Tips Every Homebuyer Should Know
With housing prices and mortgage interest rates at record lows, now is a good time to explore buying a home. CCNB offers a number of mortgage products to fit a borrower’s needs.
“Buying a home is most likely the single largest investment that people will make in their lifetime,” said Scott Benninga, CCNB’s SVP/Mortgage Banking Manager. “It’s important to take an honest look at your budget first to make sure you are fully prepared to buy a home and preparation is key.”
CCNB offers these tips to help you prepare for buying a home:
REVIEW YOUR FINANCES
A thorough analysis of your financial situation is central to the decision to buy. Calculate all of your monthly expenses, in addition to your potential mortgage payment, homeowner’s insurance, taxes and various fees. Factor in other obligations like car payments, credit card debt and living expenses. Budget for home maintenance costs as well. Aim to keep the mortgage payment and all other obligations below 43 percent of your monthly income, and stay within your budget when considering homes. CCNB’s mortgage lending team is happy to help guide you through the home buying process and answer any questions you might have.
KNOW YOUR CREDIT SCORE
Your credit history is an important factor when applying for a loan. The score reflects how well you manage your debt and is calculated using data from your credit report. A lower credit score will result in a higher interest rate on your loan. If your score is too low, you may not be approved for a loan. There are a number of steps you can take to improve your credit score, including paying your bills on time, only opening lines of credit you need and keeping your credit card balances below half of your available credit. There are several ways to improve your credit score, and more information can be found online at the annualcreditreport.com
ORGANIZE YOUR FINANCES BEFORE YOU GO TO THE BANK
Getting a loan requires documentation including, but not limited to: pay stubs, tax returns and financial statements that are less than 60 days old. Provide copies of additional monthly payments such as car loans, credit cards and student loans. You should also bring any additional information you think will help your banker evaluate your financial situation.
FACTOR IN CLOSING COSTS
Once you have found a home within your budget and agreed on a purchase price there will be costs associated with closing the sale. These costs can vary and will depend on the purchase price and whether a real estate attorney or title/escrow company will be involved in the transaction. By law, lenders are required to give you a written estimate of closing costs within three days of accepting your loan application. Questions about closing costs? Ask a CCNB mortgage specialist today by calling 843-839-2265.
USE AN EXPERIENCED LOCAL LENDER
When choosing your mortgage specialist, selecting a local lender for your mortgage is often a great idea. Not only are you working with a mortgage specialist who knows the area well, working with an experienced local lender could provide insight into working with local builders too. If you’re considering new construction, a local mortgage lender might know how long a particular builder’s construction project typically takes to complete and offer solutions to make sure you get the best rate possible. For example, CCNB’s extended rate lock program allows you the ability to lock in a great rate while your home is under construction. Also, working with a local bank can help expedite the closing process especially if you pre-qualify. Click here to learn more about pre-qualifying for a mortgage. CCNB provides timely decisions, and quick closings, so you’ll be in your new home faster!
WANT TO LEARN MORE? Check out our blog for more helpful information.
Coastal Carolina National Bank (CCNB) is a Myrtle Beach-based community bank serving Horry, Georgetown and Brunswick counties. CCNB, a five star rated community bank, focuses on providing personalized service and offers a full range of banking services designed to meet the specific needs of individuals and small to medium-sized businesses. CCNB is headquartered in Myrtle Beach and has additional branch locations in Garden City and North Myrtle Beach. Call us toll free at 866-418-9219 or visit myccnb.com for more information. Member FDIC, Equal Housing Lender. NMLS #405498