Phoenix Home Buying 101
 Whether
it is your first home or your third rental
property, the process of buying a home in
Arizona remains the same. Though the homes may
vary from one home buyer to another, the tips,
advice and information provided in this section
will benefit anyone considering buying a home in
Arizona.
As you traverse through this home buying
section, you will have the opportunity to ask
yourself the question, "Is it a right time for
me to buy a home?" We will explore the
advantages and the disadvantages of home
ownership. We will learn about the traditional
steps involved in purchasing a home and how to
put together an advisory team that will assist
you throughout the process. You will be able to
answer the question, "What can I afford to buy"
when we explore the qualification process and
identify your purchasing potential and any
hidden weaknesses that may impede the process.
Though buying real estate is really the art of
negotiating, the key is not knowing how to
negotiate as much as it is having a great
negotiator working for you. We will discuss this
topic when we explore how to find an agent and
identifying your needs and wants when finding a
home.
As a home buyer, the most important piece of
advice any real estate agent will tell you is to
learn as much as you can about the home process.
The more informed and knowledgeable you are
about the home buying process, the more informed
and educated your decisions will be when you do
decide upon a home to purchase.
Steps in Buying a Home in Arizona
Even though the decision has been made to
proceed with a home purchase, the thought of
buying a home may terrify some. Legal documents,
loan qualification, house hunting, and the
stress of making one of the largest financial
decisions in your life can be a little
overwhelming. Taken in stride and understanding
the steps involved in buying a home, you will
learn the worse part about buying a home is
having to move the boxes and unpack everything.
There are six basic steps to buying a home in
Arizona. Each step is outlined as follows:
1. Pre-qualification. This first step is the
single most important step involved in home
buying. Pre-qualification is the step that
determines
-
what options you have available
-
how much home you can afford
-
how much the mortgage payments will cost
each month
-
identifies the loan programs that are
available to you
-
maps out alternative strategies to help you
buy a home
-
points out any hurdles that may prevent you
from buying a home
Though many real estate agents profess to
have a degree of expertise in helping you
pre-qualify for a home, this step is best
left to a loan officer who has first hand
experience with mortgage programs, new loan
programs available on the market, and
experience overcoming potential problems so
that they do not become problems.
2. Find a real estate agent. How successful
you are in buying a home lies not in the
home itself, but in the agent you choose to
represent you and negotiate on your
behalf...whether it is yourself, a licensed
and experienced agent or your "Uncle Morty"
who has dabbled in real estate for the past
20 years.
3. Find a home. As simple as it sounds,
finding a home that has the right mix of
"needs" and "wants" coupled with your
qualifying criteria can often be a daunting
task. Though once a home has been
identified, you (or your agent) will
negotiate a purchase contract that outlines
the terms and conditions of your offer
(including items such as a sales price, any
seller paid closing costs, the inclusion of
any personal property like a washer and
dryer, etc.).
4. Find a mortgage. With an accepted
contract, the final step (and normally the
easiest) is to select a mortgage to finance
the purchase of your home. Normally your
loan officer has already assisted you in
exploring your options (see step one), and
all that remains is to finalize the mortgage
(including a firm lender commitment,
searching the title records to make sure
there isn't any liens that would affect
clean title, and determining the property's
value through an appraisal).
5. Close the deal! Closing is the final step
before you receive the keys to the home.
Though this is generally the shortest step,
the closing is the step where you sign all
final paperwork to include the new note that
outlines the amount you are borrowing and
your monthly payment, the deed of trust
which shows that you own the property, and a
stack of other related paperwork that are
needed to finalize the transaction. Once
signed, you are now the proud owner of a new
home.
6. Move.
How to Find a Home to Buy
Before driving through neighborhoods and
visiting open houses on Sundays, take a
piece of paper and divide it into two
columns. If you have a spouse, have him/her
do the same on a separate sheet of paper.
Above the first column, write "NEEDS" and
above the second, write "WANTS". Needs are
defined as items that are necessities and
are must have features for a new home.
Wants, on the other hand, are generally
categorized as those items that make life a
little more comfortable (such as a garden
tub and double sink vanity in the master
bathroom).
As you begin to fill out each column, be
sure to ask yourself the following
questions:
1. What is the minimum number of bedrooms?
2. What is the minimum number of bathrooms?
(Try to pick homes with at least 1.5 to 2
bathrooms. Homes with only one bathroom are
very difficult to resell).
3. New home or resale home? As you explore
this option, remember that newer homes may
offer newer appliances and amenities where
as older homes have landscaping, established
neighborhoods, etc. (One bit of advice
here...never go into a new home subdivision
without an buyer's agent to represent you.
The sales agent at the subdivision works for
the builder and will not negotiate on your
behalf. The result could be a costly
contract that you cannot back out of).
4. Are there any features that I must have?
Are you a hobby enthusiast and need extra
space for your arts and crafts? Do your
children attend a specific school and you
want to keep them in the area? Do you want a
pool?
Having an idea of the type of home is
critical to successfully finding a home. As
you and your real estate agent begin
exploring homes, be sure to take a notepad
along so that you can write down any special
features about the property.
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