North Carolina Mortgage Broker
Buying a home in North Carolina? You are in the right place! The North Carolina housing market is on fire now with an average home value of $309,087 (June 2022). And there could never be a perfect moment to start a home buying process!
Buying a home is an exciting journey, but it can also be stressful if you are not sure what to expect. So, you may start enjoying the process once you understand what steps you need to take to get from pre-approval to closing the deal.
North Carolina Home Buying Process
1. Get prepared in advance
One of the first steps is to analyze your financial situation and goals.
Start saving for a down payment. The larger the down payment you have, the better! Even if other financial hurdles stand in your way of buying a home, try making extra payments on those debts so that you can put more money towards a down payment.
Analyze your monthly spending and check your credit. Before you start searching for a property, try to answer the following questions:
- What is my credit score? (go to annualcreditreport.com to check it out)
- How much savings do I have? (In most cases, you will have to pay a from 10% to 20% down payment, though there are mortgage programs with a $0 down payment)
- How much payment can I afford monthly?
- What type of home do I want to buy?
- Who will guide me through the process (LBC Mortgage is perfect for this)
This audit will help you to avoid stress and unexpected results.
2. Get pre-approved
The pre-approval process provides a good indicator of how much you can borrow and a good indication of your credit score. It’s not a commitment to buy, so once you’re done looking and ready to make an offer on a property, you can give the details of that offer to a lender who provided pre-approvals.
LBC Mortgage offers some unique mortgage programs you can consider to buy a home in North Carolina.
North Carolina Home Buying Programs
- Bank Statement Program
Bank statement program was developed for self-employed people who can show a good cash flow on their business but can’t provide W2 information. Usually, we request 12 months of bank statements but in some cases, only three months of bank statements are possible.
Some other requirements are:
– Minimum credit score: 640
– Minimum: 10% Down payment
- DSCR Program
DSCR program is perfect for investors. It doesn’t require any income or employment documents such as taxes, W2s, or pay stubs.
- VOE Loan Program
VOE program is a great fit for employees. Instead of showing taxes, W-2, and pay stubs, all you need to do is to show verification of the employment form.
- Stated Income / No-Document Program
Stated Income / No Income Verification mortgage is one of the simplest programs on the market. And it was developed for everyone. Your employment status doesn’t matter. The only thing required is a 20% down payment and money reserves to cover 3-6 months of mortgage.
3. Find a property in North Carolina
Buying a first home is a responsible step and an important investment for everyone. You can start by finding a local realtor to make the process easier. Otherwise, search for North Carolina listings online to find the property you love. Another option here is to drive the neighborhood and search for houses on sale there. Take some time to compare the prices and options to decide the best one for you!
4. Submit an offer
Before making an offer take another look at your budget. Make sure to consider such expenses as closing costs, and money for house repairing. The final step is to submit your offer in writing to the seller. Your offer should be in the form of an offer to purchase, which means it must be signed by all parties involved—you and your spouse if you’re buying together; you and the seller (or their real estate agent), if there is one; and anyone else who may have a stake in the transaction.
5. Close on your home
Closing is the final step in the mortgage process. It means exchanging money and signing the papers that transfer the title to your new home. Depending on how far you are in the home buying process, closing might happen fairly quickly or take up to several weeks. Make sure to give yourself enough time from when you submit your loan package until the closing day so that everything is processed appropriately and efficiently.
There is one more thing to consider about closing: Closing costs can range from 1% to 6%, depending on what type of loan as well as other factors like property value (price) and down payment amount.
Feel free to apply for a free consultation to get all the details about the mortgage payments and terms.
Congratulations! You have successfully secured a mortgage, and now it’s time to celebrate. Take time to enjoy your new status as a homeowner in North Carolina!
- Can you get pre-approved for a mortgage before finding a house?
Everyone who plans to buy a house by taking a mortgage should start with pre-approval. This stage helps plan all the further financial steps and gives a clear picture of how much you can afford. It doesn’t matter where you are in the process now, try to get pre-approved asap.
- Does it matter where you get pre-approved for a mortgage?
The pre-approval is used to analyze how much money you can borrow to buy a house. With so many available online pre-approval services, it doesn’t matter where you get a pre-approval letter. Anyway, we do not recommend using automatic pre-approval since you get a risk of unexpected issues when the home buying process starts.
- How far in advance should I get pre-approved for a mortgage?
Once you decide to plan a home buying journey apply to get pre-approved. If you have some issues with the financial report, you will have time to improve the situation.
Next Steps For Home Buyers in North Carolina
So if you are ready to buy your first home or looking for your next dream property in North Carolina, it is time to apply for a free consultation, and we’ll start the process together!