PURCHASING A HOME IN

SOUTH CAROLINA

Purchasing a home can be an overwhelming experience for anyone, especially first-time home buyers. Keep in mind that each State has different laws. This article lists the procedures to purchasing property in South Carolina.

Different States Have Different Laws

Each State has different laws, requirements and procedures when it comes to purchasing property.   Contact the County Clerk's office in the State/County you are purchasing your home in to find out what that State's requirements.

If you will be using a Realtor, the Realtor will draw up the sales contract and should be contacting everyone involved to make sure everything is running smoothly and in a timely fashion. The Realtor will charge a fee.

Unless you are paying cash, you will need to choose a lender to take out a Mortgage. Among other things, the lender should give you an itemized list of the fees that they charge and the approximate amount of your monthly mortgage payment. You can call different lenders directly or find a mortgage broker to find the best deal for you. The broker will charge a fee at closing, so find out what that fee is before closing.

Depending on the laws of your state, you may need to have an attorney represent you at the closing. This is the case in South Carolina. If you don't have an attorney already, your Realtor can give you some suggestions. Or you can look on the Internet or in the yellow pages, or ask your neighbor who they used. If you are new to the area, contact at least three attorneys and find out what their fees will be.

Once you choose one, send the Attorney a copy of your Sales Contract and any other documents they may ask you for. The attorney will order a title search from the County Court House to find out if the property has any liens or taxes owed on it and to make sure the seller is indeed the real owner and has the right to sell. Allow approximately 1 to 2 weeks for your attorney to get the title search back.

Get Everyone On The Same Page

If you haven't already, let the lender know who your closing attorney is. The lender will then contact your attorney requesting certain documents that the attorney will prepare and send back to the lender.

Once the attorney gets a clear title back, you should have the new home inspected by a professional Home Inspector. Your Realtor should be able to suggest a good Inspector. Who pays for this should have already been negotiated in your Sales Contract. Send a copy of the Inspector's Report and bill to your attorney.

If the home is not brand new, its a good idea to have a Termite/Pest Inspection done. Your attorney or Realtor can suggest some local Pest Inspectors. This fee should have also been negotiated in the Sales Contract, as to whether the Buyer or Seller will pay for this. Send a copy of the Inspection Report and bill to the attorney.

You will also need to get Home Insurance. Again, your Realtor will know Insurance Companies in the area that you can contact. You will be responsible for this fee, so try to find an Insurance Company that will wait until after closing for payment. Again make sure the attorney has a copy of the Insurance documents and the Invoice.

If you purchase a condo, the Insurance will be included in your Homeowners' Association Assessment Dues (HOA Dues). Ask the Homeowners' Association what their Initial and monthly HOA fees are before your closing so that you will not be surprised. The attorney will request a Certificate of Assessment from the HOA.

The lender may require you to have a survey of the property drawn up. Your attorney or Realtor can order this for you.

Your Realtor may suggest that you purchase a Home Warranty to insure the appliances in your new home, (dishwasher, stove, refrigerator, AC, etc.) For the price of $350 - $500, it is a good idea to purchase this. The Realtor will send the Home Warranty information to the Attorney.

Your Closing Day

A day or two before your closing date, your Lender will send the closing attorney the "loan package". The attorney will then be able to calculate your total closing costs on a document called a HUD Settlement Statement. The Settlement Statement or HUD, lists in detail what is being charged and also any credits you may be receiving. You will pay the bottom line (Line 303).

The attorney will also prepare the Title Insurance. This is Insurance that covers the title of the property you are purchasing and other things such as regulations of the land, etc. If you are getting a Mortgage you are required to have a Loan Policy. For about $75.00 more you can get an Owner's Policy. It is optional to get an Owner's Policy, but if you plan to live in the new house, it may prove to be beneficial. The Owner's policy is good for as long as you own the property. If you are planning to flip the house, you may not want to purchase an Owner's policy. Your attorney can help you decide what would be best for your circumstances. Later should you decide to refinance, the lender may require you to get a new loan policy to cover the new loan. The closing Attorney will list the cost of the Policies on the Settlement Statement. The price of the Title Policies depends on the amount of the Loan and the Sales Price of the new house.

Once the Settlement Statement is prepared, the closing attorney will be able to tell you how much money you will need bring to the closing.

Okay, so it's the day of the closing. You are scheduled to meet at your attorney's office at 11 am. Be prepared to sign a lot of documents! The only thing that you should have to bring with you is your ID, your Cashier's Check and your smile.

After the signed Deed and Mortgage(s) are recorded at the County Court House, the attorney's office will send payments off to the Seller, the Lender, the Realtor, the Broker, the Inspector, the Insurance Company, the HOA, etc. Make sure your attorney's office sends you copies of the recorded documents for you to keep in a safe place.

Congratulations, you are a New Home Owner!

Author: Valerie P Smith