The first step to closing the deal and unlocking the front door of your own house is to open an escrow. In North Carolina, this is typically handled through your closing attorney. An escrow is a contractual arrangement in which a third party receives and disburses money or documents for the primary transacting parties, with the disbursement dependent on conditions agreed to by the transacting parties.
#2. Lock in the Interest Rate
The price for a mortgage loan is typically expressed as “points” paid to get a certain interest rate. Points are essentially prepaid interest, so the more points paid, the lower the interest rate. One point equals 1% of the loan amount. A mortgage rate lock guarantees that a mortgage lender will offer a buyer a certain interest rate at a certain price for a specific time. A rate lock protects the borrower from rising interest rates in the period between the sales agreement execution and closing (often about a month). If the buyer locks in a rate of 6.5%, she will only have to pay 6.5% interest even if rates rise while going through the loan application process. A rate lock is commonly good for 30, 45, or 60 days, though that time period can be shorter or longer. After that period expires, the buyer is no longer guaranteed the locked-in rate unless the lender agrees to extend it. This is why arranging a prompt closing is crucial.
#3. Have a Home Inspection
Making sure the roof doesn't leak on the first day in your new home or the furnace doesn’t operate under 45 degrees is generally enough reason to have a home inspection. Engage specialists to check the conditioning system, plumbing, and electricity. By uncovering existing issues, they could save you
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