A First Time Home Buyer Guide Raleigh, NC

Do you want to be prepared for your first home purchase? This is why we created this guide for first-time home buyers, which includes tips, tricks, and information about programs, grants, and the buying process.

You don't need to pay 20% as a downpayment when buying a house. 

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You Can Buy a Home With No Down Payment!

Most of the time, houses in Raleigh sell for much more than their asking price. It is therefore even more important to find the best deal for your mortgage. Raleigh has some great programs for first-time home buyers. 

“Contact us to find out more about the national, state, and local programs for first-time home buyers, and will help you make a successful purchase.”

"Before you begin searching for homes online, you should learn more about the process of buying a house. You can contact us if you are a Raleigh first-time home buyer."

It makes sense that we should first discuss why you want to buy real estate. You will be able to make better decisions once you know the "why" behind your purchase. The 'where' is the most important part of buying a house. The most important aspect of purchasing real estate is the location. After determining your why' and where', we can move on to the how'. This will involve working with an Iron Key estate agent as well as a mortgage lender for first-time home buyers. You will also likely need to work with a real estate attorney if you are buying in NC.

You may not be aware that there are a number of costs and fees when buying a home. First-time home buyers don't usually have a lot of cash to put down on a house. You can find a lot of good mortgage information online using useful apps. But there is also some bad information.

It's important to understand the differences in first-time home buyer programs offered by local and state governments. You can also find national programs for first-time home buyers. Many of these grants cover the closing costs or assist you with financing. 

“Contact us for advice on first-time home buyers if you don't want to do the reading, studying, and digging.”

What Are Some of the First-Time Home Buyer Programs?

National Programs

National mortgage programs are open to all who qualify, regardless of where they live in the United States. If you meet the requirements, you can use these programs to buy a house in NC as well as other cities. 

Mortgage Credit Certificate

This is a nationwide program (not based in Raleigh, NC although it can be used with the NC Mortgage Home Advantage). It allows first-time homebuyers to save up to $2,000 per year on taxes. The income and sale price requirements must be met. This federal tax credit can reduce your income tax liability dollar for dollar, giving you money to put towards your mortgage, if you buy an existing home or 50% of interest on a brand new home. The maximum amount is $2,000 per year you reside in the house.

Mortgage credit certificates can be used with many loans and lender programs, including adjustable-rate mortgages, for first-time buyers.

Veterans Affairs Loans (VA Loans)

The U.S. Department of Veteran Affairs provides VA Loans with 0% down payment options to first-time homebuyers and veterans. It is only available to veterans. You may not be eligible for this program. It's not as strict as the USDA loan with 0% down.

USDA Rural Development Program

United States Department of Agriculture provides flexible plans to first-time home buyers with low-to-moderate incomes (but this is available to anyone who qualifies). The USDA offers 100% financing for eligible homes by partnering with lenders throughout the United States.

Are you -eligible?

USDA loans are usually more stringent in terms of qualification. It can be difficult to qualify for a USDA Loan because the housing costs cannot exceed 29%, and total debts cannot exceed 41%. Be aware that repairs and improvements could be included in the loan eligibility.

Programs LOCAL and State-based

You can find programs, grants, and other benefits for first-time home buyers in North Carolina, or in any country. Some state and local programs are not always obvious.

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N.C. Home Advantage Mortgage

We have a fantastic program for first-time home buyers in NC called the N.C. Home Advantage Mortgage.

This program is offered with conventional, FHA, VA, and USDA mortgages. Are you a match? This mortgage is perfect for buyers who are searching for affordable, safe financing. It offers competitive rates of interest through participating lenders. This program is offered by more than 700 offices across NC.

You May Need Help With Your Down Payment.

The N.C. Home Advantage mortgage is great because it offers help with the down payment. The program offers many benefits, including down payment assistance, closure costs, or even second mortgages that are interest-free and deferred.

What Is the Best Part of This?

The down payment assistance will be forgiven after 10 years of living in the house. It is fully forgiven after 15 years.

Does My Credit Score Affect My Ability to Obtain a Mortgage?

Your credit score as well as your credit report can affect your ability to qualify for a mortgage. Your interest rate will increase the lower your credit score. You may have a great credit score, but your credit report could prevent you from qualifying for a home. You might have a great credit score but a report shows something else.

There are many ways to collect your credit scores from various credit agencies. 

Tricks for a Good Credit Rating:

  1. Credit Karma and other websites can help you track it online.

  2. Do not over-apply for credit lines, only apply for what you require

  3. Pay off your credit card as soon as possible.

  4. Dispute all credit report errors

  5. If you are unsure of how to improve your credit score, seek advice from an expert.

What Is the Best Mortgage for Me?

Most people are unaware of how affordable Raleigh, NC real estate has become, now that the days of 20% deposits have long passed. 

What happens after you accept your offer?

Last Thoughts on First-Time Home Buyers

Don't give up. It's not easy to buy a house for the first. You need to keep in mind why you want to purchase a house. It could take you 3-6 months to finally find the home you're looking for. You should look for the best professionals who can help you.

We hope you have found this guide for first-time home buyers helpful. We will continue to add more content. 

Choosing the best place to live in NC with family depends greatly on what criteria matter most to you! Contact a local real estate agent today like IronKey Realty and will help you find the perfect place in this vibrant, growing city! Act now!

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