The first steps are making sure you have a steady job, good credit, and money to put down. Next, explore your down payment and mortgage options. There are many loan options to choose from; but don’t forget about other associated costs such as earnest money, mortgage/ lender fees, tax prorations, insurance, inspections, survey, appraisal, etc. Try reaching out to a lender. Ask your REALTOR for lender recommendations if you don’t already have someone in mind. They will begin your pre-qualification process, which you will need in case you do decide to write an offer on a property. It is important to know how much house you can afford BEFORE you begin your search. You may fall in love with a property that is not within your budget.
Buying a home in the Outer Banks is a significant and exciting decision. This section provides professional Outer Banks real estate advice and helpful home buying tips.
The first steps are making sure you have a steady job, good credit, and money to put down. Next, explore your down payment and mortgage options. There are many loan options to choose from; but don’t forget about other associated costs such as earnest money, mortgage/ lender fees, tax prorations, insurance, inspections, survey, appraisal, etc. Try reaching out to a lender. If you don’t already have someone in mind, I’ll happily give you a few referrals. They will begin your pre-qualification process, which you will need in case you do decide to write an offer on a property. It is important to know how much house you can afford BEFORE you begin your search. You may fall in love with a property that is not within your budget.
When applying for a mortgage, here are some documents that your lender may ask for:
- Two years of employment history, current employment status and salary.
- Two years of W-2s (this does not apply if self-employed) and tax returns allow the lender to be sure that your salary is high enough to make the mortgage payments every month.
- Most recent pay stubs for the last 30 days, this tells the lender that you’re still earning money similar to the amount on your tax returns. (This does not apply if self-employed, but the lender will likely require a profit and loss statement.)
- List of assets, including bank statements, let the lender know that you have the money to cover the down payment, closing costs and a reasonable emergency.
- Submit your documents; Once your loan application is submitted, you should receive your pre-qualification in as little as 24 hours.
When you find the right house in the OBX and are ready to submit an offer
Multiple offers on the same home are not uncommon, so you may only get one chance to make an offer that the seller will consider. That’s why it’s important to think carefully about your strategy.
How much to offer
In addition to sale prices of other comparable homes, there are several ways you can come up with a winning bid. For example:
- The condition of the house. Is the home in move-in condition, in need of paint and other cosmetic improvements, or a fixer-upper that needs real work?
- The market. If you are in a buyer’s market — where there are more homes for sale than there are people to buy them — prices are probably stable or falling. If you are in a seller’s market — where there are more buyers looking for homes than there are homes for sale — prices are probably moving upward.
- Your ceiling. If you have a credit pre-approval, you know how much you can borrow for your home purchase. Of course, you may not be comfortable paying as much as you’ve been approved to borrow, so think carefully about your financial situation before making an offer.
Next, decide how much you are willing to pay for a home. Remember, the advertised price of a house is just a starting point – it may take quite a bit of negotiating to arrive at a final cost.
Closing
Ownership of the home is officially transferred from the seller at the closing meeting at the lawyer’s office.
In advance, a title company is usually hired to conduct a search for any recorded documents that affect the deed to the property. Examples include easements, liens, tax assessments, covenants, conditions and restrictions, and homeowner association bylaws. The buyer and lender must approve the preliminary title report prior to closing.
Once the conditions of sale have been met and the preliminary title report has been approved, all parties will agree to sign closing documents. The preliminary title report then becomes the final title report, on which any applicable title insurance is based.
If everyone agrees that the papers are in order, the buyer submits payment to cover the closing. If the lender will be paying your annual property taxes and homeowners’ insurance for you, a new escrow account (or reserve) is established at this point.
Finally (and here’s the best part) you receive the keys to your new OBX home!
TIP: After the documents have been signed, notarized copies will be forwarded to the lender, funds will be released, and the sale will be recorded at the local recorder’s office. It is at the point of deed recordation that you become the official owner of the home.
