Scottsdale Home Buying Tips

The Scottsdale home buying market has been impacted by many potential first-time home buyers wrestling with repaying student loans. A recent BankRate.com survey revealed that young adults who would otherwise be prospective home buyers shelved their home search until their student debt is either reduced significantly or paid entirely. To make matters worse, many of these first-time buyers are under the mistaken impression that having student loan debt will prevent them from obtaining a mortgage.

The Scottsdale home buying market is being affected by student debt

Impact of Student Loan Debt on the Scottsdale Home Buying Market

The Amount of Debt Isn't as Important as Your Ability to Repay

Lenders look primarily at what a borrower’s debt-to-income (DTI) ratio is to underwrite a mortgage loan. A high DTI (over roughly 42%) may adversely impact your ability to obtain a loan, but anything less than that percentage should qualify you for a mortgage.

Your Credit Score is Only Impacted by Slow Payment History

Just because you may have student loan debt isn’t a negative mark against your credit score. However, if you have a poor repayment record, that will certainly lower your score. And because you will be required to pay a higher rate of interest if your credit score is low, your monthly mortgage payment will be more.

Repaying Your Student Loan Reduces the Amount of Money for a Down Payment

While you may have trouble saving money and reducing your student loan debt, you may still be able to qualify for a low-down payment loan. There are numerous programs available in the Scottsdale home buying market for first-time home buyers. You can research them online, or discuss them with your real estate professional or a mortgage lending officer.

With a little familiarization with the purchase process and some of its capabilities and requirements, there are opportunities for first time Scottsdale home buyers. So, don’t necessarily allow the repayment of student debt create a roadblock to home ownership. The two can co-exist.

Find more articles about Scottsdale home buying in our section on Scottsdale Home Buying Tips just below the Scottsdale Real Estate Categories to your right. And be sure to find us on Facebook and follow us on Twitter for more daily posts and tips about Scottsdale home buying.

Entering the Scottsdale home buying market can be an interesting and rewarding opportunity. In order to fully understand the home buying process, it's important to spend some time doing research on the market. Here are a few points to consider as you prepare to embark on your house hunting safari.

Thinking of taking the plunge into the Scottsdale home buying market?  These tips will help as you start your house hunting safari.

Scottsdale Home Buying Tips

Gain knowledge through research.

No doubt you've heard that buying a home is probably the largest purchase the average person will ever make. As such, it's important to spend time becoming familiar with the homes in the neighborhoods you're interested in and their price ranges. Start your Scottsdale home buying research by viewing online homes for sale. In addition to the Multiple Listing Service (MLS) you can also check various real estate websites such as zillow.com or trulia.com.            

Pay attention to the numbers.

Unless you've recently won the lottery, you will probably need to borrow the money to purchase your home. Many prospective home buyers think the mortgage loan process is a daunting task, but it's really not. However, if you're not prepared it can be a little challenging. The first step is to determine what you can afford to pay each month. Then you can use that monthly payment amount to back into a sales price you can expect to pay. There are online affordability calculators that will assist you in figuring what you can comfortably afford. The next step in the Scottsdale home buying process is to meet with a mortgage lender — perhaps several — to discuss what loan programs are available to best meet your needs.  Plus, you'll want to become familiar with your credit score and discuss down payment options. After you choose a mortgage lender you can work with them to get pre-approved for a loan.

Seek professional help

Before you enter the Scottsdale home buying arena, you can save yourself a good deal of time, effort and maybe money by obtaining the services of a knowledgeable real estate agent. A good agent can quickly and efficiently find the homes in your price range and in your favorite neighborhoods. Your agent will arrange to show you as many houses as it takes until you find what you're looking for.

Equipped with the knowledge you gained from researching the market, fueled by the confidence of knowing what you can comfortably afford and accompanied by a qualified real estate professional, you're ready to make a purchase.

If you've followed the latest Scottsdale home buying trends, no doubt you've heard people say there's no better time to buy a home than now. With mortgage interest rates at very affordable levels, credit availability relatively high and down payment requirements low, it's a tempting combination for many renters thinking of entering the homeownership arena.

For most people, homeownership will be the largest purchase they will probably ever make so it's extremely important to examine the good and the bad of owning a home.

The Scottsdale home buying market is enticing, but is it a good time for renters to consider buying?

Scottsdale Home Buying Analysis

With the housing market crisis of a few short years ago still in the recent memory of many prospective homebuyers, it's only natural that renters are conservative, cautious and even slightly skeptical. Homeowners caught in the swift current of the market's disaster were swept away by having to quickly sell, move or lose their homes to foreclosure. And millions did.

Still, low mortgage rates make monthly house payments very enticing. So much so that in some markets it's less expensive to pay on a mortgage than to pay rent. It’s an attractive feature of the current Metro Atlanta home buying market. Yet, the conundrum continues: renting provides flexibility and a certain degree of freedom while homeownership can provide equity growth through real estate appreciation.

