Financing
Financing
The media price of a home in Phoenix in 2007 was $310,000. Unless you have this in the bank, chances are you will require financing. If you’re preparing to purchase a home, you will need to get pre-qualified before working with a REALTOR.
How’s Your Credit?
Your credit score will affect your interest rate which will affect your long term bottom line. If you have a poor credit score, you may find it hard to obtain financing for your new home without showing ample consideration up front, with at least 10% of the purchase price offered as a down payment. For a $300,000 home, this means being able to put $30,000 down.
According the the National Association of Realtors, half of all loan applicants are finding themselves scoring below the 620 mark on their credit. It is getting harder and harder to find approved financing without a credit score of at least 620 or higher. There are many services that offer credit reports online, which you may want to consider looking into before starting the home-buying process.
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