The honest answer to “when buying a house, what do you need” fits in three buckets: documents that prove who you are and what you earn, money for the down payment and closing costs, and a small team to get you through a process North Carolina runs differently from most states. You do not need 20% down, a perfect credit score, or a real estate agent, but each of those has a real cost when it is missing, and this guide prices all three. If you want the step-by-step sequence after you are ready, our our companion Raleigh home buying process guide (publishing soon) covers it; this page covers what you need in hand before you start.
Quick answer: To buy a house you need: (1) identification and income documents, pay stubs for the last 30 days, W-2 forms for the last 2 years, and bank statements for the last 60 days; (2) a credit score of at least 620 for a conventional loan or 580 for an FHA loan with 3.5% down, and a debt-to-income ratio most lenders want at or below about 45%; (3) a down payment of 3% conventional, 3.5% FHA, or 0% for eligible VA and USDA buyers, plus 2% to 5% of the price for closing costs; and (4) in North Carolina, two deposits at contract, a non-refundable due diligence fee and an earnest money deposit. No law requires you to use a buying agent, but 88% of buyers did in the National Association of REALTORS 2025 survey, and since August 2024 your agent’s compensation must be agreed in writing before you tour.
1. The documents you need to buy a house
Lenders verify four things: who you are, what you make, what you own, and what you owe. Everything below maps to one of those four, and gathering it before you apply is the single biggest accelerator available to you: missing paperwork, not lender speed, is the most common cause of delayed closings. Under the federal application rules, six items formally start your application, your name, income, Social Security number, property address, estimated property value, and loan amount, and delivering them starts a three-business-day clock for your Loan Estimate. The proof follows immediately:
| Document | What to gather | Why the lender wants it |
| Government photo ID | Driver’s license or passport, plus your Social Security number | Federal identity verification |
| Pay stubs | Most recent 30 days, showing year-to-date totals | Current income and employment |
| W-2 forms | Last 2 years | Income history and stability |
| Federal tax returns | Last 2 years with all schedules (always for self-employed; sometimes required for salaried borrowers) | Income verification, especially for variable or business income |
| Bank statements | Last 60 days for every account used to qualify, every page including blank pages | Down payment source, assets, and reserves; screenshots are usually not accepted |
| Investment and retirement statements | Last 2 months for 401(k), IRA, brokerage accounts | Reserves and additional assets |
| Self-employed extras | 2 years of personal and business returns, year-to-date profit and loss statement | A 25% or greater business ownership stake counts as self-employment |
| Gift letter | Signed letter stating gifted down payment funds need not be repaid | Large or unusual deposits must be sourced |
| Situational documents | Divorce decree, child support order, bankruptcy discharge papers, current mortgage statements if you own property | Debts, obligations, and existing housing costs |
Two practical warnings from underwriters. First, documents expire: income, asset, and credit documents generally must be no more than four months old on the day you sign the note, so a slow search quietly reopens the checklist. Second, do not move money between accounts while your loan is in process without telling your lender, because every large deposit will need a paper trail. Send complete documents, every page and every schedule, the first time.
2. The money you need: down payment, closing costs, and deposits
Think in three cash buckets, not one. The down payment buys your equity, the closing costs pay everyone who touches the transaction, and the reserves keep you safe after the keys change hands. On a $425,000 Raleigh purchase, the buckets look like this:
| Bucket | Typical amount on a $425,000 purchase |
| Down payment: conventional 3% | $12,750 |
| Down payment: FHA 3.5% | $14,875 |
| Down payment: VA or USDA (eligible buyers) | $0 |
| Down payment: 20% conventional (avoids PMI) | $85,000 |
| Buyer closing costs at 2% | $8,500 |
| Buyer closing costs at 5% | $21,250 |
| North Carolina deposits at contract | Due diligence fee (negotiated, non-refundable, paid to the seller) plus earnest money (typically 1% to 3%, held in escrow); both credited at closing |
| Moving and emergency reserves (recommended) | At least 1 to 3 months of housing expenses for immediate repairs and post-closing maintenance |
North Carolina’s two deposits deserve a sentence each, because they surprise out-of-state buyers. The due diligence fee is paid directly to the seller on the contract’s Effective Date and buys your right to investigate the home and walk away during the due diligence period, typically 14 to 30 days; it is almost always non-refundable. The earnest money deposit is held by a neutral escrow agent and is refunded if you terminate properly inside that window. Both reduce your cash to close if the sale completes. And one cost you do not pay in North Carolina: the real estate excise tax of $1 per $500 of sale price is paid by the seller. Our sales tax guide covers the ongoing local taxes that start after closing.
