What It Really Costs to Buy a Home in Charlotte, NC
At The Winfield Group, our goal is to make the homebuying process as easy as possible. This begins with helping you find homes that are within your budget. We believe in being upfront with every aspect of this process, and that includes keeping you aware of other costs you may not know of ahead of time. So what does it really cost to buy a home in Charlotte? We're about to get into it.
Down Payment
The first fee you pay when you buy a home is your down payment. Traditionally, this is 20% of the price of the home, but you might qualify for a loan or state grant that requires less money upfront. We’ll help you find the best deal for this new purchase.
Closing Costs
These are fees you may not be thinking of when you first start the home buying process because they aren’t paid until the end of the real estate transaction. Closing costs run between 2% and 5% of the total purchase price and are paid to the lender and any third party involved in the sale.
These costs may also include additional fees, including:
Origination and appraisal fees
Documentation fees
Discount points
Title searches and title insurance
Credit report charges
Deed recording fees
Interim interest
Homeowner’s insurance
Tax and insurance escrow
When you start looking for mortgage loans, the lenders will outline these costs. By looking at more than one lender, you’ll be able to negotiate some of these costs and go with the least expensive lender. And remember, sometimes you can even get the home seller to pay some of these fees.
Other Costs When Buying a Home
When you buy a home in Charlotte, NC, you know you’ll be paying a down payment and closing cost, but what about after the purchase? Many homes in North Carolina are part of homeowners’ associations and will be subject to annual membership costs for the entirety of your ownership. Additionally, your home will need regular maintenance so make sure to factor in costs like roof repairs, water damage, yard maintenance, and cleaning services.
And finally, all homes are subject to property taxes that are due annually and are based on the value of your home. Sometimes these property taxes are included in your mortgage payment, and other times you’ll have to make these payments yourself separately.
Owning a home in Charlotte is a rewarding experience filled with culture, community, and fulfilling experiences. We can help you find a home that is within your budget and meets your needs while helping you navigate the extra costs you could incur as a homeowner.
When Should I Start Looking at Homes to Buy in Charlotte, NC?
Immediately. If you are planning to buy a home in the next year, start your search now. Beginning your search now will help you determine what features of a home are most important to you. Do you want an attached garage? How about a big backyard? Starting your search early means figuring out what is important to you. It gives you an insight into what is available in the area you’re looking to live in.
Steps to Buying a Home:
Decide you want to buy a home, whether you’re a seasoned homeowner looking to move, or a first-time buyer looking to own.
See how much of a mortgage you qualify for through the pre-approval process.
Begin looking at listings
Call up The Winfield Group so we can help
Look at homes
Make an offer and close on your loan.
If the home falls through, fails inspection, or your offer is rejected, the process begins again. The homebuying process typically takes anywhere from four months to a year.
Most people find a house on Zillow or Trulia (or Compass’s MLS tool), reach out to a real estate agent to tour the home, and maybe they like it, but they don’t love it. So they look at another. And another. And another. Patience is key.
The Best Time to Buy in North Carolina
In Charlotte, the best time to look for a home is in the summer. In the spring there is a tremendous amount of listings. Most people choose to put their home on the market in the spring. They prefer to buy a new home for the fall and their children can start in a new school. But, more availability means more expensive listings.
Beginning your search in the fall, and aiming to buy in the early winter, will help you find a less expensive home. There are fewer people looking to buy in the late fall and early winter and so many sellers are anxious to sell. But, there are fewer listings.
The sweet spot is the end of summer. The mid-end of summer is HOT. The homes available are fewer and they go fast. Sometimes listings sell the same day they go on the market.
Determining the time of year you hope to close on a home (and working your way backwards 365 days) will help you decide when it is right for you to start looking for a home in Charlotte, NC. But remember, it can’t hurt to start early!
A few steps to take now to help your search move faster:
Know what you want and set your budget.
Get pre-approved by a lender.
Work with licensed real estate professionals (psst… that’s us!)
Start early. Expect the process to take up to a year.
If you're planning to buy a home in Charlotte, we’d love to help guide you through the process! Get in touch with us here.