Welcome part 2 of 6 in this home buying series. When it comes to buying a home, especially as a first-time buyer, understanding the different types of loan products and the importance of getting pre-approved versus pre-qualified is key to making the process smoother. Our local spotlight is the Concert for the Carolinas taking place tonight!

Home Buying Series - Part 2

Typically the next step in the home buying process is choosing the right loan product to afford the home. There are 3 main loans that most people will choose between - conventional, FHA, or VA loans. There are also USDA and Jumbo loans, but in the immediate Charlotte area there are not many homes that would qualify; and jumbo loans are used for loans greater than $766,550. For this series we will focus on the main 3.

• Conventional Loans - most common loan, typically 620+ credit score, generally will need 20% down

• FHA Loans - government backed by Federal Housing Administration, 580+ credit score, as low as 3.5% down

• VA Loans - must be active duty or a veteran to qualify, no down payment or private mortgage insurance (PMI)

Depending on your financial situation, is what loan product you will likely need to look into. If you know coming up with a down payment is going to be difficult, or you have a low credit score, then you will likely be looking at an FHA product. Most people are now aware that you do not have to save up 20% in order to buy a house. With an FHA loan you could only need to save up $15,000 to get into your first home - between your down payment, and closing costs. But once you get to this phase, it is going to be very beneficial to start talking with a lender to really understand your options.

A lender will work with you to get pre-qualified, and pre-approved so that you can start home shopping with confidence. The simple difference is a pre-qualification is an informal estimate just based on the information you give vs a pre-approval which takes into account your official documents submitted to the lender. Think of it as step 1 and 2 in a order of operations.

Local Spotlight - Concert for Carolina

The "Concert for Carolina" is a special benefit show headlined by Luke Combs, Eric Church, Billy Strings, and James Taylor, set for Saturday, October 26 at Bank of America Stadium in Charlotte. Organized by Explore Asheville and the Buncombe County Tourism Development Authority, the event aims to raise critical funds for relief efforts in the wake of Hurricane Helene's devastation. All proceeds, including sponsorships, will be distributed to organizations supporting recovery efforts across the Carolinas and the Southeast. More information is available at www.concertforcarolina.com.

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