Woohoo! You’re considering buying your FIRST HOME – that’s HUGE! As soon as you feel excited, you’re probably just as likely to feel nervous – totally understandable, we’ve been there! That’s why we want to share with you our official guide, filled with tips that will not only get you through the process (we promise, it really isn’t that bad at all) but also SAVE you money when buying a new home in Mesa AZ! Now, who doesn’t like the sound of that?!? Read on, my friend!
Step 1. Determine if you are ready to purchase a new house in Mesa AZ
The initial step and one that many people tend to skip, is finding out how ready they are to purchase the residential property (promise us you won’t skip this crucial step!). This specific stage of the home buying process involves getting your finances right and getting pre approved for the mortgage. Here are some important things to consider at this stage:
- What is a credit score and credit history? The credit score requirements when applying for a mortgage will differ from one home mortgage to another. The VA and FHA home mortgages are lenient on credit score compared to conventional loans.
- Your employment income: If applying for a mortgage to purchase new page/Mesa AZ homes, the lenders will require documentation of the current income.
- The Debt to income ratio: to determine how much you are eligible to borrow, the debt-to-income ratio will be calculated. This involves comparing your gross monthly income to the minimum debt payments as listed on credit. This is also compared to the estimated new housing payment. The total ratio ranges from 41% to 57%.
- The available mortgage down payment: Each home mortgage will require some sort of down payment.
The above factors are crucial when it comes to determining your affordability for a new house in the Mesa AZ area and other areas in the valley as well. Talk to loan officers who will assist you during this prequalification stage. If you find out there are some areas of financial concern (and if so, it’s totally okay!) you’ll have to work on those areas before you can start over again. For instance, you can start saving to ensure you have a good down payment percent.
Step 2. Find out what the mortgage repayments will constitute
A huge mistake made by first-time homebuyers is not finding out what the mortgage payment will be like. Therefore, they end up purchasing a home that is more expensive than the amount they want to pay per month. Unfortunately, this is because they are excited that they qualify for a huge amount, but fail to understand what the repayments will entail. Thus, before you settle on buying a property, find out what goes into the monthly repayments.
The mortgage repayment is made of four components. Let’s have a look at each one of these.
- The principal amount plus the interest payment: Commonly referred to as loan payment, this is determined by the interest rate and the amount that is borrowed. In addition, the term of the loan will also go into consideration.
- The property taxes: This is a variable from one county to another and it is in terms of monthly payments.
- Mortgage Insurance: home mortgages require insurance that protects the lender in case the borrower defaults.
- Home insurance premium: to ensure protection in case of damage from a fire or other calamities, the property requires a cover.
The amounts paid on each of the four components depend on the loan amount. The more expensive the property, the higher each of these components will be.
Step 3. Find a suitable home mortgage lender
There are different lenders to talk to, once you are interested in purchasing a new home for sale in Mesa AZ. In addition, each of the lenders has different options that you can pick from. For instance, we have conventional loans, the FH home loans, VA loans, and the USDA home loans. Find out the rates offered by each lender and select one that you feel is more affordable and provides the amount required to purchase the property.
Step 4. Mortgage pre-approval
This comes before you can approach the real estate agent, and marks the official start of the home-buying process. Most real estate agents will be willing to work with you when you have the loan pre approved.
Step 5. Choose the top Realtor
Ensure that you find a good realtor when looking for new construction homes Mesa AZ. Find out what listings they have and select one that suits your requirements.
Step 6. Get under contract, and lock the rate
Finding a suitable property is the largest decision you have to make. Ensure you have agreed on the purchase price, and you have sellers concession. In addition, agree on the closing date.
Step 7. House inspection, loan approval, closing the sale
Finally, find a qualified property inspector who should give the green light to proceed with the purchase. Otherwise, request the seller for the renovations required as per the inspection report. After all is done, seek loan approval and proceed to close the home buying process. Once the transfer is done, the transfer of the titles should follow.
Therefore, the most important hurdles involve finding out if you are ready to purchase the property and the amount that you are eligible to borrow. The rest is usual negotiations and finding a property that suits your lifestyle. Remember to work with a qualified real estate agent when looking to purchase a new house in Mesa AZ. 👏🏼 👏🏼 👏🏼
See? That wasn’t so bad was it? Want more tips? Here’s our FREE guide to help you WIN the home buying process even more! It’s on us.
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