How to Buy a House in South Carolina: A Homebuyer’s Guide
Updated: November 2, 2023
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The value of a home in South Carolina rose by around 23% last year to over $299K on average. However, this cost is significantly lower than the average U.S. home, at $365K.
Although cost plays a primary role in home purchases, you should consider other factors like mortgage terms. South Carolina residents have average monthly mortgage payments of $1,102, $57 less than the national average.
Understanding the process of purchasing a home can benefit you in the long run. MoneyGeek's homebuyers guide highlights the fundamentals for South Carolinians like you — from applying to closing the deal and staying out of serious debt.
Choose an Ideal Location
Location is a critical consideration for homebuyers. The price of your home and mortgage greatly depends on where you decide to live. Factors to consider when choosing the ideal location include the cost of living, accessibility to amenities, the neighborhood culture and recreational spaces.
Calculate Mortgage Rates
Several factors significantly influence your mortgage cost: the lender, your credit score, your income, interest rates, loan type, terms and size of the loan. You’ll need to shop around and evaluate these factors to obtain the best mortgage rate.
Prepare Down Payment Requirements
Lenders typically require that borrowers make a down payment. The down payment amount will affect your APR. Typically the higher the down payments, the lower the APR and subsequent monthly payments.
Get Pre-Approved for a Mortgage
Obtaining a mortgage pre-approval is the next step after selecting a lender in South Carolina.
Pre-approval differs from pre-qualification. Pre-qualification does not involve a hard credit inquiry, but a pre-approval often does.
Conduct a Home Inspection
A home inspection is an essential step in the home shopping process. An expert third-party home inspection gives buyers information about the home's present state and whether repairs are required. The buyer typically pays for this service.
Close Your Mortgage Loan
When you close your mortgage loan in South Carolina, you will pay closing costs. These may include the fees for your credit report, inspection, document preparation, appraisal and legal services.
South Carolina Homebuying Details
Homebuyers in South Carolina should research neighborhoods, mortgage options and lenders that suit their goals. Your real estate agent can guide you through any additional state-specific steps.
Moreover, you can apply for homeowner assistance programs in South Carolina that can assist you in purchasing a new house.
South Carolina's home prices have been rising as more people move there in search of its renowned seashores, storied cities and reasonably low cost of living.
The SC Housing Forgivable Down Payment Assistance program offers $6,000 that may be applied to closing fees or a down payment. You must satisfy all SC Housing mortgage eligibility standards, including those pertaining to household income restrictions and home purchase price minimums.
A 30-year mortgage with a fixed interest rate of 3.5 percent and up to $10,000 in forgiven down payment assistance was available via the SC Housing Palmetto Heroes Program. However, it was closed in 2022 due to overwhelming demand.
Frequently Asked Questions About Buying a Home in South Carolina
Your homebuying journey in South Carolina may be bumpy if you still have unanswered questions. Here, MoneyGeek provides answers to questions about buying a home in South Carolina.
Buying a home is a significant life event. You need to ask yourself these questions:
- Where do you want to live?
- How much does it cost to buy a house in South Carolina and what are your preferences when selecting a home?
Buying a house in South Carolina is not for everyone. Only proceed when you know you can commit to a significant financial investment.
South Carolina homes average $299K, less than the national home price average of $365K. Prices in the state are expected to increase as demand continues to be strong, so now is a good time to purchase a home in South Carolina.
You can anticipate putting down around $50,000 to buy a house in South Carolina, where the average home costs $299K. If a 20% downpayment is too high for you, you can explore other options.
South Carolina's average effective property tax rate is just 0.55%, far lower than the 1.07% national average.
Parker and Conway are the cheapest places to buy a house in South Carolina.
sources
- SmartAsset. "South Carolina Property Tax Calculator." Accessed October 23, 2022.
- South Carolina State Housing Finance and Development Authority. "Homebuyer Program." Accessed October 23, 2022.
- South Carolina State Housing Finance and Development Authority. "Income/Home Price Limits." Accessed November 23, 2022.
- South Carolina State Housing Finance and Development Authority. "Palmetto Home Advantage." Accessed October 23, 2022.
- UpNest. "7 Cheapest Places to Live in South Carolina." Accessed October 23, 2022.
- Zillow. "South Carolina Home Values." Accessed October 20, 2022.