Some factors to consider when preparing to buy a home are whether or not you have a steady source of income and if you have been employed on a regular basis for the last few years.
Also, determine how much money you have saved for a down payment and what would be a realistic amount of money that you could spend on a mortgage each month. Consider that if you contribute at least 20% towards the down payment, you can eliminate PMI (private mortgage insurance). There are additional expenses such as closing costs, taxes, insurance and homeowners association fees that you should calculated as well.
You should investigate the current interest rates and maximum loan amount that you would be able to afford in order to establish the price range of houses to consider. Lenders calculate your debt-to-income ratio, which is a comparison of your expenses to your gross (pre-tax) income. Monthly mortgage payments should total no more than a certain percentage of your gross income, while the mortgage payment, combined with other long-term debts (such as car payments) should not exceed a certain percentage of your gross income. The lender will also take into consideration your credit history and cash available for a down payment when determining your maximum loan amount.
Once you have started your Arizona home search and determined the price range of homes to look at, next you should consider your needs. Think about where you would like to live and how much space you would like to have. We suggest driving through neighborhoods you are considering to get an idea of what you want. When deciding on possible locations, think about distance to your job, schools, family, etc. It’s best to make a list of your priorities, such as location, size, and amenities. Determine the minimum requirements that the house must have for you to consider it as well as a wish list of perks you would like it to have.