As Greater Phoenix Real Estate agents, we’ve seen the ups and downs of the real estate market the past few years and can understand the concern that some have with jumping into the home buying or selling process.  This shaky market has been experienced across the nation, yet this year has brought about a sense of hope as we find ourselves on the road to recovery. 

 

If you’ve been considering buying a home this year, you may have heard that there have been some changes to the loan qualification process.  Lenders have tightened the reins on qualifying for a mortgage loan in order to keep a close eye on who’s buying a home and to help the market heal.  While there may be a few more hoops to jump through when qualifying for a loan; it’s not impossible!  Here are four tips that will help you embark on this first step of buying a Greater Phoenix home

 

-  Have the right credit score- Credit scores are moving to the forefront of being approved for a Greater Phoenix home loan.  Most lenders are expecting a credit score of 600+ even for FHA loans.  A good credit score will not only help you qualify for a home loan, but can lower your interest rate, which can save you thousands of dollars in the long run.

 

-  Shop around- The interest rate is important, but there are other costs to consider such as discount points and even the type of mortgage loan. When shopping for best rates, compare various combinations of discount points and loan types. Your Greater Phoenix Real Estate agent can help you decide on the best option. 

 

-  Know your borrowing limit- If you’re not sure how much you want to borrow, a good rule of thumb is to look at the Federal Housing Administration requirements.  FHA will limit mortgage payments at 31% of gross monthly income before taxes for most buyers.  This can help ensure that you’re not getting in too far over your head.  If we’ve learned anything over the past few years, it’s to play it safe in the housing market.  

 

-  Consider a No-Closing-Cost Loan- If you have positive equity, but are lower on cash up front, you do have an option to choose a no-closing cost loan.  This simply means that you’ll have a slightly higher rate, but the closing costs will be paid over time instead of up front.

 

So, whether you have your eye on a modern condo in downtown Phoenix or a beautiful home in a quiet Greater Phoenix neighborhood; you’ll want to make sure you have a few things in place before beginning your Greater Phoenix home search.

 

If you have questions about qualifying for a loan or other home buying questions; please let us know!  Our experienced team of Greater Phoenix Real Estate agents would enjoy the opportunity to help you walk through each step of buying a Greater Phoenix home!  We look forward to hearing from you!

The Russo Team
Greater Phoenix Real Estate Experts

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