Purchasing a home in Arizona is going to be an astute investment on your part. Whether you are buying a full-time residence or a second home, make the purchase a satisfying experience. Learn all the necessary facts, so you don’t have to stress it out. Be aware of all the Arizona home buying programs. This knowledge will help you in making a smooth and trouble-free real estate transaction.
If you have ready cash and can afford to buy the right house, then good for you. But if you are into mortgages, then be sure of the whole purchase process. Buying a home in any state can be a nerve-wracking affair. The case is no different when it comes to the beautiful state of Arizona.
However, you can be smart about it and follow this step-by-step guide. These steps will help you with some crucial facts. They will also assist you in making an informed choice. Make the whole buying process stress-free by adhering to these key points –
Step 1: Have face-to-face meetings with a few mortgage lenders
This action is a crucial step in understanding your home affordability status and price range. You can get pre-qualified by consulting with a lender. If you have a personal credit report, this won’t even cost you much. The lender will ask questions about your income, debts, liabilities, and assets.
Pre-qualification determines your down payment, closing cost money, interest rate options, and loan programs. Choose the right lender, and you will know the best home you can afford as well as monthly payment costs.
Step 2: Consult with and interview a few realtors
Consult with a few and hire a buyer’s Realtor Agent. Talk to your mortgage lender and acquire the Loan Status Report(LSR). He will use this document to negotiate with the seller’s Listing Agent, who will use the Listing Agreement Contract. He will save you money and also give details of community CC & R’s and HOA fees.
Step 3: Pick up the Smartphone
Today, the seller market is mobile-friendly. You can find numerous applications for finding suitable homes near you, based on any factor like your budget rate, number of bedrooms, and so on. This step will help you find suitable options, faster.
Step 4: Determine your search criteria and find your dream home
When buying a home in Arizona, have strict search criteria. Understand current market conditions, and know if sellers or buyers are dominant. On average, search between 5 to 20 available houses. Talk to the realtor about the pros and cons of short sales or foreclosures. Trust the realtor’s expertise and knowledge.
Step 5: Write a purchase offer on the home
Offer the 9-page Purchase Contract, in writing, with clear Terms and Conditions. Be ready to write a check or wire funds for Realtor’s Earnest Deposit. This money gets applied to down payment at Close of Escrow. Later, let your and seller’s agents negotiate and come to an agreement on all the terms of the written contract.
Step 6: Negotiate and sign the contract
During negotiations, the seller will accept, reject, or raise a counter offer. Your agent will present this information to you along with this suggestion so that you can make a counter-proposal. If the proposals get rejected, you get back to house searching. If both the parties agree, the contract gets signed, and it is legally binding on both of them.
Step 7: Opening of Escrow
The Escrow period begins at Contract Acceptance and ends at Close of Escrow(or final stages of transaction closing). The Purchase Contract is used as Escrow instructions by an unbiased third party called A Title Company. The fee structure gets negotiated during this stage. During the Escrow period, buyer and seller exchange transaction documents. The Escrow officer, realtor, legal, and tax professionals will oversee the subsequent documentation work.
Step 8: Complete formalities in a time-bound way
Escrow opening, Earnest Money Depositing, and completing the loan process must get done on time as per contract. HOA will get delivered to the Title, SPDS, and Insurance Claims History will get delivered to you within five days of contract acceptance.
Step 9: Be sure of the Inspection Period
Before buying a house in Arizona, perform all inspections(Home, Wood, Termite) as per Purchase Contract. Send the Buyer’s Inspection Notice to the seller on time. The seller will respond within five days, after which you can apply for Homeowners Insurance.
Step 10: Appraisal
You have to approve or reject the Preliminary Title Report and HOA CC&Rs. You can cancel low appraisals within five days. Be prepared to finalize packing and moving plans after approval.
Step 11: Final stages of Closing Escrow
Before the close of the Escrow date, you can do the final walk-through, get utility connections, and review the Final Settlement Statement. You also sign loan documents and deliver closing funds to Escrow at this stage.
Step 12: Close of Escrow Date
The real estate transaction must get completed on or before 5 PM. Escrow or Title Company disperses funds, records New Deed, and notifies your agent. Finally, you get the house keys.