How to purchase a home in Arizona; This easily could be a 10 page article but this is just an overview of what the process entails. For more information please feel free to give us a call for your free consultation. The first step in home buying process actually is not to go look at homes. The first step is to contact a mortgage lender and get prequalified for a home purchase. This is important so you know what programs you qualify for (VA, FHA, Conventional,USDA) and what amount you are qualified for. The other reason is to ensure you are comfortable with what your monthly payment will be for the home. For instance you may qualify for a $300,000 loan with a payment of 1,800 a month but you only want to spend 1,400 a month on your mortgage. This will definitely help you make our decision of what price range home you want to be in.
The next step is to call us to start your home search so we can show you how to purchase a home in Arizona. We can load up almost anything you can imagine in your home search so we can dial in on the right home and city for your needs. At this point it is important to work hand and hand with your Realtor, you will be tempted to run to third party websites to look for homes but that will not help the process at all. When you go to third party websites, you will find quickly that most of the homes have sold, are under contract, or are for a program that you do not qualify for. Your Realtor has no motivation at all to “hide” any listings from you, so if you do not see those homes on your list its because they are already gone.
Once we find the home of your dreams we will submit your offer. This is the time when we will compare other like properties that recently have sold and what prices they sold at and give you an evaluation of what the property is worth. We will walk you through the contract step by step so you clearly understand everything and request anything from the seller that you desire. Once your offer is submitted, you should get a response within a day or so. Your offer can be accepted as you submitted it, rejected, or you can receive a counter offer back from the seller likely meeting you somewhere in the middle of what you both want.
Assuming your offer is accepted, a copy of the executed contract and all additional documentation will go to a title company. Think of the title as a referee between all the parties. They are a neutral third party who ensures that all legalities are met for the sale, liens are paid, documents are signed, funds are disbursed, and recordation occurs.
We will now move into your inspection period. In the state of Arizona, you have 10 days to have the home inspected. We always recommend that your home be inspected by a licensed professional in the state of Arizona. At the end of your inspection period you will complete a Buyer Inspection Notice and Seller Response (BINSR) in which you can request repairs and replacement items be corrected by the seller. The seller will have 5 days to respond with agreeing to the repairs, refusing to make repairs, or agreeing to a portion of your request. You will have the final say at this point if you are going to continue with the purchase. A home inspection is a cost to you outside the escrow process and usually runs between 250 to 500 dollars depending on the size of the home and if there is a pool.
If you are getting a loan, your home will need to be appraised. Your lender will order the appraisal but you will pay for this as it is requested and is usually a cost outside of escrow. These generally run from 350 to 400 dollars. The appraiser will come out and evaluate the condition of the property to ensure it is safe for the family to live there and give it a notice of value where they estimate what the home is worth to ensure the price you offered is within their valuation. If the home is appraised lower than the purchase price you offered one of three things can happen. One can usually pay the difference if they have the funds to cover it. One can request that the seller lowers the purchase price to the appraised value. Or the buyer and seller can request to mutually cancel the contract.
Once all of this has been completed, all repairs have been made and the home appraised at or above value it is time to close the deal. At this point your lender is going to send all of your loan documentation to the title company and they will schedule you to sign all of your documents. At closing you will sign any missing documents, loan documents, addendum, and turn over a check for your down payment and closing costs. Typically this will all take place a few days prior to it recording. Once recording happens is when you will actually get the keys to your new home and that is how you purchase a home in Arizona.
Congratulations, your now a home owner.