If you are getting ready to buy a new home, there is so much to consider it can be overwhelming. Here at B Home, we have broken it down into a few key factors to make it easier for you to get started!
When you are getting ready to buy a home in Phoenix, here are some of the important financial factors to be aware of:
- How much home can you afford now and in the future? It is tempting to think of a range, but try and figure out a concrete number. Start by thinking about your debt-to-income ratio. You will need to know this both for reasons of budgeting and for your loan applications.
- Look not just at mortgage rates, but also at annual percentage rates (“APR” for short) when shopping around for home loans in Phoenix. The APR for a mortgage factors in closing costs, origination fees, application fees, and other associated costs, presenting you with a truer estimate of the cost of a loan.
- Get ready for both the home appraisal and the home inspection (two appraisals if you are applying for a jumbo loan). These carry a cost, but they can end up saving you money in the long run.
- What are the utilities costs you will need to pay for the home you are thinking of moving into? Do you need to pay to belong to the local homeowner’s association?
- Decide whether it would make more sense to get a fixed rate mortgage or an adjustable rate mortgage.
- Calculate how much of a down payment you can afford on your home — and whether that means you will have to purchase private mortgage insurance.
When you are trying to figure out how to afford your Phoenix dream home, it is easy to get caught up in all the financial details and forget about the other important factors.
Below are some questions to ask while you are shopping to make sure you really are getting your dream home.
- Neighborhood. What is the best place to buy a home in Phoenix? There is no single answer to this—it depends on your needs. But B Home can point you in the right direction based on what you are looking for.
- Home features. This could include everything from the views out your windows to the layout of the rooms. Do you want a large home? A small home?
- The size of the lot. This is one aspect of your property which you will never be able to modify. You can add onto your house, but only if you have the land to accommodate it.
- Consider the age of a property as well. A newer home may be in better shape than an older one, but old homes can have some amazing features which are hard (or impossible) to find on newer homes. So, you will need to think about what is important to you. While you are at it, think about the style of the home’s architecture as well.