Sixty-six percent of Scottsdale’s residents are homeowners. Scottsdale is a promising city for all ages, but like buying a home anywhere, it can be easy to overlook potential obstacles in the home buying process.
So what do you need to know before you buy a home in Scottsdale? Be aware of these common obstacles.
Debt-to-Income Ratio
A downpayment isn’t enough to get your dream home, especially in a competitive buyers market. Seriously, don’t underestimate the importance of your debt-to-income ratio. Luckily, this number is easy to calculate on your own and doing so before you ever call a realtor will save you a lot of time, money, embarrassment and disappointment from not doing your due diligence. Pay off your outstanding debts before considering buying a home.
Credit Report Surprises
It’s amazing how much a forgotten copay at an Urgent Care can harm your credit when it goes overlooked for a long time. Since your credit is another important determiner in the amount and quality of your home loan, it’s essential to have good credit before you even attempt to apply for a loan. You need a credit score of at least 670 to have a “good” credit score.
However, some Federal Housing Loans will approve people with scores in as low as 580. When making a 30-year commitment, it’s better to have as many quality options as possible. Check your credit score, check to see what (if any) negative hits are affecting your score, and work to get them removed.
Fluctuating Home Prices, Rent, and Interest Rates
The residential real estate market in any city can feel less than stable at times. Tracking home prices, rents and interest rates is overwhelming for people who are not finance-aficionados by nature. Political uncertainty, shifting demographics and changing housing policies can leave homebuyers feeling uncertain about when is “the best” time to buy.
Scottsdale is one of the nation’s most stable housing markets. Most experts also agree that, at least through the first half of 2020, that no major changes will happen to 30-year mortgage rates. They may fluctuate over the next six months, dipping one percent higher and one percent lower than they are today, but nothing drastic is expected.
The Home Inspection
When it comes to battling the elements, Arizonans are pretty lucky. Snow, rain, freezing temperatures and other natural events that consistently wear down homes in colder climates don’t have the same impact on Arizona homes.
But, the dry heat and 299 days of unobstructed sunshine can wear homes in other ways. Dried roofs and lack of rains can cause cracked roofs to go unnoticed, unused heating systems can be forgotten and become unsafe. Poor ventilation, environmental hazards and overlooked pests like termites can cause many hurdles. In Arizona, prospective buyers typically have a 10-day period to report any grievances after a home inspection.
The best way to ensure that you’re homebuying journey runs as seamlessly as possible, work with a dedicated agent who knows Scottsdale’s unique real estate market. Click here to get in touch with one of our agents!