So You Want to Buy A Home? But Are You Really Ready to Get Started?

The newly expanded and extended tax credit is opening the door for a lot of folks looking to purchase a home.  Interest rates are still low, there is a ton of inventory...it's a buyer's market!

 

You've browsed listings online, set aside some money for a down payment and closing costs, you're ready to roll! Right? 

Well, almost...

 

Do you know the very first step you should take before going out with your real estate agent to look at homes?  If you said talk to a lender, you hit the nail on the head. Unless you are one of the lucky few with cash to make your home purchase, speaking with a lender is the first real step toward getting that key to your new front door.

 

Many times I'm contacted by folks who are very excited to start looking for a home.  They tell me their wish list, all the things they want or need, the desired location, they talk about homes they've seen online, etc.  And I will ask a lot of questions as well so I can be sure to find the perfect place.

That's the fun part.  But then we have to face the reality of what these folks can afford.  So I will begin to ask questions that every home buyer should know the answer to...

1.  Have you been pre-qualified or pre-approved?

Many agents won't even put you in their car to go look at homes until you can show them at least a pre-qual letter from your lender.  This is just a general letter saying that based upon the information you've provided the lender, they feel you qualify for a mortgage amount of X dollars.  A pre-approval letter is even better and one that you will want to include with any offers you make.  This means you've actually provided certain documentation to the lender, they've checked your credit and basically they've approved you for your loan although it may be contingent upon providing other documentation or meeting additional criteria.

2.  What type of loan are you applying for and how much do you have for a downpayment?

This is important for you and your agent to know as well.  Different programs have different down payment requirements.  For example, FHA currently requires buyers to put down 3.5% of the purchase price.  VA loans can be up to 100% financing, however, you still have the option of putting money down.  A conventional loan may require as much as 20% down.

Say you are approved for a $200,000 loan and you have another $20,000 for a down payment.  That's a total budget of $220,000.  So you need to decide if you want to look at homes all the way up to your max of $220,000 or stick to a lower price range.  Which leads me to the next question...

3.  Did you get a breakdown of your monthly mortgage expenses at different price points?

Even though your lender may say you qualify for a $200,000 loan...what does that equate to in monthly payments and are you comfortable with that?  Have them include estimated insurance and taxes in addition to the mortgage amount because those expenses will effect your monthly payment as well. 

4.  Have you shopped around?

I always recommend talking with a few lenders.  Start with your own bank or credit union.  Your agent, family and friends may have people they can recommend as well.  Different places can offer somewhat different programs and certainly different rates.  Your interest rate can make a huge difference on the monthly payment...more so than a reduction of the price of the home in some cases.

Bottom line is...you really need to know if you qualify for a loan and for how much.  You want to be sure you are looking in the right price point so you are not wasting your time or your agent's time.  You may need to adjust your expectations up or down regarding the quality, location or condition of homes based on this information and your local market conditions.

I've come across folks whose credit may not be the greatest and so they are hesitant, perhaps even a bit embarrassed, to talk to someone about their loan options.  Any reputable lender will keep the information confidential.  And if you don't qualify for a loan now, they can often times make suggestions on how you can improve your credit score.  This can often be done over the phone and it won't cost you a thing.

The thing is, you won't know for sure unless you do it!  And it really is the essential first step to home ownership.

For more information or if you have questions, contact your lender or feel free to contact me.  While I am not a mortgage expert, I will do my best to answer your general questions or to point you toward resources where you can get the appropriate information.

Maria Pettis

Realtor, e-PRO

(843) 860-3901

maria@mariapettishomes.com

http://www.summervillerealestateonline.com/

Summerville SC Video!

Get a glimpse of beautiful Summerville, SC with this video!  Close to historic Charleston, two military bases, the new Boeing plant site and area beaches.  Summerville has a small town feel and lots of southern charm with all the modern conveniences!  This video doesn't even begin to cover all that Summerville has to offer!

For more information visit my site at http://www.summervillerealestateonline.com/  or contact me directly at mpettis@century21properties.com or (843) 860-3901

Kind Regards,
Maria Pettis
Realtor, ePRO

Hope for Homes in Summerville and Charleston, SC!

There is HOPE FOR HOMES in Summerville and Charleston, SC!  If you are a home owner in the area and are falling behind on your mortgage payments or feel unable to keep up, then you will want to attend this special event THIS SATURDAY, October 24th at the North Charleston Convention Center.

Maybe you've lost your job or had some other reduction in income.  Or perhaps you've been hit with unexpected medical bills making it more difficult to keep up with your mortgage payments.  Whatever the reason, financial issues always cause a great deal of stress especially if the possibility of losing your home exists.

Come to this FREE event on Saturday and meet with certified HUD specialists who can offer budget and credit counseling, explain foreclosure prevention options and explain legal issues related to foreclosure.  These specialists can review your situation and help guide you in the right direction so that you can get back on track again. 

