Advice need for future buyer.

Asked by Ron, Charleston, SC Mon Sep 3, 2012

I wanted to get some advice on buying a house in five years. I figure it's a good time to start thinking and saving up towards something. Here's my background I'm a 20 year old male have no other debt besides 2,800 on a car loan, I'm looking to buy a house in mt. Pleasent and wanted to get some advice based on my situation. I have 30k saved (was saving for a nice car but said this money is better suited for a first house) I have little bills, just cell phone, car note (6 months left), and car insurance. I was looking at homes in park west, specifically dunes west, or Hamlin Plantation. My budget would be 350,000 to buy a home it could be less depending on how much I've saved in the next 5 years. My question are what type of down payment I would need on a house in the 300,000-350,000 price range. Also should I do a 15 or 30 year loan, and how could I build more credit? I've never missed a payment on my car note or any other bill, I don't have any credit cards or any other loans.

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Maureen Cody, , Charleston, SC
Mon Feb 18, 2013

Why not buy now?
Consider purchasing a home for less than $350K and in 5 years you could sell that and turn that money into your next home.

Prices are stable now, and interest rates are still low. Who can predict what the rates will be in 5 years.

With $30,000 saved now, you could purchase a home for $150,000, put 20% down.
What you'd pay for a monthly mortgage payment will probably be less than what you are paying for rent now... and you'd get a tax right off.

If your credit needs to improve, let me know and I can connect you with a reputable Credit Repair service, that guarantees their service.

Click this link to view homes for sale in Mt Pleasant in that price range:…
(paste into your browser if it doesn't open right away)
The 4th property in the report looks interesting and is not a short sale!

Let me know if you'd like to take a look at it.

0 votes
Rebecca Kros…, Agent, Bonita Springs, FL
Thu Feb 7, 2013
Hey Ron,

Haven't heard from you in a while. Let me put you in touch with a mortgage broker that can set up a plan with you for your purchase down the road.

Shoot me a text and I'll forward you the info

Coldwell Banker
0 votes
Rebecca Kros…, Agent, Bonita Springs, FL
Fri Sep 7, 2012

I forgot to mention that I have a first time home buyer blog on my website:

that you will find helpful. A new post will be added this afternoon for *FIRST TIME HOME BUYER FRIDAY*

0 votes
Mikki Ramey, Agent, Daniel Island, SC
Thu Sep 6, 2012
Have you spoken with a mortgage broker yet? I would recommend going ahead and speaking with someone because they can help you plan for the future. Paying off your car loan will definitely help your credit score.
0 votes
Rebecca Kros…, Agent, Bonita Springs, FL
Tue Sep 4, 2012
Hey Ron,

I would most certainly get a credit card. You don't need to carry an ongoing balance, but make sure you have one that you can use for things like gas every month. Then just pay it off in full. I just had a buyer tuned down for a loan because he had no credit card and very little credit history (in terms of car loans, etc.). The down payment depends on what loan you get, and will also depend on what interest rates will look like in 5 years. I am a little older than you and just signed a contract to build because interest rates are so unbelievably low. I have a fantastic lender I can recommend. I highly suggest you contact him to make a game plan of what types of credit cards to get for what loans in the future.

Call me and I will put you in touch with him.

0 votes
Chris Havila…, Agent, Isle of Palms, SC
Mon Sep 3, 2012
Sounds like you are approaching the purchase of your first home the right way. I'd suggest you speak to a lender and lay out the same plan to them. A good lender will be able to answer these questions and also let you know the types of things the help or hurt your credit. I work with a number of good lenders that would be glad to have a prelinimary conversation with you. Just let me know.
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Marcia Wray, Agent, Mount Pleasant, SC
Mon Sep 3, 2012

First of all, let me congratulate you for saving your money and being aware of how paying your bills on time will affect your future borrowing power. There are many loan types which require different down payments. Generally, if you'd like to avoid paying Mortgage Interest on a loan, then you'll want to plan on putting at least 20% on a down payment. An FHA loan only requires 3.5% down, but generally requires Mortgage Insurance. If you are in the military, the VA could be a great option for you with the ability to get a 100% loan. There will also be closing costs associated with getting your loan and we usually estimate those to be around 3-4% of the purchase price, but these can vary widely depending on the loan and your specific situation. The lender who you choose will be able to give you a very close estimate (Good Faith Estimate) before you buy so that you'll know the amount you'll need for closing costs. Many buyers ask the seller to pay their closing costs as part of the negotiated deal. If you can qualify for a 15 year loan and afford the payments, that is a smart way to pay less interest and pay your loan off more quickly.

Hopefully, this answers your immediate questions, but feel free to give me a call or shoot me an email if you have other questions. I am an Accredited Buyer Rep in Mount Pleasant.

All the best!

Marcia Wray
Carolina One Real Estate
0 votes
Haynes Johns…, Agent, Charleston, SC
Mon Sep 3, 2012
Happy Labor Day to you! In response to your questions I would like to speak with you more in depth than a written reponse online to ensure understanding and accuracy. I am a licensed Realtor and Mortgage Banker and have 10 years of experience in the intricancies of the real estate market. Just call me tomorrow morning to discuss and we can map out a plan for your future so you are in the best possible shape when the time comes to buy. It is really too much information to type in this format, but I'm glad to help and look forward to speaking to you.

Thank you,

Haynes Johnson
Sr. Associate
Land South of Charleston, Inc.
180 East Bay Street, 3rd Floor
Charleston, SC 29401
0 votes
Ron Chamberl…, Agent, Johns Island, SC
Mon Sep 3, 2012
Please email me so I can respond in detail, and so there can be follow up on both sides. I have a plan that you can follow if you so choose. Or call if you wish.

Ron Chamberlain
0 votes
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