First Steps in the Homebuying Process

Listing one’s home and prepping to sell is a crucial part of the overall picture. For now, however, I’ll be focusing on the roadmap for moving to a new place: namely, Raleigh, NC and its surrounding suburbs, the second-fastest growing metropolitan area in the U.S. behind Austin, Texas.

People are drawn here for a wide array of factors. The location, for one. Raleigh-Durham International Airport (RDU) is a one-hour flight to New York, two hours to Orlando, and 2.5 hours to Chicago. You’re a reasonable 2-hour drive to the wonderful beaches in Wilmington and the Outer Banks, and approximately 3 hours to mountain towns like Asheville and Boone.

Once you’ve identified this as your landing spot, one of the critical first steps is talking to a local bank or mortgage lender. A pre-approval letter is not only important for you to understand your buying power, but it’s required to submit an offer on a home (unless you’re a cash buyer, in which case you’ll provide proof of funds, such as a bank statement).

Although you’re still in the first inning of your home search, insight from a realtor can already prove invaluable. A couple things become clear rather quickly in the real estate business: a) not all lenders are created equal and b) a great lender can make or break a deal. Are you interested in new construction? Your best option may be a construction-to-perm loan. Not all lenders handle those. Are you looking for a vacant lot to build on? Well, not all lenders do land loans, either. Is this an investment property? If so, get ready to pay a higher interest rate. Is your investment property a condo? Well, you’ll need to identify properties where the ratio of investors to owner occupants is within a certain range, otherwise banks won’t be able to lend. I’ve dealt with all of these scenarios, and I can direct you to local lenders who can handle both straightforward and non-traditional loans—and I prioritize lenders who do their due diligence and pick up the phone when you call.

A pre-approval letter is typically good for 90 days. Armed with this document, you’re in position to submit an offer on a home that checks all (or at least most) of the boxes that you’ve prioritized. Some agents will take it on faith that you’re focusing on houses you can afford. Others will insist you’ve secured a pre-approval letter. If so, don’t take it as an affront. House hunting, especially in a hot market, can be a time consuming, sometimes frustrating process. A pre-approval letter protects realtors and buyers from wasting valuable time looking at homes that are outside their financial wherewithal.

Once you’ve secured a pre-approval letter, you can start narrowing down your preferred towns. The Triangle is multi-faceted, and every buyer has specific wants and needs. You might be working for Google and desire a short commute to the RTP campus. Cary, Morrisville and Apex would naturally rise to the top of the list. Your daughter just landed a prestigious academic job at Duke and you’d like to live nearby? How about an upscale townhome within walking distance of all the amenities that bustling downtown Durham has to offer? You went to UNC, moved to NYC for work but you still bleed Carolina blue? Well, Chapel Hill is clearly calling your name.

Keep in mind: determining the “right” town for you is likely a work in progress—especially if you’re searching in a completely unfamiliar area. Still, it’s beneficial to drill down as much as possible, otherwise a search can become overwhelming. No one wants to sift through 200 property listings.

Next is the fun part: your home! There are literally hundreds of potential data fields that allow you to personalize your search down to the most granular detail. Beyond the baseline number of bedrooms and bathrooms, you can choose minimum acreage, garage spots, age of the home, architectural style, and so on. Don’t want an HOA? Deselect that field. Are you set on a first floor primary bedroom? Check that box! Something else to consider: depending on where you’re looking, the more rural areas will likely operate on well and septic (as opposed to city water and sewer). If you’re not a fan, that can help you narrow down towns, or at the very least eliminate unwanted property listings.

To sum up, the first three steps on your house hunting agenda are:

1. Get your pre-approval letter.
2. Narrow down your target neighborhoods.
3. Set up your property search (your realtor will be able to create the most personalized search for you in the MLS)

Once your homework is complete, it’s up, up and away!