Linwood Stalls

Home Buyers 101

For many people, buying a home is the biggest financial decision of their life. That can trigger stress levels for some. But buying a home does not have to be stressful. It can be fun. With some guidance and safeguards, it can be not only the biggest, but the BEST financial decision one will make.

Step 1. Done. You have already found a REALTOR who is experienced, who knows the area where you plan to buy, who is competent and honest, offers great service, and genuinely cares about your needs and concerns. In our area, Buyer’s Agency is still free to the buyer. So why would you settle for lousy service from an inexperienced broker who doesn’t know much about the area – when you can afford the best? Call or email Linwood now – to get started, or just to get answers to your questions. (Your REALTOR should explain the different types of agency in North Carolina, and give you the pamphlet Working With Real Estate Agents).   

Step 2. Lender Pre-Approval. Before you start shopping for a home, you want to know IF you can buy, and how MUCH home you can buy. You don’t want to fall in love with the perfect home, and THEN find out it is twice your price limit. (Nothing you can afford will look good after that). You don’t want to waste everyone’s time shopping in the wrong price range.

   So have a conversation with a reputable, local lender. That is a lender with a proven track record, who has a human and a building in the area where you plan to buy. An experienced REALTOR (see Step 1) will know which lenders deliver what they promise, deliver on time, save their clients money, and which lenders will do your pre-approval at no cost or obligation

  The lender will ask you nosey questions about your income and bills, to determine your “debt-to-income ratio”. That lets them know your price range. They also look at your credit report, to see if anyone has put anything on it that would slow you down or prevent you from getting a home mortgage. The lender also looks at your situation to determine the best type of loan for you: VA, USDA, FHA, conventional, or other.    

  Pre-approval can take less than 30 minutes, or a few days or more (depending on your credit history). But with a Pre-Approval letter from a reputable local lender, you can shop with confidence.  A seller is also much more likely to accept an offer from a buyer who has pre-approval from a reputable lender.

Step 3. Know your up-front costs. Some loans require down payments. Even if you are buying with a VA or USDA loan with 100% financing, there are still buyer closing costs. Even if the seller agrees to assist the buyer with some, most, or all buyer closing costs, there are up-front costs the buyer will need to pay before closing. Have your REALTOR explain Earnest Money Deposits(EMD), why the lender wants the appraisal fee up front, and typical home inspection costs.