Don't expect any quick fixes though.  You'll need to listen closely to what the specialists are telling you and follow up with what is sometimes hard work.  But it could be the first step toward saving your home and getting you financially healthy again.

Visit http://www.hopeforhomescharleston.com/ to get a list of things you should bring with you and to get more details about the event. 

Don't Let The Holiday Cost You Your Tax Credit!

As an agent working the Summerville Real Estate scene, I can tell you that I have worked with a lot of folks interested in that First Time Buyer Tax Credit. Even as of this writing (on October 11, 2009), I am being contacted by people interested in starting the search for their first home and wanting to close in time to qualify for the credit.

In order to receive the credit, a first time buyer needs to CLOSE on their home by November 30th! Time is short, but it can still be done if you move fast, are motivated and have an agent who is on the ball.

Here in South Carolina, it typically takes 30-45 days to close from date of contract. This is mostly to allow time to get your financing in order, but also to get your home inspections done. (If you're doing a cash deal, you can typically close much faster.) And closings are done by an attorney.

I just wanted to take a moment to remind people that November 30th falls on a Monday. And the Thursday prior is Thanksgiving! If you really want that credit, schedule your closing PRIOR to Thanksgiving which is November 26th.

Closing attorneys may find themselves busier than usual in November simply because of people trying to beat the tax credit deadline. Their offices may also be more lightly staffed much of Thanksgiving week. And of course, don't expect anything to happen the day of the holiday itself! Banks will be busy too and you need to know that the funds can be transferred on time to close the deal.

Sometimes things can come up at the last minute as well, pushing your closing back a day or more. Hopefully, this won't happen, but best not to wait til the last "hour" so try to schedule your closing as far in advance of the November 30th deadline as you can.

Better to be giving thanks for your new home and some extra cash then to be disappointed! Check with your agent, lender and lawyer to make sure you're on track to close in time!

Maria Pettis
REALTOR, e-PRO
mpettis@century21properties.com
843-860-3901
www.SummervilleRealEstateOnline.com

153 Black River Dr - Lakes Of Summerville Real Estate - Summerville Home for Sale!

153 Black River Drive, Summerville, SC
Offered at $118,000.
2 Bedroom/2.5 Bath Townhome.



I have just listed this immaculate, move-in ready townhome in Lakes of Summerville. Just like new only better at this price! This is NOT a foreclosure or short sale so we can close quickly instead of waiting on lender approval for every little thing! AND still take advantage of the $8000 buyer tax credit!

This townhome is open and airy. Big windows let in lots of natural light. The kitchen is functional and open to the living area. It boasts a breakfast bar, 42" Oak cabinets, smooth top stove, dishwasher and double stainless sink w/disposal.

Just off the kitchen/dining area is a lovely sunroom. This was a builder upgrade and adds square footage and living space to this home. Also located in this area is a large storage closet. You can never have storage space!

A half bath with pedestal sink and a large coat closet round out the downstairs area.

As you get to the upper floor landing, you'll find the laundry area hidden behind bifold doors. Laundry upstairs where the bedrooms are located is a huge modern convenience! Next to that is an extra large linen closet.

The front bedroom is bright and has a walk-in closet, it's own full bath with an extra deep tub perfect for soaking in. The back bedroom also has a large closet and it's own full bath with the same type of extra deep soaking tub.

Lakes of Summerville is a lovely community of townhomes and single family homes. Part of the community is in Charleston County. This townhome falls within Dorchester County which means it is located within the much sought after Dorchester 2 School System. The community also has it's own clubhouse and pool.

Convenient to I-26, both military bases and shopping, Lakes of Summerville is a wonderful place to call home! In Summerville, SC you get all the small town feel with big city amenities...all your favorite big name stores, plus plenty of specialty shops unique to Summerville. Nearby you'll find Northwoods Mall and Tanger Outlet Center. Downtown Charleston and area beaches are about a 30 minute drive.

For more information on this beautiful, move-in ready townhome....visit:
153BlackRiverDr.SummervilleRealEstateOnline.com

or contact me:
Maria Pettis, Realtor
Century 21 Properties Plus, Inc
(843) 860-3901
mpettis@century21properties.com

Are You Covered? Flood Insurance Basics.

Well, it's hurricane season once again! But last year it wasn't a hurricane that made headlines here. A bad rain storm dumped approximately 9 inches of rain on the Greater Charleston area. This storm caused serious flooding in different areas stranding cars and damaging homes. This is called "the Lowcountry" for a reason and we do expect to have flooding on occasion in some areas. Buyers often ask me if certain homes are in a "flood zone". But here's the thing, according to local news reports, many of the homes that were flooded in this storm were not in high risk flood zones which begs the question, did these homeowners bother to get flood insurance? Sadly, many did not.

