Let\u2019s dive into the steps of buying a house<\/a> in North Carolina:<\/p>\n Before you start looking for homes in North Carolina, you want to determine if you\u2019re ready to purchase one. Consider factors such as how long you plan to be in the area, if you have steady employment, and if you have enough money saved for not just the down payment, but for closing costs<\/a>, maintenance, property taxes, and more. Homebuyers in North Carolina pay $2,766 on average in closing costs<\/a> when purchasing a home.<\/p>\n During this time, review your credit score<\/a> and determine if it\u2019s considered excellent, good, fair, or poor. Typically, the higher your credit score, the lower your interest rate will be, which saves you money over the life of the loan. You may want to pay off any collection\u2019s accounts, dispute errors on your credit report, and pay down your credit card balances before you start shopping for a home.<\/p>\n Kuld notes that with mortgage interest rates creeping up<\/a> in recent months, buyers have to be more focused than ever on the health of their credit to make sure they are able to meet the more stringent lending standards they will face.<\/p>\n The median home price in North Carolina is $343,370<\/a>, as of August 2022. So, expect to spend somewhere around that number depending on what part of the state you\u2019re purchasing in, the home\u2019s age and condition, and the size of the property, among other factors.<\/p>\n Different loan programs will require different down payment amounts, but you do not always need to put 20% down when buying a home. A survey completed by the National Association of Realtors found that first-time homebuyers put just 7% down<\/a> on average in 2021.<\/p>\n Kuld says down payment requirements vary by loan program, but notes that North Carolina has great down payment assistance programs through the North Carolina Housing Finance Agency, which homebuyers should check out early in the process.<\/p>\n Here are a few of the programs they offer:<\/p>\n Getting preapproved for a mortgage will help you determine how much you can afford, which will then inform your home search. It\u2019s always smart to shop around for the best rates and terms<\/a>, so be sure to research a few different lenders during this process.<\/p>\n You can also ask family, friends, your buyer\u2019s agent, and attorneys for mortgage lender recommendations. When choosing a mortgage lender, ask for a detailed cost breakdown, review the terms you are being offered, and compare loan types<\/a>.<\/p>\n According to the US Consumer Financial Protection Bureau (CFPB), there are three general categories of mortgage<\/a>:<\/p>\n There are two types of conventional loans<\/a> \u2014 conforming and non-conforming. A conforming conventional loan will meet or exceed the guidelines set by Fannie Mae and Freddie Mac which are government-sponsored enterprises (GSEs) that purchase conventional loans. Guidelines for a non-conforming loan will vary more widely depending on the lender.<\/p>\n Typical requirements for a conventional loan<\/a> may include:<\/p>\n Non-conforming loans are for borrowers who do not fit into the guidelines set by Fannie and Freddie and are not eligible to be purchased by them \u2014 jumbo loans<\/a> are an example of this because they offer loan amounts above the limits set by Fannie and Freddie.<\/p>\n An FHA loan is insured by the Federal Housing Administration and available from FHA-approved lenders. An FHA loan is unique in that borrowers are able to use a down payment assistance program for the entire down payment. Requirements to qualify<\/a> for an FHA loan may include:<\/p>\n Similar to conventional conforming loans in this way, FHA loans have loan limits<\/a> that vary from county to county. For example, in Mecklenburg County, North Carolina<\/a> the maximum loan amount is $420,680 for a single unit home.<\/p>\n VA loans<\/b>: For veterans, service members, and surviving spouses. Loans backed by the VA<\/a> offer 0% down payments for those who qualify. Different lenders will have different requirements; however, VA-backed loans do not have a universal maximum DTI requirement.<\/p>\n USDA loans<\/b>: These loans are backed by the United States Department of Agriculture and are for lower income borrowers in \u201crural areas.\u201d To determine if the area you are purchasing in is eligible for a USDA home loan, use this eligibility map<\/a>. These loans also offer 0% down for qualified borrowers.