10 things you need to know when buying in Raleigh

10 things you need to know when buying in Raleigh.


1. Find an experienced mortgage professional.

With all the recent changes in legislation, make sure your mortgage consultant is licensed in the state of North Carolina and has the experience to deliver.

2. Start by shoring up your credit.

Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few weeks before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover. Free reports are available annually at www.freecreditreport.com and www.annualcreditreport.com.

3. Aim for a home you can really afford.

The rule of thumb is that you can buy housing that runs about two-and-a-half to three times your combined annual salary. Speaking to your mortgage professional first will give you a much better idea.

4. Buy in a district with good schools.

In most areas, this advice applies even if you don't have school-age children. Reason: When it comes time to sell, you'll learn that strong school districts are a top priority for many home buyers, thus helping to boost property values.

5. Get professional help.

Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent.  We offer solid referrals to experienced agents who have your interest at heart.

6. Choose carefully between points and rate.

When choosing a mortgage product, you usually have the option of paying percentages of points -- a pre-paid finance charge -- in exchange for a lower interest rate. If you stay in the house for a long time -- say three to five years or more -- it's usually a better deal to pay the points. The lower interest rate may save you more in the long run.

7. Before house hunting, get pre-approved.

Getting pre-approved will you save yourself the grief of looking at houses you can't afford and put you in a better position to make a serious offer when you do find the right house. Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history.  We offer these free of charge.

8. Do your homework before bidding.

Your opening bid should be based on the sales trend of similar homes in the neighborhood. So before making it, consider sales of similar homes in the last three months. If homes have recently sold at 5 percent less than the asking price, you should make a bid that's about eight to 10 percent lower than what the seller is asking.  This is just a rule of thumb as your agent will make those suggestions for you.

9. Hire a home inspector.

Sure, your lender will require a home appraisal anyway. But that's just the lender's way of determining whether the house is worth the price you've agreed to pay. Separately, you should hire your own home inspector, preferably an engineer with experience in doing home inspections in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road.  Again, your real estate agent will guide you through this process.

10. Lock at the appropriate time.

Many times potential home buyers want to lock the rate at application.  Many times this is not the most advantageous way to go.  We offer a service called Rate Alert where we stay on top of the market all throughout the day.  By following trends and expert opinions we track the market, make the information available to you and allow you to lock when it's best for you, not the lender.

 

 

For all your NC home loan information, contact us today.  For quicker service call 919-435-2279.

 

       

 

Raleigh Home Loans, Raleigh Mortgage Professional, Durham Mortgage Loans