Here's what you need to know about flood insurance...
According to www.floodsmart.gov, the National Flood Insurance website, about 25% of all flood claims come from low to moderate risk areas. Our recent storm would seem to back that up. So no matter where you live, can you really afford to not carry flood insurance? The standard homeowner's policy does not include flood insurance so a separate policy is necessary. You can choose a policy that covers just the building, contents only, or both the building and it's contents. It's not as expensive as you might think with rates preset by FEMA, and if you need it (God forbid), it surely will be worth every penny.

If you live in a low to moderate risk area, you have the option of purchasing flood insurance. Is it a good idea? I would recommend it and just ask those poor folks that I mentioned in the opening of this blog. If you don't purchase the insurance and get into a fix like these folks, you could apply for goverment assistance to get back on your feet, but it will most likely be in the form of a loan and do you really need that on top of your mortgage and other bills as you try to rebuild your life after such an event?

If you are in a high risk or "Special Flood Hazard" area, then federal law requires you to purchase flood insurance and you will not be able to close on your home without it. Here in the Charleston area we have homes that fall into both categories so be sure to ask your real estate agent about the home you are interested in purchasing and then CONFIRM it with your insurance agent prior to entering into a contract. It's also important to note that there is a 30 day waiting period before flood coverage takes effect.

You may also want to see what your insurance company can provide in the way of wind and hail. This coverage can be costly, but you can keep your premiums down by choosing a higher deductible. Putting some money aside to use for your deductible, should you need it, can provide you with greater peace of mind and be a much needed umbrella on that windy, rainy day. Shop around for the best rate and terms, but also be aware that there is a wind pool overseen by the South Carolina Underwriting Association for those that can't find coverage in the regular marketplace.

Finally, I want to briefly mention that you should also investigate earthquake coverage as we actually have a fault-line running through the area. Yes! Here in South Carolina, believe it or not.

The Summerville/Charleston, SC area is a truly beautiful place to call home. Nature has blessed us with beautiful beaches, waterways and a temperate climate. But Mother Nature has a way of reminding us periodically that she is also a force to be reckoned with, so it's best we are prepared. Knowing your insurance options and getting the appropriate coverage is the first step in protecting your home. Talk with an insurance agent for expert advice and to get more details about what coverage and options are best for you.

For more info and additional resources, check out:www.floodsmart.govwww.fema.govwww.dnr.sc.gov/water/flood/www.scwind.com/index.html

Kind Regards,
Maria Pettis,
Realtor, e-PRO
Century 21 Properties Plus, Inc.
(843) 860-3901
MPettis@Century21Properties.com

107 Essex Drive - Irongate Real Estate - Summerville Home for Sale!

107 Essex Drive, Summerville SC
Lovely Traditional Home for Sale
Offered at $212,777
MLS 2911435

I have just listed this wonderful home in the Irongate Subdivision located in Summerville, SC. If you are looking for more than just a cookie cutter house in a cookie cutter neighborhood, this home may be for you!

This is a lovely traditional two-story with a large entry foyer and center hall. To either side of the entry you will find the two formal rooms... the formal dining room to the right and the formal living room to the left. This formal living room has french doors and could also be used as a study or office.

Down the hall to the back of the home, you find an amply sized eat-in kitchen which is open to the family room. This cozy space has a brick fireplace and plenty of windows for natural light.

You'll also find a good sized laundry room and half bath on the first floor.

Upstairs are four true bedrooms. The three secondary bedrooms are all a nice size and share a bath in the hall. The master bedroom is a nice size. Currently there are several large pieces of furniture in the room and it still doesn't feel small! There are dual walk-in closets for him and her. An en suite bathroom has a tub/shower combo and it's own linen closet.

At 2165 square feet, this home is not short on space!

There is also a two car garage and a fully fenced yard. The lot is almost a third of an acre...something else you won't typically find in those newer neighborhoods. Enjoy a little space and privacy and not be on top of your neighbors! There is also a community pool and play area.

Irongate is a community of homes built in the '80's and '90's. They range in price from the mid 100's up to the low to mid 200's.

Located right off of Old Trolley Rd, there is plenty of shopping nearby including Publix Supermarket and a brand new Ace Hardware store. It's just minutes from downtown Summerville where there are numerous other stores such as Lowe's, Home Depot, Target, Kohl's and Walmart just to name a few. Plus the historic district is right there with plenty of little shops and grand old homes and churches.

One thing that is so great about Summerville is it's location! A short 15 minute drive from this home will get you to the Air Force Base, Charleston International Airport, the Mall and Tanger Outlets. The Lowcountry's beautiful sandy beaches are located about 30 minutes away as is Downtown Charleston with it's many fine restaurants, shops and historic venues.

Location, space, community pool and so much more! Come check out this lovely home today!

Give me a call at 843-860-3901 or email at mpettis@century21properties.com to set up an appointment.

For more info and pics visit: 107essexdrive.summervillerealestateonline.com