Congratulations! You’ve already made a big move simply deciding you want to own your own home rather than rent anymore. At William Ryan Homes Phoenix, we have helped thousands of people buy their first new construction home. So there’s no doubt we can help you achieve your dream of home ownership in the Phoenix area too.

Once you decide you want to buy a house, the next questions are:

·      How much home can you afford?

·      Will you qualify for a mortgage?

·      Where do you want to buy?

·      What ways can you save for a down payment?

Keep in mind that getting pre-approved for a mortgage can make the whole process

easier for you. Our preferred lender Home Loan Express can guide you through the pre-approval process.

First Things First: How Much Home?

           Most new home buyers require a mortgage, which is a financial instrument that lends money to buy a house. How much mortgage you can swing depends on the amount of debt the lender believes you can handle. And that amount depends upon:

·      How much you earn

·      Your credit rating

·      The type of loan you seek

·      Other debt you carry

·      Your down payment

·      Current mortgage rates

·      Other aspects of your financial situation

           While it’s great fun to start planning your home purchase, it is important to be realistic about what you can afford. You want to search for homes that are in your price range, so you won’t be disappointed. It hurts to fall in love with a house only to learn that it’s beyond your means.

When viewing any of our communities on our website, you will see a mortgage calculator that can help you figure out exactly how much you can afford. You are also welcome to check your current credit score free here.

Let’s Look at Upfront Costs.

           Whether this is your starter home or not, buying a house should be exciting! It’s also most likely one of the largest purchases you’ll ever make. There are many details involved in finding, financing, personalizing, and maintaining a house year after year. Let’s go through some of them:

Down Payment – This is the cash you need upfront in a real estate transaction. The traditional percentage of home value needed is 20% but some loans require less. There is a great variance in percentages between conventional and, for instance, VA and FHA loans. (FHA loans are government-insured and offer lower down payments and other qualifying criteria for certain buyers.)

Title Fees – These pay for the record search as well as title insurance which can be significant.

Mortgage Origination – This fee covers the cost of processing and underwriting your home loan. It is typically ½% to 1% of the total loan amount.

Mortgage Insurance – Buyers have to buy mortgage insurance if their down payment is less than 20%.

Closing Costs – “Closing” refers to finalizing the transfer of ownership to a new buyer. These costs usually range from 2% to 6% of the home’s purchase price.

Other Expenses to Consider.

           If you’re contemplating owning your own home, you know there are expenses that arise as you move in and continue throughout the year. These include:

Moving Costs - The average local move is around $2,300 and long-distance moves average $4,300 but moving estimates can vary greatly.

Property Insurance - This protects you in the event of damage to your home.

HOA Fees - Home Owner Associations (HOA) charge monthly fees to maintain common areas of a community. Some may even include certain utilities and other fees.

Maintenance - Your beautiful new home requires routine maintenance to stay that way. It’s wise to keep savings on hand for larger expenses like an air conditioning system replacement down the road.

Saving for a Down Payment.

           There are so many ways you can make small changes that add up to big savings you then add to your “dream home” fund. There are also larger changes you could make if you want to speed up accumulating your down payment. The main thing is to keep your focus on a home of your own – every day, every week, and always. Doing that eases the sacrifices you may need to make along the way.

Make a Budget – Decide how much money you want to put away every month toward your down payment savings. Then, itemize all your expenses with limits that let you reach your monthly goal. Be firm with yourself about it.

Ask for a Raise – Seems easier said than done, right? Prepare yourself to prove to your employer that your value exceeds your salary. If you can’t get a raise, will they let you work from home to reduce your commuting costs? Would a new employer value you more?

Pay Off Debt – Lenders look carefully at other debts you have, so try to pay down other money you owe in credit cards, education expenses, car payments, medical bills, and other debts.

Cut a Bad Habit – Consider quitting unnecessary and expensive habits like impulse buying, gourmet coffee shops, restaurant dining, and other luxuries.

Downsize – Do you need all the space you’re paying for now? Can you get by with one less bedroom or bathroom? Can you commute a little farther to work for a much lower rent?

Skip Vacations – You don’t have to spend a ton of money to enjoy your time off. Traveling to distant locales seems wasteful when you have bigger dreams (like a home of your own). Explore the sights and experiences available in your own area.

Ask for Help – Enlist family and friends to help you reach your dream. Instead of wrapped gifts on birthdays and holidays, request donations to your new-home fund. If relatives are financially able to help, don’t be afraid to ask them. You may be pleasantly surprised.

Call Now and Let’s Get Started.

 Every dream has to start somewhere, right? Take the first step to making your dream home a real home by calling your William Ryan Homes Phoenix New Home Specialist at (602) 786-6970. She’ll be happy to make an appointment at your convenience. Just ask! You’re also welcome to explore our website for home styles, floor plans, and the popular locations where we build new construction homes in the Phoenix area.