Home Mortgages

Buying a Home

Mortgages are secured loans used to buy homes or real estate. Buying a home is a major investment, so it's crucial to understand the terms and process. 

Budgeting for a Home

Aim to spend no more than 30% of your gross income on housing. Consider other financial obligations, like student loans and car payments. 

Steps to Buy a Home

1. Get Prequalified: Obtain a prequalification letter to show you're a serious buyer.
2. Find Your Home: Use a realtor to navigate the buying process.
3. Secure Your Mortgage: Choose from conventional, FHA, physician or VA loans based on your needs.
4. Close on Your Home: Obtain an inspection to ensure the property is in good condition. Purchase title insurance to protect against ownership disputes and homeowner's insurance to protect your investment. 

Mortgage Key Terms

Mortgage term: Length of time to hold the loan

Down payment: Upfront cash payment towards home

Fixed rate: Constant interest rate throughout the loan

Adjustable rate (ARM): Lower initial interest rate that adjusts over time

Private Mortgage Insurance (PMI): Required for down payments under 20%, protects lender 

Tips

Shop around for the best mortgage rates and terms.

Read and understand your loan terms before signing.

Homeownership is an exciting milestone. Research thoroughly and ask questions to navigate the process confidently.

MUSC students may self-enroll in our Brightspace Financial Literacy Course to learn more about the homebuying process.