Buying Real Estate in North Carolina 11 – The Search: Priority 1: Price

The first priority in your home search is Price. Here are some key factors & questions to answer:

  • Will you be getting a mortgage loan or will you be paying cash?
  • If you are getting a loan, have you spoken to a lender?
    • This is a critical conversation to have early on
      • You need to know if you qualify for the loan you want
      • You need to know what your price limits are
      • You need to know what types of loans are best for you
      • You need to know how much cash you will need to close on your home
    • As exciting as this may be, there is no reason to actually start looking at homes until you have answered these questions.
      • Nothing is worse than falling in love with a home that is beyond your price limit.
      • Since most Realtors are not paid until you close, looking at homes when you do not know the answers to these questions is like asking them to be your volunteer tour guide. Not only are they volunteering, they are spending their own money on gas & maintenance on their car.
    • There are actually two things we need to know:
      • What is the price limit as set by the bank?
      • What is the price limit as set by you?
      • You may qualify for a higher amount than you want to spend
      • Be sure and let your Realtor know if you want to keep your overall price down and keep your budget where you are most comfortable.
    • With this in mind, don’t be offended or even surprised when your Realtor asks to see your loan pre-qualification letter or to speak to your lender. We need to know what our guidelines are as we help you start your search.
    • The initial conversation with your lender can be a relatively short and simple one, sometimes done over the phone and in less than 20 minutes. And, it is a free conversation!
    • If you are not getting a loan, but will be paying cash for your home, your Realtor will also ask for a proof of funds letter from your bank, for the same reasons listed above.

Next time, we will discuss “Understanding the Triangle Area”

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