Life in Tempe

Steps To Buying A Tempe Home

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Purchasing real estate is a major commitment. It’s an investment that must be made wisely and one that can contribute greatly to your future financial comfort. It’s also an investment into family lifestyle and foundation. That’s why it’s crucial to retain a diligent Tempe Realtor to help you make fully informed decisions. Having a competent Tempe real estate agent at your side is a cost-free advantage since it is the seller that pays all commissions.

Buying a home in Tempe can be a daunting process with an avalanche of decisions and options. It always helps to relieve some of the stress when the buyer understands the steps in the buying process so they are better prepared for what to expect.

Know What You Can Afford
Don’t confuse affordability with a loan approval ceiling. Getting pre-qualified or pre-approved by a mortgage lender for a loan amount is the lender’s opinion of what you can afford based upon your credit score. Unless you are prepared to pay cash for your home, you will have monthly mortgage payments for a long time. Those loan payments must be made in a timely fashion to sustain a good credit rating. You must anticipate lifestyle changes in the future that will consume spendable income. And you must anticipate unforeseen and unexpected situations that could adversely effect your ability to make mortgage payments on time.

If you want to avoid future financial stress, establish a projected monthly payment that gives you adequate comfort and flexibility. It’s always prudent to establish a combination of purchase price and monthly payment that’s somewhat below what you think your budget may be. Peace-of-mind will lead to a more rewarding new home experience.

Before Looking For A Tempe home, Get Pre-Qualified
In fact, getting pre-approved for a ceiling home loan is even better because it will give you a negotiating advantage with a seller for several reasons which your real estate agent can explain. A mortgage lender typically recommends that total monthly payments including principle, interest, insurance premiums and taxes do not exceed about 28% of your monthly income.

Looking for a home before knowing what a lender will loan you could be a total waste of time. Today, lenders can create unique loan packages to fit your needs and credit score even with less than perfect credit. Explore your options. Know your affordability range. Then go house hunting.

Be Prepared Before Seeking A Tempe Lender
A lender will require supporting documentation of income along with other information. Organize your financial files to quicken the approval process. If you’re ready to buy a home, this is not the time to change employment, make large credit purchases or apply for new credit cards. Doing these things may adversely effect your credit score inhibiting a successful loan approval. It’s also time to bring any delinquent payments current. Perform a free credit check on yourself in case there are any “black marks” that should not be on your credit report. Get any controversial items cleared-up before the lender performs its credit research.

Identify Needs, Desires And Tempe Lifestyle
Once you’ve secured an approved loan ceiling and set a comfortable maximum allowable monthly payment, it’s time to make a list of home and neighborhood features you would desire. Separate items that you and your family need versus desirable amenities and features you could do without if affordability becomes an issue. Do not spend beyond your means.

Now Go Tempe Home Hunting
Have a good informative meeting with your selected Tempe real estate agent. The processes of buying a home are very time consuming. You do not want to waste valuable time looking at homes you can’t afford or that do not fulfill your needs and desires.

Let the Realtor research available homes for sale in neighborhoods that complement your interests and then begin personal visits to only those homes that fit the criteria.

You’re seeking homes in Tempe that are ideal to your lifestyle in neighborhoods that are conducive to quality family life. Remember that buying a home is an investment that hopefully will build future financial rewards. Therefore your best targets are neighborhoods and communities where historical resell data is most likely to result in the best market value increases.

Making An Offer
You should rely on your real estate agent to suggest a negotiation strategy since they would have negotiating experience. A qualified agent will likely know when values may be under or over-priced and the likelihood of an offer rejection. With that being said, your Tempe, Arizona Realtor should prepare an offer at your direction, this is where a loan pre-approval becomes an advantage because sellers will look at your offer more seriously since it demonstrates credibility that would result in a quicker escrow close.

Any offer should be conditioned upon a home inspection which gives you an out if construction or maintenance deficiencies are discovered. Always hire your own Tempe professional home inspector for an unbiased assessment.

A “good faith” deposit is generally required with an offer to support the validity of the offer. If the seller accepts your offer based upon the conditions set by you and you fail to proceed with the purchase, your deposit could be forfeited.

Generally you can expect a counter-offer from the seller. Rarely is the initial offer accepted. Again, you should defer to your Realtor for guidance in making another counter-offer.

The Purchase Transaction
A diligent and qualified real estate agent will generally handle and/or assist you through the purchase transaction phases. An escrow close date will be determined and a title company will verify ownership and rights to sell the property and issue a title clearance. There will be closing costs which will be explained by your real estate agent and Title Company. Closing costs are usually split by the seller and buyer, but responsibility should be a defined component of the final accepted offer. Final down payments will be required at closing. Cashiers checks may be required.

Often it is advisable to consult with a real estate attorney to review the final transaction documents before finalizing. Discuss the timing of these events with your real estate agent.

Accept The Keys To Your New Tempe Home
Unless problems arise that prevents a settlement closing, you have purchased a new home. You and your family are ready to move-in.

 

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This page was last modified on 13 March 2012 at 18:42
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