3. The credit score and income you need
There is no single credit score needed to buy a house. The minimum depends on the loan program, and individual lenders may require more than the program minimum, which is called a lender overlay. Your qualifying score is the middle of your three bureau scores, and mortgage lenders use older FICO models that weigh collections and late payments differently from the free scores on credit apps, so expect your mortgage score to differ from the one on your phone:
| Loan type | Minimum credit score | Minimum down payment | Mortgage insurance |
| Conventional | 620 at most lenders; best pricing at 740+ | 3% (programs like HomeReady) | Private mortgage insurance under 20% down, cancelable at 20% to 22% equity |
| FHA | 580 with 3.5% down; 500 to 579 with 10% down | 3.5% or 10% | Upfront premium 1.75% plus annual mortgage insurance premium, generally for the life of the loan at 3.5% down |
| VA | No VA-set minimum; lenders typically look for 580 to 620 | 0% for eligible service members, veterans, and surviving spouses | No monthly mortgage insurance; one-time funding fee 2.15% to 3.30% |
| USDA | No program-set minimum; 640 supports automated approval | 0% for eligible rural and suburban properties | Upfront guarantee fee 1% plus annual fee 0.35% |
Income matters as much as score. Lenders measure your debt-to-income ratio, your total monthly debts divided by gross monthly income, and most want it at or below about 45%, with some programs allowing up to 50% when compensating factors such as reserves or a larger down payment are present. A 20-point score difference can shift your rate by roughly 0.25% to 0.50%, which is $40 to $80 a month on a $350,000 loan, so a few months of credit cleanup before applying is often the highest-return work a buyer can do. For help with the down payment itself, the The North Carolina Housing Finance Agency programs described in our companion process guide offer up to 3% of the loan amount or a flat $15,000 for eligible buyers.
4. The team you need
You need four professionals, and only one of them is optional. A lender pre-approves you and funds the purchase. A licensed home inspector examines the property during due diligence. A licensed North Carolina attorney conducts the closing, including the title search and recording, because North Carolina is an attorney-closing state. And a buyer’s agent, the subject of the next section, finds homes, prices offers, negotiates repairs, and manages the deadlines. Add a homeowner’s insurance agent before closing, since your lender will require a policy, and flood coverage if the home sits near water. Patty’s buyers page explains how she works with buyers, and the Raleigh relocation guide is the starting point if you are moving from out of town.
5. Do you need a buying agent?
Short answer: no law requires one, but most buyers use one, and the reasons are practical rather than legal. In the National Association of REALTORS 2025 survey, 88% of buyers used an agent. What that agent does for you is the part buyers underestimate: pricing the offer from comparable sales rather than the list price, structuring the due diligence fee and earnest money so your exit stays cheap, ordering inspections inside a 14 to 30 day window, negotiating repairs the seller is not obligated to make, and managing a deadline calendar where a missed 5:00 p.m. cutoff costs real money. Without an agent you negotiate directly with the listing agent, who represents the seller’s interests, not yours, and you carry that calendar yourself.
What changed in 2024, and what it means for your wallet: the National Association of REALTORS settlement that took effect August 17, 2024 made two practice changes. First, offers of buyer agent compensation can no longer appear on MLS listings; any arrangement between a seller and your agent happens off the MLS through direct negotiation. Second, if you work with an agent who belongs to an MLS, you must sign a written buyer agreement before touring a home, in person or by live virtual tour. That agreement must state the agent’s compensation as a specific amount, rate, or formula, in objective terms, and the agent cannot receive more than the agreed amount from any source. Vague language such as “whatever the seller offers” does not qualify, and every agreement must state clearly that commissions are not set by law and are fully negotiable. In practice, you can ask the seller to pay some or all of your agent’s fee as part of your offer, and the seller can accept, counter, or decline; whatever is agreed shows up on your settlement statement at closing. If no seller contribution covers it, the balance is yours under the agreement you signed, which is why reading that agreement before touring matters more than it did before 2024.
When going without an agent can make sense: you are buying a home you already know well, such as a family sale or a home you have rented, the seller is unrepresented, and you have an attorney reviewing the contract. When it rarely does: your first purchase, a competitive neighborhood, a home with inspection problems, or any transaction where the other side has professional representation and you do not. One caution for the middle path: in North Carolina, one agent representing both buyer and seller requires written consent from both sides, and that agent cannot fully advocate for either party in the way your own buyer’s agent can. If a listing agent offers to “handle both sides,” understand what you are giving up before you agree.
6. Do I need a realtor, and is that different from a real estate agent?
A real estate agent is anyone licensed by the state to help buy or sell property. A REALTOR is a licensed agent who is also a member of the National Association of REALTORS and agrees to its code of ethics; the word is a trademark, not a job title, and not every licensed agent is a REALTOR. In practical terms the distinction matters less than the agent’s local experience: a Raleigh buyer’s agent who has negotiated due diligence fees in this market, knows which inspectors to call, and has closed at the same attorneys’ offices as your lender will save you more than any credential on a business card. Patty Owens is a REALTOR with Compass, licensed in North Carolina (license #318041), and her about page carries her background and production record.
