Buying a new home? Here are 4 strategies for first-time buyers
To buy a house? An Arizona real estate agent explains how to navigate one of the country’s hottest real estate markets.
PHOENIX – The Valley is one of the hottest real estate markets in the country with record real estate prices and no signs of slowing down. Not only is it difficult to buy a home with all the bidding wars, but if you are a first-time home buyer it can almost seem impossible due to the fierce competition.
“Unfortunately, it’s very difficult for a first-time home buyer to break in because they’re in the price point where there are the most buyers, they’re usually $ 300,000 or less.” said Danielle Paluscio, real estate agent at AZ Premier Group.
Her clients, Daniel and Dianne Lee, have just bought their first home. The newlyweds admitted that the process was scary at first. Their biggest problem was the budget.
Then they tried to find a banker and make loans, among other things they had never encountered. The Lees say it was all so complicated.
âYeah, it was very stressful, like learning a new language,â Daniel said.
So here are four new strategies for first-time home buyers before the home search even begins:
- Explore all the loan options. This includes loans specially designed for first time home buyers. If you qualify, some of these loans only require a down payment as low as 3%.
- Decide on a home buying budget. Most experts recommend that your monthly payment be no more than 30% of your monthly income.
- Don’t make any major purchases using credit just before or during your home search. For example, accepting a new car payment could affect your credit score and therefore how much you are approved for.
- Make sure you have enough money for closing costs. There will be loan fees, inspections, and processing fees that are generally not covered by the loan. You will therefore have to pay out of pocket.
Paluscio said another piece of advice first-time homebuyers can do to win the auction war is to write a personal letter to the seller. This is what the Lees did to purchase their condo after reviewing about 30 homes. They paid $ 5,000 more than the asking price.
âOverall it’s still a great buy,â Lee said.
For more information on buying and selling a home in Arizona, visit the links below. Stay tuned for more stories about the current Arizona real estate market.