Phoenix, Arizona is a great city for homeowners looking to find their forever home. It offers plenty of activities along with seemingly endless sunshine. Of course, as inviting as the city is, the current market can be incredibly intimidating for first-time homebuyers. Here are some tips to help you get the perfect home for you and your family.
1. Utilize FHA Loans
You have probably heard that, with the current state of the economy and the constantly rising cost of living, fewer and fewer Americans are finding themselves able to purchase a home. If you are looking to purchase a home, but are struggling to secure a conventional home loan because you can not come up with money for the downpayment, you have a poor debt-to-income ratio, or because you have a credit score that is below the minimum average required to get approved for a standard mortgage, then you might be able to benefit from using FHA loans. These loans are specifically designed to help people who do not qualify for conventional home loans.
These types of loans have a minimum credit score requirement of 500 points, offer lower down payments, and are much more flexible when it comes to examining your debt-income-ratio, typically only looking for proof of at least two years of employment history to approve. Many people are not familiar with this loan option, thinking instead that they are not able to qualify for loans in general and giving up on the idea of buying a home altogether.
2. Budget
Once you know how much money you have to work with, you must set a firm budget for yourself. This way, you don’t end up looking at homes that you ultimately can not afford. It is smart to plan to look for homes that are a little below your budget, just in case you end up facing any unexpected repair costs down the line, or are faced with any other unforeseen setbacks like the layoffs or the inability to work due to injury. Giving yourself a cushion can keep you from losing your home in these tough times.
3. Decide What You Want
Before you start looking at properties, you should make lists to help you sort out and decide on the features that are most important to you when it comes to your new home. Differentiate wants from needs, prioritize functionality, and ask yourself important questions like:
- How many bedrooms would be best to fit your and your family’s needs?
- How many bathrooms would you like?
- How many acres of land would you like?
Deciding these things beforehand will help you stay focused during the home-buying process so that you can find the right home for you and your family.
4. Prioritize Location
Once you do start looking at potential homes, you must look beyond the home itself. You should find a home that is on a good property and in a good neighborhood. You should do some research to find statistics for different neighborhoods like crime rates, employment rates, and average property value. These statistics are important because they have the potential to affect both your living experience and the value of your property if you ever wish to sell it.
Additionally, you should make sure that your location is within proximity to the things that are important to you, whether it be a high-quality local school district for your children, plenty of nearby bars, restaurants, and other entertaining activities, or a short commute to your job. You should also make sure you will have easy access to important things like grocery stores, hospitals–in case of an emergency–and public transportation. These are things that some people take for granted and forget about when searching for a new home.
5. Be Open to Renovations
Deciding whether or not you are willing to do any renovations on your new home is another thing that you should decide before you start looking at properties. Many people shy away from renovations, but the thing is that it is incredibly unlikely that you will be able to find a home that perfectly checks off all of your boxes while also remaining within your budget.
Instead of hoping for a miracle, you could take matters into your own hands and plan to renovate whatever house you purchase to turn it into your dream home. Just be sure to look at homes that are well below your budget to be able to afford renovations. Additionally, be thinking of what renovations each home would need while you are looking. Having firm plans to base your renovations on can help to save you a lot of money in the long run.