Buying a home will most likely be your most significant investment in life! Homeownership is the best, and most probable, way for most of us to gain wealth. Most every other major purchase you will make will DECREASE in value over time, if not the minute after you buy it! A home APPRECIATES in value. Therefore, choosing WHICH home to buy is critical! Not only because it will be your "castle" but you will be investing a large portion of your assets into this venture and need to feel confident that your investment will pay off in the most efficient way.
The goal of this page is to provide you with general information about the home buying process. The more prepared and informed you are at the outset, the less overwhelming and chaotic the buying process will be. As your professional advocate, I would be there to help you navigate the intricate, detailed decisions along the way to insure your choice is the best - for any of the reasons mentioned above.
In addition to offering this information, I'd be happy to send you my FREE complete Home Buyer's Guide which gives you 20 pages of detailed information about buying a home in Arizona, including samples of our Arizona Association of Realtor's contract and addendums!
Remember, I'm here to help and am just a phone call, text or email away!
Equity - When you own your own home, you earn "equity" as you pay down your mortgage while your home value increases. You can borrow against the equity while you still own the home or you get the cash when you sell! I tell my clients owning a home is like having a second job you never have to go to! You'll be earning equity while you sleep, while you watch TV, while you do the laundry! In contrast, when you rent, you help the landlord gain wealth.
Tax Benefits - Homeowners also get significant tax breaks that are not available to renters. Most importantly, interest paid on a home mortgage is usually deductible. That factor alone can offset your mortgage payment by saving you a substantial amount each year in federal income taxes.
Stable Housing - While renting, you are not in control of your housing plan. Your landlord could decide at any time to sell the property forcing you to move. They also have the option of raising your rent subject to your lease agreement time frame. As a tenant, you never have certainty of your housing future. Conversely, as a homeowner, YOU get to decide when and if you ever want to move again! PLUS you're locked into your monthly payment. It can fluctuate slightly subject to your homeowner insurance premium and property taxes, but they rarely go up much at all. Plus your payment could go down under certain circumstances. You almost always have the control!
"Agency" is the term our industry uses to clarify who represents who and what duties and obligations those representatives have. It is important for you to understand the legal responsibilities your agent has to you and to the other parties in the transaction.
In Arizona, the Listing Agent negotiates a commission fee with the Seller when listing the property. The Listing Agent then offers to share a portion of that commission with the Buyer's Agent by offering the property in the Multiple Listing Service (MLS). Some Buyer's Agents also charge their buyer clients a non-refundable Retainer Fee. I do not. I'm so confident that you would not only be satisfied by working with me, but would be excited about working with me, that I take the risk of not getting paid until and if we close on your new home. To that end, I would have a vested interest in helping you achieve your goals.
Although many costs involved in a home purchase transaction can be negotiated between a buyer and seller, there are some that are "traditionally paid" by one party or the other. I am intimately familiar with negotiating these costs on behalf of a buyer or a seller. There are also some mandatory costs related to FHA and VA loan programs. Make sure you understand what costs you will be charged and why!
Once you've found the home you're interested in purchasing and enter into a purchase contract with the seller, the first most important step is to conduct the home inspection. The inspection is designed to help you understand the overall condition of the property as your protection against potentially buying a home that requires more repairs than you may be willing or able to complete. As the buyer, you have an opportunity to ask the seller to make certain repairs in order for you to complete the sale. If the seller is not willing or able to make your requested repairs, you can cancel the sale.
As you start shopping for a home loan, your first question for the lender will probably be "What's my interest rate going to be?" or "How much will my payment be?" Those two questions are directly related and many other issues factor into the answer for both.
Determining your ability to qualify for a home loan is a very intricate process and one that should be done before you start the search for your home. For instance, you may qualify for more money than you're willing to borrow. You may qualify for a loan of $350,000, but depending on your downpayment, credit rating, employment history and other factors, the monthly payment on that amount of money may be more than you're comfortable paying.
It's important that you work out the basics of your loan program with a lender before you look at homes. You do not want to complicate the issue by looking at, and falling in love with, a home that you cannot afford.
If you are ready to start your buying or selling process,
please give me a call. I'm happy to answer all your questions. If we're a good fit, we'll have fun
working together to accomplish your goals!