Buying A Home In Arizona

After considering a variety of economic, social and financial issues, the time may be right for buying a home in Arizona.

After considering a variety of economic, social and financial issues, deciding the time is right to buy a home in Arizona may be the conclusion. Common reasons to purchase a home include: property ownership status, financial investment, scheduled savings through equity, stable housing costs, increased property value, tax breaks, increased living space, choice of stable neighborhoods and schools, opportunity to live in an architectural environment of choice.

Shopping for the new home can be an exciting and emotional time, search to find that perfect home in the right location for the right price. Whether buying a first home or a third rental property, the process of buying a home in Arizona remains the same. Though the options may vary from one home buyer to another, the tips, advice and information here will benefit anyone considering the purchase of a home in Arizona.

There are six basic steps to buying a home in Arizona. Almost every home buyer today will need a mortgage in one form or another, few can afford to pay in cash. The first step in buying a home in Arizona, pre-qualifying for a home loan, is a relatively painless process. There are several areas to explore and a loan officer can help lay the groundwork for buying a home. Consider what types of mortgage options are available. When looking at available loan programs, it is important to look at the short term and the long term effects of a mortgage. For example, when planning to live in a home for only a few years, it may not make sense to apply for a 30-year fixed rate loan if it is possible to qualify for a lower interest rate on an adjustable rate mortgage.

Compile a list of all assets and sources of income to buy the home, be honest and thorough with financial officers. Lenders are frugal with their money and will calculate a maximum loan amount based on the likelihood that it can be repaid. Down payment requirements vary with each mortgage. For first time buyers it may be as low as 5% of the value of the home, a 10% down payment is common. Any down payment less the 20% will result in a mandatory carriage of mortgage insurance on the loan and adds an average of $60 to monthly payments. Mortgage insurance pays off the balance of money owed on the house to the lender if the owner dies, but in most cases, premiums for life insurance are better spent.

Next, find a real estate agent. The success of buying a home lies not in the home itself, but in the agent chosen as a representative to negotiate on the buyer's behalf. Ask for recommendations from experienced home buyers. A respected real estate agent will walk the buyer through the transactions. Beware of agents that practice a form of buyer's representation called "dual agency." Their position requires neutrality instead of looking out for the buyer's best interests. In some cases, buying directly from the seller may be more productive than through an agent. However, be well-inform on all Arizona laws for purchase and sale of homes. Do not depend on experience from what other states allow. Laws vary from state to state. Finally, remember that the decision to buy a house has many effects that may be positive, or negative. Weigh the consequences of buying a new home in Arizona before deciding.

Thirdly, finding a home may not be as simple as it sounds. To avoid "after the purchase" headaches know exactly what to look for when buying a home. It is important to know the options and limitations that exist. Driving through neighborhoods during the day and at night will reveal the membership of each area. Is the population young or old? The appearance of some cars will expose the presence of noisy teenagers and small children unattended in play may be something to be avoided. Visit open houses on Sundays to get the overall view of a community. Take notes on what is desirable and what is not.

A home represents a variety of functions for the inhabitants. The right mix of "needs" and "wants" may be difficult to match with the qualifying criteria of the loan. A successful new home-owner will have long pondered these questions, "What am I looking for in a neighborhood or house style. "What advantage and disadvantages of the home for the price I can afford?"

Once a home has been identified for purchase, deciding on a mortgage is the next step. Terms and requirements vary among lenders. Study options carefully to determine the best mortgage value in the short and the long-term. Normally a loan officer has assisted in exploring options, and is a good source of advice. A firm lender commitment will lead to a search of title records and confirm that there are no liens against the property that could affect processing a clean title. The property's value, then, is determined through a state required appraisal. Negotiating a purchase contract that outlines the terms and conditions of the buyer's offer, including items such as a sales price, any seller paid closing costs, the inclusion of any personal property like a washer and dryer, etc., finalizes paper work.

Although hiring a professional home inspector before closing on property is not required by law in Arizona, taking time to view the property with the seller is important. It is an opportunity to fully explore the home. Sellers are required by law to reveal any major defects in the structure of the home, such as roof leaks, termites, faulty wiring, etc. Any other items that may be of concern can be checked on by a home inspector or other appropriate professionals. It is also crucial to understand all your options when addressing any repair issues. If carpet is noticeably worn, will the buyer seller or the buyer pay the cost? Broken tiles and blinds should be replaced by the seller.

Though the fifth step in buying an Arizona home, closing, may take place months after a purchase agreement is made, the signing of all final paperwork is the main activity. The papers list the amount being borrowed, the monthly house payment, and the deed of trust which shows the ownership of the property. A stack of other related paperwork that is needed to finalize the transaction may seem time-consuming, but once signed, allows possession to keys of the property and the home buying process moves into its final stage, moving.

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