Arizona is quickly growing into a top destination for not just tourists but also aspiring homeowners. More and more people are beginning to see the advantages of living in the state, including all-year-round sunny weather, convenient transportation, and fun entertainment options. The thought of moving to Arizona can get any aspiring homeowner excited, but before jumping into such a big decision, it is always best to plan and prepare thoroughly.
With mortgage rates down because of the pandemic, Arizona real estate and housing, in general, has become more attractive to the market. If you plan to become a first-time homeowner in 2021, it is important to make proper considerations for the purchase. No matter how good the interest rates may sound, here are some tips to help you make smart and sound decisions.
Determine Your Budget
A good way to start any home purchase is by determining your budget or how much you can afford. Learn about your financial standing by checking your income, debts, and possessions, then assess the realistic amount that you can spend to purchase and maintain a house. Consider the downpayment you need to pay upfront, along with associated costs like insurance, agent fees, and others.
Take as much time as you need with this first step, as it will influence many of your decisions along the way. If you do not make an accurate budget estimate initially, you might get stuck in a tricky situation later on. Any time you have to decide related to your home, make sure you keep track of your finances to ensure you stay in a good position.
Maintain a Good Credit Score
As you explore the Arizona real estate market and your home options, you may need to secure a mortgage or loan for financing assistance. In these cases, lenders will check your credit score to assess your ability to repay your loans and offer better terms and interest rates. Thus, even before you decide to purchase a home, it is best that you already do your due diligence and take steps to maintain a good credit score.
Get a Mortgage Pre-Approval
A mortgage pre-approval gives you a rough estimate of how much you can loan based on your financial standing, credit history, and other information—having a pre-approval letter can come in handy when shopping for Arizona real estate since it gives you more credibility as a buyer. Prequalifying on a loan also gives you a better idea of how much you can loan, which will help filter your options while searching the market.
Take Your Time
A common mistake that first-time homebuyers make is rushing the process. It is normal and understandable to feel excited and even impulsive about your first home. However, given how big of an investment it is, you want to make sure you cover all your bases.
The best decisions result from careful planning and assessment. Think about your needs and wants, and in doing this, consider not just the actual house but also the community. Get to know the surrounding area and neighbourhood to see if it is suitable for your lifestyle. Similarly, try not to get carried away buying the largest home that catches your eye. Instead, think about long-term plans and market trends to see if prices are likely to increase in the following years.
