The 5 Things You Will Need to Buy a Home in 2018
There are five things you will need if you plan on buying a home in 2018.
What are the five things you need if you’re buying a home soon?
1. A pre-qualification or proofs of funds. A proof of funds means you’re paying cash, but if you’re getting financing, you need to speak with a mortgage lender now to make sure you’re searching for homes within a reasonable price range and you’re comfortable with the mortgage payments. The only way to know this is by getting pre-qualified. If you find the home of your dreams, a proof of funds or a pre-qualification is a requirement.
2. The means for earnest or due diligence money. In North Carolina, due diligence money is given immediately. That money is at risk, so if you decide to back out of the transaction for any reason, the seller will keep it. Earnest money is at risk after due diligence expires. Due diligence money plus earnest money usually equals about 1% of the total purchase price, but that’s something that can be negotiated. These monies are at risk should you decide to back out, but you’re buying time to take the home off the market and do your due diligence.
3. Money for a down payment. Some loans offer 100% financing, but most require you to pay some percentage of the sale price. We’d be glad to connect you to one of our preferred lenders to see which loan option makes the most sense for you.
"Having these five things beforehand will help your home buying process go smoothly."
4. Money for closing costs. Closing costs can consist of prorated taxes and insurance, attorney fees, lender fees, HOA dues, etc. They can range anywhere from 1% to 4%, depending on the price of the home you’re purchasing. Once again, your lender can give you a good-faith estimate and pinpoint what you can expect your closing costs to be. We’re in a strong seller’s market, so sometimes we can negotiate for the seller to pay the closing costs, but this isn’t always promised.
5. Money for your home inspections. Even though in North Carolina your purchase contract states that you will buy the home as-is, it’s understood that the sellers will be reasonable and we’ll be able to negotiate repairs for the home. Even if you’re buying a home as-is, you still want to protect yourself and order one or more inspections—meaning a home inspection, pest inspection, termite inspection, radon inspection, etc. These inspections will help you understand the home you’re buying.
If you have any more home buying questions or you need an agent to help you buy a home this year, don’t hesitate to reach out to me. I’d love to help you.