We work with a TON of First Time Home Buyers. We’ve found that they ALL need the same basic information, to avoid costly mistakes. The first thing to know about the Real Estate Market in Raleigh is that Sellers expect the First Time Home Buyer in Raleigh to talk to a Lender before presenting an offer to buy a house! You need to include us in the very beginning of the First Time Home Buying process in Raleigh!
The second thing our experience tells you – is that HESITATION will KILL your chances of buying the home you just fell in love with!
If the house you love in Raleigh is in good condition, and is priced “right” then there will be more buyers looking at it. We’ve seen First Time Homebuyers miss out on a home because:
- The first time home buyer loves the home, but is afraid to commit, so they take an extra day or so, to make an offer or respond to a counter offer. Often time, this delay means that the First Time Home Buyer loses the home to another, more aggressive buyer.
- The first time home buyer has anxiety that snowballs into feet-dragging on getting their documents to us (the lender), forcing them to run behind on loan contingency removal. If you are purchasing a short sale, or a foreclosure – the bank you are buying the house from could refuse to sell it!
Here are First Time Home Buyer Raleigh NC Frequently Asked Questions
– I’m paying $1250 a month in Rent, can I keep my house payments at that same dollar amount? Great News! When you buy a house, you can get a raise! There are TAX BENEFITS still available to homeowners this year, making it pretty darn easy to buy a house AND get money back from Uncle Sam!
– Can I buy a house if I’ve had some credit Boo-Boos? Okay this is tricky – but the answer is YES! It’s just a matter of how long it will take to get your scores up to 620 (OR 580 if you qualify for special conditions!). We have a TON of information on Credit Scores, and how to get them higher! You can always call us, and we will help you with your credit at no cost or obligation!
– Am I required to have a 5% down payment plus save all of the money for closing costs saved? No. If you are a Veteran, you qualify for a 100% mortgage. If you are willing to live in more Rural Areas of our state (like Holly Springs or Johnston County), then you can consider USDA Home Loans, which offer 100% no down payment home loans. If you purchase using FHA as your mortgage program – you can make a 3.5% down payment that comes from a GRANT! The down payment for FHA can also be a Gift, it can come from 401K money, you can sell an asset (like your husband’s Bass Boat)… OR it can be a GRANT from the State of NC, if you qualify for NC Housing Finance Down Payment Assistance Program! There are a TON of options!
– Can the Seller pay all of my closing costs? If you are asking me, can I purchase a home with NO MONEY out of my pocket – the answer for ME is… why would you put yourself in that position? If you have NO MONEY for an Inspection, or an appraisal, or an earnest money check? Would it be better to wait a couple of more months and save some money up? Okay – if you are asking if the Seller can pay MOST of your closing costs yes. Conventional Loans, with less than a 10% down payment will only allow a Seller to pay 3% in closing costs. FHA Mortgages. USDA Home Loans and VA Loans still allow Seller Paid Closing Costs of up to 6%.
– Should I lock my mortgage interest rate in? Mortgage interest rates change daily… actually, they are traded just like a stock, so they REALLY change every few minutes. If you are SHOPPING for a home, there are programs that allow you to lock in an interest rate while you are shopping. Most lenders, including us, have a FLOAT DOWN policy. This means that if you lock in an interest rate with us for 30 days – and 10 days later, rates drop through the FLOOR, and you want to take advantage of that WAY lower rate – you can. Ask about this policy UP FRONT.
– Should I let 5 different Mortgage People pull my credit while I’m trying to decide who I want to work with? Here’s some basic info on Credit Inquiries. In general, I would talk to the lenders, figure out who you “relate to” let them pull your credit… then get a COPY of that report and send it to other lenders for quotes. (Don’t Shoot Yourself in the foot as you are trying to get a mortgage!)
Here are some other basic questions to ask your lender. It’s NOT just about the mortgage interest rate… it’s about how much it’s going to cost you, is this person going to really work on your behalf to get your loan approved (these days, it’s almost like hiring an attorney! It’s NOT easy for a loan officer to just slam a loan through!), can you talk to this person, do you understand how their process works? This is going to be an amazing journey – being able to communicate with your loan officer is going to make that journey EASIER!
Please call Steve Thorne, Mortgage Banker in Cary 919-649-5058. We like working with First Time Home Buyer Raleigh NC Borrowers, and we’ve helped hundreds of them purchase their first home! We also have some of today’s best mortgage interest rates!