Pre-Qualifying to Buy a Home in Arizona

Before you begin looking for a home to purchase, it is important to know the options and limitations you have.  Almost every home buyer today will need a mortgage in one form or another (unless you plan on paying cash...and if you are, be sure to talk with your financial advisor before jumping in both feet first).  The first, and logical, step is pre-qualifying for a mortgage.

Pre-qualifying for a home loan is a relatively painless process.   There are several areas you should explore with your loan officer in order to help lay the groundwork to buy a home.  They include:

What type of mortgage options are available?  When looking at available loan programs, it is important to look at the short term and the long term effects of a mortgage.  If you plan on living in the home for only a few years, does it make sense to apply for a 30 year fixed rate loan when you may qualify for a lower interest rate on an adjustable rate mortgage?

How much will you need to put down on the home?  The down payment requirements will vary with each mortgage.  If you have little to no money to put down, you may not be able to qualify for certain loans.  On the other hand, if you have additional money to put down, you may be able to eliminate mortgage insurance (if there is any) for a particular loan and lower your monthly payment to an even more reasonable payment. 

Do you qualify for down payment assistance?  In recent years, home buyers been able to buy homes with grants or gifts from non-profit agencies.  Though this option may limit the types of mortgages available to you, having the option to save three percent (3%) may make the difference between a nice living room set and a folding chair.

Are there any hurdles or issues that may prevent you from buying a home?  How you have lived your life and the events that have occurred may have a significant impact on your life.  Are there any credit issues that may present a problem (and unless you have looked at your credit within the last 24 hours, there could be...no matter how excellent you believe your credit to be)?  Are you in the middle of a divorce?  The questions go on and on.  However, it is important to remember that a bankruptcy, a late payment, or a collection account, for example, are not reasons to disqualify someone for a loan.  How you view an event and how the loan officer sees it are normally two different perspectives.  Many issues can be worked around or may require a little time to fix; knowing what they are and how to correct them is very important.  Your loan officer will assist you in this step.

As you go through the pre-qualifying process, be honest and thorough with your answers.  Be sure to point out any problems or hurdles that you feel will present a problem.  Remember, your loan officer is there to assist you in buying a home.  

If you are ready to begin the pre-qualification process, call us at (602) 993-0000  and we will have one of our loan experts assist you in exploring your financing options.