Buying a new home is an exhilarating experience. You get to shop around to find the perfect home for your family, and you get to begin making unforgettable memories in your new residence. However, before the home can be yours, you will need a home loan. Mortgages cam be scary and frightening. There seems to be so much that goes into getting a loan. Therefore, you need to be familiar with the process. Located on the east coast, South Carolina is a state that offers residents gorgeous weather, a relaxed atmosphere, and Southern hospitality. The cost of living is quite a bit lower than the national average, and the education system is one of the best in the country. The beaches are beautiful, and the food is delicious. It is an excellent place to live. Many people throughout the state will be getting a mortgage; therefore, you will need to know what to look for in a loan.
South Carolina Mortgage Rates
https://www.zillow.com/mortgage-rates/sc/#filters=339944&request=ZR-GYHNPDMK states that the current rate on a 30-year fixed loan in South Carolina stands at 3.97%. A 20-year fixed mortgage is 3.75%, and a 15-year fixed mortgage is 3.17%. The rates for a fixed mortgage has decreased recently; however, the rates for an adjustable rate mortgage has increased slightly. For a 7/1 ARM, the rate is 3.43%, and the rate for a 5/1 ARM is 3.17%. The rate for a 3/1 ARM is 3.43%
South Carolina Mortgage Laws
In South Carolina, mortgage lenders are required to be licensed to prevent lenders from taking advantage of consumers. Lenders cannot discriminate against you for any reason. They cannot give you higher interest rates because of your race, color, gender, religion, or handicap. Lenders are not permitted to mislead customers; therefore, they must provide you with a Truth in Lending disclosure. This statement should provide you with the annual percentage rate, finance charges, amount financed, total number of payments, and total sales price of the loan. In addition, lenders must give you a Good Faith Estimate. This document must provide you with the exact closing cost of the loan.
Types of Mortgages in South Carolina
It is important that you know the options available to you before you apply for a loan. The choices you need to consider include:
- Fixed rate mortgage: With this loan, your rate will stay the same throughout the life of the loan. Most lenders offer 10, 15, 20, or 30 year terms. This is a good option if you plan to stay in your home for a long time and if you get a good interest rate.
- Adjustable rate mortgage: If you are planning to only live in your home for a few years or you get a high interest rate, this might be what you need. After an introductory period, your rate will increase or decrease depending on the market. Make sure you can afford the increase or you could lose your home if you default on your payments.
- FHA loan: This mortgage offers more lenient credit requirements, so it is a good choice for first time home buyers. You could only have to make a 3.5% down payment on the loan.
- VA loan: The VA offers 100% funding for this loan, but it is only for veterans and current military personnel.
- USDA loan: This loan is available to people who do not make as much money and cannot qualify for another loan.
- Conventional loan: This mortgage is not backed by the federal government.
Applying for a Mortgage in South Carolina
One of the most important aspects of a mortgage is finding a lender that you can trust. You should search around and compare lenders. Make sure you find a lender who will offer you the lowest rate available. You also want a lender who provides excellent customer service and is available to answer any questions that you might have. You can then apply for a loan and submit the requested documentation to the lender. You will need to have your home inspected and appraised. After you are approved for the loan, you can set up a time and place to close on the loan.