Looking to Buy a Home in Prescott, Arizona?
Prescott, Arizona, is a popular place to call home. It has been named one of the top ten places to retire in America!
Buying a home can be exciting and scary all at the same time, especially for first-time homebuyers. Here are some steps that can be taken to help make the process go as smoothly as possible.
- Credit Score: The credit score is one of the primary items home buyers need to consider. A good credit score is essential because it will help you secure a lower interest rate on your mortgage, saving you thousands of dollars over the life of your loan. Repairing credit can be a lengthy process, so getting started on repairing your credit and checking your report for mistakes is the first step.
- Asset to Debt Ratio: Your asset to debt ratio is the total value of your assets divided by the total amount of your debts. This number is crucial because it helps lenders determine how much of a risk you are. A high asset to debt ratio means you have more assets than debts and are seen as a lower risk.
- Pre-Approval Process: The pre-approval process is when you provide your lender with information about your income, employment, debts, and assets. This process estimates how much you can borrow and what interest rate you will qualify for. Getting pre-approved is beneficial because it tells you how much home you can afford and puts you in a stronger position when negotiating with sellers.
- Down Payment: Your down payment is the amount of money you put towards purchasing your home. The more money you can put down, the lower your monthly payments. Many lenders require a down payment of at least 3-5%.
Tim Anderson with BloomTree Realty in downtown Prescott is an expert in Prescott area real estate and has been helping home buyers since 1979. Tim’s knowledge of the industry, the transaction process, and the market conditions are just a few reasons for his countless successful transactions. Give Tim a call at (928) 308-9595 for more help purchasing your home.