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1. Don't buy if you can't stay put.
If you can't commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner.
2. Start by checking and increasing your credit score, if necessary.
Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover. Credit reports are free from each bureau once annually.
3. Aim for a home you can really afford.
The rule of thumb is that you can buy housing that runs about
two-and-one-half times your annual salary. But you'll do better to use one of many calculators available online to get a better handle on how your income, debts, and expenses affect what you can afford.
4. Don't worry if you can't put down the usual 20%.
There are a variety of public and private lenders who, if you qualify, offer low-interest mortgages that require a down payment as small as 3% of the purchase price. Also, there are MANNY wonderful first-time home buyers' programs, many of which you probably don't know about. Contact Laura B. today for more information on these wonderful programs.
5. Buy in a district with good schools.
In most areas, this advice applies even if you don't have school-age
children. Reason: When it comes time to sell, you'll learn that strong
school districts are a top priority for many home buyers, thus helping to boost property values.
6. Get professional help.
Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an exclusive buyer agent, if possible, who will have your interests at heart and can help you with strategies during the bidding process.
7. Choose carefully between points and rate.
When picking a mortgage, you usually have the option of paying additional points (a portion of the interest that you pay at closing) in exchange for a lower interest rate. If you stay in the house for a long time, say five to seven years or more, it's usually a better deal to take the points. The lower interest rate will save you more in the long run.
8. Before house hunting, get pre-approved.
Getting pre-approved will you save yourself the grief of looking at houses you can't afford and put you in a better position to make a serious offer when you do find the right house. Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history. This is a must!
9. Do your homework before bidding.
Make your agent do this for you. This is all part of their job. Whether you use me or not, make sure your agent is doing this very important part of the buying process. Your opening bid should be based on the sales trend of similar homes in the neighborhood. So before making it, consider sales of similar homes in the last three months. If homes have recently sold at 5% less than the asking price, you & your agent should make a bid that's about eight to 10% lower than what the seller is asking.
10. Hire a home inspector.
Sure, your lender will require a home appraisal anyway. But that's just the bank's way of determining whether the house is worth the price you've agreed to pay. Separately, you should hire your own home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road.
Also read:
Process of Buying a Historic Phoenix Home
Financially Preparing Yourself To Buy a Home
4 Critical Factors In Choosing A Phoenix Historic Homes Realtor
Adjustable-Rate Mortgages (ARMS)
10 Reasons Why You Should Move to Phoenix, Arizona
Also read "What You Can Expect From Laura B."
For More Articles, News & Stories, Go to My Historic Phoenix Blog
Top 10 things to know and to do when buying a home
For first-Time Home Buyers
35 Phoenix Historical Homes Districts
Search Historical Phoenix District Homes
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Laura Boyajian
Mobile: 602.400.0008
HistoricCentralPhoenix@cox.net
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