10 Basics First Time Homebuyers Really Need to Know
Arizona's first time homebuyers have a variety of reasons for purchasing real estate. Some desire financial benefits, such as tax deductions and equity. Others seek greater privacy and more control over their homes. Ownership offers several advantages, but it's vital to choose and buy a house carefully. These facts can help:
- You may find homes by browsing newspaper classifieds and for-sale-by-owner or real estate agency websites. Alternately, you could talk to a broker or visit appealing streets and see if you notice any "For Sale" signs.
- Real estate agents often supply helpful advice on selecting homes and applying for mortgages. Sellers pay their commissions. However, it's worth mentioning that these fees are actually included in the prices of all properties they advertise.
- Unlike most sales, the transfer of a house is final. You can't simply move away or demand a refund if you discover hidden structural problems a few months later. Be sure to hire a trusted home inspector. Some buyers also pay for specialized inspections of cooling systems or swimming pools.
- Numerous sellers provide home warranties at no extra charge. These programs guarantee certain equipment, such as water heaters, pumps, central air conditioners and/or kitchen appliances. You can also separately buy a year's worth of coverage for about $400 to $900, according to The Simple Dollar.
- Homes normally come with all of the fixtures, but they don't necessarily include appliances. If in doubt, it's wise to write down every desired item when making an offer. Never assume that a seller will leave any freestanding objects or wall-mounted electronics.
- Remember to consider every significant cost when deciding if you can afford a specific house. Such expenses range from insurance to property taxes and homeowners' association fees. A mortgage lender is more likely to approve a loan if you plan to spend no more than three-tenths of your income on housing.
- First time homebuyers don't only need adequate down payments. Both the customer and seller must pay portions of the closing costs. This expense normally equals two to five percent of a home's selling price, according to Investopedia.
- When a seller accepts an offer, the ownership transfer usually takes one to two months. You'll need to give your landlord and a moving company sufficient notice to ensure that the process advances smoothly.
- Each first time buyer can make a traditional individual retirement account withdrawal (from an existing IRA) of up to $10,000. This no-penalty funding provides an appealing way to gain the money you need for a down payment, especially if your spouse also has an IRA.
- Many owners ignore offers from potential buyers who haven't been pre-approved for home loans. These sellers worry that the deal might fall through and waste time. Don't forget to request pre-approval as early as possible.
Download Your Comprehensive & Printable Home Buying Checklist
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Deer Valley Credit Union provides financing for first time homebuyers. Our friendly personal service, straightforward application process and transparent pricing make it easy to become a homeowner. We'll help you choose the right kind of loan to suit your needs. Ready to begin the pre-approval for a mortgage loan? Start here.
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This article is intended to be a general resource only and is not intended to be nor does it constitute legal advice. Any recommendations are based on opinion only.
Rates, terms and conditions are subject to change and may vary based on creditworthiness, qualifications, and collateral conditions. All loans subject to approval.