Arizona homes for sale

Poor planning can turn the American dream into a nightmare October 22, 2001 Owning your own home is the American dream. But it can turn into a nightmare. To make sure you don't find yourself in a miserable situation, give careful consideration to the questions listed below before you buy a home. Do you have job stability? To be more accurate, do you have a stable source of income? Most mortgage lenders will require that you show enough income to support your monthly mortgage payments. An exception might be made if you make a large enough cash down payment. The more cash down, the easier it is to qualify. Qualifying for a mortgage is one issue; making the monthly payments is another. If you get behind in your payments, you could lose your home and seriously damage your credit. So, before you jump onto the homeownership bandwagon, make sure that you are financially secure. Are you sure you won't be transferred soon? Homeownership can be a great way to build wealth. Home prices tend to appreciate over time. But, like the stock market, home prices go up and down. The real estate market is cyclical. If you buy high and have to sell low, you can end up with a considerable loss. For example, let's say you bought a home in Laguna Niguel in Southern California when the market hit a high point in 1989. You paid $500,000, put 10 percent down and took out a mortgage for $450,000. A year later you were transferred. Home prices in your area had plummeted 25 percent leaving you with a home that was worth only $375,000-considerably less than the mortgage you'd have to repay if you sold. If you think there's any risk of a transfer in the near future, you're better off renting. Don't buy unless it's for the long-term. Are you ready for the responsibility of homeownership? Staying current on your mortgage payments is only one of the responsibilities you take on as a homeowner. You also have to pay property taxes, hazard insurance and homeowner's association fees if your home is located in a Planned Unit Development. In addition, homes require maintenance. FIRST-TIME TIP: Few homebuyers factor maintenance into the home ownership equation. Homes need to be cared for in order to keep them functioning properly and to preserve your investment. Well-maintained homes sell more quickly and for more money than homes that have deteriorated and require work. Home maintenance takes time as well as money. Even if you hire others to take care of maintaining your home, you'll need to supervise their efforts. Have you established a good credit history? Before you start looking for a home to buy, talk to a loan agent or mortgage broker to find out what you can afford to buy. Ask your agent or broker to order a credit report and review it with you to find out if there is anything on the report that might keep you from being approved for a mortgage. If so, find out what you can do to improve your credit report before you apply for a loan. Have you saved enough money for a down payment and closing costs? You can buy a home with as little as 3 percent down. But, if you're interested in having a mortgage with the lowest interest rate possible, you'll need to put 10 to 20 percent down, and have good credit. Your mortgage broker can discuss your financing options with you. THE CLOSING: Finally, do you have time to buy a home? Most buyers underestimate the time involved in buying a home. Allying yourself with good professionals will help. Dian Hy mer is author of "Starting Out, The Complete Home Buyer's Guide," Chronicle Books. Copyright 2001 Dian Hy mer Distributed by In man News Features More - Real Estate Columns   FREE reports on homes sold in your zip code Arizona Homes - All available zip code reports Chandler Homes Gilbert Homes Glendale AZ Homes Goodyear Homes Mesa Homes Phoenix Homes Scottsdale Homes Sun City AZ Homes Tempe Homes   FREE custom-made reports on homes for sale Metro Phoenix Southeast Valley. Homes for sale in Ahwatukee, Chandler, Gilbert, Mesa, Queen Creek and Tempe. Phoenix. Homes for sale in Anthem and Phoenix. Southwest Valley. Homes for sale in Avondale, Buckeye, Goodyear and Litchfield Park. Northeast Valley. Homes for sale in Carefree, Cave Creek, Fountain Hills, Paradise Valley, Rio Verde and Scottsdale. Northwest Valley. Homes for sale in Glendale AZ, Peoria AZ, Sun City AZ, Sun City Grand, Sun City West, Surprise and Youngtown. Wickenburg homes for sale. Metro Tucson Tucson area. Homes for sale in Marana, Oro Valley and Tucson. Green Valley area. Homes for sale in Green Valley and Sahaurita. Other Great Arizona Towns • Casa Grande homes for sale • Flagstaff homes for sale • Lake Havasu City homes for sale • Payson homes for sale • Prescott homes for sale • Showlow homes for sale • Yuma homes for sale