Phoenix Metro Area

With the rise of home prices in the Phoenix metro area in the past few years, coupled with recently skyrocketing interest rates, it seems as if home-ownership is reserved for the wealthy, being merely just a dream for those of us not blessed with substantial resources. Don’t be fooled by the hype. Our team of agents and lenders are putting people in homes at a variety of socio-economic levels, using smart financial planning, experienced strategizing, and a bit of creativity to make dreams come true. Here are some things to consider when hoping to buy a home on a limited budget:  

1. Start a conversation with a realtor experienced in working with all types of home buyers, not just those for whom a home purchase is a slam dunk. With any new endeavor, particularly one as important as a home purchase, it’s essential to have an experienced professional that knows the industry landscape.  You wouldn’t do dental work on yourself, and self-haircuts rarely work out well. Agents that put their heart, soul, knowledge, experience and creativity into helping people attain their real estate goals, can make the difference between a BIG MISTAKE, and the fulfillment of a dream that offers financial and psychological security, freedom to decorate as you please, and a lifetime of wonderful memories.  

2. Talk to a trusted lender who can help determine your budget and identify programs that can help with down-payment and closing cost assistance.  There’s nothing worse than starting your home search thinking you can afford an $800,000 property only to find out you’re on a $400,000 budget. So much wasted time and lots of disappointment. The good news is that we have helped many first time home-buyers, or those on a limited budget, successfully stop paying rent and start building wealth with a team of creative agents and lenders. Don’t believe that only the wealthy can own a home.  

3. Saving for a down payment is often the biggest challenge for prospective homeowners. Even if you receive cash from a downpayment assistance program or family members, you should have a cash reserve on hand both for loan qualification purposes and for hidden costs you might not be prepared for when moving into a new home (movers, furnishings, utility deposits, etc.). Start by setting a savings goal and create a monthly budget to allocate a portion of your income towards saving. Look for ways to reduce expenses, such as cutting unnecessary subscriptions or dining out less frequently. 

4. A good credit score is crucial when qualifying for a mortgage loan, as it significantly impacts the interest rate and terms you'll receive. Start by obtaining a copy of your credit report and checking for any errors. Dispute inaccuracies and work on paying off outstanding debts to improve your score. Discuss opportunities with your lender for raising your credit score to position you optimally for a home-purchase.  

5. There is great news on the horizon for home-buying in 2024. Interest rates are finally coming down and are expected to continue to decrease through the year. Buyers are urged not to wait, as our negotiating expertise is getting sellers to pay for buyers to lower their rate until rates decrease and they can refinance. It’s just one of the ways we’re able to get buyers into homes now rather than waiting for rates to come down while prices are still going up. And with the changing landscape, we are expecting to see more sellers getting in the game leading to more inventory to choose from.  

For far too long, first time and limited budget buyers have felt sidelined by high prices, fierce competition from other home buyers and more recently, interest rates. 2024 has already brought relief from all of these challenges, and promises to get better from here. Contact Sharyn or Craig at Copper Summit Real Estate at 480-589-2347/sharyn@coppersummitrealestate or Christine Wenger with Guaranteed Rate Mortgage at 480-232-4972/ Christine.wenger@grarate.com and let’s talk about what’s possible.