Home buyers everywhere all agree− the thought of buying a home for the very first time can be intimidating and nerve-wracking. That doesn’t mean, however, that the actual experience reflects those sentiments, especially if you’ve done all the necessary preparations.
To help first-time home buyers like you in Phoenix, here are five tips to live by.
- Set aside money for a down payment early in the process.
Home buyers are always encouraged to set a budget based on how much they can afford. With that in mind, it’s also a wise decision to start saving for the down payment as early as possible.
Say your budget is $700,000 for the purchase. Sellers usually ask for a 20 percent down payment, so your goal for this endeavor is $140,000. That way, when you’ve found the one, your down payment is ready, along with your offer.
- Restrain from opening new credit accounts or activity.
An acceptable, if not impressive, credit score is of paramount importance if you want to secure the mortgage loan you want. There are many ways to improve your credit rating, including paying off outstanding debts and settling any discrepancies.
That said, some think it’s alright to a new credit account, especially if they have a passing credit score. High credit rating or otherwise, avoid opening new accounts. It can cause your credit score to dip and even derail your loan application.
- Find out if you qualify for federal or local assistance programs.
As a first-time home buyer, you can take advantage of federal or local assistance programs. Some specifically help first-time home buyers with down payments, while others offer full support.
For instance, the Arizona Housing Development Authority (AzIDA) has the Home Plus program. This is perfect for first-time home buyers who want assistance with down payment and closing costs. If you have a low credit score, look into FHA loans.
- Don’t forget to save for after the purchase.
The down payment and the closing costs aren’t the only expenses you need to save beforehand. Also take into consideration the costs after you move in. Make sure you have enough budget to take care of other needs, such as new furniture and appliances, home updates, and maintenance.
- Consider your long-term real estate goals.
When you start shopping for a home, it’s easy to get caught up in the idea of your dream house or neighborhood. As a result, some home buyers lose sight of long-term goals and end up buying properties that don’t fit with their needs and lifestyle.
Ask yourself: why are you buying a home? Do you plan on living in that home for the next five years or so? Is this only a temporary arrangement? Are you planning on starting a family in that home?
Keeping your personal goals aligned with your home purchase will help you make a solid real estate investment, perhaps one that will even last a lifetime.
Explore Scottsdale homes for sale!
Scottsdale is one of the best places to live and invest in the Phoenix metro area. Get in touch with local expert, Scott Semer, at 1.480.353.0299 or scott(at)scottsemerrealestate(dotted)com to get started.
