Charlotte, North Carolina, is an excellent city for first-time homebuyers. With its warm Southern hospitality, affordable cost of living, and thriving job market, Queen City has much to offer new residents looking to put down roots. With a median home price of $405,000 as of September 2023, Charlotte is worth exploring for your dream home.
We get it; buying a home can seem intimidating, especially if it’s your first time. However, having the proper financial preparation and guidance on the local Charlotte market can make the process smooth and enjoyable. Contacting an expert like TruLoan Mortgage can eliminate some of the unknowns around the homebuying process and create a lending experience you’ll love.
In the meantime, this blog shares insights to equip soon-to-be homeowners for success in navigating Charlotte’s real estate landscape.
Get to Know Charlotte, One of America’s Hottest Housing Markets
Charlotte’s housing market is currently red-hot. Home prices rose 2.4% over the past year while inventory dropped, according to Realtor.com. So, what is drawing new residents, especially first-time buyers, to Charlotte in droves? Reasons include:
- Employment opportunities with major corporations like Bank of America headquartered here.
- An affordable cost of living compared to other major metro areas.
- A warm, southern climate with four distinct seasons.
- A thriving arts, food, and brewery scene.
- Major league sports teams.
- Quaint historic neighborhoods with charm and renovated homes.
- Proximity to both beaches and mountains for weekend getaways.
- Low property taxes compared to the rest of North Carolina.
- Highly ranked public schools in many districts.
- Ideal place to put down roots and grow a family.
For these reasons, competition is stiff. Yet first-timers can still find success by getting educated on market trends. If Charlotte is calling your name, you must act quickly on homes that fit your criteria or risk losing it to another. Leaning on knowledgeable local real estate professionals and mortgage lenders to gain an edge is also a good idea.
How to Start a Home Search in Charlotte
When starting your Charlotte home search, begin by making a list of your absolute must-haves versus nice-to-haves in a home. Clearly defining your priorities from the start helps focus your search and narrow down your options.
Also, find potential neighborhoods by looking at proximity to amenities, commute times, school options, and the overall neighborhood vibe. Other factors potential Charlotte homebuyers may want nearby include light rail access, breweries, and parks.
Here are six prominent neighborhoods first-time buyers may want to consider:
- Plaza Midwood: A hip area with historic homes. Smaller lots but very walkable. It’s also home to Charlotte’s first “social district” that allows people to have open drinks in designated areas as they barhop.
- NoDa: The entertainment and arts district of Charlotte. Full of character and colorful homes.
- Dilworth: Gorgeous parks and Craftsman bungalows, perfect for outdoorsy types.
- South End: The most walkable urban neighborhood in Charlotte, with a thriving restaurant and bar scene along the light rail.
- Lower South End: An up-and-coming area with converted warehouses, boutiques, and great nightlife.
- Myers Park: One of the most exclusive areas in Charlotte, with large homes and tree-lined streets. Queens Road West is also the neighborhood’s crown jewel and is home to the annual 24-hour cycle race known as the “booty loop.”
Financial Preparedness
Before diving into your Charlotte home search, make sure your finances are in order. First, as most people know, you must save for a down payment, typically around 3% to 20% of the home’s price. Getting preapproved by a mortgage lender in Charlotte, NC shows sellers you’re serious about making an offer.
To get the best current mortgage rates in Charlotte, North Carolina, you need a strong credit score. Aim to improve it over time by paying off debt and keeping credit card balances low. You may also explore down payment assistance programs that provide grants and loans to qualifying buyers if you need additional help.
Additional Costs
First-time homebuyers are often surprised by the many costs beyond the down payment. Carefully budgeting for these costs will prevent financial surprises down the road.
Closing costs like origination fees, title insurance, and appraisals average 2% to 5% of the loan amount. So, on a $300,000 mortgage, closing costs could total $6,000 to $15,000. Plan for initial renovations, too, like new carpets or appliance replacements, which could run several thousand dollars.
If your down payment is under 20%, you’ll also have to budget for monthly mortgage insurance, which ranges from 0.3% to 1% of the total loan. This insurance stays in place until you reach 20% equity.
Be sure to budget for property taxes, homeowners insurance, and HOA dues if applicable. In Charlotte, property taxes on a $400,000 home would be around $3,040 annually.
When setting up utilities, factor in one-time connection and activation fees. And while DIY cleaning may be tempting, hiring professional cleaners ensures your new home sparkles on move-in day, with one-time deep cleaning costing $200 to $400 on average. Lastly, if you don’t handle yard work, set aside a monthly budget to maintain that curb appeal.
Why the Mortgage Lender Matters
As you can see, buying a home requires quite a bit of know-how. It’s easy to forget or omit something, so you want someone by your side to guide you. Choosing the right mortgage lender in Charlotte, NC, is crucial for first-time homebuyers. Ideally, you want to find someone who has:
- Clear Mortgage Plan: Provides education on your financing options and customizes a mortgage strategy tailored to your budget and goals.
- Financing Expertise: Offers experience with diverse products like conventional, jumbo, FHA, USDA, and VA loans to find the optimal match.
- Streamlined Pre-Approval: Has a fast online application and rapid pre-approval turnaround.
- Customized Rates and Terms: Explores alternatives to get you the best possible interest rate and loan terms.
- Local Market Knowledge: Is familiar with Charlotte trends and niche neighborhoods to better advise you.
- Negotiation Assistance: Helps craft competitive bids and negotiate seller contributions.
- Ongoing Communication: Provides frequent status updates and quickly responds to all your questions.
- Compliance: Is well-versed in regulations to ensure your loan stays on track.
With experience in diverse loans, customized financing, responsive communication, and deep Charlotte market knowledge, TruLoan Mortgage has the expertise first-time homebuyers need. Our goal is an exceptional lending experience through initiatives like fast digital applications, real-time status updates, and pre-approvals to strengthen offers. TruLoan has guided many first-timers through a seamless home-buying journey, and we are ready to do the same for you.
The Time Is Right
While buying a first home is a big milestone, it’s achievable in Charlotte with proper preparation. Define your must-haves, consult local experts, and act quickly when you find a home that fits the bill. Soon, you’ll be sipping sweet tea on the front porch of your new Charlotte home — or strolling through one of our new social districts with a cold beer!
For ongoing advice throughout your Charlotte home-buying journey, contact TruLoan Mortgage. Our local experts have guided countless first-timers through the entire process while ensuring a stress-free and enjoyable experience. Let us help lead you home.