Fees, deposits
and inspections.
Ask your agent, lender and attorney which payments are due before closing and when. In North Carolina, discuss the due diligence fee and earnest money separately.
Understand the money at risk →← Buying with Raleigh RealtyMortgage
HomesRaleigh / Buyer guide
Mortgage
pre-approval.
A lender’s approval amount doesn’t have to be your spending limit.
Buying in Raleigh, Cary or elsewhere in the Triangle? Ask what your lender has verified, then set a price limit that leaves room for your other expenses and savings.
Ask about buying a homeHomesRaleigh is part of Raleigh Realty. Contacting our real estate team is not a mortgage application.
What the letter means
Ask what your lender
has checked.
A pre-approval is conditional. It does not guarantee that your loan will close. Lenders also use “prequalification” and “pre-approval” differently, so ask which records were reviewed.
Ask when the letter expires and what the lender needs to update it.
CFPB: pre-approval explained ↗Take these questions to your lender.
- Have you verified my income, savings, debts and credit?
- Which documents do you still need, and what must happen before you can approve the loan?
- What property and appraisal checks remain?
- Which loan and appraisal checks can you finish before my proposed due diligence deadline?
Prepare your documents
Prepare the documents
your lender requests.
Request your lender’s checklist first. Common requests include the documents listed here; the dates and records required depend on your loan and circumstances.
Send records through the lender’s secure process. Keep tax returns, bank statements and Social Security numbers out of our contact form.
CFPB: preparing your documents ↗This checklist does not upload documents or assess loan eligibility.
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Set your buying budget
What you pay.
And when you pay it.
You can shop below the amount a lender approves. Tell your agent the home-price limit you want to keep.
Fees, deposits
The cash still needed
at closing.
Ask your lender to explain “Estimated Cash to Close” on your Loan Estimate and how earlier deposits are counted. Keep moving costs and the savings you want to retain separate.
The mortgage.
Plus ownership costs.
Include principal (loan repayment), interest, property taxes, insurance and any mortgage insurance. Add HOA dues paid separately, utilities and a repair budget.
Comparing a Cary townhome with a Raleigh house?
CFPB: read your Loan Estimate ↗Request the property tax estimate, insurance quote and any HOA dues for each address. Check the HOA documents for maintenance the association covers and repairs you would pay for yourself.
Choose your lender
Compare the costs.
Then the deadlines.
You can request pre-approval from more than one lender. Getting a letter does not commit you to that lender. When you compare Loan Estimates, use the same loan type, repayment period and loan amount, and check when each estimate was issued.
CFPB: compare loan offers ↗CFPB: points and lender credits ↗
CFPB: rate locks ↗
- Monthly payment
- Compare principal, interest and mortgage insurance. Check whether property taxes and homeowners insurance are included in the estimated monthly payment. Lower estimated taxes or insurance do not prove a lender offers a cheaper loan.
- Upfront charges
- Compare lender fees, discount points (an upfront fee for a lower rate) and lender credits (money toward closing costs, usually for a higher rate). Ask for the monthly payment and cash needed at closing with each option.
- Rate lock and closing date
- Ask whether the rate is locked, when the lock expires and whether the lender can meet your proposed closing date. If the rate is not locked, it can change. Ask how a different rate would affect your monthly payment and closing costs.
Before a North Carolina offer
Review unfinished loan checks
before due diligence ends.
Before agreeing to a due diligence deadline, ask your lender which loan and appraisal reviews it expects to finish by that date. Ask what would still be required for final loan approval. Discuss any unfinished reviews with your agent and attorney before the deadline.
Ask your attorney how your contract handles a denied loan, cancellation and fees or deposits already paid. A pre-approval letter does not determine whether that money is refundable.
Review offer terms and deadlines →Will getting pre-approved affect my credit score?
A hard inquiry—a credit check used to evaluate a loan application—can lower your score. A soft inquiry does not affect it. Ask each lender whether its pre-approval uses a hard or soft inquiry and when it will check your credit.
FICO credit scores count mortgage inquiries within a 14- or 45-day shopping window as one inquiry, depending on the FICO version the lender uses. The individual checks can still appear on your credit report. Ask your lender which window applies before spreading applications over several weeks.
CFPB: lender credit checks ↗FICO: mortgage shopping and credit inquiries ↗
What if I’m not pre-approved?
Ask the lender why and which issue would need to change. A HUD-approved housing counselor can help you review credit or homebuying preparation.
Find a housing counselor ↗What if I’m relocating or changing jobs?
Tell your lender about the move and any employment or income change. Ask which documents it needs and whether the change affects your approval or closing schedule.
Still learning the buying process?
Read the first-time buyer guide for the steps from preparing your budget to closing.
Read the first-time buyer guide →