If you have recently placed an offer on a house, you may be anxious to know what to expect. As of 2023, first-time homebuyers made up 32% of all homebuyers. A large percentage of first-time homebuyers are often told very little about the closing process.
In this article, Blackacre Law LLC provides a checklist of what you need to know when closing on a home in South Carolina.
A Home Inspection Will Need to Be Completed
Most lenders require that a home inspection be completed. Typically, this is performed within 7-10 days of the seller accepting the buyer’s offer. The home inspection will examine the plumbing, electrical, and heating systems, as well as inspect the home’s structure and safety. As the buyer, you will be responsible for covering the cost of the inspection, which is generally between $300-$500.
You Will Have to Pay for Title Insurance
If you are taking out a mortgage, your lender will require that you get a lender’s title policy. This protects the lender if a title issue comes up. It is also wise for you to get an owner’s policy to protect your own interests if a title defect arises after you purchase the home. Title insurance premiums can range anywhere between 0.5% to 1% of the purchase price, with different factors affecting the cost. Most often, title insurance will be factored into your closing costs.
You May Need to Cover the Cost of Tax Stamps
Tax stamps are fees paid in connection with a property transfer, payable to the Register of Deeds. The seller typically covers this cost, though in some cases, the buyer may pay a portion. In South Carolina, the current tax stamp rate is $3.70 per $1,000 of the purchase price. The South Carolina Register of Deeds has a tax stamps calculator located on their website to help you calculate the cost for your soon-to-be home.
Financing Could Delay Your Closing Date
Generally, it takes roughly 30-45 days from when the purchase offer is accepted to get the keys to your new home. This timeline could be pushed out if there is a delay with underwriting or if your debt-to-income ratio changes dramatically. If your debt payments are a large percentage of your income, lenders are disinclined to approve a mortgage. The golden rule for any homebuyer? Avoid any major purchases until after you have signed your closing papers.
You Should Set Aside Extra for Closing Costs
In many transactions, the seller may pay a share of the buyer’s closing costs to help out a first-time homebuyer. Although the seller is responsible for most closing costs, a buyer could end up paying anywhere from 2-5% of the total purchase price in closing costs. This will depend upon which share of your costs the seller is willing to take on.
Effective representation is key in any real estate transaction. If you are a first-time buyer, our Greenville, SC, real estate attorney will represent you to ensure that you do not overpay for closing costs.
Reach Out to Our Greenville Real Estate Attorney Today
Purchasing your dream home should be a time of joy, not filled with anxiety over the complexities of the closing process. If you are in the process of purchasing a home, Attorney H. Stewart James is here to assist you. To learn more, contact us online or by phone to schedule your initial consultation. First-time clients are offered a reduced rate for all initial consultations.