STEP 1: The first step in buying a home is getting Pre-Qualified or Pre-Approved with a Lender. Most lenders like to see a minimum credit score of 640 but some can lend with a 580 as long as you have a co-singer. The 2nd thing lenders are looking for is your debt to income ratio. You could have great credit but if your debt (credit cards, car loan, etc) out way your income then it could jeopardize your chances of obtaining a loan. Here are a few lenders to assist you in starting the home buying process:
STEP 2: Once pre-qualified or pre-approved then it is time to contact a Realtor and start looking at houses!!! Yay the fun part! Speak with your Realtor about where you want to live? How big of a home you want? School Districts? etc. Then begin looking at homes!
STEP 3: When you find a home that you like, its time to place an offer. Offers are initially conducted on paper and then negotiated via the Realtors. Negotiating is a key part of the home buying process. A Realtor plays a vital role in being a third party that has the knowledge and expertise without an emotional attachment to best represent your needs & best interest.
STEP 4: Scheduling & conducting Home Inspections, Termite/Pest inspections, appraisals, etc.. Realtors also assist in scheduling & negotiating the findings of the inspections. When you purchase a home you negotiate 2 times during the process. First, at time of contract & Second during time of Due Diligence/Inspections. Due Diligence is the time period in which the buyer is to conduct their home inspections, appraisals, secure financing, insurance, etc.. During this time the Realtor negotiates with the Listing agent about which repairs the seller will or will not repair.
STEP 5: After repairs are in agreement the Realtor will schedule a Walk Through. A walk through of the property is physically walking through the property to make sure the seller has made all agreed upon repairs and that the home is vacant and is in a satisfactory condition to the buyer before finalizing the purchase and taking possession of the home.
STEP 6: Closing - attend closing with a NC Real Estate Attorney. In NC all real estate transactions are conducted using a NC Licensed Real Estate Attorney. This takes about 1 hour. The deed then has to record at the county register of deeds and once recorded you are officially a homeowner!!!
$ needed to buy a home Down Payment - FHA 3.5% of Sales Price Closing Costs - Typically 2.5-3% of Sales Price
Ex. Purchase price = $100,000 Buyer will need $3,500 for down payment & an additional $3,000 for closing costs *This is subject to vary with First Time Home Buyer Incentive programs - contact one of the above lenders for more information