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Guide for first-time homebuyers in North Carolina

Posted on November 23, 2021 at 2:00 PM

Buying your first home is, at the same time, an exciting and very stressful event. North Carolina offers plenty of opportunities for the first home purchase. Since you probably have many questions and concerns, we have prepared a handy guide for first-time homebuyers in North Carolina. Check it out!





What down payment programs can you use?


Most first-time homebuyers usually go with the usual 20% down payment. You have been saving money for quite some time, and now is the right moment to use it. However, there are other options worth considering. What if you don't have to spend 20%?


Conventional 97 loan allows you to put a 3% down payment if you have a credit score of at least 620. You can also stop paying mortgage insurance after a couple of years.


You can also apply for an FHA loan. In this case, your down payment is 3.5%, which is a bit higher. However, the credit score is lowered to only 580. Another difference is that you are bound to pay for mortgage insurance unless you switch to a different loan, move your home, or pay off the loan.


USDA loan requires zero down payment and a credit score of 640. This loan is for homes in rural areas, designed for low to moderate-income buyers. Mortgage insurance rates are low.


Another loan that does not require a down payment is a VA loan. However, it is only for veterans. The required credit score is 620, and there is no mortgage insurance after the deal is closed. If you are eligible, this is the best option.


The North Carolina Housing Finance Agency also offers a program for first-time homebuyers. They encourage the hiring of housing counselors that will guide you through the entire process. This costs a bit more, but you don't have to worry about the process because you get a full education on home buying.



Look for a quality real estate agency


Real estate agents work on commission, but they are very useful when it comes to buying your first home. One of the benefits of working with a real estate agent is that you get access to exclusive listings of homes that have yet to reach the market. You can be the first one to look at them and decide whether to buy or not.


 

Furthermore, a real estate agent will finish all the paperwork and help you close the deal quickly. Another huge benefit is that you can actually get a part of the commission back at the closing, and here is how!



Some real estate agents offer 15% of the commission back


Looking for an excellent real estate agent can be a challenging and lengthy process. Furthermore, since you are a first-time homebuyer, you won't even know how to recognize a good real estate agent when you see one. Luckily, there are companies that connect buyers and sellers with real estate agents. On top of that, through them, you get 15% of the commission back at the closing of the deal. This is a fantastic opportunity that you should not miss. Buying a first home is very expensive, and any amount of money you can save will help you in the future.



Apply for North Carolina first-time homebuyer grants


Another way of financing the first home purchase is through various grants. These advantage loans will help you get a bonus from $5000-$8000, depending on the grant you apply for.


 

Each of the grants also comes with some requirements. You can get the grants only if you are eligible.



Median down payments across North Carolina


Depending on what NC city you choose, the down payment changes accordingly. For example:


 

• Raleigh first-time homebuyers will pay a 3% down payment of around $10,500 and a 20% down payment of approximately $70,900;


• If you are buying your first home in Charlotte, the 3% is $10,800, and the 20% is $71,900;


• Greensboro is a much cheaper option with a 3% down payment of only $6,800 and 20% at around $45,600;


 

Do thorough research before you pick the city where you want to buy your new home. Although the location is vital, you also need to consider your budget.



Do a home inspection before buying


Do not make the mistake of buying a home without doing a home inspection first. This is an essential step because it protects your investment. A lot of homes are in dire need of a remodel. Unless you are ready to pay a lot more money to renovate the house top to bottom, it is best to inspect. This can lower the price, which will work to your advantage.


 

This is where your real estate agent might help. They have a lot of connections and can find an appraisal person as well. It is worth paying a little extra if it gets you a better deal for your first home.



Start preparing for your relocation


Even though you are still not done with the home purchase process, it is a good idea to start preparing for the relocation on time. If you have never moved before, you will need a lot of guidance on packing and organizing everything. Supreme Movers offer an abundance of free guides and tutorials on packing, best moving practices, and valuable tips and tricks. Educate yourself about the relocation before you actually start doing anything.



That's how first-time homebuyers in North Carolina should look for a house


Hopefully, you will find this guide useful. It is aimed at first-time homebuyers in North Carolina, and it should help you better understand your options. Once you find a real estate agent, ask them any questions you have. They will provide all the answers and get you closer to your dream house in record time!



 

Written by: Lisa Roberts with US Moving Experts

 

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