There’s plenty to consider when purchasing a home. Learning about the real estate process and business is crucial. A little time spent empowering yourself will go a very long way because this will be one of the greatest expenditures in your life.
Whether you’re an Arizona native weary of renting, a family looking to move to a larger home, or a snowbird looking for a second home, this article will help you to comprehend the fundamentals of purchasing a home in Phoenix, Arizona.
Save for a Down Payment
The first sum of the purchase price of your house that you pay at closing is your down payment. The balance is covered by your mortgage lender. In Arizona, mortgage lenders typically require a downpayment of 20% of the purchase price. For a $442,859 property, which is the mean home value in Arizona, that would be $88,572.
However, you can choose to make a smaller down payment. With government-backed loans like FHA and VA loans, you can put down 0% or 3.5% of the cost of your house, respectively. Even traditional loans permit 3% to 5% down payments (the minimum changes depending on the lender).
Read About Current Trends
Even if you are pre-approved, you shouldn’t rush toward purchasing a property. Phoenix’s real estate market is now “extremely hot,” according to Zillow. Property prices in the city have increased by 7% in the last year, and they are predicted to increase by at least 5% in the upcoming year.
Choose Your Mortgage Type and Get Pre-Qualified
It might be difficult to decide which mortgage type will suit you the best. If you fulfill their requirements as a borrower, your credit union mortgage specialist will provide you a pre-qualification letter once you submit the application for a certain amount.
You simply need a few documents to get pre-qualified, such as pay stubs to demonstrate a consistent source of income and bank records to demonstrate accessible cash for a down payment. Later, you’ll require more supporting evidence.
Find an Agent
Real estate brokers differ from one another. It is tempting to work with the most accomplished realtor in the neighborhood in the hopes that they can find your ideal home. However, the truth is that you need an agent that puts your objectives and expectations first, not theirs.
Spend some time speaking with at least three realtors. Find out what sets them apart from other agents, how frequently they contact clients, and whether they can give references at all. Whenever in doubt, follow your gut.
Choose the Right Location
Arizona’s current median house value is $442,859. If this amount doesn’t exactly fit into your budget, don’t panic. From neighborhood to neighborhood, city to city, and even from home to home, housing values might differ significantly.
Observe previous patterns in house values as well. You may use this to estimate how much your home’s value might increase in the coming years. The enjoyable aspect of buying a house is looking around for properties in Arizona. You’ll get the opportunity to tour a range of residences and learn what you actually desire in a house.
Prioritize your list of desired features for a home. The items on your list that mean the most to you should come first. You will be able to differentiate between essentials and wants as a result.
Your real estate agent can help you figure out if what you want is possible with your budget and the neighborhoods you like, or if you should change your criteria.
It’s time to submit an offer once you locate the Arizona home of your dreams. Together with you, your realtor will draft an offer that will convince the seller to sell to you at the best price. Currently, it takes 55 days for a home to be under contract in Arizona. However, every market experiences seasonal variations. During the peak months, homes are purchased more quickly.
Historically, October is the month when properties in Arizona sell the quickest, with an average stay of only 47 days on the market. If you start looking for a home around this time, be ready to move fast and even submit offers on a number of properties before your own is approved. However, if you purchase in December, you have a little more time to find a house that suits your needs.
Inspections and Appraisals
Before making a formal offer to buy, you can have the house appraised and inspected to get a good idea of its value and condition. If something unusual occurs, you can change the terms of your deal with the home seller.
According to Arizona law, the main issues with a property must be disclosed to anyone who might buy it. Most issues can be found during a standard house inspection, but for added peace of mind, purchasers may choose to do extra testing.
Closing Paperwork
You and the agent will conduct a final walkthrough of the house before closing to make sure it’s still in the expected state. You must go through the paperwork and pay your outstanding closing fees in order to close a home in Arizona.
You will be a legal homeowner after completing certain procedures. You will meet with the title firm on closing day to sign a number of papers that will complete the property transfer and work out the specifics of your mortgage. Here’s what you should pay close attention to:
- The deed transfer
- Disclosures
- The security instrument
- The promissory mortgage note
You’ll proceed to pay the closing charges after the paperwork is completed. Your total debt will be collected by the title firm, which will then split it up among all the relevant parties in your house purchase.
Endnote
Only a few houses are left on the market each month in Arizona as properties are flying off the market. Given the active market, you’ll need to move swiftly when making an offer on a house you are interested in. You might even need to submit an offer on the same day as the viewing to increase your chances. You will get the best result if you work with your real estate agent to make a very strong offer that beats the other bids. However, keep in mind that you might need to go over budget in order to complete the purchase.
If you need to sell your house quickly, Oak Street Properties will buy your house in any condition and at any price. Call us today and get your cash offer.