Buying Your First Home: A Step-by-Step Guide
What You Need to Know Before You Start
Buying your first home is exciting. It's also a process that comes with a lot of questions.
How much should you save? Do you need perfect credit? How does a mortgage work? What happens after your offer is accepted? And what exactly is a due diligence fee?
If you're buying in North Carolina, there are some important aspects of the process you should understand before you start touring homes.
The good news? You don't need to know everything before you begin. You just need to know what to do next.
Here's how to approach the process.
Step 1: Figure Out What Homeownership Looks Like for You
Before you start looking at houses, think about what you want your next few years to look like.
Ask yourself:
Are you planning to stay in the area for a while?
Do you need more space for a growing family?
Are you tired of renting?
Do you need a home office?
Is proximity to work, family, or childcare important?
Are you comfortable handling home maintenance?
You don't need to have a five-year plan, but understanding your priorities will help you make better decisions.
A home should fit your life—not just your budget.
Step 2: Understand Your Financial Starting Point
You don't necessarily need a 20% down payment to buy a home.
Depending on your circumstances, you may qualify for financing that requires a smaller down payment.
Potential options include:
Loan Type | General Considerations |
Conventional | Some programs allow down payments as low as 3% for qualifying buyers. |
FHA | Typically requires 3.5% down for borrowers meeting applicable credit requirements. |
VA | Eligible veterans and service members may qualify for financing with no down payment. |
USDA | Eligible buyers purchasing qualifying properties in eligible areas may qualify for 100% financing. |
NC assistance programs | Some North Carolina programs may offer down payment assistance to qualifying buyers. |
Eligibility requirements, income limits, property requirements, and program availability vary.
North Carolina buyers should explore resources from the North Carolina Housing Finance Agency, which offers programs that may assist eligible homebuyers.
Don't assume you need to save tens of thousands of dollars before you can have a conversation with a lender.
Start by finding out what you may qualify for.
Step 3: Get Pre-Approved Before You Fall in Love With a House
A pre-approval helps you understand your purchasing power.
A lender generally reviews information such as:
Income
Credit history
Existing debts
Assets
Employment
Available funds
The lender can then provide an estimate of the loan amount you may qualify for, subject to applicable conditions.
A pre-approval is not an unconditional guarantee that your loan will close.
Why get pre-approved early?
Because you don't want to find your dream home and then discover that your budget, financing, or closing timeline doesn't work.
It also helps you understand how much cash you'll need.
Step 4: Find a Real Estate Agent Who Understands Your Goals
Your agent should help you understand the process—not simply open doors.
Look for someone who can help you:
Identify suitable properties
Understand local market conditions
Evaluate homes objectively
Navigate North Carolina's due diligence process
Prepare and negotiate offers
Coordinate inspections and other investigations
Communicate with lenders, attorneys, and other professionals
Stay organized through closing
Before working with a buyer agent, discuss the services they'll provide and any compensation arrangements that apply.
You deserve to understand your options before making commitments.
Step 5: Start Your Home Search With a Plan
North Carolina has a wide variety of housing markets.
Your experience buying in Charlotte may differ significantly from buying in Rock Hill, Fort Mill, Indian Trail, Concord, or a smaller surrounding community.
Consider:
Commute times
Property taxes
Homeowners' insurance
HOA fees and restrictions
Flood risk
Neighborhood development
Utilities
School-related considerations
Lot size
Resale considerations
Rather than asking, "What's the nicest house I can afford?"
Ask:
"Which home best fits my financial situation and the way I want to live?"
Step 6: Understand North Carolina's Due Diligence Process
North Carolina's residential purchase contracts commonly include a negotiated due diligence period.During this period, the buyer investigates the property and the transaction.
Under the standard contract structure, the buyer generally has the right to terminate the contract for any reason or no reason during the due diligence period, subject to the contract's terms.
A negotiated due diligence fee is generally paid directly to the seller and is typically nonrefundable.
If the transaction closes, the fee is generally credited toward the purchase price.
This is one of the biggest differences that buyers moving from other states may encounter.
We'll explain it in detail in our Due Diligence Explained guide.
Step 7: Have the Property Thoroughly Investigated
A home inspection is not the only investigation you may need.
Depending on the property, you may want to consider:
General home inspection
Termite or wood-destroying insect inspection
Radon testing
Septic inspection
Well-water testing
Survey
Structural evaluation
HVAC inspection
Roof evaluation
Chimney inspection
Flood risk research
Insurance availability and cost
Not every property needs every inspection.
The right approach depends on the home's condition, location, age, and features.
Your due diligence period should give you enough time to complete the investigations that matter for your purchase.
Step 8: Hire a North Carolina Closing Attorney
Residential real estate closings in North Carolina are generally handled by a licensed North Carolina real estate attorney.
Your closing attorney may:
Examine the property's title
Coordinate title insurance
Prepare closing documents
Coordinate with the lender
Address title issues
Handle the legal closing process
Facilitate the transfer of ownership
You should identify your closing attorney early enough to allow sufficient time for title work and other necessary preparations.
Step 9: Prepare for the Costs Beyond Your Down Payment
Your down payment is only one part of the financial picture.
You may also need money for:
Due diligence fee
Earnest money deposit
Inspections
Appraisal
Closing costs
Prepaid taxes and insurance
Homeowners' insurance
Moving expenses
Immediate repairs
Furniture and appliances
Some costs may be negotiable or financeable, depending on the loan and contract.
Others will require cash.
Ask your lender for a detailed estimate of the cash you'll need to close.
Step 10: Make a Decision You Feel Good About
Buying a home isn't just about getting an offer accepted.
It's about making sure the property, financing, contract, and timing work for you.
Take the time to ask questions.
Understand the documents you're signing.
Know your deadlines.
And don't be afraid to ask for clarification.
You don't need to have everything figured out before you reach out.If you're thinking about buying —even if you're a year or two away—the best place to start is with a conversation about your goals.
Let's figure out where you are, what you need, and what your next step should be.
Comments