The process of buying new homes in San Tan Valley can truly be overwhelming. This is especially for the first time investors interested in the amazing new homes available for sale in San Tan Valley. Whether you are a new time home buyer or a return buyer, do not worry because we will take you through the step-by-step guide of purchasing new homes in Queen Creek AZ and the environs. In this guide, we will break the entire homeownership process, telling you why each of the steps is important, and how to go by each one of them. hold tight, let us take you through the home buying journey.
Step1. Determine your budget
The first step in your home buying journey is determining how much home you can afford to purchase. You want to determine the amount of money available on a monthly basis while factoring the additional amount to come up with the actual totals after you have purchased the home.
Therefore, come up with a list of the current income, and calculate an estimate of the monthly expenses to find out what you can afford as monthly repayments. Find a financial officer who will help you in calculating the debt to income ratio, which is derived from dividing the monthly debt payments by the monthly gross income. The importance of this is to be able to determine if you can qualify to apply for a mortgage to finance the buying of new homes in Mesa AZ. For instance, if you have a high debt to income ratio, you will probably want to clear the debts first before proceeding to apply for a new loan. Talk to homer mortgage companies to help you in calculating the purchase mortgage financing.
- Seek home mortgage pre-approval
The mortgage pre-approval should be your next stage once you have confirmed the amount that you can afford to purchase new homes in Queen Creek AZ. A major factor when pre-approving the mortgage application is the credit score report. The mortgage company is interested in finding out whether you have a good credit history, or you have defaulted or been making late repayments. In addition, it is important that you show proof of income to increase the confidence level and ascertain that indeed you are in a position to repay the loan. The home mortgage company will either write or call your employer seeking employment verification. In some cases, they will request for three months payslip or statement of your salary account, to tell whether you are indeed in employment. For those in self-employment, the lending institution will ask for proof of income which can be the business financial statement and the bank statements.
To facilitate the pre-approval stage, it is essential that you provide all the necessary documentation, to support the oral information. Therefore, all of these areas will; be scrutinized closely by the lenders to ensure that you qualify for the amount and the type of loan that you are applying.
- Calculate the down payments required
Once you are preapproved for a home loan, you now need to calculate how much you really need and how to come up with the amount. The down payment amount is the difference between the total home buying cost and the amount that the mortgage company is willing to lend to the buyer. Some home loan types will require a 20% down payment while others go as low as 3.5% of the property value. There are loan types that allow a 0% down payment, making homeownership a much easier process.
- Find a suitable home loan option
There Different home loan types are as listed herein:
- The conventional loan
- FHA home loan
- USDA home loan
- VA loan
- Renovation loan
Go through the qualification process of each of the types of home loans available, and understand their terms. Choose one that enables you to purchase a new home and gives favorable repayment experience.
- House hunting
At this stage, you are already pre-approved, and you have established a suitable loan to finance the purchase of new home in San Tan Valley. It is now time to start the search for an ideal home. This comes as an exciting moment as you will find different home features, and so you need to determine which one is most convenient. You can talk to experienced real estate agents around to discover potential homes that match your budget.
- Submit an offer
After identifying a home that you are interested in purchasing, make an offer to the owner. The agent can do this on your behalf, and even take you through negotiations. Obtain disclosures, and establish contingencies. Negotiate the counteroffer and come up with the agreed purchase price.
- Home inspection
You have to ensure the property meets various standards before committing yourself. Check the plumbing system, sewer line, electrical installations, and drainage. Talk to an expert to do the home quality inspection.
- Get appraisal
A professional appraiser will determine the value of the property, giving you a green light to proceed with the transaction. Various factors are taken into consideration for the appraisers to come up with an amount. This includes the number of rooms, footage, and overall property condition.
- Loan processing
Now, the loan officer needs to move with speed to get the funds approved and released to respective accounts. a reliable loan officer should be able to help you through the loan application.
The closing day can be the most exciting in the entire process of buying new homes in Mesa AZ. Congratulations on making it to this stage, because the next one is moving in. However, this process requires you pay keen attention to every detail. Invite an expert to help you through the closing stage.
That is the easy process of buying new homes in San Tan Valley. Ensure that you talk to experts for an easy experience throughout.