<\/p>\n Now that you know more about preparing to purchase a house and down payments, it\u2019s time to decide where you want to live. Do you want to live near family and friends, start over in a new city, live on the coast, or in a more rural area? Consider work commute times, average house prices, and things to do in each area that you\u2019re thinking about living in.<\/p>\n Some wonderful places to consider when buying a house in North Carolina include:<\/p>\n The charming mountain communities at the western end of North Carolina, such as Asheville and Boone, offer unique community amenities in a small-town atmosphere.<\/p>\n Located in the foothills of the Blue Ridge Mountains in Buncombe County, Asheville<\/a> is the largest of the mountain towns with a population nearing 100,000. The city has long been a tourism destination due to its cooler mountain climate, its extensive art and music communities, and its brewpub and culinary scene. Its location near Pisgah National Forest<\/a> and the Biltmore Estate<\/a> have also contributed to its popularity as a prime vacation destination. However, there is also a wealth of industry and business in Asheville, making it a very livable and workable city year-round.<\/p>\n The median home price in Asheville is $480,000<\/a> as of August 2022, and sellers usually receive 2-3 offers<\/a>, so it is moderately competitive for buyers. The good news for homebuyers is that home prices have moderated a bit as the market cooled slightly in early 2022.<\/p>\n Boone is also a Blue Ridge Mountain community and features homes similar in price to Asheville, selling on average for $423,000<\/a>.<\/p>\n Located in the northwest corner of North Carolina in Watauga County, Boone<\/a> is named for pioneer and explorer Daniel Boone. This charming town is home to Appalachian State University<\/a>, giving it that wonderful laid-back university ambiance that characterizes so many of the smaller college towns across the country. The city is also known for its bluegrass musicians and Appalachian storytellers and is home to the Junaluska community<\/a>, the only remaining African American community in Watauga county.<\/p>\n Central North Carolina boasts the economic heart of the state, from the banking hub of the south in Charlotte, to the research triangle of Chapel Hill, Durham, and Raleigh, and finally to The Triad region \u2013 Greensboro, High Point, and Winston-Salem \u2013 known historically for its strong industrial and manufacturing base, in recent years bolstered by the addition of technology and biotechnology into the mix.<\/p>\n Charlotte has a wide range of homes and has experienced tremendous population growth with a commensurate housing boom over the past decade. Overall, North Carolina’s population grew by 9.5% from 2010 to 2020<\/a>, adding over 900,000 citizens to its counties, with nearly 200,000<\/a> of those settling in Charlotte’s Mecklenburg County alone.<\/p>\n As you can imagine, that kind of influx has made the Charlotte housing market incredibly competitive. Homes generally sell for about 2% over list price<\/a>, with the average median sale price of single-family homes currently at $429,000, up 17.2% year over year. Even as interest rates rise, the market continues to be a seller\u2019s market and houses generally go under contract in under 24 days.<\/p>\n For young workers looking to take advantage of the robust jobs market in Charlotte, the downtown area is surrounded by a wide range of neighborhoods and housing price points, served by the<\/p>\n Charlotte Area Transit System (CATS)<\/a>, which operates light rail and bus lines throughout the city and surrounding area.<\/p>\n If you are looking for a lower price point, typically you will want to check out the bedroom communities of North Carolina\u2019s largest cities or the in-between communities strung along I-77 running north and south through the state, or I-85 that connects Charlotte to Raleigh. Work-from-home opportunities have provided young professionals with the opportunity to consider moving farther out from the cities to take advantage of lower-cost properties.<\/p>\n Kuld, who lives in Rowan, 40 miles north of Charlotte, says that stretch along I-85, including Salisbury and Lexington in Davidson County, is a homebuyer\u2019s best bet when trying to shop for more affordable housing.<\/p>\n \u201cJust north of me in Davidson County is probably the most affordable,\u201d Kuld advises. \u201cI have buyers who start out looking in Rowan County but find if they go a little further north, they can get a whole lot more property. Charlotte, Mooresville, and the Lake Norman area are the areas that are generally less affordable.