How to Buy a House in Charlotte in 2024: 8 Proven Steps

Buying a house is a big financial decision. Do not rush into making a purchase and plan ahead to avoid mistakes. If required, seek assistance from real estate agents in Charlotte, NC. A realtor can help you navigate the property buying process, providing you with assistance every step of the way.

Here is a step-by-step guide to buying a house.

Step 1: Calculate How Many Houses You Can Afford

When calculating how much house you can afford, consider your gross annual income, monthly income and expenses, and debt-to-income ratio (total monthly debt payments/gross monthly income). Decide the amount you are willing to put down on your mortgage and estimate property taxes and insurance. Use an affordability calculator to determine how much house you can afford based on different factors including your monthly income, expenses, down payment, and other factors.

Step 2: Check Your Credit Score

When making lending decisions, financial institutions check applicants’ credit scores to determine their creditworthiness. Usually, banks offer their best mortgage rates to applicants with good credit scores. Pull your credit report from Equifax, TransUnion, or Experian and dispute any mistakes in it.

Step 3: Plan Your Down Payment and Understand Closing Costs

Aim to make a down payment of at least 20 percent of the property value. Consider closing costs including underwriting fees, realtor commissions taxes, insurance, and recording fees. Usually closing costs vary between 2 and 6 percent of the loan amount.

Step 4: Get Pre-Approved for a Mortgage

Contact mortgage lenders or banks to get pre-approved for a mortgage. The pre-approval process gives you a more accurate picture of your borrowing power and helps you identify the best options according to your budget.

Step 5: Start House Hunting

Before starting your home search, choose a location, determine the right lot size, and decide the amenities you need. Once you determine your priorities and preferences, first view listings online and then attend open houses to see properties in person.

Step 6: Make an Offer

Once you find a house that meets your criteria, make an offer to the seller. When determining the amount you’re willing to offer, consider factors such as the condition of the house, recent sales of similar properties, and the seller’s asking price. Consider offering cash to make your offer attractive to the seller. If the property seller accepts your offer, sign the purchase agreement and deposit 1-2 percent of the purchase amount in an escrow account.

Step 7: Have the Property Inspected

Have a home inspector perform a home inspection. A thorough inspection can reveal any issues that need to be addressed before closing.

Step 8: Close the Deal

During the closing meeting, you’ll complete the paperwork and pay any remaining closing costs and fees. Once the amount (closing costs down payment) is transferred to the escrow account, you will receive the keys to your new home.

Castle Gate Real Estate Group is committed to helping house hunters find their dream homes. We go above and beyond to deliver top-notch customer service. To learn more, call 704-533-9387.