FAQs
What's the difference between pre-qualification and pre-approval?
Night and day. A pre-qualification is basically a guess of what you may be able to buy. A pre-approval is the real thing.
We, the lender, have reviewed your income, your credit, and your assets (which you may not have all of yet, but we have a plan or timeline for when and how you will get them). We literally input the loan the way an underwriter will see your scenario and submit it for preliminary approval.
This is so much better for you, the buyer, as it gives you a sense of power and confidence. It is as if you are a cash buyer with a real approval letter.
It is imperative that you do not quit your job or go buy a new vehicle during the time leading up to buying a home unless you discuss it with us ahead of time to make sure this does not hurt your chances.
A pre-approval is the real deal. It is what listing agents want and what sellers feel comfortable with. Sellers may even accept a lower price or more favorable terms for you (the buyer) if you are pre-approved rather than pre-qualified. You must be strategic and smart in your planning, and a pre-approval helps you do this.
How much home can I afford?
This is the million-dollar question. Should you buy what you can get a loan for, or should you buy what you feel comfortable with payment-wise?
How much home is affordable is based on many things, including your monthly expenses, your savings, your risk level, and your overall concept of money.
For example, if you receive overtime that is new and an underwriter may not be able to use due to lack of history, you may still feel comfortable buying a higher-priced home because you know you can afford the slightly higher payment.
You may also know that you are about to pay off a debt or move in with someone. All these factors—and your personal history with money and debt—affect what you feel is affordable.
For us, the lender, we look at over 20 factors to determine an exact maximum price. Things like:
Are you buying a primary residence or an investment property?
Are you buying a condo or a townhome? (Condos can be harder to finance at times.)
Are you buying a triplex or a single-family home?
What is your credit score?
How does your past rent compare to your new housing payment?
We will review all of these factors with you when we go through your loan. We see ourselves as wealth coaches, not just mortgage lenders.
What credit score do I need to buy a home?
If you are a veteran, there is really not a minimum credit score requirement. However, credit scoring models have proven to be somewhat accurate predictors of foreclosures in home lending.
If you have a high 700 or 800 score, you are considered very low risk and will generally get more favorable terms than someone with a 500 score.
If you have a minimum of a 640 credit score, you can qualify for many of the first-time homebuyer programs available in NC, SC, VA, FL, and GA.
How much do I need for a down payment?
You may need nothing for a down payment. However, people often confuse down payment with cash to close.
Cash to close is always higher than the down payment and includes:
Homeowners insurance
A prorated portion of property taxes
Sometimes your first month’s mortgage payment
Closing costs not paid by the seller
Your down payment
First-time buyers typically get in with less than 5% down, as they are offered many first-time buyer programs.
In NC, we have a great $15,000 down payment assistance program (and others) that we can offer. Some programs are available for non-first-time buyers, and some are even allowed on manufactured housing with no income limits.
How long does the mortage process take?
If you do the work and get preapproved with us ahead of time, we can close very quickly—in just a few weeks—which may help you get your offer accepted over another.
A typical closing for most buyers in NC, SC, VA, FL, and GA is about 30–45 days.
We have closed loans in as little as 2 weeks. On the other hand, if you are building a home, it could take up to a year. So timelines vary.
Since our underwriting is local, we are able to move very quickly, which helps when negotiating with sellers.
A preapproval speeds up the process and also identifies any weak points we can improve before closing.
Should I get pre-approved before talking to a real estate agent?
100% yes. This is the very first step.
Figure out your budget before you fall in love with a house you don’t want—or can’t afford—to buy. Figure out the money first. That’s what we help you do.
We help you develop a plan where real estate builds wealth over time and puts you in a position to become financially independent.
In fact, we even help people build real estate portfolios over time.
More money has been made in real estate than all other businesses combined. (Andrew Carnegie)
They’re not making any more land, friends!
What's the average home price in Raleigh, Durham, and Chapel Hill?
The average home price in Raleigh is a little less than the average price in Chapel Hill. Depending on what area you are looking in, some areas have an average home price of $470,000 and some in Chapel Hill in the mid $550,000’s. There are much more affordable pockets around the Triangle like Franklinton, Wendell, Clayton, Wilson, Louisburg, Bunn. Your need for more land, or a shorter commute time will play into where you need to look and where you find a home that is suitable for you and your family to live in and start laying down roots.
How can I make my offer stand out in a competitive Triangle market?
You can make an offer standout by first of all being pre-approved rather than pre-qualified. You can write a personal letter to the seller, however, they may not read it or accept it. I can add some personal things about you into our pre-approval letter that we give to you when you write up the offer.
Write the offer letter after asking key questions to the listing agent such as:
When does the seller want to close (verses what is good for you the buyer)?
What is important to the seller (for example a short rent back to them)?
Make sure you make an offer with few or no contingencies (appraisal and inspection are of course standard). Think of buying a house, as win win for you and the seller and come across that way in all communications rather than the seller “owing you” something.
Ask how you can find a path to yes and often times people want to deal with that type of person. Especially on a primary residence. I can call the listing agent and vouch for you (we do this often and it does make a difference especially in a multiple offer situation). Offer competitive earnest money and due diligence money to show how serious you are.
Are there first-time homebuyer programs available in North Carolina?
Yes, there are numerous and plentiful first-time homebuyer programs in NC and other states like GA, SC, FLA, VA as well. NC has around 5 programs. We try to layer them and stack them whenever we can. Some of them are linked to income, and some are not.
There is one downpayment assistance program that also applies to people that are not first-time buyers in fact they can keep that first home that they already have.
A very popular and easy to use program is the NC downpayment assistance program where first-time homebuyers get $15,000 to use towards their downpayment and closing costs.
You are only a first-time homebuyer one time so it is great to work with a lender like us that loves these programs. We can pre-approve you for multiple programs and you can choose the loan after you finalize which house works best for the dream.
Do you work with LGBTQ+ homebuyers?
Of course! We love working this segment of the market. Generally speaking, they are two income households, with a good sense of family partnership. We support, represent and fight for your offer to be accepted and stand out in the pack. It would be our pleasure to support you.
Are there any dog-friendly neighborhoods or parks you recommend?
Dogs are the best! I take my dogs to as many places as possible. They are my family. Here is a partial list but I am sure I am missing many names for you. Tractor Supply, Hobby Lobby, usually all pet stores, outside eating areas of many restaurants, many wineries, a lot of breweries, Home Depot does not allow dogs but we bring ours there without any problems, Greater Outdoor Provision Company, Bass Pro and Cabellas, Flying Saucer in downtown Raleigh has dog friendly patio same as Franco’s Steak House in Franklinton, Goodberry’s Frozen Custard, garden stores. Google is your friend here. We have also written a blog about this find this, and you can check out the app Bring Fido! And of course you can bring them to my office at the Loading Dock in Wake Forest! A house is not a home without a dog!