The Home Buying Process

Steps to Buying a Home - A Brief Review

Step 1: Check Your Credit Report & Score

Before getting a mortgage or any kind of loan, you should always check your credit. According to the law, you're allowed to receive one free copy of your credit report per year. You can do this by visiting Annualcreditreport.com. The scores for Luxury homes buyers typically range from approximately 650 to 850; generally, the higher your score, the better loan you'll qualify for. Don't forget to check your report for errors. If there are any, dispute them. It may help your credit score. You can also check your credit score for free at www.creditkarma.com.

Step 2: Figure out How Much You are comfortable purchasing.

Please note, I work with many high net worth individuals and always recommend to purchase a home within your “comfort range”, YES you may be able to “ afford “ a  3 million dollar home but if  a  2. 1 million dollar home might provide more restful nights. you might consider the more comfortably priced home. Same goes for those buyers who can afford up to $650,000 when $550,000 would be in the “comfort range”

You can calculate how much you can afford and are comfortable with by starting online. There are several online mortgage calculators that will help you calculate an affordable monthly mortgage payment and the all important HOA fee if any. Don't forget to factor in money you'll need for a down payment, closing costs, fees (such as fees for an attorney, appraisal, inspection, etc.) and the costs of remodeling or furniture. Remember that you don't always have to put down 20 percent . There are loans available with little to no down payment. An experienced home loan expert can help you understand all your loan options, closing costs and other fees. Please call me anytime at 480-450-4632 for names of licensed lenders with 20 or more years of residential mortgage experience . They will have phenomenal programs and preferred rates.

Step 3: Find the Right Lender and Real Estate Agent

To find the right mortgage lender it’s best to shop around.. Talk to at least three or four mortgage lenders. Ask lots of questions and make sure they have answers that satisfy you. Make sure to find someone that you are comfortable with and who makes you feel at ease.

Once you have the right mortgage lender, make sure you at least get a pre-approval. Qualifications are only a guess based on what you tell the lender and are no guarantee, whereas a pre-approval will give you a better idea of how big a loan you qualify for. The lender will actually pull your credit and get more information about you. However, you could even take it one step further by getting an actual approval before you start home shopping. That way, when you're ready to make an offer, it will make the sale go much quicker. Besides, your offer will look more appealing than other buyers since your financing is guaranteed.

Step 4: Look for the Right Home

Make a list of the things you'll need to have in the house. Ask yourself how many bedrooms and bathrooms you'll need and get an idea of how much space you desire. How big do you want the kitchen to be? Do you need lots of closets and cabinet space? Do you need a big yard for your kids and/or pets to play in? or a small yard so you don’t don’t have to clean the big yard,

Once you've made a list of your must-have's, don't forget to think about the kind of neighborhood you want, types of schools in the area, the length of your commute to and from work, and the convenience of local shopping and activities. There are dozen of items you and I will consider including,  how strong is the rate of home appreciation in the area.

Step 5: Make an Offer on the Home

Now that we’ve found the home you want, you have to make an offer. Most sellers price their homes a bit high, expecting that there will be negotiations. A  place to start will be based on how the home is priced within the market. I will provide you a comprehensive list of what relevant properties have sold for. Once you've made your offer, the offer will likely not be final. Please call me to discuss this in-depth, the process and strategy is unique to every property and to every buyer and seller. Michael Chaisson 480-450-4632 - Specializing in Scottsdale, Paradise Valley and Arcadia

Step 6: Get the Right Mortgage for Your Situation

There are many different types of mortgage programs out there, you should be aware of the three basics: adjustable rate, fixed rate and interest-only.

Adjustable rate mortgages (ARMs) are short-term mortgages that offer an interest rate that is fixed for a short period of time, usually between one to seven years. After that, the interest rate can adjust every year up or down, depending on the market. These are good for people who don't plan on living in their home very long and/or are looking for a lower interest rate and payment.

Fixed-rate mortgages are more traditional and offer a fixed interest rate (and thus a fixed monthly payment) for a longer period of time, usually 15 or 30 years, though they're available in 20 or 25 year terms. These are good for people who like a predictable payment and plan on living in their home for a long time.

Both fixed and adjustable rate mortgages can have an interest-only payment. What this means is that for a certain amount of time during the loan term, you're allowed to pay only enough to cover the interest portion of your payment. You can still pay principal when you wish, but don't have to if your budget is tight. There is a myth that with interest-only mortgages, you don't build equity. This is not necessarily true, since you can build equity through home appreciation. The benefit to interest-only mortgages is that you increase your cash flow by not paying principal.

Remember to ask your mortgage lender or mortgage banker lots of questions about which mortgage is right for you and available options.

Step 7: Inspections on Your Home

We will make sure you get a detailed home inspection(s) before you close. It will be well-worth the money spent, inspections  help ensure the property's structural soundness and condition of primary functions. There are several steps and processes involved in the inspections,  those we will go over in great detail prior to the offer and throughout the purchase process. Important note:  I am an advocate for very detailed inspections.  If you have any question , you as the buyer should have them answered to your complete satisfaction.

Step 8 : Appraisal

The banks assessment and verification of market value. I could write books on this subject, especially in the luxury market so please feel free to call and we can discuss. 1-480- 450-4632

Step 9: Move In!

You've got your mortgage, had detailed inspections, switched over utilities closed the transaction and now it's time to move in! Time to start unpacking and start enjoying your home!  Whether you're buying your first home or 15th home it is always exciting.  You inherently know and every professional will verify two important steps when buying , Choose an experienced home loan lender and a friendly, knowledgeable real estate agent with 100% integrity -these are vital and key components  to helping you have a smooth, rewarding  home buying experience! I hope you will give me the honor and opportunity to assist you , Please call me anytime to discuss homes, the Real Estate Market Trends/Market Data or preview any Luxury Home/Architecturally significant home in the city of Scottsdale, Paradise Valley, Arcadia or the Biltmore Community. My direct Mobile is 480-450-4632

Michael Chaisson , Russ Lyon Sotheby’s International Realty, Luxury homes specialist Rated #1 by Client Reviews. Top 1% of Realtors nationally, Highly Respected by Peers and Colleagues.