Are you wanting to buy a house in Arizona but don't know where to start? Stay tuned as I'm going to break it down from start to finish! Hi guys, I'm Alejandra Paladino your local AZ real estate agent.
I love living in AZ and on this blog I share all about living here, plus I share about the real estate and moving here. So Make sure you keep posted that way you can join the family and know when the next video comes out.If my team and I can answer any questions about real estate, or Arizona just reach out by going to Zoomtoarizona.com and you can book a call with us!
Alright lets dive into the steps of buying a house in Arizona.
Step 1
The initial step in your home-buying process is putting together your dream team. You're going to need 2 key players: a local real estate agent and a lender. If you're uncertain about a lender your real estate agent can recommend one or vice versa. This team will work together to get you approved, help you secure your dream home but also ensure a smooth, stress-free journey. Remember, teamwork makes the dream work, so choose your team wisely.
Step 2
Once you've picked your realtor and lender, your first course of action is to get pre-qualified. It's important to get pre-qualified before you start scouting homes. To get pre-qualified, the lender will request an array of documents, including W-2s, tax records, income statements, and debt information. Beware of lenders who merely rely on a credit score without demanding this essential paperwork – it's a red flag. You want a lender who's willing to do the legwork up front, ensuring you're fully pre-approved and will be able to close once you find your house.If you're a cash buyer, you'll need proof of funds. That can be a printout of your bank statement with sensitive information blacked out. Another approach is to obtain a letter from your bank manager, stating you have sufficient cash reserves to purchase your desired property. This approach keeps your financial cards close to your chest, as sellers won't have an exact figure to negotiate with, and it can also give you an edge in certain situations.
Step 3-
Next step - is the fun part shopping for your house! What I tell my buyers is once we officially start the process we will begin communicating often. This way once you see a house that gets listed that you're interested in reach out and let your real estate agent know immediately so you can coordinate an appointment to go see the house. A house on the market can sometimes sell fast and sometimes sell more slowly. So if it's one that you like I recommend viewing it as soon as you can and seeing if it's the one for you.
Step 4 - Once you find a house that you like you make an offer. Your realtor will do an analysis on the home to make sure it is priced correctly. They will look at recently sold homes that are comparable. These homes will be within a 1 mile radius of the house you're interested in, be similar in condition/updates, have similar square feet, be single story or 2 story and have similar lot size. Plus they must of been sold within the past 6 months.
Once the home price has been analyzed your realtor will discuss with you offer terms such as closing date, if you need money for closing costs and other important terms. If you find a house that has multiple offers there will be no time to haggle with lowball offers. But if you find a house that has been sitting on the market longer you can put in a more aggressive offer. Such as below listing price or ask for the seller for money in the form of a seller credit which you can use to pay your closing costs or by down the interest rate.
Step 5 -
Your offer has been accepted! The next step is to open escrow within 48 hours by paying your earnest money deposit. Earnest money can be $1500 to 1% of the purchase price on average but could be higher in competitive situations. A substantial earnest money deposit can motivate sellers to choose your offer over others, demonstrating your commitment to the purchase.
Step 6 -
Inspection period. This begins the day after your contract is accepted. And you have 10 days (unless your contract specifies otherwise) for inspections. This is your time to investigate the house from the overall house, to termites, roof and sewer line evaluations. Some buyers even opt for mold inspections to address their concerns, especially if they're relocating from mold-prone regions. After these 10 days, you'll submit your office repairs request in the form of the Buyer Inspection Notice to the seller, offering three choices: accepting the property as is, walking away, or requesting specific repairs.The seller then has 5 days to respond, by either agreeing to fix all issues, rejecting all repairs, or offering a compromise. If you're interested in a cash-in-lieu-of-repairs or a price reduction, your agent will communicate this outside the formal response.
Step 7 -
Once you are past the inspection period you can no longer cancel. The next step is to order the appraisal, which can be time-sensitive due to backlogs. The appraisal assures the bank that the property's value aligns with the purchase price, and is a requirement in securing financing. You want the appraisal to come back and be atleast for the agreed purchase price. If the appraisal comes back higher than you are walking into instant equity. If the appraisal is below the purchase price than your real estate agent will need to renegotiate a new purchase price. Also, if you are an FHA buyer than the appraiser will confirm the house is in good condition and if there are any repairs such as a broken window the appraiser will call out the repairs that need to be corrected before being able to close on the house.Step 8 -
Preparing for close.
House in ArizonaPhoto byVita VilcinaonUnsplash
You may experience a quiet period of 5-10 days as the underwriter finalizes various checks. Don't be concerned about the silence as it's all part of the process. Once everything checks out, the lender will confirm that your file is clear to close! They will send all documents to the title company and then you'll get scheduled for your signing appointment. Unlike other states, we sign documents independently. You will have the option to sign at the title company or you can sign anywhere as the title company will schedule a mobile notary to sign all your documents. Your signing appointment is usually several days before closing but sometimes it has even been scheduled for the same day as closing. At closing is when you will pay your cash to close. This is made up of your down payment and your closing costs. Keep in mind that you won't receive the keys at this point.
Step 9 -
On the day of closing the title and escrow company will send all the signed documents to the county recorder for public recording. This process can take anywhere from 20 minutes to a few hours, depending on county workload. Once the recording has officially taken place title will contact your real estate agent and they will contact you to let you know you've officially closed and they will coordinate with you to give you keys to your house.Something to keep in mind is in Arizona, our standard real estate contracts are legally sound and drafted by experienced attorneys. Lawyers generally don't get involved unless it's a complex situation or when specific disputes arise.I know this was a lot of information to take in. If you have any questions or need assistance, feel free to book at call with my team and I by going to zoomtoarizona.com.
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