Top Questions To Ask When Buying A Home

23It’s not quite that simple to determine whether or not you can afford to a new home.

Not only to prospective home owners need to calculate how much they can afford in reality, but the question of down payment, mortgage and home loans is enough to confuse most.

While lenders do have helpful guidelines in place when it comes to determining the approved maximum debt to income ratio but still the debt may be more than what you’re willing to spend. Following are some helpful points that will make the entire home buying process a comfortable experience for you.

What’s the Significance of Down Payment on Buying Power?

You’ll need to determine accurately how much should be put in the house before deciding whether or not you can afford it.

This is fairly obvious; the more you put down on the house as down payment, the more buying power you can enjoy. Additionally, a larger down payment will also offer more options for your mortgage loan.

What Should the Debt to Income Ratio Be?

Only 45% is used (debt to income ratio) as a general guideline by mortgage lenders when it comes to approving a mortgage loan. Calculating the debt to income ratio isn’t difficult. Just add up all debts that have to be paid in a monthly basis (student loans, credit cards, car loans) as well as the new mortgage payment. Make sure to include taxes, insurance and your dues in the proposed mortgage payment.

If the down payment is less than 20%, your mortgage insurance will also have to be accounted for. The best way to get there is to divide total debt by gross monthly income that comes before taxes.

What Payment Are You Comfortable With?

Even if you do get approved for a mortgage up to 45% debt to income ratio, it doesn’t mean you’ll be comfortable with making that payment. Before going to a mortgage lender, make your own calculations and determine a comfortable amount of mortgage that can be paid while still being able to enjoy a good lifestyle. Use a mortgage calculator and don’t forget to count your taxes, home owner’s dues and mortgage insurance (if applicable).

Remembering to follow all of the above to the letter can be difficult, especially for first time home buyers in Phoenix. Your best bet at finding a good property and at a good price is by hiring the best local real estate agent in Phoenix, Arizona.

Reasons Why Your First Home Should Be A Property Investment

1Most people prefer renting their first home, as opposed to buying, after graduating from college and entering practical life.

Current real estate trends, however, imply an advantage to young people when it comes to buying their first property. Why should your first home be an investment property?

Most real estate agents agree that first time home buyers can do themselves a lot of good by starting on this plan early on. This allows people to save money and develop good credit as they haven’t yet been faced with other responsibilities.

The very idea of buying your first home goes against the general notion of personal finance; but if you think of the following points when making this all-important decision, you’ll understand just why your first home should be an investment property.

Real Estate is..Well…Cheaper – Relatively Speaking

Recent reports from the National Association of Realtors suggest that home prices are on the rise again. Most real estate markets however present bargains to potential home buyers in the shape of distressed sales. What are they? These are investment properties or homes that have been forced through a foreclosure by banks that are willing to make a sale even at a loss. Additionally, distress sales also drive down cost of properties in the area as well.

Buying a distressed home as an investment property in Arizona right now would ensure the investment is bought for significantly less than its market value, i.e. buying price will be low.

Rental Income

In most locales, increases in rent are fast outpacing home purchase prices, largely due to demand and tight loan application restrictions. Purchase an investment property and you’ll see monthly mortgage payments to be lesser than market prices for rent. In other words, buying a home in East Valley of Phoenix, Arizona will pay more in the long run when it comes to saving and re-investing.

2Changing Demographics

The Research Institute for Housing America very recently produced a report that states home ownership among immigrants (nationwide) will soon account for about 36% growth in the housing market over the next decade.

We can see evidence of this already taking place in rapidly changing urban neighborhoods. After all, who would want to miss out on the possibility owning an investment property in Arizona, especially in a neighborhood whose house values are skyrocketing?

Your future self wouldn’t! Get in touch with your local real estate agent in Arizona and discuss the possibility of you owning a home in Phoenix.

Top 5 Home Buying Mistakes You Should Avoid

Purchasing a home is one of life’s major decisions. It is a worthwhile investment towards your future. Whether you are a first-timer or experienced homebuyer, you will experience many challenges in your search for a suitable residence. If you are not careful, you might end up making crucial home buying mistakes.

In order to help you get your dream property, here are the 5 most common mistakes you need to avoid:

Overestimating what you can afford

Many homebuyers, especially first-timers tend to overestimate what they can afford. This is because they focus only on the mortgage and down payment. Apart from monthly mortgage and down payment, you need to factor additional expenses, including insurance, taxes and maintenance fees.

It is better to assess your budget. Once you know the amount you can actually afford, proceed with the purchase. In case you need financing, get a pre-approved mortgage loan as soon as possible. This gives you an idea of how much you can afford for a home.

Limiting your search

While it is understandable to have your eyes set on a certain home, do not limit your options. This is the worst mistake you can make.

Make sure to check out as many homes as you can that meet your budget. Factor in essential details, such as commute to work or school for your kids when choosing your best option. Compare all these factors in order to choose the home that suits your needs.

