04. Get Pre-Approved for a Mortgage
The next step is to understand how much you qualify for by meeting with a local lender and getting a pre-approval letter. It is important to speak with a few lenders to find the right fit. Keep in mind that a pre-approval is typically valid for only 30 to 90 days, so secure that letter closer to when you are ready to actively make offers.
Questions to ask your lender
- What type of loan do you recommend for me and why?
- Do I qualify for any down payment assistance programs?
- What is the interest rate, and what is the APR?
- Will I pay mortgage insurance?
- What will my estimated monthly payment be?
- Can I lock in an interest rate? For how long and at what cost?
- What will my closing costs be?
- Is there anything else I should know?
See my complete guide to Charlotte down payment assistance
Trusted lender partners
These are lenders I have worked with and trust. I receive no compensation for referrals, per RESPA.
05. Define Your Needs vs. Wants
Before we jump into the home search, separate what you must have from what would be nice to have. This keeps us focused on the right homes and prevents you from compromising on the things that matter most.
Needs are the non-negotiables:
- Enough bedrooms for your family
- Proximity to work or school
- An attached garage, if you need one. These are the items you cannot easily change after the fact.
Wants are the nice-to-haves you can live without or add down the road:
- A specific paint color
- A fenced yard
- Particular flooring
- A walk-in shower
Remember: you can change almost anything inside a home. You cannot change the lot, the location, or the price you paid. This is why understanding the neighborhood you are buying into matters more than almost any other decision in this process.
Home search worksheet
- What area or areas of Charlotte are you interested in, and what do you like about them? Not sure yet? Start with my Charlotte neighborhood guides for a side-by-side look at the seven I know best.
- How many bedrooms, bathrooms, and square feet do you need?
- Do you have children or pets? Do you work from home?
- What is your favorite home style?
- What are the five most important things in your future home?
- Is there a non-negotiable feature you absolutely must have?
- Do you prefer move-in ready or a home you can renovate?
06. Touring Homes
My best showing tips
- Review your Needs vs. Wants list before each showing. Keeping it fresh helps you stay objective.
- Use Google Street View ahead of time to get a feel for the neighborhood before you arrive.
- Take photos and videos at every home. Your memory will blur after a few showings.
- Pay close attention to the lot, lot size, and location. These cannot be changed.
- Look past staging and decor. Those things leave with the seller.
- Do an after-dark drive-by. The feel of a neighborhood can change significantly at night.
What to look for beyond the surface
- Structural integrity: look for signs of water damage, cracks in walls or ceilings, and sloping floors.
- Noise levels: consider proximity to roads, businesses, airports, and railways.
- Roof and water damage: check for leaks near plumbing sources, water stains on ceilings, or damage to siding, windows, and doors.
- Layout and flow: does the home's layout suit your daily routine? Check room sizes, storage, and how rooms connect.
07. Writing Your Offer
So you found the one. Here is how we make the offer count.
We will include your pre-approval letter to show the seller you are serious, qualified, and ready to purchase. We will also gather information about what the seller is looking for. Understanding their motivations gives us a meaningful edge when crafting the offer.
In a competitive market, you may only get one shot, so we put our best foot forward from the start. We will use comparable sales and current trends as our guide, and where it makes sense, we will propose a faster closing timeline to signal that we are ready to move.
Understanding the key terms in your offer
- Purchase Price. The amount you are offering to pay. It is negotiable based on market conditions, comparable sales, and the condition of the home.
- Due Diligence and Earnest Money. In North Carolina, due diligence money is a non-refundable fee paid to the seller for taking the home off the market during inspections. Earnest money is a refundable deposit held in escrow to show serious intent to buy. If the sale closes, both are credited to the buyer.
- Due Diligence Period. A negotiated window where you can inspect the property, secure financing, and conduct evaluations. You can back out for any reason during this period, but the due diligence fee is non-refundable. Once the period ends, backing out risks losing your earnest money.
- Contingencies. In many states, a contingency is a condition that must be met before a purchase can be finalized. The standard North Carolina contract works differently, and the due diligence period does that job instead:
- There is no loan or appraisal contingency in the standard contract. If your loan or the appraisal falls short, your protection is the right to terminate during the due diligence period, so timing matters. I cover the options in my guide to low appraisals in North Carolina.
- There is no separate inspection contingency either. During the due diligence period you can inspect, then renegotiate, accept the property as it is, or terminate for any reason.
- Closing Costs. These include lender fees, title insurance, taxes, and other costs associated with finalizing the sale, typically 2% to 5% of the purchase price.
- Closing Date. The date you and the seller agree to finalize the transaction and transfer ownership, usually 30 to 45 days from offer acceptance.
08. Due Diligence and Inspections
Even if a home looks perfect, inspections are critical. A home inspection uncovers hidden issues like leaks, faulty wiring, and foundation problems that are not visible to the naked eye. Skipping this step could mean expensive surprises after you move in. Keep in mind that in North Carolina a general home inspection does not cover termites or radon, which are separate reports, and I explain each in my guide to home inspections, radon, and termite reports.
In North Carolina, the due diligence period typically lasts 14 to 21 days. Schedule all inspections immediately after signing the contract to give yourself enough time to negotiate repairs or credits before the period ends.
If inspections reveal problems, you have options:
- Request the seller make repairs
- Ask for a credit at closing
- Negotiate a price reduction
- Back out entirely during the due diligence period
The due diligence fee is non-refundable regardless of outcome.
Once you are under contract, start shopping for homeowners insurance right away. Lenders require proof of coverage before approving your mortgage, so getting multiple quotes early in the process puts you ahead.
Insurance types and estimated costs
