1) Get Pre-Approved.
The first step is to speak to a mortgage lender to find out how much you can afford, what costs you will have out of pocket at closing, and what your monthly payment will be. Do this first - the last thing you want to do is fall in love with a home and then find out that it's outside of your budget. A good place to start is speaking to someone at your banking institution. It's worthwhile to shop around and talk to a few different lenders to see who can offer you the best loan product. I know excellent lenders who I can recommend - so just ask!
2) Understand Out-of-Pocket Fees.
To close on your new home you will pay a down payment as well as closing costs. Your down payment will depend on your loan product, but is usually anywhere from 3.5% to 20% of the purchase price. In addition to this fee, you will owe closing costs, which cover everything from legal fees, taxes, upfront HOA dues and insurance fees, as well as inspection fees. Although you won't pay any agent commissions in a typical transaction (those are covered by the seller), you will still have closing costs that total around 2%-3% of the purchase price of your home. And while you can ask the seller to cover some or all of the closing costs, in the current, highly-competitive Raleigh market an offer asking for seller-paid closing costs is often not accepted.
3) Know Your Timeline and Act Accordingly.
Is your lease ending soon? Will your landlord allow you to go month-to-month after it ends? Having a conversation about this sooner rather than later will increase your chances of your landlord being willing to work with you regarding your timeline. Once you go under contract on a home it usually takes at least 30 days to close. But keep this in mind too - the market is extremely competitive right now and you may have to put in more than one offer before you get one accepted.
4) Be Prepared to Act Quickly, but Only for the Right Reasons
It's a seller's market right now, which means that inventory is low; when you find "the perfect home" six other people may have also found "the perfect home" at that very address. Take notes at every house you visit and be prepared with a list of your needs and desires so that you can make an informed yet quick decision when the right house does come along. Remember, when you feel pushed to make a decision it's easy to get caught up in the moment - to guard against this, picture yourself living your day-to-day life in the house. Rather than thinking about the general feeling you get when inside the home, focus instead on the much less exciting aspects - like where you'll keep your vacuum, where you'll fold your laundry, and how far the dishwasher is from the kitchen sink!
5) Understand the Buying Process
There's a lot to buying a house and you need to fully understand the process up front. Don't get so caught up in the excitement that you forget to have a conversation about exactly how the process works. Even if you're just starting to consider buying a home but know you won't be buying for a while, contact me with any questions or to set up a time to meet and go over the process: as always - no strings, obligations, or fees.
The first step is to speak to a mortgage lender to find out how much you can afford, what costs you will have out of pocket at closing, and what your monthly payment will be. Do this first - the last thing you want to do is fall in love with a home and then find out that it's outside of your budget. A good place to start is speaking to someone at your banking institution. It's worthwhile to shop around and talk to a few different lenders to see who can offer you the best loan product. I know excellent lenders who I can recommend - so just ask!
2) Understand Out-of-Pocket Fees.
To close on your new home you will pay a down payment as well as closing costs. Your down payment will depend on your loan product, but is usually anywhere from 3.5% to 20% of the purchase price. In addition to this fee, you will owe closing costs, which cover everything from legal fees, taxes, upfront HOA dues and insurance fees, as well as inspection fees. Although you won't pay any agent commissions in a typical transaction (those are covered by the seller), you will still have closing costs that total around 2%-3% of the purchase price of your home. And while you can ask the seller to cover some or all of the closing costs, in the current, highly-competitive Raleigh market an offer asking for seller-paid closing costs is often not accepted.
3) Know Your Timeline and Act Accordingly.
Is your lease ending soon? Will your landlord allow you to go month-to-month after it ends? Having a conversation about this sooner rather than later will increase your chances of your landlord being willing to work with you regarding your timeline. Once you go under contract on a home it usually takes at least 30 days to close. But keep this in mind too - the market is extremely competitive right now and you may have to put in more than one offer before you get one accepted.
4) Be Prepared to Act Quickly, but Only for the Right Reasons
It's a seller's market right now, which means that inventory is low; when you find "the perfect home" six other people may have also found "the perfect home" at that very address. Take notes at every house you visit and be prepared with a list of your needs and desires so that you can make an informed yet quick decision when the right house does come along. Remember, when you feel pushed to make a decision it's easy to get caught up in the moment - to guard against this, picture yourself living your day-to-day life in the house. Rather than thinking about the general feeling you get when inside the home, focus instead on the much less exciting aspects - like where you'll keep your vacuum, where you'll fold your laundry, and how far the dishwasher is from the kitchen sink!
5) Understand the Buying Process
There's a lot to buying a house and you need to fully understand the process up front. Don't get so caught up in the excitement that you forget to have a conversation about exactly how the process works. Even if you're just starting to consider buying a home but know you won't be buying for a while, contact me with any questions or to set up a time to meet and go over the process: as always - no strings, obligations, or fees.