Homebuying Process

Helpful guidance for your homebuying journey.
1. Prepare Your Budget
What makes a happy home? Family, love, special moments ... and affordability! Before focusing on specific houses, figure out how much of a mortgage payment you can carry without stretching your budget too thin.
 
  • Know your debt-to-income ratio. This number carries a lot of significance because it indicates your financial health and whether you can add a mortgage payment to your current obligations. To calculate this number, add up your monthly debt payments and divide this total by your gross monthly income. The lower your ratio, the more secure your finances.
  • Understand homebuying costs beyond the list price. The amount of your down payment greatly affects your monthly mortgage payments. Closing costs, taxes, and insurance also make an impact. Knowing what costs you can pay at closing and what costs roll into your mortgage give you a better sense of how much home you can afford.
What makes a happy home? Family, love, special moments ... and affordability! Before focusing on specific houses, figure out how much of a mortgage payment you can carry without stretching your budget too thin.
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Calculate your monthly mortgage payment.
Use our home affordability and rent vs. own calculators to estimate your monthly payments.
2. Know Your Credit Score
Along with your debt-to-income ratio, your credit score plays a vital role in securing a mortgage. The higher this number, the lower the interest rate you may receive and the more confidence lenders will have when providing you a home loan. A higher credit score shows you are a reliable and responsible borrower.

If you are already a South Carolina Federal member, you can access your credit score and report for free within Online or Mobile Banking*. When you analyze your report, look for any suspicious activity or disputes you need to resolve. These elements could be signs of fraud or mistakes by companies causing your credit score to drop.
Along with your debt-to-income ratio, your credit score plays a vital role in securing a mortgage. The higher this number, the lower the interest rate you may receive and the more confidence lenders will have when providing you a home loan. A higher credit score shows you are a reliable and responsible borrower.
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3. Get Pre-Qualified
There are two roads to travel.

Pre-qualifying through South Carolina Federal means we provide an estimate of how much you can potentially borrow and afford, based on information such as your income and expected down payment.

Pre-approval is more detailed. Taking this step verifies your financial information and allows us to provide a more accurate number when it comes to your mortgage, giving sellers confidence that you are a serious buyer. For a pre-approval, you will complete a loan application and provide documentation including pay stubs, tax filings, bank statements, and other required information.
There are two roads to travel.

Pre-qualifying through South Carolina Federal means we provide an estimate of how much you can potentially borrow and afford, based on information such as your income and expected down payment.
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Apply online to get pre-qualified or give us a call and we’ll help you get started.
Apply Online (843) 569-5154
4. Find Your Home
You probably skipped ahead a bit and started this step much earlier. We understand. This is an exciting time! With your financial first steps in order, you can officially begin house-hunting.

No doubt you understand how to search for a home, but so many options can become a lot to manage. You may find it helpful to list all the features you want in a home, which may include school districts, location, or number of bedrooms - anything you find important. As you work through this exercise, you will likely realize there are things you want and things you need. By creating a specific list and prioritizing, you can focus your search so your real estate agent can help you find the right matches.
You probably skipped ahead a bit and started this step much earlier. We understand. This is an exciting time! With your financial first steps in order, you can officially begin house-hunting.
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5 . Make an Offer
You have fallen in love with a house, and you can envision a new life unfolding there. At this step in the process, you will encounter the give-and-take of negotiations.

Your real estate agent will make a written offer on your behalf to the seller, accompanied by a pre-determined amount of money to show your offer is "in earnest." This is a serious part of the journey, and advice from your agent or attorney will be invaluable.

It is wise to make your offer contingent on a house inspection, meaning your offer is valid only after a certified home inspector examines the home. You will hire a certified home inspector to take a critical look at every element of the home, including the foundation, plumbing, electrical, heating and cooling systems, roof, and anything else you identify.
You have fallen in love with a house, and you can envision a new life unfolding there. At this step in the process, you will encounter the give-and-take of negotiations.

