3 financial tips to consider before you buy a home

When it comes to buying an Arizona home, there are many experiences even the most seasoned homebuyer wished they had known or that they could do over again; from having a more thorough home inspection to investing more time in better understanding the extensive paperwork and contracts associated with the home buying process. Because buying a home is both a huge emotional and financial commitment, here are 3 financial tips to consider before you buy a home.

1.) Mortgage shopping: As a first time homebuyer, finding out that you are qualified for a $650,000 mortgage can be an exciting thing. But as a general rule, it’s smart to take twenty percent less than what the bank will lend you and to be sure to have an idea what your mortgage, taxes, and maintenance costs could run you before buying your Arizona home. Before you home shop, calculate the mortgage payment for the home in your intended price range, along with the increased expenses (such as taxes, insurance and utilities). Then bank the difference between that and what you're paying now.

2.) Down payment saving: Next, you want to be sure you build up your savings, because lenders want to see that you're not living paycheck to paycheck. If you have three to five months' worth of mortgage payments set aside, that makes you a much better mortgage loan candidate. A hefty savings can also help you save for a down payment that could help lower mortgage payments.

3.) Maintenance costs: Home purchasing costs can include loan application fees, closing costs, appraisal fees, buyer broker fees, and more. After you sign all the paperwork and receive the keys to your new home, there are also homeowners insurance, property taxes, and possibly Homeowners Association fees. A cash cushion will also help cover maintenance and repair issues that come up when you own a home. Don’t think a perfect walk-through means you won’t get hit with an unexpected big ticket repair later.

If you’d like more information on what you should know before you buy a home or if you’re looking to buy an Arizona home, please contact the Regal Team today. From our first discussion through closing, our expectation is to make the real estate experience the best it can be for you!

Melissa Dierks

The Regal Team of RE/MAX Professionals

7111 W Bell Road, Suite 101

Glendale, AZ 85308

(623) 229-0154


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