As of April 2019, approximately 673,000 houses were sold in the country. That’s a 12.4% increase year-over-year! When deciding to purchase real estate of your own, however, it helps to have a game plan.
Otherwise, you could waste time, miss out on the perfect home, or pay beyond your budget.
Looking to purchase real estate in Arizona this year? You’re in luck! Here are the seven tips you need to succeed.
With this guide, you can easily find, choose, and purchase the real estate property of your dreams. Keep reading to learn how to buy a home in Arizona today!
1. Determine Your Budget
Americans spend approximately 50% of their income and earnings when buying a home.
Before you buy a home, there’s one crucial step you can’t avoid: you need to determine your budget.
Otherwise, you might end up falling in love with a home you can’t afford. Don’t fall into massive debt! Instead, try to calculate a range for your budget.
When you first begin exploring real estate in AZ, take the time to get pre-approved for a home loan. Pre-approval will show homeowners that you have the financial support to purchase a home. If you get pre-approved, sellers will become more likely to take your offer seriously.
In order to earn pre-approval for a loan, lenders will first look at your credit score. They’ll also explore any issues with your:
• Student loans
• Outstanding debts
If you can, try to pay off as many debts as you can. Aim to get your credit score about 620 to get pre-approved.
Once you’re pre-approved, it’s important to stick to your budget. You can start by multiplying your income times three. Then, start looking for homes around that price range.
You should consider the initial sales price and the location. Choosing a home in a trending neighborhood can ensure your home will appreciate in value over time.
2. Find a Talented Real Estate Agent
Choosing a talented, local real estate agent can make the process of buying real estate in AZ a lot easier. Their experience in the local area will help you find the perfect home. Your agent will also act as your advocate by aiming to fulfill your wants and needs as you buy a house in Arizona.
Your agent will complete a lot of the legwork. First, they’ll help you find great listings by using their access to the Multiple Listing Service (MLS) database.
They’ll also put their network and resources to work to help you find your dream home. Their network can include:
A qualified real estate agent will also help with negotiations to ensure you buy your new home at the best possible price. They’ll collect the documents and fill out the paperwork you need, too.
Choosing the right agent can streamline the entire home buying process ahead!
3. Determine Local Trends
Knowing when to buy real estate in Arizona is just as important as knowing where to look. Make sure to speak with your real estate agent about local trends.
When you buy can make a big difference to your budget. However, you might find that the number of homes listed is lower, giving you fewer options to choose from.
These trends are bound to fluctuate throughout the year, too. Working with the right real estate agent who is familiar with the local trends can make all the difference.
4. Get Pre-Approved
Getting pre-approved for a mortgage can also simplify the process as you search for real estate in Arizona.
The pre-approval process will give you an idea of which mortgage rate you can afford. That way, you can focus on homes that fit within your price range. Otherwise, you might feel disappointed when you find homes you can’t afford.
If a seller knows you’re pre-approved, they’ll know you’re less likely to back out of a deal at the last minute due to insufficient funds.
There are two ways you can get pre-approved for a mortgage.
First, you can complete the pre-qualification process. This requires bringing a lender all of your financial information, including your:
• Credit score
Your lender will then determine which types of loans you qualify for you. Using this method is ideal if you self-report your finances and credit score.
The other option is pre-approval. With this method, the lender will independently dive into your finances.
Choosing the pre-approval route will give you a better sense of your overall financial situation. Either way, you’ll have the advantage of realistically budgeting for your new home.
5. Start Hunting
This is the fun part: now you get to start hunting for a home!
Before you buy a home in AZ, think about all the features and amenities you want. Try to separate your list into “must-haves” versus “wants.” Separating these lists will help you narrow down your options.
Don’t forget to think about your budget! Stick to looking at homes that only fit within hat price range.
Then, start looking at homes in neighborhoods that fit your lifestyle. What do you need, such as access to great schools or proximity to the airport?
Once you choose an area you like, look at the houses. Walk around the neighborhood and determine if anything bothers you (such as loud noises or busy streets).
As you start looking at homes, make sure to take in every detail. Focus on the floor plan over the decorating choices. Are there enough closets and bathrooms?
Make sure the water works in the shower and that the light switches flip on.
Your real estate agent can help you narrow down the option and take notes before you select your dream home. If you’re looking for local real estate on your own, check it out and explore your options!
6. Make an Offer
Your real estate agent will walk you through the process of making an offer. The first step is to determine how much you want to pay. Make sure you know beforehand how high you’re willing to go.
You’ll need to write an offer letter as well. The letter will include terms of payment, transfer of ownership, how long the offer is good for, and other essential details.
7. Inspect, Negotiate, and Close!
Don’t skip this step! Make sure to complete a thorough home inspection. Otherwise, you might discover major, pre-existing problems after you move in.
These issues can include toxic material, structural damage, or electrical issues.
If there are issues that need remedying, your agent will help negotiate the terms.
Soon, you’ll find it’s closing time! During the closing process, you’ll meet with the lender, attorneys, seller, and real estate agent. You’ll need to finalize all the details and close payments.
Then, you’ll transfer taxes, mortgage fees, property taxes, appraisal fees, escrow, and processing fees.
Discover Your Dream Home: 7 Tips for Purchasing Real Estate in Arizona
Ready to discover your dream home? Put these tips for purchasing real estate in Arizona to good use! Don’t forget to speak with a qualified real estate agent to simplify the process.
Searching for more tips? Explore the Real Estate section of the website today!