How Can I Be Financially Prepared To Buy A House In Phoenix?

In the Phoenix Valley there are a lot of people that would really like to buy a home.  We all know that it is a buyers market, prices are dropping, and interest rates are low.
Even with the incredible buyers market we are experiencing in Arizona...some people are hesitant to take the first step forward in buying a house because for what they don't know.  They are afraid that something will come up that they are not prepared for...and it prevents them from moving forward and buying real estate in Phoenix.
I am going to try to answers the questions that I get from clients and friends in the Phoenix area when they are thinking about buying a home, but the unknown is preventing them from moving forward. 
  1. Use your savings to pay off your debt.  In the Phoenix real estate market sellers are willing to pay buyer's closing costs.  If you are a buyer you will want to use your savings to pay off any debt that you can.  Credit rating companies are going to judge you based on how much income you have coming in vs how much debt you have going out each month.  Your total debt payments (including your house payment) should not exceed 36%.
  2. Select the best type of mortgage for you.   Loan requirements are changing almost daily in our market.  FHA loans in Maricopa County and Pima County have just increased their limits and have become some of the most attractive loans on the market.  I can refer you to great loan officers, just ask me.
  3. Pull your credit report.  Look for accounts that are not yours, debts you don't owe and negative marks.  In Arizona if you find an error contact the credit agency immediately.  By law the credit bureau has 30 days to investigate and respond.  They must correct and remove inaccurate information and send a revised report to anyone who's requested your report in the last six months.
  4. Be organized with your paperwork.  Have copies of your last two W-2's, two months of bank statements, and statements for investment accounts.  For those of you that are self employed, you may need a letter from your accountant as well.
If you can do these four things you in a great position to seriously begin looking for your next real estate purchase in Phoenix!
If you are looking for a home in Phoenix, contact me!

Date: 2008-03-11 11:14:25
Views: 516