The most affordable starter houses are out of reach for first-time buyers in a housing market characterized by a lack of supply, rising prices, and intense competition. The availability of inexpensive beginning homes is on the decline. Due to rising interest rates and housing prices, it is becoming more difficult for first-time buyers to afford the typical starter house. Since 2015, property prices have increased by an average of 48%, making it difficult for first-time buyers to enter the market. The minimum wage required to buy a property has likewise increased by 86%.
How much revenue would be necessary to bring home if you wanted to purchase a typical starter house in Phoenix? The average two-bedroom property in the Phoenix metropolitan area costs $385,000, so a family would need an annual income of around $107,412 to make the $2,685 monthly payment. If you are interested in homes for sale in North Phoenix, check the following tips, especially if you are on a budget.
Obtain mortgage pre approval
If you are keen on living in North Phoenix, you will need a mortgage preapproval. However, you must first know your credit score, an element of the affordability equation, to be pre-approved for a mortgage. Those with high credit scores have a higher chance of securing favorable interest rates and repayment conditions. However, a person with fair credit may need to budget more to account for the higher interest rates.
Several mortgage programs are tailored to first-time buyers; doing comparison shopping is a good idea before committing to a loan. Your starter home is a massive investment, so ensure you get it right first.
Consult a mortgage broker and real estate professional
It’s exciting and liberating to conduct a web search for North Phoenix real estate and tour potential houses virtually. However, there are several arguments in favor of hiring experts. If you’re a first-time buyer in a competitive market like North Phoenix, it’s in your best interest to work with a real estate agent who has local experience and can move fast on your behalf. A good real estate agent will probe for information about your wants and goals as a homeowner, set reasonable expectations, and work to get you the best possible offer. Locate a reliable local real estate professional. Another crucial aspect of working with a reliable mortgage banker is the assurance that comes with knowing that you can get money for the offer and closing.
Investigate the area
If you are interested in North Phoenix real estate properties, the first step is to face facts about yourself and the market. Learn more about your prospective neighborhood and consider potential housing options. Think about how far you would have to drive to go to work, how good or bad the schools in the region are if you have or intend to have kids, how close you would be to stores if you could walk there, and how nice the homes are in the area. If some property’s price tag is out of your range or has major issues that turn you off, cross it from your list.
Check the house’s condition
If you are keen on living in North Phoenix, remember to give any possible house a complete inspection before buying it. Low home values might mean expensive repairs are needed. Some individuals may need minor alterations to their appearance. Talk to a reliable real estate professional about the home’s value and whether or not it is in line with similar properties on the market. Professional real estate brokers have a keen vision and may be able to estimate the cost of necessary repairs. Also, getting a mortgage may be difficult if a house is rated too low.
Although becoming a homeowner in North Phoenix has many benefits, it can be a very stressful experience, particularly for first-time purchasers. Homeownership is littered with potential pitfalls, but many are avoidable. Start by deciding on a property well within your limits and accommodating your present and future requirements and goals. Remember that a “starter home” might become “the home” if you want to remain in the area.