When you’re in the process of buying a home, there are six essential things that you need to think about before making an offer on a property:
1. Loan pre-approval letter. You’ll work with your lender to get this. They will check out your credit and your financial situation in order to issue the letter. This shows the seller and the listing agent that you have the ability to purchase the property.
2. Due diligence fee. In North Carolina, you’ll pay a fee to take the property off the market, which keeps someone else from coming in to buy it at the same time. The fee ensures you have the time to investigate the property more closely and decide whether you want to move forward or not.
3. Earnest money. Think of this as good faith money. If, for some reason, you don’t close after the due diligence period is over, the seller gets to keep the money. If you do close on the property, this money is applied toward your down payment.
4. Down payment. This is the money that the bank is requiring you to put down on the property.
5. Closing costs. In any real estate transaction, the buyer is going to be responsible for certain costs associated with purchasing the property, making the loan, doing the title search, etc. This money will be due at closing.
6. Additional fees. This could be anything from home inspections, to surveyors, to appraisers. These are significant fees that add up.
If you have any questions about any of the items on this list or anything else related to real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.