Before you dive headfirst into the wild world of house hunting, there’s one crucial question you need to ask yourself: What’s my budget, really? Before you start envisioning yourself sipping coffee in that dream home, you need to know how much money you can actually spend without ending up living off instant noodles for the next decade.

The best way to get the lowdown on your budget is to chat with a mortgage lender for a pre-approval. Think of it as your golden ticket to the real estate game. This magical pre-approval letter will reveal the size of the mortgage loan you qualify for, based on thrilling factors like your credit report, your debt-to-income ratio, and your actual household income. All these exciting details combine to calculate the size of your loan, which then determines how much house you can realistically afford without resorting to a cardboard box. So, get that pre-approval and start your house hunting adventure with confidence!

Alright, here’s the deal: your pre-approval letter doesn’t just tell you how much you can borrow; it also lets you in on the interest rate you’ll be dealing with. This is the sneaky little percentage that gets added to your loan payments. The better your credit score and debt-to-income ratio, the friendlier this rate will be.

Now, if your credit score is less than stellar, you might end up with an interest rate that’s higher than your grocery bill after a late-night snack run. This means you could be paying a lot more each month for the same house as someone with a sparkling credit report. So, keep your credit score in good shape and your debts in check, unless you want to pay extra for the same roof over your head.

Let’s talk down payments! Traditionally, new homebuyers have been told to put down 20% of the purchase price. That’s a hefty chunk of change, like buying a brand new car in cash and then setting it on fire just for fun. But don’t freak out if you can’t scrape together that much.

Enter the FHA loan, the superhero for folks who don’t have a small fortune stashed away. With an FHA loan, you might only need to put down 3.5% of the purchase price. Sounds great, right? But, like any superhero, the FHA loan comes with its own set of quirks. You’ll probably end up with a higher monthly mortgage payment, and you’ll have to buy private mortgage insurance, which is about as fun as it sounds. So, whether you’re rolling with 20% or cozying up with an FHA loan, just make sure you know what you’re getting into!

When it comes to closing costs—the lovely assortment of administrative fees that come with buying a home—it’s common, but not a given, that the seller might pick up the tab.

Many buyers use this as a sneaky bargaining chip when haggling over the purchase price. In a buyer’s market, it is typically very easy to get the seller to cover your closing costs. However, this can depend on the property that you’re buying as well, regardless of the market. If it is a very popular property that is receiving a lot of interest and even possibly offers already, then you can forget about it!

To find the best home insurance, start by comparing prices from several providers. Ask your mortgage broker or real estate agent for recommendations on reputable companies. Then, contact those providers to get quotes. Most quotes are free and come with no obligations. Look for the best combination of rates, low deductibles, and comprehensive coverage.

It’s common for the previous owner to leave behind major appliances like the refrigerator, washing machine, and dryer. Be sure to do a full audit of these appliances and find out their ages. Also, check the age of the hot water heater, HVAC system, and any other major appliances or systems. Older appliances and systems will likely need replacement during your home ownership, which can mean added expenses. For example, replacing an aging furnace can cost between $8,000 and $10,000. Be prepared for these potential costs and, if possible, factor them into your offer for the home.

This is crucial! However, I will determine if any home you’re considering is above or below the floodplain or in a flood zone. While being below the floodplain isn’t necessarily a dealbreaker, it’s important to be aware of it. Flooding can be costly and damaging. We will investigate the home’s history of flooding, as well as the flooding history in the neighborhood and region. Has there been a major flooding event that affected the home, caused damage, or resulted in an insurance claim? This information would be provided on a seller property disclosure statement and/or included with a report provided by the seller’s insurance company. Our Arizona contracts automatically require sellers to provide a 5 year proof of insurance and claims history report on every sale.

During the inspection period, the inspector will assess the current insulation levels and determine if additional insulation is required. Additionally, they will inspect the heating, air conditioning unit, or swamp cooler to assess its age and condition. The type of insulation and amount needed depends on several factors.

If the property is older than 1978, a disclosure is required to be signed. In many cases the home has not been tested for lead based paint, but we can certainly hire an inspector if you desire.

Trees are not only beautiful and beneficial for health, but they can also enhance home energy efficiency by providing shade and reducing cooling costs in summer. However, trees pose risks to homes if not properly maintained. Trees within 10 to 15 feet of a home can pose threats during severe weather, such as a monsoon! Large branches may break windows, falling trees can damage roofs, and unstable trees can endanger residents. Additionally, unseen root systems can harm the home’s foundation and structural integrity. It’s important to assess these risks thoroughly and budget for proactive tree maintenance to mitigate potential damages. This is also a standard inspection item during the inspection period.

Standard shingle roofs typically have a limited lifespan. Depending on the roof type and the climate conditions in the area, roofs generally last between 15 to 30 years. Tile roofs can last over 50 years and they are on most Arizona homes. If you’re purchasing a home with an older roof, it’s important to anticipate and budget for a replacement in the future. Knowing the roof’s age upfront allows you to prepare financially for this upcoming expense. On the other hand, if the roof is relatively new, consider it a significant advantage when making your decision to buy a home. The roof receives a thorough inspection during the inspection period.

