Guide to Home Buying

Purchasing a Charlotte Home is a very important decision and a big undertaking in your life. In fact, most first time Home buyers only choose a few homes in their lifetime. We are going to make sure that when you buy a Charlotte Home you are well equipped and armed with up-to-date Charlotte Real Estate information for your big decision. Our Charlotte Real Estate Professionals are even prepared to guide you through every phase of the home-buying process. The information below gives you helpful information during and after your transaction. 

Pre-Qualification and Pre-Approval for a Charlotte Home

Many buyers apply for a loan and obtain approval before they find the home they want to buy.  Why?

Pre-qualifying will help you in the following ways:

1. Generally, interest rates are locked in for a set period of time.  You will know in advance exactly what your payments will be on offers you choose to make.
2. You won’t waste time considering homes you cannot afford.

Pre-approval will help you in the following ways:

1. A seller may choose to make concessions if they know that your financing is secured.  You are like a cash buyer, and this may make your offer more competitive.
2. You can select the best loan package without being under pressure.

HOW MUCH CAN YOU AFFORD FOR YOUR CHARLOTTE HOME?

There are three key factors to consider:

1. The down payment
2. Your ability to qualify for a mortgage
3. The closing costs associated with your transaction.

DOWN PAYMENT REQUIREMENTS FOR A CHARLOTTE HOME:

Most loans today require a down payment of between 3.5% - 5.0% and sometime 0%depending on the type and terms of the loan.  Some special programs are available if you want a home with no down payment. If you are able to come up with a 20-25% down payment, you may be eligible to take advantage of special fast-track programs and possibly eliminate mortgage insurance.

CLOSING COSTS FOR YOUR CHARLOTTE HOME:

You will be required to pay fees for loan processing and other closing costs.  These fees must be paid in full at the final settlement, unless you are able to include them in your financing.  Typically, total closing costs will range between 2-5% of your mortgage loan.  Our Realtors are highly skilled in obtaing the funds needed for your closing cost from the seller.

QUALIFYING FOR THE MORTGAGE TO BUY YOUR CHARLOTTE HOME:

Most lenders require that your monthly payment range between 25-28% of your gross monthly income.  Your mortgage payment to the lender includes the following items:

• The principal on the loan (P)
• The interest on the loan (I)
• Property taxes (T),
• The homeowner’s insurance (I).

Your total monthly PITI and all debts (from installments to revolving charge accounts) should range between 33-38% of your gross monthly income.  These key factors determine your ability to secure a home loan: Credit Report, Assets, Income, and Property Value.

HOME INSPECTION FOR YOUR CHARLOTTE HOME:

If you are purchasing a resale property, We highly recommend that you have a professional home inspector conduct a thorough inspection.  The inspection will include the following:

• Appliances
• Plumbing
• Electrical
• Air conditioning and heating
• Ventilation
• Roof and Attic
• Foundation
• General Structure

The inspection is not designed to criticize every minor problem or defect in the home.  It is intended to report on major damage or serious problems that require repair.  Should serious problems be indicated, the inspector will recommend that a structural engineer or other professional inspect it as well.

Your home cannot “pass or fail” an inspection, and your inspector will not tell you whether he/she thinks the home is worth the money you are offering.  The inspector’s job is to make you aware of repairs that are recommended or necessary.

The seller may be willing to negotiate completion of repairs or a credit for completion of repairs, or you may decide that the home will take too much work and money.  A professional inspection will help you make a clear-headed decision.  In addition to the overall inspection, you may wish to have separate tests conducted for termites or the presence of radon gas.

In choosing a home inspector, consider one that has been certified as a qualified and experienced member by a trade association.

We recommend being present at the inspection.  This is to your advantage.  You will be able to clearly understand the inspection report, and know exactly which areas need attention.  Plus, you can get answers to many questions, tips for maintenance, and a lot of general information that will help you once you move into your new home.  Most important, you will see the Charlotte Home through the eyes of an objective third party.