Lowcountry Living & Real Estate

LLRE JanFeb 2019

A guide to Hilton Head Island and Bluffton area real estate, rentals and lifestyle

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Buying a home can be both exciting and scary. You know your budget, and you know what type of home you want, but whats next? Buying a home involves mortgages, contracts, and a lot of paperwork that can be confusing when you are not familiar with the terminology used. e Multiple Listing Service of Hilton Head Island (HHIMLS) strives to help both buyers and sellers understand all the information placed in front of them to make the best decision possible. Here is a list of 10 words all homebuyers should be familiar with before purchasing a home: 1. An adjustable-rate mortgage (ARM) is a loan that changes periodically throughout the life of the loan. Generally, the initial interest rate for a set period is lower than a fi xed-rate mortgage. Once the initial time period ends, the interest rate and your monthly payments can either be lower or higher. 2. A home appraisal is a home estimate based on its location, structural condition, amenities, and similar local properties. Appraisals determine the market value of the home and are usually paid for by the buyer and are needed for loan purposes. 3. A home assessment is conducted every fi ve years and is used to determine a property's tax value. Once the assessor determines a home's worth, the assessor takes the value of the house and multiplies it by the assessment rate percentage that the tax jurisdiction sets to determine how much property taxes will be. 4. Closing costs for a home typically are two to fi ve percent of the purchase price. Closing costs can include lender fees, appraisal fees, title searches, title insurance, taxes, credit report charges, and homeowner fees. 5. Contingencies are clauses in purchase agreement contracts that specify conditions for the buyer and seller to agree upon for the sale to happen. Contingencies are important to buyers because they help protect themselves if they are unable to complete the purchase. ere are various types of contingencies: Attorney Review Contingency, Appraisal Contingency, etc. 6. A conventional loan is a loan that is not formally backed or insured by any government agency such as the Federal Housing Administration (FHA), Department of Veterans Aff airs (VA) or U.S. Department of Agriculture (USDA). 7. An FHA loan is a mortgage off ered through the Federal Housing Administration that has less strict rules than conventional loans regarding credit score, down payment and loan term. is loan is typically good for fi rst-time homebuyers or low-to-moderate income individuals desiring a low down payment. 8. A fi xed-rate loan is a mortgage where the interest rate does not fl uctuate throughout the loan term. e rate may be initially higher than an ARM loan, but borrowers never have to worry about the rate increasing once it is set. 9. Homeowners Association (HOA) fees, if applicable, are due monthly or annually and are in place to uphold and enforce the community's covenants. HOAs enrich property value by keeping the overall community looking nice and maintaining the common areas. 10. Private mortgage insurance (PMI) is mortgage insurance required if you put less than 20 percent down on the home purchase with a conventional loan. Lenders require this insurance to protect themselves in case you end up in foreclosure. No matter which loan you decide on, or whether you decide to live in an HOA community, these terms are very important to know during the homebuying process. To learn more about the homebuying process or to fi nd a knowledgeable agent near you to help you navigate the buying and selling process, go to www.hiltonheadmls.com. (www.onlyinyourstate.com/south-carolina/sc-is-best-state-in-the-us/) gave Coolest State In America." vi es, friendly pe ople, Cole e Stevenson is the CEO of MLS of Hilton Head Island, Inc. and a CMLX3 Cer fied Council of MLS Leader. HHIMLS Serves Licensed Agents & Realtors® from the en re state of SC, as well as GA and If you're considering a move to the Hilton Head area, contact an HHIMLS agent. We have access to the latest data, inventory, and tracking trends to help you find your perfect piece of the Lowcountry. With the most advanced pla orms to make the process smooth and sim- ple, we're ready to help buy- ers and sellers. Turn to HHIMLS to make Hilton Head your home today. www.HiltonHeadMLS.com 12 Considering a move to the Hilton Head area? Our Members access the latest Real Estate data, inventory, and tracking trends to help you fi nd your perfect piece of the Lowcountry. By utilizing the most advanced tools in the industry, we make the process smooth and simple for buyers and sellers. Turn to an HHIMLS member to make South Carolina your home today. www.HiltonHeadMLS.com Colette Stevenson, CEO MLS of Hilton Head Island, Inc. and CMLX3 Certifi ed Council of MLS Leader HHIMLS serves Agents & Realtors® representing properties in SC and GA Take the confusion out of buying a home by understanding the lingo Make your buying experience easier

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