Phoenix Condo First Time Homebuyer articles> Condo Buying Basics

How much will my monthly payment be?

Your lender can help you with this calculation.  However, you can also get a rough idea by using a mortgage calculator, like the one at www.UnderstandingHomeLoans.com.  To use the calculator, you'll need to know the interest rate of the loan, taxes, and insurance.  The calculator does not have a field for the homeowner's association fee, so you can include that in your insurance field too.  To find the yearly taxes for a condo you are interested in, ask us!    The calculator is a great way to play around with different loan amounts to determine what you may be comfortable paying.

What is a Credit Score?

Your credit score is a numerical value that attempts to quantify the credit risk for lenders. It is based on your credit payment history, your outstanding debt, and current credit limits among other factors. Your mortgage specialist can help you determine your credit score, or you can get it yourself at www.AnnualCreditReport.com (you’ll pay a nominal fee to obtain the credit score). Your credit score will determine the interest rate you’ll pay on a loan, so it is an important piece of information for both you and your mortgage specialist to know.

What is a Mortgage?

A mortgage is simply an amount of money a lender loans to you to buy a house. The loan will have certain terms, such as the amount of time you have to pay back the loan, the interest rate on the loan, and if that interest rate may change over the life of the loan. Your interest on the loan can be set at either a FIXED rate or it can change over time, usually once a year, known as an ADJUSTABLE rate.

What should I do first?

One of the first tasks you'll want to do is to talk to a mortgage specialist to determine how much house you can afford and if you "pre-qualify" for a home loan. A prequalification letter is a tentative agreement that the mortgage specialist can obtain a loan for you to buy a house for a specified price.  If you don't do this first, then you may be looking for a home that is priced too high to afford.

 

 

 

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The Fair Housing Act prohibits discrimination in housing based on color, race, religion, national origin, sex, familial status, or disability. Information Deemed Reliable But Not Guaranteed. The information being provided is for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.

This information, including square footage, while not guaranteed, has been acquired from sources believed to be reliable.

ARMLS Logo indicates a property listed by a real estate brokerage other than Contigo Realty. All information should be verified by the recipient and none is guaranteed as accurate by ARMLS. Based on information from the Arizona Regional Multiple Listing Service. Copyright © 2010. Arizona Regional Multiple Listing Service, Inc. All rights reserved.

Last Updated: 2010-09-02