This is a scary time to buy a house here in South Carolina due to the recession. However, if you follow these tips, you will make a good buy.

Of course, we know that this is a difficult economic time, especially in the real estate market. It is scary to buy a house, especially your first house. Here are some tips on how to buy a house for the first time in these tight economic times.

  1. Make sure that it is a right decision for you to buy a house- There are many reasons not to buy a house. You do not have enough for a down payment. You are going to be moving out of the area soon. You may need to improve your credit score before you can apply for a loan that you can afford and get a good interest rate. You may need to save money to have reserves for the rainy day. Is there a chance you will lose your job? Make sure this is the right time to buy a house for you.
    2. Read more in Real Estate
    « How the Recession Has Impacted the Housing Market in Summerville-Charleston, South Carolina
    How to Add Value to Your Property »

  2. Hire a good realtor- 99% of the time, the seller will pay for the realtor fees. The realtor helps you write the contract for sale. The realtor will help you find the right house in the right area at the right price. She may even suggest an area that you have not thought about. The realtor could also help you find other persons to help you in the real estate buying process, many listed below.
  3. Find a good mortgage person- The mortgage specialist can suggest how much money to put down; she will run your credit and see how much of a loan you can apply for and will explain to you the interest rate and closing costs. It may be better to meet with the mortgage specialist first to determine what kind of house you can buy before you look for houses with the realtor.
  4. Be honest with your finances- Do not lie on a loan application, ever. You could go to prison for mortgage fraud. Do not exaggerate your budget to justify applying for a bigger loan. You need to prepare for the worst case scenario in these financial times when you are figuring out how much house to buy.
  5. Do not incur any new debt until the closing is over. Lenders will run your credit report when you first apply for the loan; they will run it again right before the closing. People have gone off and incurred new debt and ended up not getting the house loan.
  6. Get a home inspection- Whether it is a new house or old house, get a home inspection. This will determine if there are any hidden problems with the house in which you should require the seller to make repairs before you close on the house. Going back to the realtor, the contract should state that the purchase is contingent on a satisfactory home inspection.
  7. Ask questions- If you do not understand anything ask questions. This applies to the contract, your insurance or your loan documents. Ask questions.
  8. Get a good attorney- A real estate attorney is required to close a loan in South Carolina. If you are in an “attorney” state, hire one anyway. He will explain you your rights and the legal significance of the documents that you will sign.