Not making compromises

Having preferences for a home is understandable, but avoid being too picky. At some point, you will have to make some compromises, especially if you have limited funds. Have a vision, but don’t let your emotions get the best of you.

Skipping home inspections

Never buy a home without thoroughly inspecting it. Even if you are buying a brand new property, you should go over there to inspect it.

A home inspection can help you identify the strengths and weaknesses of a property. It is better to inspect a home at least twice before finalizing the deal.

Check both its interior and exterior. Inspect the neighborhood, garage, bedrooms, bathrooms and kitchen. Remember to inspect minor details, such as pipes, plumbing and more.

Home inspection is fundamental because there is no turning back for you once a deal is made. Thereafter, you will be financially responsible for any maintenance issues that might occur.

Not hiring a real estate agent

Buying a home is a stressful and unpredictable undertaking. There is no doubt that you can do it alone. But this process requires specialized expertise that only real estate experts have.

A realtor acts as a liaison between a seller and a buyer. He or she has the skills, know-how and contacts to get you the right property at the right price. Moreover, they handle all aspects of home buying, ranging from property listings to the compilation of documentation.

If you are interested in buying a home in East Valley of Phoenix, AZ, click here.

Selling Your Home? 5 Mistakes You Should Avoid

Planning to sell your home? You are probably cognizant of the fact that it’s one of the biggest decisions you will ever make. Selling a home can be a daunting process. It entails a lot of coordination and communication with prospective buyers. Not to mention, you will be meeting with strangers wanting to inspect your home.

If you do not have any experience in selling homes, you might find it overwhelming. Here are some tips to help you avoid the most common home selling mistakes:

Setting an unrealistic price

The price of a property plays an integral role in its sale. The right price can get you prospective buyers. Keep in mind, every buyer you meet will conduct a market analysis to assess your asking price. If it is too high, they are likely to move onto the next home. Also remember; don’t set an unrealistic price.

Not fixing things that are broken

When you inspect a home, what is the first thing you notice? Its condition. Maintenance is imperative to selling a home. If a seller finds anything damaged, he or she won’t be interested in buying your home anymore.

As a rule of thumb; inspect your home before putting it up for sale. Check every detail in every room. Most importantly, inspect all the doorknobs, windows, pipes and gutters. Make sure to get all the repairs done prior to home sale.

Getting emotionally involved

Selling a home can be an emotional process for some. But don’t let your emotions get in the way of the transaction. Think of your home from the financial perspective. Although you have created many wonderful memories, you are selling your home for a better lifestyle.

Not being properly insured

It is common for people to sell their home without checking its insurance information. Before selling your home, make sure it is properly insured. Equally significant is to ensure your property does not contain any obvious hazards.

Not working with a real estate agent

This is the most costly mistake you could make. Although a realtor charges a commission fee, they offer expert advice and assistance to sell a home.

A real estate expert will determine a competitive price for your home. In addition, he or she will handle property listings, advertising, paperwork and coordination with prospective buyers. They seek to provide you with a smooth home selling process.

Want to sell a home in East Valley of Phoenix, AZ? Click here.

Enjoy the Serenity of Queen Creek

The Homes For Sale in Queen Creek are Not the Only Thing It Offers

Queen Creek Homes For Sale

Looking To Get Away But Not Too Far Away? Consider Queen Creek Real Estate. Do you enjoy peace and quiet but work in the city? Do you long for the simpler surroundings of the country but enjoy the benefits the big city offers you? It’s such a shame you can’t have the best of both worlds…or can you?

There’s a little town located to the southeast of the Phoenix major metropolitan area called Queen Creek that might be exactly what you’ve been dreaming of your whole life. Settled into the base of the San Tan Mountain Regional Park, Queen Creek’s slogan tells you exactly what it offers: “comforts of the country, convenience of a city.”

Location Location Location!

Just a short distance away from the Phoenix-Mesa Gateway Airport and within easy access of the main freeways, Queen Creek is far enough from the Phoenix metro area to retain it’s peace and quiet, but still provides quick and convenient access to the rest of the Valley. Residents can hop on the freeway and get wherever they need to go and still make it home before dinner. This is what makes Queen Creek a great place to live for those who want the conveniences and accommodations of the city without all the noise and chaos the city can bring.

The Conveniences of Living in Queen Creek

That’s not to say Queen Creek is without it’s own amenities, however. Our little town has plenty of quaint restaurants, unique boutiques, and a local theater, not to mention outdoor recreational activities, parks, stunning scenery, and dozens of nature trails.

Come see the beauty of the Sonoran Desert on a walk or ride (bicycle or horseback) on one of our many nature trails and enjoy the serenity that only Queen Creek can offer. Your country home just outside the city is calling your name and waiting just for you. So come experience the best of both worlds today and consider one of the affordable homes for sale in Queen Creek.  Or if you have a little extra money to spend you may want to consider  luxury homes in Queen Creek