Everyone’s storage requirements vary, so it’s important to ensure that the home you’re buying meets your needs. Evaluate non-living spaces such as the attic and garage to ensure they provide practical, clean, and secure storage options. Assess the closet spaces to ensure they adequately meets your family’s storage needs.

Even if the original blueprints have vanished into thin air, it’s essential to uncover the home’s renovation history. The seller property disclosure statement that is provided on almost every home for sale in Arizona will provide information from the owner in regards to any major changes to the floor plan, additions, or any dramatic remodels that have transformed spaces over time. If any of the changes have been made before this seller moved in, then it will come down to relying on the home inspector to let us know if they see anything that appears this way. Knowing this can prevent you from being blindsided by unexpected repairs—like discovering a disco ball behind a freshly painted wall or a vintage avocado-colored oven hiding in the kitchen.

Beyond unraveling the renovation saga, we will want to inquire about warranties on any recent fixes. This intel is gold for predicting future repair costs. Because let’s face it, knowing whether that swanky new bathroom comes with a warranty is just as crucial as knowing if it’s tile or a sticker.

The amount of time that the property has been on the market can reveal a lot and also one factor in determining a good offer. If it’s freshly listed and already buzzing with interest, consider jumping on the bandwagon early—it could be the next big thing.

On the flip side, if the house has been lingering on the market for months, there’s usually a reason. Whether it’s the house’s age, condition, neighborhood quirks, or price tag, these factors can give pause to potential buyers. If you’re eyeing a long-standing listing, dig deep into what’s held others back. If you’re still keen, factor these concerns into your offer. If it’s been on the market for awhile then get ready to receive seller paid closing costs, a lowered purchase price, and maybe even that big screen flat screen hanging from the wall!

Crime happens everywhere, but some neighborhoods have a reputation for keeping things a bit more chill. Urban areas tend to see more action—think car capers, break-ins, and the occasional street shenanigans. On the flip side, quieter locales often boast lower crime rates that can make you feel like you’ve stumbled into a cozy crime-free zone.

In the Phoenix and surrounding area crime rates can vary block by block in certain cities. Before committing to a new crib, get the lowdown on the local crime scene by checking out this community crime map to see what kind of crime is committed and where. Armed with this info, you might even sweet-talk the seller into throwing in some bonus security goodies—like cameras, alarms, or fortification upgrades—to give you extra peace of mind.

Consider checking out the demographics of your potential new neighborhood to see if it’s a good fit. If the area is mostly seniors, it might not be the best spot for a young family. Conversely, a recently retired couple might not love living in a neighborhood teeming with young, single professionals that are looking to party all night. Basically, ask yourself: who does this area attract? If the answer doesn’t align with your age group or lifestyle, it might not be the ideal match.

Before making an offer on a home, I will ensure you’re getting a good value for the purchase price by pulling recent comparable sales and performing a home valuation. The surrounding area is just as crucial to a home’s value as the house itself. Identical homes can have vastly different price tags based on factors like local schools, crime rates, and nearby amenities. To verify the seller’s price is fair, I can provide a detailed report of similar homes in the same neighborhood including local statistics, school information, and nearby amenities. Websites like Zillow and Redfin are extremely unreliable for estimating a property’s value. Their calculations are based on algorithms that make internal estimates rather than actual comparable sales data.

Many external factors can affect a home’s value, and school quality is one of them. Good schools often signal other positive community traits like strong job prospects, solid public services, and low crime rates. This is a top priority for parents, but even if you don’t have kids, excellent schools usually mean you’re moving to a great neighborhood.

Even a good community can be a bit dull. If you’re a homebody, that might not bother you. But if you enjoy going out, shopping, dining, and experiencing culture, you’ll want a place with plenty to do. Check if the home you’re considering is close to good retail spots, reputable restaurants, walkable main streets, parks, green spaces, hiking trails, and other amenities that make living in an area enjoyable.

In short, yes—interest paid on your mortgage is tax deductible if you plan to claim the property as your personal residence.

According to nerdwallet, you can deduct the mortgage interest you paid during the tax year on the first $750,000 of your mortgage debt for your primary or second home. But if you’re married and filing separately, the limit drops to $375,000—because apparently, the IRS thinks couples need a little extra encouragement to stick together.

If you bought your house before December 16, 2017, you get a more generous deal: you can deduct interest on up to $1 million of the mortgage (or $500,000 if you’re in the “married but filing separately” club). So, being an early bird not only gets you the worm but also a better mortgage interest deduction!

If you’re buying a property as an investment, you’re not allowed to claim the interest you’re required to pay on your mortgage. Make sure to take advantage of all eligible tax benefits both in the year you purchase your home and in all subsequent years as a homeowner.

The same logic applies to windows. Like poorly insulated attics, aging or deteriorating windows can lead to major inefficiencies. Cracked windows or ones with air leaks will have you constantly battling the elements, and your monthly budget will suffer. Before buying a home with old or deteriorating windows, the inspector will let us know the condition of the windows. If there are issues that need attention like reglazing, weather stripping, or even window replacement, we can use these issues as ammunition to get a price reduction or possibly even have them repaired or replaced before the close of escrow.