First Time Home Buyer in Arizona

April 6, 2010

First Time Home Buyer Page

First Time home Buyer in Arizona. – Being a first time home buyer in Arizona can be a difficult experience with a lot of uncertainties.  However, if you work with a lender that will walk you through the home buying process and understand the market here in Arizona it can make your home purchase a great experience. As a qualified mortgage specialist in Arizona I look forward to helping you with your home buying experience.  Here are a few tips on how to buy a home the first time in Arizona the right way:

Pre-qualify: Making sure that you qualify for a mortgage will allow you to find out where you stand financially.  Some buyers that I work with think they qualify for a mortgage when they don’t and others will think they can’t qualify when they indeed do.  Here is what information the Bank will want when we pre-qualify you to become a first time home buyer in Arizona:

  • Full Name, Address, Social Security Number & Date of Birth.
  • Your address for the past 2 years.
  • Income history for the past 2 years including how you are paid e.g. salary, hourly, commission, bonus income, retirement, disability etc.  Current Income.
  • Assets.  This will include any checking and savings accounts, CD’s, IRA’s, 401k etc.
  • Credit History – A credit report will need to be pulled to determine your eligibility.

Loan Programs:

Once you have pulled your credit you will need to determine what loan program is best for you.  The following are a list of some of the programs we offer to home buyers here in AZ:

  • Conventional Loans– usually for those with higher credit, 2nd homes, investment properties with a down payment ranging from 5-20% down.
  • FHA Loans– Used often for first time home buyers, those with little credit or more challenging credit but also used by those with good credit searching for a lower down payment of 3.5%
  • VA Loans – For qualified veterans that have VA entitlement.  A 100% loan.
  • USDA Loans – Another 100% loan based on the property location as well as specific guidelines in regards to income caps.  Please contact me for more details
  • HUD Home Loans– FHA loan available with $100 down for qualified borrowers and as little as 20% down for investors. 
  • Stated Income Loans – For borrowers who wish not to show income earnings. Restrictions apply please contact me for more details.
  • Construction Loans – For home buyers looking to build their own home.

Once you have been pre-qualified you will be ready to make an offer with your real estate agent on the home that you desire.  Your real estate agent will be the one to work with you in this process and we will provide the qualification letter to submit any offers.

Contract Accepted… What Next?

Once your contract has been accepted here in Arizona we here at VIP Mortgage will then start the loan approval process.  We will submit all your information that we gathered at the beginning of the pre-approval process to the bank along with the title report, insurance and we will order the appraisal and submit that to the bank as well.  The underwriter at the bank will verify all the information and approve the loan once all the necessary paperwork has been received. 

Closing – Fund & Record

From this point the closing documents will be ordered, prepared by the bank and sent to the title company where you will then be scheduled to sign the paperwork.  The title company will then return the paperwork to the bank for final review and the loan will Fund.  Funding a loan means that the Bank has had all its requirements satisfied and they have ordered a wire of the money to be sent to the title company.  Once the wire is received by the title company they will then record the deed with the county and the keys will be available for you and the home is yours.  You will now be a first time home owner in Arizona.

First Time Home Buyer Questions & Answers – provided by HUD

Why should I buy, instead of rent?

  • A home is an investment. When you rent, you write your monthly check and that money is gone forever. But when you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This will save you a lot each year, because the interest you pay will make up most of your monthly payment for most of the years of your mortgage. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years. Finally, you’ll enjoy having something that’s all yours – a home where your own personal style will tell the world who you are.

Can I become a home buyer even if I have I’ve had bad credit?

  • Bad credit does not disqualify you for a mortgage in all cases.  However, there are times that you will need to clean up or repair some of your credit prior to buying a home.  Bankruptcy also does not disqualify you from buying a home but you may have to wait in some cases please refer to this link on loans when you have had a recent/current bankruptcy

Should I use a real estate broker? How do I find one?

  •  Using a real estate broker is a very good idea. All the details involved in home buying, particularly the financial ones, can be mind-boggling. A good real estate professional can guide you through the entire process and make the experience much easier. A real estate broker will be well-acquainted with all the important things you’ll want to know about a neighborhood you may be considering…the quality of schools, the number of children in the area, the safety of the neighborhood, traffic volume, and more. He or she will help you figure the price range you can afford and search the classified ads and multiple listing services for homes you’ll want to see. With immediate access to homes as soon as they’re put on the market, the broker can save you hours of wasted driving-around time. When it’s time to make an offer on a home, the broker can point out ways to structure your deal to save you money. He or she will explain the advantages and disadvantages of different types of mortgages, guide you through the paperwork, and be there to hold your hand and answer last-minute questions when you sign the final papers at closing. And you don’t have to pay the broker anything! The payment comes from the home seller – not from the buyer.

In addition to the mortgage payment, what other costs do I need to consider?

  •  Well, of course you’ll have your monthly utilities. If your utilities have been covered in your rent, this may be new for you. Your real estate broker will be able to help you get information from the seller on how much utilities normally cost. In addition, you might have homeowner association or condo association dues. You’ll definitely have property taxes, and you also may have city or county taxes. Taxes normally are rolled into your mortgage payment. Again, your broker will be able to help you anticipate these costs.
  • Answer: You’re right – there are many types of mortgages, and the more you know about them before you start, the better. Most people use a fixed-rate mortgage. In a fixed rate mortgage, your interest rate stays the same for the term of the mortgage, which normally is 30 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your mortgage payment will be, and you can plan for it. Another kind of mortgage is an Adjustable Rate Mortgage (ARM). With this kind of mortgage, your interest rate and monthly payments usually start lower than a fixed rate mortgage. But your rate and payment can change either up or down, as often as once or twice a year. The adjustment is tied to a financial index, such as the U.S. Treasury Securities index. The advantage of an ARM is that you may be able to afford a more expensive home because your initial interest rate will be lower. There are several government mortgage programs, including the Veteran’s Administration’s programs and the Department of Agriculture’s programs. Most people have heard of FHA mortgages. FHA doesn’t actually make loans. Instead, it insures loans so that if buyers default for some reason, the lenders will get their money. This encourages lenders to give mortgages to people who might not otherwise qualify for a loan. Talk to your real estate broker about the various kinds of loans, before you begin shopping for a mortgage.
  1. I know there are lots of types of mortgages – how do I know which one is best for me?

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