbia SC Real Estate purchasers who purchase their house between April 09, 2008 and July 01, 2009.  The allowable credit amount is 10% of the purchase price up to a maximum $7,500. People who file singly  with modified adjusted gross incomes up to $75,000 are eligible for the tax credit. Married couples with adjusted gross incomes up to $150,000 are eligible.  Therefore, if you make under $75,000 a year and file alone, or you and your spouse make under $150,000 a year, and you file jointly, you are considered eligible. Therefore, if you purchase a Quail Valley Columbia, SC home for $150,000, you will only get the $7,500.

Please note this, this is a temporary tax credit.  This tax credit will be recaptured (you will have to repay it) up to the next 15 years while you own the house, or when the home is sold. 

This credit provides incentives to purchasers who are first time home buyers to purchase a home.  It recognises that there is a problem with the market, and it is an attempt to help bring back the market, as well as provide home ownership to first time home buyers. 

Another provision of this bill is FHA Modernization.  Yes, its a big word.  More or less, the FHA is increasing the insured loan amounts up to 115% of the average of areas, up to $625,000.  This alone will allow the FHA to guarantee $300 Billion of loans made to the Columbia SC Real Estate market, as well as the rest of the United States as well.

As well, through the FHA Modernization, the FHA has increased its down payment from 3% to 3.5%, as well as gotten rid of the majority of down payment assistance programs such as Nehemiah .

All in all, this bill was made to be a temporary stimulus providing incentive to buyers looking to purchase a home to go ahead and do it.  What more do you need? 

The other day I wrote about Columbia SC Real Estate Closing Costs. One of the purchasers closing costs is Title Insurance.  Often misunderstood, what exactly is title insurance?  Why do you need it. 

Columbia SC Real Estate buyers know they need hazard (homeowners) insurance.  It protects you in case of fire, weather, and many other circumstances that can devalue, damage, or destroy your physical property.  What about the title? 

What would you do in this situation?  You purchase a piece of Columbia SC Real Estate, and years down the road, someone claims that they own the house.  They claim you bought your house when they owned the legal right to it.  What would you do?

That is why you have title insurance.  Title insurance will protect you and will cover any losses that you might incur due to any defects in the title of the real property or legal expenses incurred in defending your Columbia SC Real Estate home in court.

There are two types of title insurance offered.  Title insurance is usually required as a stipulation of a loan on the property.  Therefore, you have a Lender's Coverage and an Owner's Coverage.  These are 2 separate policies.  The lender's policy covers the lender and their interest in the property.  As you pay off the loan, the lender's policy drops to what you owe on the property.  This is why you need an Owner's policy.

Usually just $75 more, an Owner's Policy will cover you separately from the lender.  Therefore, after you pay off the house, you will still be covered.  As well, when you owe 50% on the house, your 50% equity will be covered. 

A real estate transaction may become complicated when there are issues that may affect the rights of individuals who claim a right to a particular piece of property. Issues such as: Bankruptcy, Defective Deeds, Missing Heirs, Clerical Errors in Records, Forgery, Wills, Fraud, Mental Incompetence, Marriage & Divorce, are just a few of the problems that may surface, and could pose a threat to your title being free and clear of claims by others.

This is why it is important to pick a good Columbia SC Real Estate closing attorney.  Attorney's typically 'sell' and 'issue' the title policy at closing. 

I work closely with experienced attorneys in the Columbia SC Real Estate market.  I want to make sure your closing goes just as smooth as possible.  Let me know if I can help you in anyway!

Often I get the question, "How much money should I put down when purchasing a Columbia SC Real Estate Property?"  My response is purely this, "How much can you?"

We have all heard the phrase "Cash is King".  It is, especially during these days that financing is not a guarantee.  First, I'll cover an all cash transaction.

Purchasing in an all cash transaction definately puts you at the top of the list as far as qualification goes.  Qualification plays largely in what offer to take.  People are plain old tired of pulling their house off the market for 30 days, then the closing does not happen.  This costs the seller not only 30 days off the market, but typically a mortgage payment, their time, and their emotional well being. 

