Homeownership is closer than you think!
If you’ve long been considering buying a home in the greater Raleigh area, now is the time to act. You might be worried about the financial side to buying a home: the hefty down payment and the mortgage approval process—but it’s really not that complicated.
In fact, there are ten simple steps to buying your first home in the Raleigh real estate market!
Save Your Down Payment
It’s a common misconception that you have to put down 20% of the home’s overall value. That’s simply not true!
There are a number of loans out there that require less than 20%, with some like the USDA Loan requiring only a 3% down payment and the VA loan requiring 0% down!
While it’s true that the more you save up for a down payment, the lower your monthly mortgage payments will be, 20% is not the end-all be-all.
Determine Your Credit Score
Whenever you’re making any large purchase that requires a loan, it’s important to have a handle on your finances. Use a free service like CreditKarma or FICO to check your score. This will give you a good idea for what kind of interest rates the bank is willing to offer you.
Find an Agent
While it is possible to buy a home without an agent, it is twice as stressful. An agent handles a lot of the “invisible work” associated with buying a home.
In addition to handling negotiation and closing, your agent can make recommendations on local neighborhoods and homes for sale. Plus, they’ll likely be able to offer you support as you navigate a tricky real estate market.
Get Pre-Approved
Trust us, getting pre-approved for a mortgage loan will make the rest of your home-buying experience easier.
This process typically includes sitting down with a lender to review your finances. The lender will go over your credit score, savings, outstanding debt, annual income, and anything else relating to your money situation. Then, they’ll give you an offer for the amount of money (and the interest rate) the bank is willing to lend you. Boom: your budget is set.
Go Shopping
Now it’s time for the fun part! Think long and hard about what you want in a home, and get to searching. To make it a little easier on you, feel free to use our complimentary home-search tool.
You can easily filter results by price, location, neighborhood, size, special features, and more. Happy house hunting!
Make an Offer
Once you’ve found a home that you can’t live without, work with your agent to make an appropriate offer. It’s important to make an offer that is both competitive enough to sway the seller, while still staying within your budget.
Remember that pre-approval letter? This makes you a more competitive buyer as well!
Get an Inspection AND an Appraisal
This is crucial. Before you sign any closing documents, you HAVE to make sure the home is a worthwhile investment. The best way to do that is by hiring an inspector to come out and review the property. This way, if there are any hidden issues with it, you’ll be able to negotiate with the seller to have it fixed.
After the inspection, your lender will arrange for a home appraisal. This is to assure the bank that your new home is worth the price you’ve agreed to pay for it.
Close the Sale & Move In
Once your loan is approved, your bank will schedule a closing date. This is when you cross your T’s and dot your I’s.
Congratulations! After some heavy negotiating and serious home shopping, you’ve finally found your dream home and made it your own.
Ready to Become a Raleigh Homeowner?
We can help with that. At Linda Craft & Team REALTORS®, we have the experience necessary to help you find the home of your dreams at the right price tag. Give us a call today to get started.