Why You Should Buy

1) Homeownership is at the heart of achieving the proverbial "American Dream."

2) With every monthly payment you own a little more of your home. Contrast this with rental payments for which you own nothing.

3) Historically over time, a homeowner builds wealth faster than a renter with net worths on average much higher than those of renters.

4) Although there are no guarantees and every home and market is different, statistics show that in the long term real estate values will likely rise or appreciate.

5) Homeownership provides tax benefits to those that choose to itemize deductions like mortgage interest and real estate taxes paid. This can make a huge difference in your tax bill, courtesy of participation in the Metro Atlanta home buying market.

Why You Should Rent

1) You can rent a home, condo or apartment with little, if any, investment in the property. Because you don't own the property, you're usually not responsible for repairs, maintenance or real estate taxes. They all belong to the landlord.

2) As the renter, or tenant, if the property loses market value it's of little or no concern to you.

3) Renting provides several lifestyle advantages that homeowners often struggle with. You have greater flexibility when it comes to relocating since you don't have to worry about selling your home.

So, What's Best For You?

The quick answer is it's all about your personal choice — and no one can decide which is best but you. If you like flexibility and think you may be moving to another city or state in a short period of time, then renting for now may be the better idea. But if you like stability and are ready to accumulate the potential home equity that may accompany owning a home, you should consider entering the Scottsdale home buying market.

See more articles pertaining to Scottsdale home buying in the Scottsdale Home Buying Tips section of our site below Scottsdale Real Estate Categories in the column to your right.

Remember, we also post tips daily on Twitter and Facebook. Check us out there too.

Many Scottsdale house hunters are entering the home market due, in part, to low interest rates. One of the most commonly asked questions of home buyers concerns how expensive a house they can afford. This video offers a little advice on how you can best determine the answer.

Scottsdale House Search: Remember These Tips

1) Online Pricing Calculators.

There are a number of free online home buying calculation tools available.

2) Be Smart… Every Situation is Unique.

Although the pricing calculators are helpful, remember they often don't take into consideration factors such as your credit score and other monthly obligations. Review your overall financial situation in deciding how much Scottsdale house you can afford to purchase.

3) Don’t Just Buy a Home You CAN Afford.

The experts recommend not just buying a Scottsdale house you CAN afford… buy one you can comfortably afford. There's a big difference between what you could spend on a home and what you should spend. Also, remember the decision is ultimately yours. Don't necessarily rely solely on what an online calculator or real estate agent tells you your family can afford.

4) If the Timing Isn't Right, Consider Other Options.

If you feel temporarily closed out of the home buying market, there are other steps you may take. Consider a lease with an option to buy. Or you could hold off buying a Scottsdale house until you save up a larger down payment. Lastly, you could consider purchasing a "fixer-upper" at a reduced price if you're willing and able to make the necessary improvements.

 

See more news pertaining to buying a Scottsdale house under our Scottsdale Home Buying Tips section of articles to your right just below our Scottsdale Real Estate Categories.

We also post tips on Facebook and Twitter. Follow us there for many other real estate related news articles and tips.

If you think waiting to buy a Scottsdale home until rates or home prices go back down is the smart way to go, you may be waiting for a long time.

With interest rates going up and home prices on the rise, you may think that it might not be the best time to buy a Scottsdale home or even refinance the one you've got. But experts disagree. Should you buy now, or later?

Is now the best time to buy a Scottsdale home, or should you wait until later...

Best Time to Buy a Scottsdale Home is Now

One huge reason to consider now as the best time to buy a Scottsdale home is mortgage rates. They're still around all-time lows now, but the interest rate for a 30-year fixed mortgage is expected to go up to 5 percent by the start of the fourth quarter this year and 5.3 percent by the end of 2015. That's according to a recent forecast by the Mortgage Bankers Association (MBA).

Just a quarter of a point higher interest rate can mean about $100 more each month on a homeowner's loan. For a lot of families, that can be the difference between being able to afford to buy a Scottsdale home or not.

The good news is, credit score requirements for borrowers taking out mortgages to buy a Scottsdale home are easing.

Summer is still the most popular time to sell or buy even for people without children. And it's not just because the weather is nicer. People just know there are more listings on the market during the spring and summer. But from a buyer's perspective, there is more competition from other buyers.

It is a significant purchase to buy a Scottsdale home, but it's still cheaper than renting if you have the means to come up with the down payment and closing costs. Buying with a 30-year fixed rate mortgage of 4.5 percent is 38 percent cheaper than renting in most places. But as mortgage rates rise, that gap will narrow, unless greedy landlords decide to keep jacking up rents to match the interest rate increases.

Get lots of tips and advice for buying a Scottsdale home at our Scottsdale Home Buying Tips section of articles to your right just below our Scottsdale Real Estate Categories.

We also post tips on Facebook and Twitter. Follow us there for many other tips on buying a Scottsdale home as well.