New Homes Columbia SC Real Estate New Construction

I always get one question when I am about to close a Columbia SC Real Estate Home.  Once we go over the HUD statement, the question always comes. 

“What are these Reserves set up for the lender?”

Well my friend, they are what we call escrows.  Most lenders want you to escrow your taxes and insurance so you can be sure that these items are paid and kept current on your Columbia SC Real Estate. 

Why is this?  Many people default on their taxes, resulting in a tax sale.  With escrows, your mortgage company has this money, your money, in reserves and pays the taxes and insurance on your Columbia SC Real Estate home on your behalf. 

Another thought from my not so cynical mind is that they want this money in their reserves.  They make interest off of this money sitting in their accounts.  Imagine.  You are paying about $100-$200 a month for escrows.  Roughly $1500 a year on a $100,000 house within the Columbia SC Real Estate market.  

$1500 is not that much money.  Multiply that by the hundreds of thousands of people the mortgage company has.  Now that is the big picture.

Of course, you can always decide not to escrow and pay the taxes yourself.  I have had many people do this.  At closing, the standard fee is 3/8% of the purchase price.  They charge you upfront not to escrow. 

All these are thoughts to keep in mind when purchasing Columbia SC Real Estate!  For more information, visit Hunter Jackson at the number 1 Irmo SC Real Estate Patio Home Neighborhood, Murray Landing by Rymarc Homes.