How to Get a Home Mortgage in North Carolina

Getting a North Carolina home mortgage doesn’t have to be a difficult process. By educating yourself on the simple mortgage loan steps, you will be able to get a mortgage with confidence. Following the steps below can save you time and money when you’re ready to get a North Carolina home mortgage loan.

Instructions

Difficulty: Easy

1. Contact one of the major credit agencies and get a copy of your credit report for review. Take care of any mistakes before applying for a loan.
2. Explore the many North Carolina and federal programs that are offered to veterans, the disabled, senior citizens, low-income, single parents, rural home buyers and even current home-owners seeking second mortgages. Here are just a few of the available housing programs such as the Mortgage Credit Certificate (MCC), the Rural Opportunity Mortgage (ROM), and the American Dream Down payment Initiative (ADDI).
3. Here are a few government Web sites for North Carolina-specific loan information:
   o North Carolina Homeownership Overview
   o USDA North Carolina Rural Development programs
   o North Carolina Homeownership Assistance programs
4. Contact different mortgage lenders like mortgage brokers, banks, credit unions and online mortgage brokers. Some places will have better rates than others and you want the best rate you can find.
5. Get pre-approved for the loan from your desired lender. Be sure to take necessary documents such as credit reports, stocks and bonds, bank accounts, tax returns, tax forms and other information the lender requires to apply for the loan.
6. Enlist a real estate agent and begin your home search. Take your time deciding which home is best for you, and then finalize the loan with your lender.
7. Find a new home and contact your realtor to put in a formal offer for the purchase.
8. Pay all costs and fees when closing on the home purchase. There is no mortgage tax in North Carolina, so the closing fees will be slightly lower than in other states.
9. At this time, your lender will pay the owners of the home with the loan and you will begin paying off your loan to the lender.

Tips & Warnings

• It’s a competitive market for home mortgage lenders, find the best interest rate and loan terms.
• Take your time when finding a home. You want it to fit your needs now and in the future.
• Have your home professionally inspected to uncover problems before the deal is finalized.
• If a real estate agent pressures you to buy a specific home, they may have another agenda.
• Before you sign anything, make sure that you thoroughly understand all the terms of the mortgage contract.
• If you are suspicious of a lender, North Carolina can investigate under the 1999 Anti-Predatory Lending Law. Predatory lending occurs when lenders intentionally coerce consumers into contractual loans with unusually high payment terms and interest rates, often directed at uninformed borrowers or those with poor credit.
• Record low interest rates of the recent past have led to an explosion of unethical lending and loan scams. You may wish to have an attorney review any documents before you sign them.
• Make sure that the home title is clear of liens before you purchase it.
• If a lender wants you to pay for pre-approval, run away. No legitimate lenders will ask engage in this practice.