NC 1st Home Advantage Down Payment
Up to $15,000 (sample) as a forgivable loan for eligible first-time buyers and veterans.
Buy your next home with a patient, local guide
From the first budget question to the last box unpacked, we explain every step in plain English.
How buying works in North Carolina
Six steps, usually 60 to 120 days from first call to keys. Here is what happens in each.
- 1
Plan your budget
Monthly payment first, then price. We include taxes, insurance, HOA dues and closing costs.
- 2
Get pre-approved
Compare two or three local lenders so sellers take your offer seriously.
- 3
Tour and compare
Evening and weekend showings, with honest notes on every house.
- 4
Offer and negotiate
Comps, due diligence fee and terms explained before you sign.
- 5
Due diligence
Inspections, appraisal, survey and insurance, all scheduled for you.
- 6
Close and move in
Final walk-through, attorney closing and your new keys.
What buying really costs
No surprises at the closing table. These are typical Triangle ranges from our 2025 transactions (sample figures).
| Cost | When | Typical range | Notes |
|---|---|---|---|
| Due diligence fee | At contract | $500 to $2,500 | Paid to seller, credited at closing |
| Earnest money | Within days of contract | About 1% of price | Held in trust, credited at closing |
| Home inspection | Due diligence period | $400 to $650 | Add radon, sewer scope or termite as needed |
| Appraisal | Due diligence period | $500 to $700 | Ordered by your lender |
| Closing costs | Closing day | 2% to 3% of loan | Lender fees, title, attorney, prepaid taxes |
| Down payment | Closing day | 0% to 20% | Depends on loan type and programs |
Swipe the table sideways to see all columns.
The buyer agency agreement, clause by clause
North Carolina requires a written agreement before an agent shows you a home, and since August 2024 compensation is no longer published in the MLS. Eight things to read before you sign anything, ours included.
| Clause | What it controls | Why it matters | Ours |
|---|---|---|---|
| Scope | Which homes the agreement covers | Property type, price band and geography. A narrow scope (for example, townhomes in Wake Forest under $475,000) lets you work with a second agent elsewhere without breaking the agreement. | Wake, Durham or Johnston county, your stated price band |
| Term | How long it runs | The NC Association of Realtors buyer agency form has a fixed start and end date. Long terms favour the brokerage; short ones let you leave if the fit is wrong. | 90 days, renewable in writing |
| Compensation | What our side is paid | A percentage of the purchase price or a flat fee, agreed before we show you anything. It is not set by law, by the MLS or by any association, and it is not tied to what a seller happens to offer. | 2.5% of price, or a $9,500 flat fee (sample) |
| Source of payment | Who actually writes the cheque | Three routes, in the order we try them: a compensation offer the listing firm makes outside the MLS, a seller concession written into paragraph 8 of the offer, or the balance from you at closing. | Seller-paid first, you cover only any shortfall |
| Shortfall clause | What happens if the seller pays less | Say the agreement is 2.5% and the seller's side offers 2%. The half point is a real number you should see before you write the offer, not a surprise on the settlement statement. | Written into the agreement, disclosed before every offer |
| Protection period | After the agreement ends | If you buy a home we introduced you to within the protection window, the fee is still owed. Ask for a short window and a written list of the addresses it applies to. | 60 days, list of addresses attached |
| Dual agency | If we also list the home | North Carolina permits dual agency only with written consent from both sides, and neither client can be advised on price or terms. You may strike it from the agreement. | Off by default, opt in per property |
| Termination | Getting out | Look for a mutual release clause with no fee. A one-sided agreement that only the brokerage can end is the single most common thing we ask sellers' agents to change. | Either side, in writing, no fee |
Swipe the table sideways to see all columns.
Fee figures are samples for a demo website. Commissions are not set by law or by any association and are fully negotiable. This is general information about North Carolina practice, not legal advice.
Due diligence, day by day
The standard Offer to Purchase and Contract gives you an unconditional right to walk away until 5:00 p.m. on one named date. Everything below has to happen before then.
- Day 0
Contract signed, fee delivered
Due diligence fee to the seller, earnest money to the closing attorney's trust account, and the executed contract to your lender the same afternoon.
- Day 1 to 2
Inspections booked
General inspection, plus radon where the geology calls for it, sewer scope on anything pre-1985, termite (wood-destroying insect report) and a structural engineer if the general inspector flags movement.
- Day 3 to 5
Loan application and appraisal ordered
The lender cannot order the appraisal until you formally apply. In Wake County a residential appraisal typically comes back in 7 to 12 days (sample).
- Day 5 to 8
Reports in, repair request drafted
We separate safety and structure from cosmetics, then ask for repairs, a credit or a price reduction. The seller is not obliged to agree to any of it.
- Day 8 to 12
HOA documents and survey
Statement of unpaid assessments, declaration, budget and minutes requested. A boundary survey is ordered here if fences, driveways or additions look close to a line.
- Day 12 to 18
Appraisal returns, insurance bound
If value comes in under contract price, the appraisal gap conversation starts now, while you still have a free exit. Homeowner's insurance quote and flood determination in the same week.
