Homebuying Articles

Equip yourself with the information you need to know throughout the homebuying process so you can make a house your home.

Learn About Buying A Home

From fixed interest rates to mortgage insurance to homeownership association fees, there are lots of variables in homebuying. Use these articles to break down each topic so you can confidently embark on your homebuying journey.

All Homeownership Purchasing A Home Investment Properties Maintenance and Renovation Refinancing Your Mortgage

Five Reasons to Refinance Your Mortgage Banking professionals suggest mortgage refinancing when homeowners want to replace their current loan with a new one, often to reduce monthly payments or lower interest rates. With a mortgage refinance, your current loan is paid off and replaced with a new one. This can be a great option for borrowers with good credit who want to alter their current loan. But refinancing could be risky for borrowers with less than perfect credit. Check out our list of reasons to refinance and see if you could benefit from refinancing your current mortgage. 5 Reasons to Refinance Lower interest rates—If mortgage rates have dropped since you first took out your loan, you could secure a lower rate by refinancing. Lower monthly payment—Lowering your interest rate could have a dramatic impact on your monthly payment. If you intend on staying in your home for several years, lowering your payment could help you save. Shorten loan term—When interest rates fall, homeowners can often significantly shorten their loan term by refinancing without much increase in their monthly payment. Convert between adjustable-rate and fixed-rate—With adjustable-rate mortgages, your initial interest rate may be low and and then increase over a period of time. Refinancing to a fixed-rate mortgage could allow you to avoid an increase in rate. Cash out to make a large purchase—If you have equity in your home, refinancing enables you to cash out on that equity without taking out a loan, such as a home equity loan. A lot of people will use this cash to pay for home repairs, college tuition, or make a large purchase, such as a car. These types of refinances are typically easy to complete and may even be tax deductible. If you still aren’t sure if a mortgage refinance is right for you, visit our online refinance calculator to see how much you could save, or visit your local First Bank branch to speak with a mortgage specialist. Loans subject to credit approval. ——— Sources: https://www.investopedia.com/mortgage/refinance/when-and-when-not-to-refinance-mortgage/ 2 min read

Current 30 Year Mortgage Rates – South Carolina If you’re looking for current mortgage rates in SC, it’s a great time to buy! In a recent survey conducted by GoBankingRates, the state ranked 27th in the nation for the lowest average home mortgage. The study combined 30-year fixed, 15-year fixed, and five-year ARMs (adjustable rate mortgages) to rank each state by the average cost of a mortgage. Current Mortgage Rates in SC First Bank offers conventional home loans, including a 30-year fixed-rate mortgage. This types of mortgages are extremely popular among home buyers because the longer loan term allows for smaller, predictable payments. With First Bank’s 30-year conventional loan, your interest rate and monthly principal will never change, allowing you to budget more easily. If you plan to live in your house for a long time, a 30-year fixed-rate loan could be a good option for you and your family. What Affects Current Mortgage Rates in SC? 30-year mortgage interest rates vary depending on a variety of things, such as: Economic factors. Lending is riskier in some states than others due to unemployment rates, default and foreclosure rates and differing property values. State laws. States that allow recourse typically have lower mortgage rates. Recourse is the recovery of additional money from borrowers who default and the foreclosure sale doesn’t earn enough to pay off the mortgage. Size of competition. More lenders competing for your business means lower costs. Types of preferred loans. States with more military bases will likely see more VA loans, states with more rural housing might have more USDA loans, etc. Market conditions. An increase or decrease in home building and sales regionally or nationally can drive interest rates up or down. Government. Government policies like the Federal Reserve can dictate the fluctuation of interest rates. As you can see, there are a number of reasons why a 30-year mortgage rate in South Carolina can vary. The best way to find out what your interest rate will be is by speaking with a First Bank mortgage specialist. If you are ready to apply for a 30-year mortgage, you can find out your interest rate by starting an online application with First Bank. Loans subject to credit approval. ———- Source: Housing Wire: https://www.housingwire.com/articles/48165-this-is-how-mortgage-rates-vary-by-state/ 2 min read

