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Buying Your First Home in Phoenix, AZ After deciding why you’re buying a house now in Phoenix and finding the right real estate agent, the next step in the home buying process is getting pre-approved for your home loan. There are many benefits to pre-
You can save yourself time in the qualification process by preparing some information before you begin:
Ask Your Agent to Refer You to a Lender If you do not already have a mortgage lender you would like to work with,ask your REALTOR®for a list of trusted lenders she/he has worked with in the past. Normally, they have lenders they use regularly and can recommend several for you to interview. You might want to speak to all of them to determine who will work best with you. Comparing Fees Closing costs, or the fees you pay to get the loan,can amount to hundreds or thousands of dollars. They generally total about 1 to 2 percent of the total cost of the home. They include fees that your lender charges, including points, and also various third-party fees. You can potentially save yourself a lot of money by taking the time to compare the fees before signing on with a particular lender.
Getting pre-approved generally takes very little time.You may be able to complete the process over the phone with a trusted lender. Most lenders will check your credit prior to giving you a formal approval letter. Good credit is essential for a first-time home buyer.When buying your first Phoenix home, you can be sure that Good credit can lower your mortgage interest rates, potentially saving you hundreds of dollars a month. Make sure to order a credit report (usually free online). This way, you can dispute any mistakes ahead of time – but the most important thing is that you build up good credit from here out. Your down payment will likely range between 3.5 to 10% of the sales price of the home. This money can come from your savings, or a family member might be able to assist you with the down payment as a ‘gift’ which is not required to be repaid. You will also need to be able to cover approximately 3% closing costs and pre-paid items. This brings the total to around 6 to 10% of the sales price needed as your initial investment. If you are a VET you may be eligible for a 0 down loan with very little closing cost.Ask me how!
Part 1 – Buying your first home Part 2 – Finding the Right Real Estate Agent in Phoenix Arizona Part 3 – Getting Pre-Approved for a Loan Part 4 – Shopping for Your Home and Making the Offer! Part 5 – The Home Inspection Process Part 6 – Making Sense of Escrow Part 7 – Closing and Moving! ********************* Thinking of buying or selling a home in the Phoenix Area? We’d be happy to assist you in the buying or selling process. Feel free to contact me by phone 602-595-8900 or email. |
approval, which include:
the mortgage lenders will review your credit with a microscope. Lenders want clients who can pay their bills on time and who don’t owe too much to anybody else. Automated bill-paying services can help you stay on top of your bills. In the year leading up to your pre-approval for obtaining a home loan make sure you don’t apply for credit cards just to get the free bling, and stop shuffling your debt around. Lenders don’t really want you to carry a balance near your limit, and that can happen if you consolidate all your credit debt onto one card. Your score can dip temporarily when you make any big change – even for the better.
