Good Advice For First Time Home Buyers.
Sunday, May 6, 2007
Contributed by: Angie Young, Phoenix/Scottsdale Realtor.
Buying a home is generally the largest investment a person will ever make and choosing the right home to purchase should be based on sound, well-informed decisions. As you scour the Greater Phoenix MLS for the ideal home, it is crucial that as a first-time Phoenix home buyer that you choose a home that fits your lifestyle, needs and convenience within your range of affordability.
A home is an investment in Phoenix real estate that hopefully will not only give you years of enjoyment, but will return a healthy return on your investment when you decide to sell. Following are five ways to ensure you are making a prudent home buying decision.
1. Stay Within Your Budget Range.
Decide what you can comfortably afford. Be conservative and give yourself flexibility. Do not look at homes that you cannot reasonably afford. Don't tempt yourself with homes outside your budget where higher payments will eventually become a financial burden.
When determining affordability, consider the cost of property taxes, insurance, utility expenses and home maintenance in addition to monthly mortgage payments. Sustaining an enjoyable lifestyle requires stress-free financial flexibility.
2. Do Not Buy On Impulse.
Take your time. Look at a wide variety of Phoenix area homes. List the positives and negatives. Separately list absolute needs versus desires. Be prudent. Evaluate more than just the real estate itself. Metro Phoenix is a big place with many areas from which to choose including Phoenix itself, Mesa, Scottsdale, Carefree, Chandler, Fountain Hills and many other suburban cities. Research community amenities, shopping convenience, dining, school systems and entertainment venues. Consider commute convenience to places of employment. Consider the savings in mileage expenses and wasted time driving to and from work.
3. Plan Ahead.
How long do you plan on living in your new Phoenix home? That length of time effects many decisions such as how much to spend on upgrades and fixed rate mortgages versus adjustable rate mortgages. Consider future career changes, new additions to the family that would mean buying a larger home. Leave yourself flexibility in case of job loss, a sudden disability or sizable emergency situations that require using savings. Real estate values can increase or decrease at any given point in the future, so you do not want to get caught in a Bursting Real Estate Bubble with limited options.
4. Thoroughly Understand The Buying Process.
Do your research on the home buying process. Know how to gain a negotiating advantage. Know how the offer process works. Know the strategies of "offer and counter offers".
5. Get Pre-Approved For A Loan.
There are many advantages and benefits of getting pre-approved for a mortgage loan. First, you'll know how much home you can afford so you don't waste time looking at homes outside your budget range. Second, it gives you negotiating advantage with a seller because it helps ensure a successful and quicker escrow closing. This gives a seller greater confidence of your offer to buy. Choose an ethical mortgage lender or broker.
6. Choose A Knowledgeable Realtor.
Select a Realtor that is intimately knowledgeable of the geographic area of interest. They will generally know where the best real estate values can be found. An experienced Realtor can explain the processes, can give you advice to help you make well-informed buying decisions and can give you the advantage of applying negotiation skills with a seller. Hiring you own Realtor that exclusively represents your interests is cost-free since the seller generally pays the real estate commission.
Remember, buying a Phoenix home will likely be one of the most important financial transactions of your life. Do your research carefully and diligently. Consider all your options, do not buy on impulse, get pre-approved for a mortgage loan, stay within your budget range and choose a Phoenix real estate agent that will help turn a stressful process into a pleasant home buying experience.
More Helpful Information:
Advice For The First Time Buyer
Common Questions For The First Time Home Buyer
Buying a home is generally the largest investment a person will ever make and choosing the right home to purchase should be based on sound, well-informed decisions. As you scour the Greater Phoenix MLS for the ideal home, it is crucial that as a first-time Phoenix home buyer that you choose a home that fits your lifestyle, needs and convenience within your range of affordability.A home is an investment in Phoenix real estate that hopefully will not only give you years of enjoyment, but will return a healthy return on your investment when you decide to sell. Following are five ways to ensure you are making a prudent home buying decision.
1. Stay Within Your Budget Range.
Decide what you can comfortably afford. Be conservative and give yourself flexibility. Do not look at homes that you cannot reasonably afford. Don't tempt yourself with homes outside your budget where higher payments will eventually become a financial burden.
When determining affordability, consider the cost of property taxes, insurance, utility expenses and home maintenance in addition to monthly mortgage payments. Sustaining an enjoyable lifestyle requires stress-free financial flexibility.
2. Do Not Buy On Impulse.
Take your time. Look at a wide variety of Phoenix area homes. List the positives and negatives. Separately list absolute needs versus desires. Be prudent. Evaluate more than just the real estate itself. Metro Phoenix is a big place with many areas from which to choose including Phoenix itself, Mesa, Scottsdale, Carefree, Chandler, Fountain Hills and many other suburban cities. Research community amenities, shopping convenience, dining, school systems and entertainment venues. Consider commute convenience to places of employment. Consider the savings in mileage expenses and wasted time driving to and from work.
3. Plan Ahead.
How long do you plan on living in your new Phoenix home? That length of time effects many decisions such as how much to spend on upgrades and fixed rate mortgages versus adjustable rate mortgages. Consider future career changes, new additions to the family that would mean buying a larger home. Leave yourself flexibility in case of job loss, a sudden disability or sizable emergency situations that require using savings. Real estate values can increase or decrease at any given point in the future, so you do not want to get caught in a Bursting Real Estate Bubble with limited options.
4. Thoroughly Understand The Buying Process.
Do your research on the home buying process. Know how to gain a negotiating advantage. Know how the offer process works. Know the strategies of "offer and counter offers".
5. Get Pre-Approved For A Loan.
There are many advantages and benefits of getting pre-approved for a mortgage loan. First, you'll know how much home you can afford so you don't waste time looking at homes outside your budget range. Second, it gives you negotiating advantage with a seller because it helps ensure a successful and quicker escrow closing. This gives a seller greater confidence of your offer to buy. Choose an ethical mortgage lender or broker.
6. Choose A Knowledgeable Realtor.
Select a Realtor that is intimately knowledgeable of the geographic area of interest. They will generally know where the best real estate values can be found. An experienced Realtor can explain the processes, can give you advice to help you make well-informed buying decisions and can give you the advantage of applying negotiation skills with a seller. Hiring you own Realtor that exclusively represents your interests is cost-free since the seller generally pays the real estate commission.
Remember, buying a Phoenix home will likely be one of the most important financial transactions of your life. Do your research carefully and diligently. Consider all your options, do not buy on impulse, get pre-approved for a mortgage loan, stay within your budget range and choose a Phoenix real estate agent that will help turn a stressful process into a pleasant home buying experience.
More Helpful Information:
Advice For The First Time Buyer
Common Questions For The First Time Home Buyer
posted by Angie Young at
3:48 PM
