When purchasing a home in Arizona, there are several factors to consider. The first thing you want to do when purchasing a home in Arizona is to get pre-qualified for a loan so that you know your price range. You will want to analyze your finances and determine how much you can afford towards a monthly mortgage payment each month by looking at your current bills, and your income. A lender is going to analyze your debt to income ratio. If you have bills (without a mortgage or rent payment) of one thousand dollars a month and you make three thousand dollars a month, that would be a relatively good ratio. Basically, the lender wants to make sure you can afford your monthly mortgage payment. They will also look at your work history, credit score, and bank statements to verify the things you say.
Once you have determined how much you qualify for, it is now time to find a Realtor to represent your best interest. Make sure that your agent has good experience, good work history, good education, and references. The difference between a good Realtor and a bad Realtor may cost you thousands of dollars. It is imperative to make sure you choose someone who knows the area, and knows the market conditions.
After you have chosen your Realtor, it is now time to start looking for some homes. Just tell your Realtor what you are looking in your price range, and they will pull up all the homes available in your search criteria. Tell them what is important to you such as school district, zip code, price, and square footage just to name a few. You may want a pool, you may not. Tell your Realtor anything and everything that you are looking for in a home. They will help you find it as long is it is in your price range.
Once you have found your home, your Realtor will walk you through every step of the purchase contract. That is what you hired them for, however, the seller pays the buying Realtor in most cases in Arizona so you get representation paid for by the seller. When you sell your home you will have to pay both the buying and selling Realtors.
Other factors to consider when purchasing a home in Arizona is insurance, home inspectors, and termite inspectors. It may be a good idea to use the current carrier of your car insurance when talking about obtaining home owners insurance. This may save your money since you have already established a relationship with your insurance company, and a multi-plan policy. If you have car and life insurance, you will probably get a good rate with the company that hold your current insurance needs. It may be a good idea to shop the rate just in case another company can beat the rate that you have with your current carrier. Make sure that when you purchase a home to get a home inspection. If you do not know any home inspectors, your Realtor should have one in mind. Most lenders also require that you get a termite inspection because a lender will not fund a loan if the home has termites. It is usually required that a termite inspection is done, and is definitely recommended to get one. If the home has termites, you can usually ask the seller to treat the termites so that by the time you move in, they have been eliminated. After the lender sees proof that the termites have been treated, you can move forward. Do not be scared of termites, they are extremely common in Arizona and must be dealt with swiftly so that no damage is caused.
Many first time home buyers feel this is finally their moment to enter a market that they have been shut out of for too long because of escalating prices- taux hypothecaire. Prices have now not only stabilized, but are falling substantially, and interest rates are still attractive.
Home prices have actually fallen 8.9% year on year in the second quarter of 2008, the S&P/Case-Shiller index tells us. This is the biggest drop in 20 years and prices have dropped even more, as much as 10% to 12% in the more troubled real estate markets such as Florida and California. Many feel that the bottom has not even been approached, and total price declines may be more like 20% before then.
But what about the credit crunch. It is true that banks have tightened requirements, but it has to be realized that credit requirements became pretty lax over the past few years.
Today, to get a mortgage, you will have to have a secure job, meet much tighter credit requirements and be able to deposit a higher down payment than would have been required just a few years ago.
One way of looking at it is not that credit policies are stricter now, but that they are reverting to normal after a few years of insanity. Expect your lender to request that your credit rating be strong, your deposit be large and job history steady!
Lenders do not want to add to their inventory of foreclosed homes, so if you thing you are goingto qualify for a mortgage now, you can expect to be granted a loan that you can afford, requiring no more than 28% of your income. Do the math (there are many online calculator services that can tell you what you can manage), and you will discover how much will be required for a down payment.
Once you have passed your own test of whether you are a home loan candidate in this brave new world, take a first step by applying for a loan and requesting a pre-approval for it.
Today's real estate market also means that you have to be more discriminating in your purchase. Buyers can no longer count on buying a home and waiting for the value to increase. Gone are the days when one's home was a speculative venture. This is the home you will live in, and you want it to maintain its value, but you can no longer believe you can watch the price soar ? taux hypothecaire. The bottom of the real estate market has probably not been met and continued falling prices can still be expected.
As usual, location should be the prime criteria: low crime rates, good school systems and absence of controversial issues that may negatively affect home prices should be the focus. These basic local issues should be the issues to judge by, rather than counting on continually increasing values.
If a given neighborhood or town has been chosen on these bases, now is the time to focus on the bargains, homes that are selling at a true discount to their 2004 prices. Don't forget this is a buyer's market The seller will ask for as much as he thinks he can get in the current market, but if you are a qualified buyer in a tight market, you are in a distinct bargaining position - refinancement.
Both Nicholas Mcconnell & Marksteed are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Nicholas Mcconnell has sinced written about articles on various topics from Arizona Property, Home Buyers Guide and Arizona Property. Nick McConnellExecutive Sales Associate for Coldwell Banker Residential Brokerage in Scottsdale, Arizona. Lived in Arizona all his life, Graduated from Northern Arizona State University and has been a Realtor ever since.. Nicholas Mcconnell's top article generates over 14800 views. to your Favourites.
Marksteed has sinced written about articles on various topics from Finances, Home Management and Finances. David is the developer of , the software which can post articles to hundreds of article sites and mail lists automatically.. Marksteed's top article generates over 3600 views. to your Favourites.