\u201d<\/p>\n Kuld says the central area of North Carolina also provides a good mix of different style homes, from traditional older properties, to ranch style homes, to plenty of newer builds offering a broader range of architectural designs.<\/p>\n And finally, you can\u2019t talk about North Carolina real estate and not take a look at its famous coastal plains region, featuring a retirement and vacation mecca that attracts retirees and vacation home ownership from around the country and the world.<\/p>\n At the heart of this gorgeous 100-mile coastline known as the Outer Banks, is Wilmington, the county seat of New Hanover County. With a population of 117,643<\/a>, Wilmington is best known for its nearly 2- mile long river walk along the Cape Fear River.<\/p>\n The real estate market in Wilmington is currently highly competitive, with the median price of single-family homes jumping nearly 13% year over year to $424,000<\/a> while the price of all dwellings, including condominiums, coops, and townhomes, jumped 27% to $399,000.<\/p>\n Real estate agents appreciate it when their clients come to them to start home shopping after getting preapproved for a mortgage. This typically means that a buyer is ready to go and can start making offers. Choose a knowledgeable agent<\/a> that specializes in representing buyers in the area you want to purchase in.<\/p>\n Your buyer\u2019s agent<\/a> will be able to help you create a wish list<\/a>, set up viewing appointments for you, tell you more about what\u2019s going on in the neighborhood, negotiate on your behalf, and connect you with other vendors such as a title company, insurance agent, and home inspector. Real estate agents are also incredibly knowledgeable on the homebuying process as a whole and can hold your hand throughout the process to keep closing on track.<\/p>\n\n\n\n\n\n North Carolina has all a potential homeowner can dream of, and it’s no wonder why the population has grown so quickly in the last few years. With the help of a top real estate agent, you can find your home in the big city of Charlotte or your beach bungalow in the outer banks. HomeLight can match you with the best agents in your area to get you started.<\/p>\n \n From mountain log houses to coastal plain beach homes, North Carolina offers a stunning array of architectural styles. Some of the most classically beautiful designs include colonial homes modeled after the old plantations, as well as the traditional Federal and Georgian styles. And of course, bungalow, modern, and contemporary designs are also ubiquitous among the developments that have sprung up in every region during the recent construction boom.<\/p>\n But within every architectural style, you will often find characteristics most typical of houses built in southern climates, including:<\/p>\n In North Carolina\u2019s humid summers, all of these features can be helpful in escaping the heat of the day and homebuyers should be on the lookout for these amenities when considering the purchase of a home there.<\/p>\n Working with your buyer\u2019s agent to craft a winning offer<\/a> can sound overwhelming. In competitive markets, cash offers could be more likely to be accepted by sellers with multiple interested buyers. While it is not always recommended to completely waive contingencies to impress a seller, you might consider pairing down to just the inspection contingency and financing contingency to remain competitive. Get creative with your offer<\/a> \u2014 you may want to offer a larger earnest money deposit, schedule a quick closing, or even consider letting the seller rent the house back from you for a certain period of time.<\/p>\n1. Assess your readiness<\/h2>\n
2. Saving for your down payment<\/h2>\n
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3. Get preapproved for a mortgage<\/h2>\n
Conventional<\/h3>\n
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FHA loans<\/h3>\n
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Special programs<\/h3>\n
4. Research the market and determine where you would like to buy<\/h2>\n
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<\/a><\/p>\nWestern Mountain Towns<\/h3>\n
Central Economic Centers<\/h3>\n
Eastern Coastal Towns<\/h3>\n
5. Find a local North Carolina agent<\/h2>\n
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\n <\/div>\n \n Looking to Buy Your Dream Home in Beautiful North Carolina?<\/h3>\n
6. Start shopping for homes in North Carolina<\/h2>\n
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7. Make a strong offer<\/h2>\n
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