Before
viewing Phoenix homes, agree on what your goal is - needs
versus wants
Decide
what you need, what you would like and what you can live without
in a new home. Make a wish list of everything you would like
in a home, and rate the different categories in order of importance
to you. If you "must have" a view, will you forego
a fireplace if you find a home that has almost everything
else on your list? These are decisions you will have to make
when viewing Phoenix homes.
The type
and size of home you buy will be determined by what you can
afford, what meets your needs and the location of the home.
What style of home do you want: split level, ranch, townhouse,
condominium, etc.? How many bedrooms and baths? Do you need
a two-car garage?
Prioritize
"needs" then "wants." Shop for a home that meets
the needs and some of the wants.
Have
an Open Mind Before looking at Homes
Not all of the Phoenix homes you look at will be decorated
to your tastes. Remember that walls can be painted, carpeting
can be changed and kitchens can be updated. Try to use your
imagination when viewing houses. Look beyond the current owners'
decorating tastes and imagine what your furniture will look
like in the house with the walls painted to suit your decorating
tastes.
Just as
you must picture the positives when viewing Phoenix homes,
also consider the negatives. Some features can't be changed,
unless you want to pay for costly major reconstruction. Basements
can't be added, second stories cost a fortune and even additional
bathrooms can be extremely expensive. Also, be aware of where
the property line begins and ends. If that narrow driveway
can't be widened because it's already squeezed between the
house and property line, will your large SUV clear the driveway?
Focus
on the task at hand. Are you looking for a great deal or a
home you can enjoy for many years? Many people miss out on
a great home because they keep looking for that deal - while
someone comes along and buys the perfect house right from
under them.
Quick Tips
- Tell your agent what is important
to you: transportation, medical centers, schools, etc.
- Check the noise level - is the
property near a highway or interstate?
- Look at the neighborhood - how
do neighbors maintain their homes?
- Will the children have other playmates
in the area?
- Are you near main travel arteries
or commuter vessels necessary for travel to and from work?
- Take pictures of your furniture
with you as you look at houses to better picture your pieces
in a room.
- Make a columnar comparison of
the properties with your specific needs and wants and whether
each property has them.
- Rank every 3 houses shown in order
of preference. Use a separate list for each spouse, if married.
- If sellers have children or pets,
recognize them and you will be a step ahead.
- When viewing homes try to hold
in emotion and excitement to not tip sellers of your desire
to own that specific home.
- If you see a home advertised in
the paper, a yard sign or a For Sale by Owner sign, call
your Realtor first.
- View Phoenix homes when there
is plenty of light; it's too hard to view homes after dark.
- Be available to go see new listings
as soon as they become available.
- Ignore furnishings and color.
Picture your personal items in the house.
- Look out the windows. What you
see is what you will always see. Make sure you like it.
- If you are looking at Phoenix
real estate re-sales, look for location, floor plan, utilities
and structural soundness. Don? be "blinded" or
unduly influenced by fresh paint and/or new carpet.
- Don't assume everything you see
in the house (drapes, ceiling fans) is being sold with the
house. Ask!
- If you really like a particular
property do not place a lot of conditions on the contract
because this could cause the seller to reject the offer.
- When making an offer, make the
best down payment offer you can. Your offer will carry more
weight, and your payments will be less.
- Write a personal note to go with
your offer. All other factors being equal, sellers will
go with the buyers they "know."
- Get into the Phoenix real estate
market even if you can't get all the fixtures you want in
your first house.
- Don't get so emotionally involved
with the house that, if you fail to purchase it, it becomes
the standard for everything else you look at. This compromises
your ability to make a second choice.
- Contracts should always be contingent
on a home inspection, a good investment.
Tax deductible moving expenses
When you
meet the IRS's definition of a qualifying move, the following
items are tax deductible:
- The cost of trips to the area
of a new job to look for a home. Your home shopping expedition
does not have to be successful for the cost to be deductible.
- The cost of having your furniture
and other household items shipped, including the cost of
packing, insurance, and storage for up to 30 days.
- Certain costs associated with
the sale of your old home and purchase of the new one. These
expenses, including Phoenix real estate commissions, legal
fees, state transfer taxes and appraisal, could be used
either to reduce the gain on the sale of the previous home
or to boost the basis of the new one. But it's usually beneficial
to count them as moving expenses up to the allowable dollar
limits, because that gives you an immediate tax benefit.
- The cost of getting your family
to the new home town, including food and lodging expenses
on the trip.
- The cost of lodging and 80% of
food expenses for up to 30 days in the new home town, if
these temporary living expenses are necessary because you
have not yet found your ideal home or it is not ready when
you arrive.