Your real estate agent will make a written offer on your behalf to the seller, accompanied by a pre-determined amount of money to show your offer is "in earnest." This is a serious part of the journey, and advice from your agent or attorney will be invaluable.
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6. Apply for Your South Carolina Federal Mortgage
Once your offer has been accepted, now is the time to officially apply for your home loan. We make this part as easy as possible. You will lock in your interest rate and we will order an appraisal on the home. As you are completing your application, you will need to provide the following information:
  • Your current residence address, or addresses, for the past two years.
  • Social Security numbers for all borrowers.
  • Your employment history for the past two years. You'll need your employer's name, address, and phone number.
  • Income information for all borrowers. You will be asked to include salary, overtime, bonuses, commissions, interest/dividend, retirement income, and any other regular source(s) of income.
  • The price of the home you are buying, and how much you would like to borrow toward the purchase.
  • The address of the property you are planning to purchase.
  • Bank and brokerage account information, including the institution name and current balances.
  • Information about any real estate that you own, including address, current market value, the amount you owe, the rental income you receive (if any), and the amount of your monthly payment.
  • Information about your current debts, including the name of the creditor, the account number, the current balance owed, and the amount of your monthly payment.
Once your offer has been accepted, now is the time to officially apply for your home loan. We make this part as easy as possible. You will lock in your interest rate and we will order an appraisal on the home. As you are completing your application, you will need to provide the following information:
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Why choose South Carolina Federal Credit Union?
We offer competitive rates, personalized service, and we are local. 
Apply Online (843) 569-5154
7. Prepare for Closing and Move-in
Once your mortgage is approved, you will receive a closing disclosure that explains your loan's terms, projected monthly payment, and how much you will pay in fees and closing costs.

On the day of closing, you will meet with a representative from the escrow company who is handling your loan. While it may take an hour or two to sign all the paperwork, this is also the time you will need to bring the funds to cover your closing costs, which typically are 3-5% of the sales price.

Once the title is recorded, you own your new home. Celebrate the moment you take those keys and start writing a new life chapter. Congratulations!
Once your mortgage is approved, you will receive a closing disclosure that explains your loan's terms, projected monthly payment, and how much you will pay in fees and closing costs.

On the day of closing, you will meet with a representative from the escrow company who is handling your loan. 
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Frequently asked questions
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Yes, you must be a South Carolina Federal Credit Union member to close on a mortgage. Learn more about the benefits of becoming a member. 

You will need to complete a loan application online and provide various documentation including pay stubs, tax documents, bank statements, etc. If you are pre-approved, you will receive a letter that serves as written verification from a lender that you qualify for a specific mortgage amount. 
Applying for a home loan may have a minor effect on your credit score, lowering it by just a few points. However, checking your credit is a necessary step for getting a mortgage. It allows us to show you actual mortgage options and interest rates.
Once your offer is accepted, it is time to apply for a mortgage. But first, you will need to provide some information, including:
•    Your current residence address, or addresses, for the past two years.
•    Social Security numbers for all borrowers.
•    Your employment history for the past two years. You'll need your employer's name, address, and phone number.
•    Income information for all borrowers. You will be asked to include salary, overtime, bonuses, commissions,  interest/dividend, retirement income, and any other regular source(s) of income.
•    The price of the home you are buying, and how much you would like to borrow toward the purchase.
•    The address of the property you are planning to purchase.
•    Bank and brokerage account information, including the institution name and current balances.
•    Information about any real estate that you own, including address, current market value, the amount you      owe, the rental income you receive (if any), and the amount of your monthly payment.
•    Information about your current debts, including the name of the creditor, the account number, the current    balance owed, and the amount of your monthly payment.
It typically takes 30 days to close on your mortgage once you’ve submitted all required paperwork and documents. Careful organization and clear communication between buyer, seller, and lender will ensure a seamless closing. However, closing times vary based on many factors, so check with your mortgage loan officer early in the process to better understand when you can expect to close.
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All of our Digital Banking products require an Online Banking login, and in some cases, enrollment into Bill Pay. Terms and conditions are available through Online Banking and must be agreed to before use. Mobile Banking products also require a data plan with a wireless provider. South Carolina Federal Credit Union provides Mobile Banking as a free service. Consult your provider for any fees associated with your mobile web service, such as message and data rates.
Mortgages and Mortgage Pre-Approvals subject to credit approval.