How to Get a Custom Homeowners Insurance Quote Without a Calculator Homeowners insurance may not be the most exciting part of buying a home, but it’s one of the most important. Buying a home is probably your biggest investment, so use every tool to make sure that you’re covered. Homeowners insurance calculators are powerful tools toward that end, but they aren’t always tailored to you. Contact Bankers Insurance for a free quote, and one of our experts will contact you within 48 hours to discuss what best fulfills your homeowners insurance needs. Customized Homeowners Insurance From Your Community Bank As a homeowner, it’s important to know you’re protected from unexpected disasters and your policy is reliable and cost-effective. That’s why Bankers Insurance provides insurance programs that utilize a custom design to fit your specific needs. As a representative of several leading insurance carriers, we’re able to provide you with quality products, competitive rates, and consistently excellent service. Our experts work with you to find the best home insurance solution for you at an affordable, competitive rate. What You Need to Know About Homeowners Insurance Basic homeowners insurance only covers damage caused by “fire, theft and certain natural disasters,” meaning you may have to purchase additional coverage depending on where you live and what materials were used to construct your house. For example, you may want to consider a home warranty to cover repairs and replacements that home insurance won’t cover. According to Forbes, there are 4 Costly Homeowner’s Insurance Mistakes to Avoid: Under-insuring your house. Without enough insurance to cover the cost of rebuilding your house if destroyed, you may be left in a financial crisis following a disaster. You should calculate the cost of rebuilding your house and make sure your protection matches that cost. Additionally, you might consider coverage for your valuables. Assuming you have flood insurance. Depending on where you live, flood coverage could be essential. Many homeowners are unaware that basic coverage does not include flood insurance, but for those living in coastal or other flood-prone areas, that extra coverage is critical. Thinking you have one, flat deductible. It’s common to assume that your policy has a set deductible (usually between $500-$1,000), but that’s not necessarily true. Depending on the cause of damage — hurricane, windstorm, earthquake, and 3 min read

5 Ways to Get the Lowest Mortgage Rates If you are looking for some of the lowest mortgage rates in North Carolina or South Carolina, First Bank might be able to help. Choosing a mortgage option can be one of the most confusing aspects of the home purchasing process. Especially when you are unsure of how to secure the lowest mortgage rates or best long-term plan to manage your home’s equity. First Bank offers a range of home loan options, from conventional mortgages to construction loans. We also offer guidance and expertise on all things related to home loans, such as our tips and tricks for keeping mortgage rates low. Tips for Keeping Mortgage Rates Low Securing a low mortgage rate isn’t a matter of luck. You can follow these five helpful tips to ensure you get the lowest rate when applying for a mortgage: Improve your credit score: The best tool in a mortgage shopper’s arsenal is their credit score. Lenders often offer lower mortgage rates to borrowers with excellent credit scores. Be honest on your application: Filling out your application accurately and honestly can prevent any delays in the application process. There’s also the added bonus of building trust with your lender. Lower your debt: Your debt to income ratio (DTI) is an important factor when applying for a loan. If your debt is too high compared to your income, you could be subject to higher mortgage rates. Make a large down payment: The more you pay upfront, the better you will looks to lenders. Making a larger down payment also means you owe less over the life of the loan, which could help you secure a lower rate. Choose the right loan term for you: If you have a lot of debt, a longer-term loan with lower payments might be a good option. If you can handle larger payments and want to keep interest low, a shorter-term loan could be ideal. First Bank provides you with some of the lowest mortgage rates available on a variety of home loan options, such as: Conventional Loans Government Loans (FHA, VA, and more) Jumbo Loans One-Time-Close Construction-to-Permanent Loans Dream It, Own It Use our mortgage calculators, visit a First Bank location near you to speak with one of 3 min read