- Day 18 to 21
Repairs agreed or terminate
Anything unresolved has to be settled before the deadline. Extensions are possible but require the seller's written agreement, usually for an additional fee.
- Deadline, 5:00 p.m.
Due diligence ends
From this moment your earnest money is at risk. The remaining work, clear-to-close, final walk-through and attorney settlement, runs to the settlement date.
After the deadline the risk flips. Terminate before it and you lose only the due diligence fee. Terminate after it, for any reason other than a seller breach, and the earnest money deposit goes to the seller as well. Extensions exist, but they need the seller's signature and usually another fee.
When the appraisal comes in low
Your lender writes the loan against the lower of contract price and appraised value. The difference is not financed, discounted or negotiated away by default: it is cash.
| Scenario | Contract | Appraised | Loan written | Down payment | Cash to close |
|---|---|---|---|---|---|
| Value meets contract | $545,000 | $545,000 | $490,500 | $54,500 | $54,500 |
| Short by $10,000 | $545,000 | $535,000 | $481,500 | $54,500 | $63,500 |
| Short by $25,000 | $545,000 | $520,000 | $468,000 | $54,500 | $77,000 |
Swipe the table sideways to see all columns.
What the lender actually does
Loan-to-value is recalculated against the appraised value, not the price. On a 90% loan against a $545,000 contract that appraises at $520,000, the loan drops from $490,500 to $468,000 and the $22,500 difference becomes cash you bring to the table.
What a gap coverage clause commits you to
Paragraph language promising to cover a shortfall up to a stated dollar figure. Cap it at a number you can genuinely wire. An uncapped promise is an open-ended cash obligation, and it is the clause we most often talk buyers out of.
Your four real options
Bring the cash, renegotiate the price, split the difference with the seller, or terminate. Inside the due diligence period the fourth option costs you only the due diligence fee, which is exactly why the appraisal is ordered early.
Reconsideration of value
Not an appeal, a correction. It works when the appraiser missed a comparable sale, used a sale outside the subdivision when one inside existed, or under-measured finished square footage. We submit comps with the request; it succeeds perhaps one time in five (sample).
Worked at 10% down, excluding closing costs and prepaid items. Sample figures for a demo website.
Five things in an HOA file that end deals
We request the full association package on day one of due diligence, because these take longer to get than an inspection and hurt far more when they arrive late.
Owner delinquency above 15%
Fannie Mae, FHA and VA project eligibility fail. Conventional and government loans stop; the pool of buyers narrows to cash.
Seen roughly 3 times a year in our Triangle condo files (sample)
Rental cap already reached
An investor buyer, or an owner who might later relocate and rent, joins a waiting list. Some Cary associations cap leasing at 10% of units.
The most common reason our investor clients walk
Special assessment voted or looming
A $9,400 per unit siding assessment (sample) is a price negotiation, not a surprise, if it is found during due diligence.
Found in about 1 in 12 attached-home files (sample)
Active construction defect litigation
Lenders decline the project. Even cash buyers inherit the outcome and the legal expense line in the budget.
Rare, and always a stop-work moment
Unapproved exterior change by the seller
The deck, fence or storm door becomes your violation on the day you take title. We get written architectural approval or a price adjustment before closing.
The quiet one, and the one we catch most often
Help with your down payment
Many of our first-time buyers qualify for at least one program. Rules change often, so we check eligibility with your lender.
NC Home Advantage Mortgage
Competitive 30-year fixed rates with down payment assistance for moderate-income buyers.
City of Raleigh assistance
Deferred loans for qualifying buyers purchasing inside city limits.
VA and USDA loans
Zero-down options for eligible veterans and homes in qualifying areas around the Triangle.
Program names are real North Carolina programs; amounts shown are samples. Confirm current terms with a licensed lender.
Buyer programs for every situation
- First-time buyersA patient roadmap from budget to keys, with grants and plain answers.
- Move-up buyersSell your current home and buy the next one without juggling two mortgages.
- RelocationMoving to or from the Triangle with video tours and neighborhood matchmaking.
- New constructionBuilder contracts, upgrades and inspections reviewed by your own agent.
- Investment propertiesRental math, HOA rules and tenant-ready homes before you make an offer.
- VA and military buyersPCS moves, VA loans and flexible tours for service members and veterans.
Homes buyers are touring now
- $495,000Open Sun 2 to 4
- $379,000New listing
- $548,000Coming soon
Buyer questions, answered
Three to six months before you want to move is ideal for first-time buyers. That gives time to compare lenders, check assistance programs and learn the neighborhoods without pressure.
The due diligence fee is paid directly to the seller for the right to inspect and walk away. Earnest money is held in trust and is usually refundable during due diligence. Both are credited at closing.
Many lenders keep total housing costs under about 28% to 33% of gross monthly income. We build a budget that includes taxes, insurance and HOA dues, then compare it with real listings.
Yes. North Carolina closings are handled by attorneys. We share a list of experienced local closing attorneys, and your lender may have a preference too.
During the due diligence period you can terminate for any reason and typically receive your earnest money back, though the due diligence fee stays with the seller.