Best South Carolina Mortgage Lenders for 2024

Whether you're hoping to live near the beach, buy a larger home in your current neighborhood, or planning to move to the state, landing the right mortgage will make the experience more pleasurable. Here's a look at some of the best mortgage lenders available to South Carolina residents, as well as tips on how to get approved for a home loan.

You know you've found a great mortgage lender when it saves you money and provides strong customer service. If your situation in life changes and you want to make a change to your existing mortgage, you want a company you can count on to help you out. Here are some of the other traits of a strong mortgage lender:

• A lender that walks you through the loan process
• A transparent lender that helps you understand precisely what you'll pay for the loan
• A lender that responds to your calls and answers questions in a timely manner
• A lender that offers a loan with a low interest rate and minimal fees

Whether you're buying your first home or home No. 10, the process can be stressful. Taking these steps can alleviate some of the stress.

1. Order a free copy of your credit reports. You're entitled to a free copy from each of the "Big Three" credit reporting agencies -- Equifax, TransUnion, and Experian -- once each year. Order all three online through annualcreditreport.com. As soon as you receive them, go over each report carefully, looking for mistakes. If you find a mistake, dispute it with the credit reporting agency in question. Even a small mistake can lower your credit score.
2. If your credit score is low, take steps to boost it before applying for a mortgage. Taking the time to raise your credit score may seem like a waste, but can save you thousands of dollars over the life of a loan.
3. Gather all needed documents in one place. If you're organized, it's that much easier to provide a lender with the documents it needs quickly. After collecting your documents, make a list of your outstanding debts. Part of the approval process involves comparing your debts to your income to make sure you can afford the mortgage.
4. Shop mortgage lenders. You don't have to worry that shopping around for a mortgage will impact your credit score. While your credit score may be dinged a bit by a credit inquiry, applying with several different mortgage companies over a two-week period counts as a single credit check. Once you've made a few payments on time, your credit score should return to its previous level, or even higher.
5. Provide lenders with any documents requested in a timely manner. Simply put, the faster you're able to provide a mortgage company with the documents they request, the faster your loan can be processed.
6. Once you've been approved, compare offers. Look at everything, from the APR offered to lender fees. The best interest rate does not tell the entire story. It's only by comparing interest rates and lender fees that you can determine the best mortgage lender for you.

What credit score do I need for a mortgage in South Carolina?

Depending on the type of loan and the specific lender, it is possible to be approved for a mortgage in South Carolina with a credit score as low as 560 to 580. However, it's important to note that the lowest interest rates are reserved for those with the highest credit scores. So, while you may snag a loan with a low credit score, you can expect to pay a higher rate. One possible solution is to take time to build your credit score before applying.

How much is a down payment for a home in South Carolina?

The amount of down payment required depends entirely on the type of loan you choose. For example, a VA or USDA loan requires 0% down, while an FHA loan requires a minimum of 3.5% down.

With the South Carolina Homebuyer Program you can receive:

• A low, fixed interest rate
• Down payment assistance

To learn more about the Homebuyer Program, visit the South Carolina State Housing Finance and Development Authority website.

As interest rates rise, you may be tempted to buy a home quickly. However, before you head out to look at homes, run the numbers to learn how much you can afford. Once you know how much you can spend, stick with your budget. The goal is to purchase a home without overspending. There are few things more uncomfortable than being house poor.

And if you don't find anything that fits your needs and your budget, it's okay to wait. Waiting gives you more time to put money away and to choose the lender that you will one day use.

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