Buying a home is a great idea and there are many options available right now in the Flagstaff area. To help you prepare for this event, here are five great tips recently printed in the AZ Daily Sun(our Flagstaff paper) by Candice Choi:
1. Check your credit report. Lenders are being very careful about lending money these days. You want to find out what your FICO score is. A "stellar score" ranges from 760 to 850 and means you might be able to negotiate the terms of your mortgage. You can get your FICO score for $15.95 from www.myFICO.com
2. Be ready to slap down a strong down payment. Plan on at least 10% down payment for a conventional loan and 3.5% for FHA - and if you are able to come up with more, not only will your monthly payment be reduced, but you might get better terms on your mortgage.
3. Be ready for fees associated with your mortgage-anything from standard closing costs to services fees charged by the lender. Total expenses will vary with each situation, but according to Bankrate.com the national average last year for additional fees was $3,118 for a $200,000 mortgage. (typically 2-3% of the sale price of the home)
4. Home Inspections come in all different price ranges, depending upon the focus and the thoroughness of the inspection. Most Realtors have inspectors they know and trust (I do). Expect to pay a $300 - $400 for a home inspection, which is money well spent.
5. Don't just focus on the mortgage costs when looking at a home or property. Consider the costs for utilities, maintenance and any improvements that you might want to make in the future. If you are considering alternative energy sources, you will want to explore costs and tax credits.
Of course, as your Realtor I will be talking to you about all of these tips and encouraging you to ask any questions that pop into your head. I want to help you find the right home, at the right price - so visit my website and let's get to work!
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