The Arizona real estate market in 2007 and 2008 has been unique to say the least. As a lender for the past 22 years in Arizona I can safely say I have never seen anything like it. We have gone from a period of time in lending when just about anyone with a pulse could obtain a home mortgage to a time when lenders cut back programs almost on a daily basis. Home prices have declined dramatically over the past 24 months but looking back over a 60 month period of time values are actually up significantly in many parts of the Phoenix metropolitan area.
What does all of this mean to someone looking to buy home in this market? This may depend heavily on the specific area of town in which you are looking to purchase. In many of the outlying areas of the valley the lender owned properties are getting more than one offer on their homes. These are areas where the prices have declined dramatically and housing has become affordable to the average family once again. This is great news for you as a buyer, however, it also means that you must know what type of mortgage you can qualify for and how much of a loan you can get.
Although there are still a couple of limited options for -0-down financing the majority of consumers will now have to be able to put a down payment on a home of at least 3-3.5% of the price of the home. Lenders currently have much stricter requirements for documenting income and tighter credit qualifications than in the past. In order to present the best contract when you find the home you love you will need to be able to show the seller of the property that you have been preapproved for a mortgage by a licensed mortgage company preferably a local company that is very familiar with the market conditions. This is a great time as well to pick up investment property prices are at levels again where the property will create income.
Have an experienced realtor on your side to help you make the best offer and get into the home of your dreams or begin to build a real estate investment portfolio. There is no better time to buy.