Frequently Asked Questions

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1. Check your credit
Know your credit score and review your credit report for any errors before applying. A stronger score gives you better loan options.

2. Gather financial documents
Lenders will ask for:

• Pay stubs or proof of income
   
• Tax returns and W2s (past 2 years)
   
• Bank statements
   
• Photo ID
   
• Employment history
   

3. Choose a lender
Shop around with local banks, credit unions, or mortgage brokers in NC. A good realtor (like me and my team at TTA Realty) can also connect you with trusted lenders.

4. Submit your application
Fill out a mortgage application and provide the documents you gathered. The lender will pull your credit and verify your information.

5. Get your pre approval letter
If approved, you’ll receive a letter showing the loan amount you qualify for. This strengthens your position when making an offer on a home.

Tip: In North Carolina’s market, having a pre approval before house hunting is key. Sellers take you more seriously and you’ll know your budget upfront.

The amount you need for a down payment depends on the type of loan you qualify for. The good news is, many programs are designed to make homeownership possible even if you don’t have a large amount of cash saved.

• VA Loans – For eligible veterans and active-duty service members, VA loans require no down payment and no private mortgage insurance (PMI).
   
• USDA Loans – Available in certain rural and suburban areas, USDA loans also allow you to purchase with 0 percent down.
   
• FHA Loans – Backed by the Federal Housing Administration, FHA loans require as little as 3.5 percent down if you meet credit requirements.
   
• Conventional Loans – Many lenders offer options with just 3 to 5 percent down, though putting 20 percent down can help you avoid PMI and lower your monthly payment.
   

In addition to the down payment, you’ll need to plan for closing costs, which typically range from 2 to 5 percent of the purchase price. These cover expenses like lender fees, appraisal, title work, and insurance. Sometimes, sellers may agree to help cover part of these costs during negotiations.

💡 North Carolina Down Payment Assistance
If you’re buying in North Carolina, you may qualify for special programs that help cover part of your down payment and closing costs. For example, the NC Home Advantage Mortgage program offers up to $15,000 in down payment assistance for first-time buyers and military veterans. These funds are often structured as a deferred second mortgage that may be forgiven after living in the home for a set number of years. Local counties and cities across NC may also have their own grants or assistance programs to make buying a home even more affordable.