Buying a home is a considerable investment. Before you jump into the beautiful world of homeownership, make sure you are prepared with these six steps:
6 Simple Steps to Buying a House
- Strengthen Your Credit Score: Most lenders require a credit score of 620 or higher for loan approval. If your score is below this threshold, work on paying down debt and increasing your credit limit to improve your score.
- Create a Housing Budget: Know how much you can afford to spend on a home before you start searching. Look at your current income and expenses to understand what mortgage payments you can handle.
- Save for Down Payment and Closing Costs: Unless you are lucky enough to have family members who can gift you money for a down payment, you will need to start saving. Experts recommend saving at least 10% of the home's purchase price for your down payment. Additionally, anticipate paying 2-5% of the home's purchase price in closing costs.
- Get Mortgage Pre-Approval: Pre-approval is essential in the home-buying process. After being pre-approved, you will know exactly how much house you can afford. This step is crucial because it will help focus your search on homes within your budget. It will give you an idea of the interest rate you will be paying on your loan and help to lock in a low rate.
- Hire a Real Estate Professional: Unless you are an experienced home-buyer, it is essential to have someone on your side who knows the ins and outs of the process. A real estate professional will be able to help you find the right home, negotiate a fair price, and navigate the paperwork involved in buying a home.
- Look at Multiple Houses: It is essential to view multiple houses before making an offer on a home. This will help you get a feel for the different types of homes available in your budget and give you a chance to negotiate on price.
Prescott, Arizona, is located in the Bradshaw Mountains at 5,400 feet. There are around 43,000 people in Prescott, but the surrounding "Quad-City" area of Dewey-Humboldt, Chino Valley, and Prescott Valley and the smaller towns of Mayer, Paulden, and Wilhoit, comprise around 103,000 people.
The Prescott area real estate market is HOT! Before buying a home, there are a few steps that home buyers need to consider to make the purchase a successful transaction. For information on purchasing a home and homes available for sale in Prescott, Arizona, give Tim Anderson a call at 928-308-9595.