First time home buyers:
You've got questions, we've got the answers
First Time Home Buying FAQs
Do I need to get pre approved?
Yes! The Phoenix area real estate market is red hot. You'll will be competing against other buyers. The best way to get the home you want is to get pre approved by a local lender.
What are the best types of loans for a first time home buyer?
You can buy a home with a VA Loan (Veterans Loan) with 0% down. FHA Loans are called first time buyer loa
Can I buy a house with no money down?
Yes and No. If you are a veteran then yes! If not, then maybe. You can get an FHA Loan and receive a gift of the down payment from a friend or relative. There are other things to consider...
How much house can I afford?
That depends! The 2 key factors are your income and your debt ratios. More income and less debt is obviously better but there are some key ratios that lenders look at when approving a loan.
How can I avoid paying PMI (Private Mortgage Insurance)?
You will have to pay PMI whenever you put less than 20% down on your home purchase. There are some ways to mitigate the impact of PMI on your monthly payment.
How can I improve my credit score?
There are some important steps you'll want to take while working to improve your credit. If your credit report has errors on it then I can help with that.
What will my payments be?
Your monthly home payment will include a lot more than just your mortgage! PMI, HOA fees, Insurance and property taxes all have to be included in your budget. Don't forget maintenance and upkeep as well!
What credit score do I need to purchase a home?
Generally speaking you can get a loan with a FICO score of 680 or above. This depends on what type of loan your end up getting and of course your income.
What is a Sellers Market? How does that impact the home buying process?
Simply put, a sellers market means there are more buyers than sellers. What that means to you is: fewer houses to choose from and multiple offers for the homes that are available.