How to Buy your First Home: The Steps you Need to Follow

1. How to Buy your First Home: The Steps you Need to Follow Buying your first home can be SO exciting, but it can get overwhelming if you’re unsure what all the steps are. So much excitement comes with knowing that you qualify for a home loan and soon you will be buying a home in Arizona. Before you start your journey to buying a house in Arizona, here are some tips you may want to keep in mind. Grow your cash reserves Home buying can be an expensive venture, and you will need to have some cash set aside. For some homebuyers, getting a mortgage is the first option in order to finance their dream home. However, first-time homebuyers may not be aware of the importance of having some cash set aside before applying for a home

2. loan or considering different Arizona home buying programs that finance homebuyers. Many lenders require cash reserves before accepting loan applications. Here are some important facts you need to know about having cash reserves when applying for home mortgages. Cash reserves are the saving balances that will be available after the close of the home purchase. You may use part of the cash reserves to clear down payment for the home you are planning to purchase. Lenders consider cash reserves to be the emergency fund and you will use it as a backup to pay for housing expenses in case anything happens to your income. Mortgage lenders will calculate cash reserves in months. This refers to the number of months your reserves can be used to pay for housing expenses. Note that having larger cash reserves before applying for a mortgage can help to negotiate for a lower rate. Therefore it may be beneficial to consider accumulating enough cash reserves to attract cheaper mortgage rates from lenders. 2. Determine the value of the house you are willing to purchase The second step that you need to consider is determining the value of the house that you can afford. It is not all about buying a house in Arizona, but ensuring you are buying an affordable property. This helps you to avoid over borrowing. Some home buyers find themselves trapped in debts because they purchased a property that is more expensive than what they can afford to pay. If you qualify for a mortgage when buying a house in Arizona, it does not mean you have to take the maximum amount to purchase the property. You need to consider a suitable Arizona home buying program that will help you finance the home while also making it affordable for you to repay. 3. Use your cash reserve as a down payment If you are not able to raise the full amount to purchase a home in Arizona, then try raising the down payment. This can be 20% of the total price or even more. This means that you will not have to pay for private mortgage insurance. The PMI is meant to protect the mortgage company when you are not able to make the repayments ending up to foreclosure. 800-469-7383 View & Download Original COntent @ https://www.sunamerican.com/how-to-buy-your-first-home-the-steps-you-need-to-follow/