Congratulations! You have made a smart financial decision. Not very long ago, first time home buyers were “priced out” of this market. They were getting beat out by investors with deep pockets willing to pay several thousand over the asking price to get a home. Not anymore. Now first time buyers have boundless opportunities in our market to get the perfect first home. In fact, this is probably the best market in Phoenix history to purchase a first home. Buying a home not only give you more taxes back at the end of the year, but is a building block to financial freedom. The Goodyear, Buckeye, Avondale, Litchfield Park and Tolleson areas are great places for a first-time buyer. One of our buyer specialists will walk you through every step in the process, so you understand everything. Here are 10 things you should know before buying your first home.
Top 10 things you should know before buying your first home
1. Get pre-qualified. This is probably the most important first step when buying your first home. If you don’t already have a lender, we will be happy to recommend a top lender in the area to you.
2. How much will my down payment be? This is a common question, and it depends on what type of loan you get. Typically, a first home is purchased using an FHA loan. This type of loan requires 3.5% down. And yes, this can be gifted by a family member. There are other types of loans with different down payment amounts. One of our buyer specialists will be happy to discuss which loan might be right for you.
3. How soon can we close? Usually the house will close within 30-45 days of contract acceptance. There are certain exceptions such as short sales, but normally 30-45 days is the rule of thumb.
4. Can we ask the seller to pay closing costs? Yes. If our offer amount is strong enough, typically the seller will pay some or all of your closing costs. Typically closing costs are 3%-4% of the loan amount depending on the type of loan.
5. Can we bid under the asking price? That depends on how long the house has been on the market & what condition it is in. If a seller does come down on their price, the market average is 3%-5% lower. If the house is priced low to begin with and it is in good shape, be prepared to possibly pay a little over the asking price to get the house. We will make every effort to secure the best possible deal for you in any situation.
Don’t miss out on the next 5 things you should know before buying your first home. Please provide us with your name & email address below & we will get the second part of our list right over to you.
Follow Us!