Raleigh Home Buyer Guide...

Simply Start Here!


At the Capital City Real Estate Group in Raleigh, we know that buying a home can be overwhelming. Buying your new Raleigh home is a big financial commitment and contract terms can be confusing. Plus, what about all those inspections and deadlines and financing options?

We have created the Capital City Real Estate Group's Raleigh Home Buyer Guide so you can become familiar with the Home Buying Process. But remember, no Guide can replace the expertise of your Capital City Real Estate Group Realtor®. We are Raleigh Real Estate Experts and we are here to work with you every step of the way. So when it's time to start your Raleigh Home Search, give us a call today! Don't worry, we are here to help!

Introduction

We are here to provide exceptional real estate service. Our clients deserve an honest, knowledgeable real estate agent that is dedicated to customer satisfaction. This Home Buyer Guide is just one of the many resources we provide buyers to help them navigate through the journey of finding, financing and buying a new home. You’ll find interesting facts, worksheets and charts that will prepare you for this exciting adventure. You can sit back and relax knowing you are working with an experienced, professional agent.


Buying Your New Home

Congratulations! You’ve decided to start fresh and purchase a new home. This is a very exciting time for you and we look forward to guiding you smoothly through this process, providing you with good information so that you are able to make good decisions and helping you to efficiently find the home of your dreams. As you will see, there are several steps you need to take before you move into your new home. This Home Buyer Guide is designed to inform you of your rights as a home buyer and to introduce you to the world of real estate. When you hire us to represent your best interests, you will feel confident your search for a new home will be very successful.


How Much Home Can You Afford?

Before you can begin to search for a new home, you need to determine your budget and estimate how much you can afford. One of the most important factors in figuring out your financial budget is getting pre-approved for a mortgage.


The Financing Process

Here’s an easy way to understand the financial steps you’ll need to take to guide you toward your new home purchase. When you consult with us, everything is explained in great detail so that you completely understand every step in the process

  1. Calculate your budget
  2. Apply for a mortgage
  3. Lender begins processing application
  4. Lender provides booklet of estimated closing and related costs
  5. Lending institution requests an appraisal of home, a credit report and verification of employment and assets
  6. Estimate of your loan costs in form of initial Truth in Lending Disclosure Statement
  7. Lender evaluates the application and approves the loan
  8. Search begins — Our team shows you every home from every real estate company that matches your exact criteria
  9. You find the house you want
  10. You make an offer
  11. Lender disburses funds to closing agent
  12. Sign closing documents and loan is funded
  13. Appropriate documents recorded at county recorder’s office
  14. The home is sold and it is yours

Now that you have a clear understanding of the entire process, let’s look closely at each step


What is a Mortgage?

The first step towards financing a new home is getting pre-approved for a mortgage. A mortgage is an advance of money from your lender that will cover the finances of your new property. Over an extended period of time, you (the mortgagee) must pay the bank back each month a percentage of the money they lent you plus interest, until the total sum is paid in full. This is how most homes are financed.


Documents Needed

When you apply for a mortgage, you will need to furnish information regarding your income, expenses and obligations. To save time, have the following items available for each borrower:

  1. Two most recent pay stubs
  2. W-2s for the last two years
  3. Federal tax returns for the last two years
  4. Last two months bank statements
  5. Long-term debt information (credit cards, child support, auto loans, installment debt, etc)

Getting Approved for the Loan

Of course, a lender will only lend you money if they’re sure your credit is strong and they’re confident you have the ability to pay them back. A bank checks your credit by studying your financial history income, federal tax returns, pay stubs, and long-term debt information (such as credit cards, auto loans, child support, etc.) to determine if you are a good candidate for a loan. If your credit report is good, then you have an excellent chance of obtaining a mortgage. If not, then you must take the appropriate steps to improve your credit rating.


Which Mortgage is best for you?


Fixed-Rate Mortgage

This is the traditional method of financing a home. The interest rate stays the same for the entire term of the loan usually 15 to 30 years. This means that the interest and the principal portions of your monthly payment remain fixed. With a Fixed Rate Mortgage, your payments are stable and predictable, but initial interest rates tend to be higher with a fixed rate than with an adjustable rate


Adjustable Rate Mortgage

The interest on an Adjustable Rate Mortgage is linked to a financial index, such as a Treasury Security, so the interest rate fluctuates with changes in market conditions. With an adjustable rate, your payments will vary over the life of the loan. Most Adjustable Rate Mortgages have a lifetime cap on the interest rate increase to protect the borrower The advantage of an Adjustable Rate Mortgage is that it offers lower initial payments and this makes it easier for buyers to qualify Some Adjustable Rate Mortgages may be converted to Fixed Rate Mortgages at specified times usually within the first five years. It is important to know that you are not limited to a Fixed or Adjustable Rate Mortgage If you are interested in exploring further options contact your local mortgage professional. If you would like some professional recommendations, we would be happy to help, just ask us


Calculating Your Budget:

Here are just some of the expenses you will incur:

  • Down Payment
  • Closing Costs
  • Real Estate Taxes
  • Insurance
  • Inspections
  • Attorney Fee
  • Wire Fee
  • Appraisal Fee
  • Credit Report Fee
  • Flood Cert Fee
  • Interest
  • Title Insurance
  • Recording Fees
  • Survey Fee

Seller Disclosure Statement

Often in real estate transactions, the seller will present a Disclosure Statement. This statement includes the age and condition of the property and a list of any additional features (pool, garage, etc.). The Disclosure Statement protects the seller against liability from a buyer who charges that they were not made aware of a particular condition. A home inspection by a qualified and professional home inspector is highly recommended for all buyers so that they have an extensive review of the property and can make a fully-informed decision before they purchase the house. We can guide you through all the closing procedures so that you can obtain your new home as efficiently and easily as possible.


The Offer to Purchase and Contract

Once you’ve found the perfect home, we will write up the offer. After the offer is accepted, there are many steps that need to take place before you can close. These include the loan application, qualification and commitment, all inspections completed and repairs made if necessary property is surveyed and appraised, the title is analyzed and the title insurance commitment is issued, and you have secured homeowner’s insurance.


Settlement Process

Once the seller has accepted the offer and both parties are in agreement, the settlement procedures can begin. These include calculating and paying for the costs of the various settlement needs, signing all the appropriate papers, the transaction of money, and the title change of the property. This is the meeting where the sale transaction is finalized. During the closing, settlement procedures take place. The Disclosure Statement is released, money is exchanged, all paperwork and agreements are signed, and the title of property is transferred. This is the last step before you can call the property your home.


The Home is Yours! - Now the fun begins...