Life in Scottsdale

Steps To Buying A Home

Buying a home is a major commitment. It is likely the largest investment you will ever make. That investment must be made wisely to help ensure that it will be an important contribution to future financial comfort.

Choose A Knowledgeable Real Estate Agent

It is crucial to hire a real estate agent that is diligent and reliable. One that can help you make fully-informed decisions. Purchasing a home in Gilbert can be stressful with all things that must be considered. Choosing the right Gilbert Realtor will make the process a more pleasurable experience. It is important to remember that a seller's listing agent represents the interests of the seller, not the buyer. Always retain your own buyer's agent who will represent your interests and not those of the seller. Generally it is a cost- free advantage since the seller typically pays all sales commissions.

Know How Much Home 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 always a lender’s opinion of what you can afford based upon your credit score and other factors. Unless you are prepared to pay cash for your Gilbert AZ 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.

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 allow. Peace-of-mind will lead to a more rewarding new home experience.

Get Pre-Qualified For A Loan

In fact, getting pre-approved for a ceiling home loan is even better. It will give you a negotiating advantage with a seller for several reasons which your real estate agent can explain. "Pre-Qualified" is an initial opinion of likelihood of a loan amount the would be approved by the lender based upon basic information provided by the buyer. See the difference between Pre-Qualified versus Pre-Approval.

"Pre-Approval" is a firm commitment by the lender based upon a thorough research of the buyer's credit history and ability to service a mortgage. It takes longer for the the lender to make or deny approval. 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 your time and that of the of the involved real estate agents and seller. 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 Gilbert Mortgage Lender

A lender will require supporting documentation of income along with a lot 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 Gilbert 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. Use our Gilbert MLS of homes for sale to do your home affordability research.

Now Go Gilbert Home Hunting

Have a good informative meeting with your selected Gilbert 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 lifestyle desires.

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

You’re seeking homes in Gilbert 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 Gilbert AZ 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 he or she 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 Gilbert, 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 Gilbert 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 counter-offers.

Read more about Negotiating With A Seller.

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 Gilbert 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 30 January 2012 at 17:13
Gilbert Arizona (AZ)