Agents hate for a deal to fall through, not only for the obvious, but it also takes up their time, then they have to re-brand the house. 

Therefor, making a full cash offer definately makes you more desirable.  Will it get you a lower price?  Maybe.

The reason I say "Maybe" is that most people have a number they want.  They may go down to that number, however, I doubt you will get below that. 

On to a financed offer...

In these shaky days of Columbia SC Real Estate lending, financed offers are shaky.  They are.  However, the amount of money you put down directly effects the 'shakiness' of your deal. 

If you have a good credit score (720+) and 20% down, more than likely you will be approved, baring unforeseen circumstances in your Columbia SC Real Estate purchase. 

Below a 720, and 20% down, it is a bit tougher.  More than likely a mortgage broker can get it done, as long as you are qualified, but it still may not happen. For example, the FHA requires 3% down, however you have PMI mandatory for 5 years.

If you have any questions on down payments, or paying cash for a house, please contact me, your Columbia SC Real Estate Agent. 

Alright, you are at the point of executing a Contract of Sale on the Columbia SC Real Estate home you want to purchase.  You know what you want to pay, you are already Pre Approved to purchase this Columbia SC Real Estate home.  You and your agent have done your due diligence, and barring unforeseen circumstances, such as repairs, termites, liens, etc...you want to purchase this home.

You agent then asks you, "How much earnest money do you want to put down?"

Wikipedia defines earnest money as:

An earnest payment (sometimes called earnest money or simply earnest, or alternatively a good-faith deposit) is a deposit towards the purchase of real estate or publicly tendered government contract made by a buyer or registered contractor to demonstrate that he/she is serious (earnest) about wanting to complete the purchase. When a buyer makes an offer to buy residential real estate, he/she generally signs a contract and pays a sum acceptable to the seller by way of earnest money.

Pretty much, you are showing monetarily a good faith promise that you will close on this house, barring any unforseen circumstances as listed above.

Earnest money deposits vary greatly within the Columbia SC Real Estate market, however, there is a trend.  Under about $150,000, a $500 earnest money deposit seems to be acceptable.  Of course, this is always part of the negotiations.

Typically, one of the Columbia SC Real Estate brokerages holds that money in a trust account.  Most will not accept cash, and most require that the check be made out to XYZ Real Estate Company.  These trust accounts are used solely to hold earnest money.  The money can not be accessed unless the house closes, or both parties agree for the earnest money to be dispersed. 

At closing, the purchaser is credited for the earnest money.  You get it back, unless you are found in default of the contract. 

There are several contingencies in the standard Columbia SC Real Estate contract about Earnest money.  If you have any questions about earnest money, or anything else to do with Columbia South Carolina Real Estate, please contact me and I will gladly help you!

Also see Columbia SC Real Estate Closing Costs

Often I get questions about closing costs from my Columbia SC Real Estate Buyers.  They seem to be a mystery to most people, so I wanted to get it out there, so people can know and understand exactly what closing costs are.

Typically, closing costs are considered part of purchasing a house.  They are the fees associated with closing a house and or getting a loan on a Columbia SC Real Estate home.  No matter who you are, unless you have some great friends, you will have closing costs when you purchase a house. 

When speaking with a lender, they are required to give you a Good Faith Estimate which is an estimate of your closing costs. Some of the closing costs you will incur are:

* The down payment

* Loan fees (points, application fee, credit report)

* Prepaid interest

* Inspection fees

* Appraisal

* Mortgage insurance 

* Hazard insurance 

* Title insurance 

* Document Fees

*Attorney Fees

Since the State of South Carolina is a Buyer's Preference state, the purchaser picks and pays for the attorney. 

Within Columbia SC Real Estate, the purchasers closing costs are often negotiable, meaning the purchaser can ask the seller to pay for part or all of their closing costs.  Typically, closing costs run roughly 3%, sometimes more and sometimes less. 

If you have any questions on Columbia SC Real Estate closing costs, please ask!

Also see, What is Columbia SC Real Estate earnest money?