Arizona is a beautiful state to live in. The job market is thriving, house prices are starting to drop little by little, the number of families with children is growing, and the scenery is breathtaking. Becoming a homeowner in this state is a big step that many take, whether they are renters who are already living here or previous homeowners moving in from another state.
Owning a home comes with a lot of responsibility. You are not just responsible for making payments on your mortgage, but you also have to take care of the property to ensure it is safe and will appreciate in value.
Buying a home is not a decision to be taken lightly. You must be prepared so that the buying process will go smoothly and you can start with your new property on the right foot. Here are some ideas to prepare you for homeownership in Arizona.
Understanding Loan Options
Most buyers will seek out financing to help them afford their homes. Depending on your circumstances, you may qualify for various loan products. A VA loan is specifically to help veterans, active military members, and surviving spouses afford homes. FHA loans are backed by the federal government, so low-income buyers can obtain more favorable terms on mortgages. Conventional loans are available to most buyers who have a good credit score and enough savings to afford a down payment. If you are moving to a rural area of Arizona, a USDA loan can help you secure a house if you have a lower income as well. On the other side of the spectrum, jumbo loans are for more expensive properties.
Research Nearby Home Prices
Getting a good deal is a critical part of the home-buying process. You do not want to spend more money than the property is worth, or it may be hard to benefit from appreciation. Researching comparable homes in the neighborhood can help you determine what is a fair price for the property you want. If you notice that similar homes are going for much less on the market, then you are probably not getting a fair deal from the seller. Often, sellers overestimate the value of their homes to get a bigger profit or because of sentimental attachment. Investigating the rest of the market can help you overcome this challenge.
Being Prepared for Closing Costs
The price of the home is not the only thing you will be paying for when you buy a house in Arizona. Closing costs are fees that must be paid when you sign the contract for the purchase. Some examples of closing costs include title search fees, loan creation fees, realtor fees, attorney fees, and Escrow fees. Average closing costs in AZ for a buyer are usually around 2-5% of the total cost of the home. Factor in this extra expense when you are creating a budget for your home so you do not get surprised by the number when you complete the transaction.
Keep and Consult the Inspection Report
When people buy homes, they usually pay for an inspection of the property by a professional. This person will observe all the components of the home to look for maintenance issues or future repair needs. Often, this report is used in the negotiation process. However, you must keep this report and consult it regularly to keep up with home maintenance. For example, did the inspector notice an issue with the garage? Then, you may need to pay for a garage repair or replacement shortly after moving in. This may be a cost you did not consider before moving in. This report can help you take care of the property once you own it, addressing maintenance needs before they escalate and become more expensive.
Upgrade Your Toolbox
When you have been renting for a long time, you are probably used to filing maintenance requests with your landlord or the property management company they work with. Now, however, you will be fulfilling those requests yourself. When repairs are needed, you may need to do them on your own if you don’t want to spend money on a professional to come in and do it. When these jobs are simple enough, you can make the necessary repairs with your tools. However, you need to have those tools in the first place. Upgrading your toolbox with basic equipment can ensure you have what you need to take care of the home.
Stay Informed for a Smooth Buying Process
Before you buy a home in Arizona, you must do plenty of research. Find out about what payment assistance programs exist in the state to help you afford the home. Check the local market for comparable home prices. Make sure you are looking into the right loan product for your circumstances. See what kind of home repairs are common and upgrade your toolbox to accommodate those needs. The more prepared you are for owning a home, the easier the transition will be.
