Yesterday, July 27, I was watching a TV Newscast on Channel 3 and saw a story on home buying in the Phoenix market. This story was good in my opinion given all the really bad stories I have seen over the years on TV (not necessarily Channel 3) about mortgages and real estate.
The point of the story was that if you fit the mold as a home buyer then you can actually qualify and buy a home fairly easily. The story went on to suggest that the difficulty in buying a home if you fit the mold is that in the Phoenix market here in July 2011 is that you face multiple offers. But most of the multiple offers are cash buyer offers from investors. To a home seller – including bank owned homes – the best offer is typically a cash offer. With a cash offer, there is little room for fallout like there is with financing.
If you don’t fit into the mold, then you are facing a more difficult uphill climb if you intend to buy a home in the near future.
The bottom line – get yourself prepared ahead of time to buy a home so that you do fit into the mold to give yourself the best chance to get your offer accepted.
Buying a Home in Phoenix
- Check out the best loan program for you – is it an FHA mortgage, a VA loan or a Conventional mortgage?
- Do you have enough for 3%, 3.5%, 5%, or even 20% down payment?
- Have you checked for any local or state down payment assistance programs?
- Have you checked your credit report recently?
- Are your credit scores 620 or better? – believe it or not, you can get a mortgage with scores down to a 620 and in some case even as low as 580.
- If you are self-employed have you been in business long enough to show two years of business tax returns and personal tax returns?
- If you are a W-2 employee have you been steadily employed for the past two years? And if not, can you satisfactorily explain any gaps?
- Do you have any recent judgements or large collections?
If you can answer positively to most if not all of these items above then it may be time for you to talk seriously talk to a loan officer about getting pre-approved for a mortgage. If you need to work on any of these items above – start now – the home buying window of opportunity for buying a home in Phoenix is clicking.