one month. During that time, the third party is taking care of transactions on both the seller's and buyer’s behalf. For example, if you’re providing an inspection as a buyer, you deposit funds to the escrow account. Costs of this service are to be negotiated beforehand. Be conscious of the escrow company’s fees. Some contain unexpected fees you might only become aware of during payments because they’re hidden. Understand escrow company fees before entering into an agreement. In South Carolina, it's common for the buyer's attorney to open and hold the escrow account, and the fee is included in the attorney’s closing fee. 2. Lock in the Interest Rate The price for a mortgage loan is typically expressed as “points” paid to get a certain interest rate. Points are essentially prepaid interest, so the more points paid, the lower the interest rate. One point equals 1% of the loan amount. A mortgage rate lock guarantees that a mortgage lender will give a buyer a certain interest rate, at a certain price, for a specific time. A rate lock protects the borrower from rising interest rates in the period between sales agreement execution and closing (often a month). If the buyer locks in a rate of 4.5%, she will only have to pay 4.5% interest even if rates rise while going through the loan application process. A rate lock is commonly good for 30, 45, or 60 days, though that time period can be shorter or longer. After that period expires, the buyer is no longer guaranteed the locked-in rate unless the lender agrees to extend it. This is why arranging a prompt closing is crucial. 3. Have a Home Inspection Making sure roofing shingles don’t fall off on the first day in your new home or the furnace doesn’t operate under 45 degrees is generally enough reason to have a home inspection. Engage specialists to check the air conditioning system, plumbing, and electricity. This could save you thousands of dollars by uncovering existing issues. They will also check for mold growth and other possible environmental health threats caused by lead, fungus, and asbestos. Even new houses need to be checked thoroughly. It doesn’t
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