7. What you do not need
| Myth | Reality |
| 20% down | Conventional loans start at 3% down, FHA at 3.5%, and VA and USDA at 0% for eligible buyers. Twenty percent avoids private mortgage insurance on a conventional loan, which is a real saving, but it is not a requirement to buy. |
| A perfect credit score | Conventional financing starts at 620, FHA at 580 with 3.5% down, and VA and USDA have no program-set minimum. A higher score buys a better rate, not permission to buy. |
| A real estate agent | No law requires one. But 88% of buyers use one, and the cost of going without is measured in pricing mistakes, missed deadlines, and an unrepresented negotiation against a represented seller. |
| A pre-approval as a guarantee | Pre-approval is a lender’s conditional statement based on verified information at that moment. Final approval still depends on the appraisal, underwriting, and your finances staying stable through closing. |
| Cash for everything at once | The down payment, closing costs, and deposits arrive in stages: deposits at contract, the balance at closing, and reserves that stay in your account. Plan the stages, not just the total. |
Frequently asked questions
Do I need a real estate agent to buy a house?
No law requires you to use one, and you can represent yourself. In practice, 88% of buyers used an agent in the National Association of REALTORS 2025 survey. Without an agent you negotiate directly with the listing agent, who represents the seller, and you manage the contract deadlines yourself, including North Carolina’s due diligence deadline, where a missed cutoff can cost your earnest money.
Do you need a buying agent in North Carolina specifically?
North Carolina does not require buyers to have an agent, but the state’s process makes representation unusually valuable: the due diligence fee is non-refundable, the due diligence period is your only cheap exit, and closings are attorney-run. A buyer’s agent also signs a written agreement with you before touring that states their compensation, which has been required for MLS-member agents since August 17, 2024.
Do I need a realtor, or just a real estate agent?
A REALTOR is a licensed agent who belongs to the National Association of REALTORS. Every REALTOR is a licensed agent, but not every licensed agent is a REALTOR. Either can represent you as a buyer; what matters most is local experience in the market where you are buying.
What credit score do I need to buy a house?
Conventional loans generally start at 620, FHA at 580 with 3.5% down (or 500 with 10% down), and VA and USDA have no program-set minimum, with lenders typically looking for roughly 580 to 620 for VA and 640 for smoother USDA approval. Individual lenders may require more than the program minimum.
How much money do I need to buy a house in Raleigh?
On a $425,000 purchase, plan on a down payment of 3% conventional ($12,750), 3.5% FHA ($14,875), or 0% for eligible VA and USDA buyers, plus 2% to 5% of the price ($8,500 to $21,250) for buyer closing costs, plus the due diligence fee and earnest money at contract, both credited at closing, plus 1 to 3 months of housing expenses in reserves.
What documents do I need when buying a house?
Government photo ID and Social Security number, pay stubs for the last 30 days, W-2 forms for the last 2 years, bank statements for the last 60 days with every page, investment and retirement statements for the last 2 months, and federal tax returns for the last 2 years if you are self-employed or your lender requires them, plus a gift letter for any gifted down payment funds.
Can I buy a house without a pre-approval?
You can make an offer without one, but sellers in Raleigh take pre-approved buyers more seriously, and your budget is a guess without it. Pre-approval requires the same documents listed above and gives you a written maximum loan amount before you tour.
Do I need a lawyer to buy a house in North Carolina?
North Carolina requires a licensed attorney to conduct real estate closings, including the title search, settlement, and recording of the deed. You do not need to hire your own attorney for the whole process, but the closing itself is attorney-run, and the buyer’s attorney fee typically runs about $650 to $1,200.
The bottom line
When buying a house, what do you need? Documents that prove who you are and what you earn, a credit score of 620 for conventional or 580 for FHA financing, a down payment that can be as low as 3% or 0% depending on your loan, closing costs of 2% to 5%, and, in North Carolina, a due diligence fee and earnest money deposit at contract. You do not legally need a buying agent, but 88% of buyers choose one, and since August 2024 that choice comes with a written agreement that states exactly what your agent earns before you tour a single home. Gather the paperwork, stage the money, and decide the representation question before you fall in love with a house, not after.
Patty Owens, a Raleigh REALTOR with Compass, helps buyers check readiness and navigate every step that follows. Book a Call at 919-602-0612 or through the contact page to review your documents, budget, and agent questions, and start with the guide to living in Raleigh if you are still narrowing neighborhoods.
