How long have you been dreaming of owning a home for yourself or your family? Maybe you have been renting for a long time and you are tired of seeing your rental payments disappear into the pocket of the landlord. Perhaps your family has outgrown the space in your apartment and you want a place with more square footage and some privacy.
Buying a home in Phoenix, Arizona may be the most logical decision for this stage of your life. Homeownership comes with numerous benefits, including privacy, the ability to upgrade/change your living space, and monthly payments that benefit you in the future.
However, homes are expensive in Phoenix and the surrounding area. It is one of the most desirable locations in the state, and even residents from other states are excited about moving to this area. That means prices are up and affording a home can be challenging. The key to securing your home in this community, and in an affordable way, is doing things the right way.
Work with an Agent
While you can start the search for your next home on your own, eventually you will need to work with an agent. Real estate agents have access to better insights about the market you are moving to, and this often includes knowing about properties that will be up for sale before the public does. This could help you get an inroad with the property you want before other homebuyers know about it. Plus, they can help you set up private viewings of the houses, and stepping into the house is the simplest way to determine if it is worth the listing price. Always work with an agent when searching for a home, especially since they are usually paid by the closing costs from the seller.
Find the Right Home Loan
Rarely do homebuyers have enough cash to buy a property outright, especially if it is their first home. As a result, they must secure a loan to do so. Finding the right type of loan is key because you must be able to afford payments. If you have a lower credit score, then you may need an FHA loan that is backed by the government to lower the requirements for approval. If the property you want is quite large, then jumbo loans in Arizona may be the only way to get a big enough mortgage, but the down payment requirement will be greater. Many homes can be secured with a conventional loan if you have a decent credit score and reliable income.
Pre-approval is a process that buyers can go through for a specific price of a home. There are several reasons to seek pre-approval for a loan before you start viewing homes. First, it can give you an accurate picture of what you can afford. Second, it fast-tracks you toward loan approval once you have found a home, making you a more appealing option for sellers since you can buy their properties sooner. Sellers tend to take offers that can be completed sooner, and without pre-approval, the transaction will move slower.
Pay for an Inspection
Most real estate transactions involve a professional inspection before the contract is signed. Buyers want to make sure the property they are purchasing is worth the listing price and that there are no major issues that the buyer will have to deal with right after moving in. This is what makes home inspections so important. They are always paid for by the buyer before a sale price is agreed on and paid. The inspector will check everything from the insulation in the attic to the electrical components in the basement. They will then include all findings in a report and let the buyer know if there are any major concerns or potential issues that could arise in the future. As the buyer, you can then use this information to either negotiate a lower price or ask the seller to rectify the problems before selling. Many buyers opted out of a home inspection in recent years because of climbing home prices, but this could be a drastic mistake that costs you far more money in the long run.
Skipping Steps Can Lead to a Bad Deal
A home may be the most expensive thing you will ever buy. For this reason, it is important that you go through the process the right way to make sure you are getting a good deal. You could be making payments on this property for the next thirty years, so it is crucial that you can afford those payments. Working with an agent, finding the right loan product, getting pre-approved, and paying for an inspection can all lead to the best situation for your home purchase, so do not skip any steps as you look for a Phoenix, AZ property.