Navigating the Triangle Housing Market

Originally published in the September/October 2023 issue of Wake Living magazine.

For most people, buying a home is the largest purchase they’ll make during their lifetime. That’s why at Coastal Credit Union, we believe it’s our job to truly partner with our members, and as a not-for-profit institution, to look out for their best interests in ways other financial institutions might not.

If you’re in the Triangle and thinking about buying a home, the market is changing rapidly and it’s a lot to keep up with.

The Market in the Triangle

The 2023 housing market can seem overwhelming. Interest rates have impacted sales and the ability for some to buy.

But, the market is in full swing here for a number of reasons:

1. This part of North Carolina is highly desirable, even with the changes in rates
2. Housing permits for new construction are on the rise
3. Interest rate hikes paused in June, creating a window of opportunity for current buyers
4. The housing shortage is unprecedented, and we don’t see it changing anytime soon

Help is Available

It is important to choose wisely when selecting a financial provider and loan officer. Interview and vet them. Your loan officer is the person who is the most educated and well-versed about all the tools that can be used to help get you in a home, such as tax credits or down payment assistance. Did you know there are programs like this available? Not every mortgage representative will work to find every dollar available to help clients on their path to homeownership. If this sounds appealing to you, a good place to start is to work with a not-for-profit lender like Coastal Credit Union.

There are many programs available to help first-time homebuyers, as well as other buyers. You need a knowledgeable and experienced mortgage advisor who will work to help you craft the best deal for you or you could miss out on tax credits or loan products that could save you thousands on your home.  

Knowledge Is Key

Whether you partner with Coastal Credit Union or another financial partner, here are some things you need to know to start off on the right foot.

1. Ask questions. Make sure your financial partner and loan officers are running through the pre-approval process and what your new mortgage payment will look like. If they aren’t starting those conversations, you need to keep searching for the right person.

Any loan officer can handle your loan application. What you’re really looking for is an exceptional partner who is in your corner and will use all the tools available to help you. Don’t settle for less!

2. Look for experience. When you’re choosing a lender, make sure you find an experienced loan officer to help navigate the transaction. They understand what it takes to get through the homebuying process and avoid pitfalls.

3. Work with a buyer’s agent. There are plenty of fantastic dual agents available, but a buyer’s agent will pay special attention to your needs and make sure to set you up for success.

4. Avoid a bidding war. So often, especially in a market like ours that has such low inventory, it’s easy to find yourself in a bidding war. The best way to avoid this is not getting emotionally attached to a property before you’ve closed so you don’t overextend yourself.

5. Plan for the unexpected. It’s vital to understand that due diligence is walk away money. If you change your mind about the home or find something during inspections that doesn’t work for you, that money is gone. Factor that into your offer.

Don’t shy away from additional inspections, either. A good inspector will be able to tip you off to problems, but, sometimes, bringing in additional specialists will save you from future headaches.

6. Buy that fixer-upper. You may not find your dream home in your budget. A great alternative is taking a property that needs some work. Coastal even has products designed specifically for these situations, like a loan that covers up to 105% of your purchase so that you have extra cash to take care of renovations.

Alternatively, you can take out a construction to permanent loan that allows you to factor in renovation or new-build costs into your purchase. This product works especially well for the savvy buyer who is ready for a more complicated transaction to buy property and build, add a mother-in-law suite, or put on a 2^nd story.

The Brass Tacks

At the end of the day, homeownership is the best way to build wealth and secure your future. No matter what your situation, whether you’re stretching to get your first home, buying a vacation home or your forever home, find a partner who will work hard to help you structure the mortgage you need.  We want to do the most we can make this journey a reality, and you can easily become a Coastal member to do so.