Get a Lower Interest Rate By Refinancing Your Mortgage Today With mortgage rates remaining low, whether to refinance or not has been a common question asked among our customers. Read on to learn more about the “the what” and “why” part of refinancing if you’re debating whether or not to refinance your current loans or if you just want to know what refinancing is all about. What You Should Know About Refinancing Your Mortgage Refinancing your mortgage* means you pay off your current loan and replace it with a new one. Reasons to Refinance Reduce your current interest rate expense. For example, switching to a 30-year mortgage to lower your monthly payments. Get out of, or into, an adjustable-rate mortgage (ARM). ARMs have lower interest rates than fixed-rate mortgages to begin with, but it later leaves you open to periodic adjustments that could result in large interest rate increases. Get a better rate as the market shifts, allowing you to save money over the long term with your new loan. Contact a First Bank Specialist Today Still wondering if refinancing is right for you? Use our calculator to help you decide if it makes sense for your situation. To learn more, contact one of our loan officers to set-up a consultation at a First Bank branch near you. ——— *Loans subject to credit approval. First Bank is an Equal Housing Lender Sources: Locate a Loan Officer | First Bank Refinance Calculator | First Bank Investopedia 2 min read

Construction Loans 101: Adjustable Rates If you’re considering building a home, one of the more pressing concerns is the rate you’ll receive for a construction loan. For residents of the Carolinas, First Bank* has convenient locations to stop by for a discussion about your construction loan options. With our One-Time Close Construction-to-Permanent loan, you have the potential to build the house of your dreams. Construction-to-Permanent Loan First Bank offers a One-Time Close Construction-to-Permanent Loan.** With this loan, the cost of your lot, construction, and permanent mortgage is covered in a single loan. Our construction loan rates vary, but you can choose from a variety of fixed or adjustable rate loan options for your permanent financing. Our One-Time Close Construction-to-Permanent Loan consists of two phases: the construction phase and the permanent phase. During the construction phase, you will only make interest payments. When the construction is complete, the permanent phase modifies the loan into a permanent loan. During the permanent phase, the construction loan will be converted to a permanent loan. Other benefits of First Bank’s One-Time Close Construction-to-Permanent Loan include: No prepayment penalties A single set of closing costs Flexible use to finance a primary residence Ability to purchase your lot Benefits of Building a Home If you are thinking about building a home, consider these benefits: Customization—Building a home gives you the opportunity to make everything look exactly how you want it. Low Maintenance Costs—Because homes are built with all new materials and typically have all new appliances, you will spend less on repairs and updates. Efficiency—As technology improves, new homes are becoming increasingly more energy efficient. When you build a new home, you have the opportunity to include as many green materials as you want. Value—New homes have a longer life expectancy so they typically appraise higher than older homes. Ready to get started? You can begin your mortgage application or visit a First Bank branch to speak with a mortgage loan expert today. *Equal Housing Lender. NMLS #474504. **Loans subject to credit approval. ——— Source: http://www.investopedia.com/articles/personal-finance/062614/should-you-buy-or-build-home.asp 2 min read

4 Common Costs Of Renovating An Older Home You’re on the market for your first home, and a great deal comes across on an older home. You love the potential it has, but then a question comes to mind: how much will it cost to renovate this house? 5 min read

The Right Age to Buy a House Although buying a house for the first time is a big decision, it turns out there is no perfect age to do it. When it comes to taking the plunge, it’s more about individual readiness. 3 min read

Paper house in forground with hands on laptop in background

A New Mortgage Loan Process is Here. Are You Ready? Michael Jablonski, EVP, Director of Mortgage Lending at First Bank, explains the Consumer Financial Protection Bureau’s “Know Before You Owe” regulation that launched in October 2015. 4 min read

How to Avoid Paying Too Much for a House Imagine you just crossed the threshold of your dream home. There’s only one problem: price. It seems a bit on the high side, even for a home this perfect—but is it? 4 min read

Front of old house that is a fixer upper

Money Pit or DIY Heaven? Whether you flip houses or see your potential dream home in something that’s currently a bit rundown, it can be hard to tell if the property you’re planning to renovate will turn out to be a fortunate find or a total flop. 4 min read

Simplifying the Home Buying Process The home buying process can be daunting, especially for first-timers. When should I start looking? How much do I need for a downpayment? Fear not! We’ve got you covered. 1 min read

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