It’s hard to believe we’re over half way through the summer and 2011.  This year has brought about many changes to the national housing market and the Greater Phoenix Real Estate market as well.  The country is pushing ahead in an effort to heal from the past few years of economic hardship and with historically low interest rates and home prices; many have jumped into buying a Greater Phoenix home!


The changes that have taken place in the Greater Phoenix Real Estate market are most noticeable in the first few steps of the home buying process.  Lenders have tightened the reins on those who qualify for home loans and, while there are stricter guidelines, buying a Greater Phoenix home is within reach for many hoping to settle into one of its desirable neighborhoods.


If you have considered buying a Greater Phoenix home this year, you’ll want to begin the process now.  There are many beautiful homes on the Greater Phoenix Real Estate market and you’ll want to be sure to take advantage of this years’ buyers market!  Below are five simple tips we think you should to know before you begin the home buying process.   


1. Get Advice- One of the first steps is to find a Greater Phoenix Real Estate agent you can trust.  Getting the advice from a Greater Phoenix Real Estate agent and being able to ask any questions you may have will lay the ground work for a successful home buying process.


2. Understand your Debt to Income Ratios- Lenders will look at your DTI, your debt to income ratio, and if your combined debts (mortgage and other debts) are more than 36% of your yearly income; chances are you will have a hard time qualifying.  Each lender varies on this amount, but making the serious decision to buy a home can’t be taken lightly.


3. Establish a Home Buying Budget- It’s imperative to establish your budget prior to talking with lenders.  Just because you are approved for a certain amount on the loan, does not mean that’s what you can actually afford.  Lenders don’t take your extended finances into consideration, but will look at your income.  Be honest with yourself and with your Greater Phoenix Real Estate agent about how much you feel comfortable spending each month on a home and don’t sway from that amount.  You’ll be thankful you did not max out your spending limit in the long run!


4. Be Prepared with Your Financial Information- After you have found a Greater Phoenix lender, you’ll want to meet with them and establish where you are financially.  Take two bank statements and the past months’ pay stubs to the meeting, along with your W-2 forms and the past two years tax returns.  They will then run a credit check and review your financials with you to determine the amount of the loan for which you’ll be approved.


5. Plan Ahead- Begin now to save money for, not only the down payment on your Greater Phoenix home, but for the additional costs each month.  This seems like a very basic point, but a very essential one.  The days of “no money down mortgages” are gone and most lenders require at 5% down.  You will also make sure that you have additional money for things like closing costs, as well as money in the bank when all is said and done.  Lenders are becoming more strict and want to know you can back up the purchase of a home. 


We hope these tips help you prepare for buying a Greater Phoenix home!  If you have any questions about these tips or would like to know more about the homes that are currently on the Greater Phoenix Real Estate market, feel free to contact us!  


As The Russo Team, we’re committed to helping buyers throughout Greater Phoenix find a great home that fits their needs, style and budget.  We know the entire home buying process can seem overwhelming, so our goal is to be there to guide you each step of the way.  Our dedicated service has given us years of success with our clients who are relocating or buying a Greater Phoenix home.  


Contact us today to get started!  We look forward to helping you find your next home!

The Russo Team
Greater Phoenix Real Estate Experts

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