Buying a Raleigh NC home is a great investment for first-time home buyers or individuals and families relocating to Raleigh NC. Or maybe it has been a while since you have purchased a new Raleigh NC home and are wondering where to get started again the home buying process. With rental rates on the rise and interest rates low, a home purchase is a wise investment.
The Langley Realty Team would like to give you a few tips on what you need to know about qualifying for a mortgage in the Raleigh area or surrounding communities:
A Good to Great Credit Score is required for a Home in Raleigh NC Whether you use a local Raleigh bank or online mortgage company, in order to obtain a home loan, the lender will analyze your credit history and check your credit score. In order to borrow money for a home loan, you need to show that you have a good credit score.
So make sure that you have a history of having paid loans or credit card payments on time. Be sure not to open up additional credit cards or make large purchases until you have spoken with a lender on the impact of your credit. HOME BUYING TIP: Once the lender approves you for a home loan do not make any additional purchases that would affect your credit score. That new refrigerator can wait until you close on the Raleigh home of your dreams.
Have Money in the Bank for a Down Payment for a New Home in Raleigh NC Raleigh banks will typically require a down payment for the purchase of a home. While conventional loans typically require at least 20 percent, there are special loan programs that provide the opportunity for a lower down payment so be sure to ask your lender or bank if you qualify for such a loan program.
A Steady Income Your lender will analyze the length of your employment or reliability of your annual income to calculate how much they are willing to lend you towards your new Raleigh home. You individual income or a combination of your income and your partners will determine the maximum amount you can pay for a home in Raleigh NC.
Understand Your Assets and Liabilities In addition to verification of your annual income, a lender will want to receive a list of your current assets such as cash in your savings accounts, 401k or other retirement funds that might be available should you need to make a house payment. Then they will see how much you owe which is your liabilities. If you have higher assets than liabilities, the mortgage lender will look favorably on financing your home purchase. If your debt-to-net ratio is to high, you will need to reduce your liabilities so you can qualify for a home loan.
Raleigh NC is a community that offers affordable homes with great amenities and community activities. If you do not know of any good lenders, contact Michele Langley, your Raleigh NC Realtor & Real Estate professional, and she can provide you with a list of mortgage lenders and banks who provide great customer service and have a reputable reputation for ensuring the home buying process is smooth. Once you have been approved, the Langley Realty Team can set you up on listing alerts to search homes for sale in Raleigh NC based on your price range. We will also conduct home buying interviews to help you identify the type of home of you would like to purchase. Whether you are interested in buying a Raleigh condo home, ranch home, Raleigh luxury homes, Raleigh basement homes for sale, our real estate team is here to help!
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