Getting prequalified
Most Phoenix
Real Estate Agents recommend that home buyers get pre-qualified
with a lender before selecting a home to purchase. This way
you will have the best information about the right price range
for your pocketbook.
Reasons to get prequalified
- With pre-qualification, you can
determine which loan program best fits your need and which
programs you qualify for.
- You will know exactly how much
you are qualified for. It's no fun to find your "ideal
home" and then find out you can't afford it.
- Your monthly payment will be set.
This will allow you to budget your money before making this
large investment.
- It shows you what the down payment
and closing costs will be.
- If you are a first-time buyer,
you may be able to qualify for a special first-time buyer
program which may allow you to afford more home for your
money.
- If you feel you would like and
can afford a higher mortgage payment but are not able to
meet qualifications, co-mortgagor financing may be made
available to you.
Take charge of your credit
Gone are
the days when a hopeful couple sat across the desk from their
local banker anxiously awaiting his decision on their loan
application. Today, the fate their loan and the rate of their
interest hinges on a computer-generated number, their credit
score.
What's
the score?
The FICO credit score reflects dozens of parameters in one's
financial history. For years, this number-named for developers,
Fair, Isaac & Company-was a tight guarded secret. Congress
has now secured your right to know - take advantage if it.
- Score 700 - 850-smooth loan process;
best interest rates
- Score 550 - 699--medium risk;
higher interest rates
- Score 300 - 549-sorry, no loans
or credit cards
Know Your Score
Before
you talk financing, send for your credit report and FICO score.
If there are errors or other surprises, contact creditors
to make corrections or negotiate settlements. Also, be sure
to notify the credit bureau of your dispute.
Legitimate
black marks on your credit won't disappear quickly. (It takes
seven years; ten for bankruptcy.) However, time and your diligence
can turn things around. Lenders will give recent responsible
activity due consideration.
In our
credit-driven society, taking charge of your credit should
be an on-going process. Your FICO score is a snapshot in time,
not set in concrete. Review it each year for errors that may
have crept in and to monitor your progress. You have the power
to know it, raise it, and maintain it.
What Helps:
- Pay all bills-and pay on time
- Maintain 2-4 credit cards
- Close unused credit cards
- Keep balances well below the limit
- Pay more than the minimums
- Establish long-term credit history
What hurts:
- Too many credit cards or zero
care
- High non-mortgage debt
- Delinquent accounts
- Frequent job or address changes
- Charge Off's (bills marked uncollectible)
- Bankruptcy
BIG THREE CREDIT BUREAUS
Equifax Information Services, LLC
1-800-685-1111
Trans Union LLC Consumer Disclosure
Center 1-800-888-4213
Experian
1-888-E XPE RIAN
Final
Walk-Through
Before you have your closing, it's important that you have
the final walk-through on your new home. This is your final
opportunity to make sure that everything is in working order
and that any repairs you specified in your contract have been
completed to your satisfaction.
The walk-through
usually takes place 24 to 48 hours before your scheduled closing
date. Allow yourself plenty of time for the final walk-through.
Take a checklist with you that includes all of the changes
or repairs you specified in your contract. Go from room to
room, attic to basement, front yard to backyard.
Final Walk-Through Checklist
- Try all light switches to make
sure they work. Turn them on and off. Try all of the electric
outlets. Bring a small plug-in night light with you to test
the outlets.
- Turn on all hot and cold water
faucets, including showers, bath- tubs, washing machine
connections and laundry tubs. Don't forget to test the outside
faucets.
- Flush all of the toilets.
- If there are any rugs in any of
the rooms, lift them up and peer underneath to check for
broken tiles, burns and stains
- In the kitchen, try all of the
appliances that are staying. Turn on the stove, oven, microwave
and dishwasher.
- Turn on the heat and air conditioning.
- Try the garage lights and automatic
garage door opener.
- Try the keys to all of the locks.
Make sure the looks are functional and that you have keys
for all of the doors. Locksmiths can be very expensive,
and you don't want to find out on moving day that you can't
access one of the entrances.
- Try the exhaust fans, if any,
in the kitchen, attic and basement.
- Test the basement sump pump.
- And last, make sure all of the
items in the house that are supposed to stay with the house
when you take possession are still present. It would be
a shame if you discovered that the beautiful dining room
chandelier that you fell in love with the first time you
saw it was replaced with an inexpensive one on moving day.
Check the perennial plantings in the yard. Landscaping is
costly, make sure that the plants you saw when you made
your offer have not been carted off with the sellers.
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