Home Loans In Raleigh, North Carolina 

North Carolina’s capital city of Raleigh is the place to be if you’re all about that southern hospitality charm. As the second-most populous city in the state, Raleigh paints a picture of vibrancy and diversity mixed with rich cultural heritage. 

The housing situation is also quite promising, with the city taking the third spot among the top 10 hottest U.S. real estate markets for 2022. If you’re looking to own a home in Raleigh, now would be a good time to start shopping for a new house. 

However, because it’s such a huge investment, it’s important to weigh your financing options carefully, especially if this is your first time buying a home. To streamline your decision-making, we’ve put together our best tips for first-time homebuyers for a smooth, seamless process. 

4 Tips For First-Time Homebuyers in Raleigh, NC

     1. Know What You Can Afford

We all have a mental picture of what our dream home would look like. Some people want a house with a fence in the suburbs; some want a 2-story apartment with a spacious outdoor area… the list could go on. 

Ultimately, however, your budget and current financial capacity will determine what kind of house you can get and how much funding you can apply for. The general rule of thumb is to keep your mortgage costs below 36% of your gross monthly income. 

     2. Raise A Substantial Down Payment 

Many home loans require a down payment of between 3% to 5% of the property cost. However, if you can afford to present a higher down payment, consider doing so. Try to secure a down payment of at least 20%. 

Not only will this strengthen your loan application, but it can also eliminate the need to pay private mortgage insurance (PMI). The PMI is typically 1% of the loan amount and is charged annually in addition to your mortgage payments. 

Even if you’re applying for a home loan with a 0% down payment requirement, try to secure a good enough down payment nonetheless, as it can mean more favorable rates for your loan. 

     3. Plan For Closing Costs

The closing costs cover several fees that you must pay when buying a house. These include application fees, attorney fees, escrow deposits, appraisal report fees, credit report fees, and Homeowners association transfer fees, among others. 

Expect to pay around 3% to 6% of the home’s purchase price to cover the closing costs. 

     4. Get Pre-Approved For A Home Loan Before House Hunting 

Many sellers will not entertain any offers unless you have your pre-approval letter ready. This letter demonstrates your ability to obtain the necessary funding to buy the house, should they choose to sell to you. 

The pre-approval process typically varies from one lender to the other. Still, the requirements are usually the same — proof of income, tax returns, bank statements, credit reports, and other supporting documents required by the lender.  

Raleigh, NC Mortgage Lender

As a first-time homebuyer, you’re better off working with a direct Raleigh, NC mortgage lender like Capital Home Mortgage. A direct lender means fewer hassles because they control the entire home loan process, from application to funding. 

At Capital Home Mortgage, we offer a variety of home loan programs, including FHA loans, Conventional loans, Jumbo loans, USDA home loans, VA loans, and more. 

You can use our mortgage calculator to get an idea of what to expect based on your preferred mortgage product and budget. 

Find The Right Raleigh, NC Home Loan For Your Needs

Talk to our loan officers today about securing your home loan in Raleigh, NC. Our experienced team will also work closely with you to get the right mortgage for your needs. Whether you’re a first-time homebuyer or this is your 10th home purchase, we make your home buying experience as stress-free and straightforward as possible. 

Call us now at (910) 500-6017 to get started with a quick, no-obligation quotation. Thank you again for your interest in our services and we look forward to providing you next home loan.