How to Purchase a Home in Phoenix With a Conventional Mortgage Loan

Whether Arizona is calling you from another state or you need to change your living situation in our beautiful city, purchasing a new home can be daunting. Phoenix has much to offer homeowners regarding natural beauty, mild to hot temperatures year-round, and a great community. 

The first thing home buyers need, however, is advice. The housing market is hot, increasing home values and shifting loan interest rates. Finances play a huge role in moving, so you need to know what to expect. 

With that in mind, let’s consider purchasing a home using a conventional loan in Phoenix.

Assessing Your Finances

The first thing you need to understand is your current financial situation. You want to know how much mortgage you can afford, not how much a lender will loan you. You also need to know how much down payment you can afford and start saving towards that as soon as possible. Down payments with conventional loans average 5% of the purchase price but can go up to 20%.

Start by laying out your budget. Look at your monthly income, expenses, and any current debts. If you’re moving to Arizona for a new job opportunity, do two tables: one with your current income and one with your expected income.

Don’t forget to look at other homeownership costs, like property taxes, insurance, and a maintenance and repair fund. Home listing sites like Zillow and Trulia have helpful tools to estimate what you can expect to pay on a mortgage and property taxes for each listing; they can also filter listings by the purchase price to help you find properties within your budget.

Get Pre-Approved for a Loan

You need to have a pre-approval letter in hand if you want sellers to take your offers seriously. With the market as hot as it is, most sellers aren’t willing to wait for your acceptance and risk the sale falling. You must research lenders and loans and decide who to work with. Then you have to apply for pre-approval, which includes submitting financial documents and waiting for them to review your income, credit, and any outstanding debts. Pre-approval also gives you the maximum amount a lender can offer you.

You can get pre-approval from multiple lenders if you aren’t ready to commit to one over the other, but you will have to choose which lender to make your offer with.

Consider Contacting a Mortgage Broker

Once you have your budget laid out and have saved up for your down payment, start looking into mortgage brokers in Phoenix that offer conventional loan services. The financial experts at a mortgage broker are more familiar with the local market, including loan rates and terms. They’ll find the best conventional loans that fit your budget and help you choose between them.

Start House Hunting

With your pre-approval and a budget to get you started with your new home in Phoenix, it’s time to start house hunting. Working with a local real estate agent is a good idea, as they have access to all listings and can help you negotiate with sellers. 

You also want to set out a list of preferences and deal breakers; in other words, things you would like to have for your home and things that will prevent you from making an offer. This can include the number of rooms you like if you want a backyard with a fence or a pool, if you’re going to look at newly built communities, how many cars need to fit in the garage—- anything. 

Your real estate agent will remember this list while sorting through listings in your preferred areas. They will then arrange days and times you are available to tour properties before scheduling with various sellers.

Real estate agents have a lot of experience in assessing homes during a tour, and they can point out the pros and cons while you’re looking around. They will also help you understand and fill out any paperwork for making offers and negotiating with the seller.

Closing Tasks

Once you’ve found the home you wish to buy, your real estate agent will help you put in an offer. If the homeowner accepts, you have a few tasks in front of you. While the home will need an inspection, and you may negotiate specific terms with the seller, you must also apply for your loan formally. Contact your lender to fill out any remaining paperwork so the loan will be ready for closing.

We hope you can find the perfect home to fit your needs. Welcome to Phoenix!


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Written by Virily Editor

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