Buying a house is not as easy as most people think. It takes a lot of time, money, and thorough preparations. Perhaps you’ve finally decided that it’s time to own a home in Raleigh NC – that’s alright! Taking adequate time in the preparation for the purchase is worthwhile. Here is a guide to buying a house in Raleigh, North Carolina.
First, to adequately prepare to buy a new house, you’ve got to decide on the price range of your dream house. Having a realistic goal in mind is paramount. Remember, with reality comes progress towards achieving the actual dreams and goals. Secondly, decipher what your current financial status stands at. Here, you can assess a number of factors such as income, assets, and liabilities. The two give you a rough estimate of what you can actually have for a house. In addition, you’ll be free to move on to the next step in your preparation.
Steps to Financially Preparing to Buy a House in Raleigh NC
If you’ ask a licensed Real Estate Agent or salesperson in Raleigh NC, it would make more sense for potential homeowners to prepare adequately, financially, and intelligently. Here is a 6-step approach for effective financial preparation when buying a new house.
1. First, get a copy of your personal credit report that is at least 6 months, before purchasing the house. A thorough review of the personal credit report is worthwhile. Take adequate time to rectify any financial mistake. This will make sure you are as prepared for the purchase as possible. You can opt to do the review yourself or hire a professional. Keep in mind: a good credit report offers you better mortgage terms.
2. Don’t merely get a copy of your credit score. Instead, you might want to correct, fix, and address. Work on all the deficiencies that might be detrimental. Again, you can opt to do this yourself or hire a proficient individual to handle this on your behalf.
3. Upon correcting all credit flaws, you’ve got to start saving as much as possible. Prepare adequate funds for your down payment along with other payments needed. Accumulating a good monetary reserve will reduce contingency costs.
4. Repaying as much debt as you can is worthwhile! If you intend to use a mortgage to acquire your new house in Raleigh NC, the lenders will use a formula that weighs the ratio of your income to the overall debt. When you repay a good amount of debt during this preparation period, be sure to enhance your credit score.
5. Set aside adequate down payment and reserve. Of course, buying a house can be stressful. When you prepare a sufficient budget, you’ll not have a hard time searching through for the best house to buy.
6. In case you intend to use mortgage services, you might want to look for a quality mortgage banker. You’ll need a professional that can offer good advice when it comes to needs and requirements when purchasing a new house.
Essential Documents to Prepare When Buying a House
As mentioned earlier, purchasing a house can be a dainty task. This is probably the reason why many people are reluctant to make a purchase. However, when you know the right documents to prepare, making a house purchase will not be that difficult.
It is worth noting that documents are very imperative for any transaction since they serve as proof of payment and agreement. If you intend to own a home in Raleigh NC, prepare the following documents:
1. Mortgage Application
In order to qualify for a mortgage, you’ll need to present the requirements needed by the lender. You might need to call the bank ahead of time and inquire about these requirements. While most of these requirements are similar in all mortgage lenders, you may find a few differences. Therefore, make sure that you verify what you need ahead of time.
2. Identification and Credit Report
Among the key items, you’ll need to present to the mortgage lenders is a valid proof of your identity. Here, you will need to produce items such as a copy of your ID, a certificate of employment, and a few paychecks or a tax statement. Apart from identification documents, you will need to submit a copy of your credit report. Keep in mind: the lender will use the report to assess your ability to pay the loan.
3. Documents from the title company
Later, the title company will need to prepare essential documents to facilitate a smooth transfer of ownership. But before that, several documents ought to be checked first. The company ought to ensure that the property is legit and that the seller has the full rights and authority to sell the house. Then, the company will give an abstract of the title. This should give a brief history of the property.
After ascertaining all the documents and requirements, the company should give an opinion letter. In case the company intends to release title insurance, they should provide you with a commitment of title insurance first. All these help in resolving any potential issues related to the property.
Hiring a Real Estate Agent in Raleigh NC
Buying a new home in Raleigh NC can be a dainty task. Consequently, hiring an experienced real estate agent with adequate experience around Raleigh NC is worthwhile. Here are a few tips for hiring the right individual to assist you to purchase your new home:
1. First, get an experienced real estate agent. In case you are purchasing a new home for the first time, consider hiring one with at least 5 years of experience.
2. Find out how familiar the individual is with Raleigh NC home markets.
3. Inquire about the fees. Most agents work on a commission worth 3% of the total house worth. While you’ll want to save on expenses, it is worth noting that extremely cheap prices might imply incompetence. Therefore, you might want to select an individual that asks for fair payment.
Buying a new house is definitely a lot of work. However, when you prepare financially, but all the essential documents together, and hire a licensed real estate agent, the transaction will be easy and you’ll be ready to move into your new house in no time!