5 Ways you can improve your Purchasing Power for Homes in Scottsdale

Realtor gives tips for increasing the amount you can afford to pay for your dream home in Scottsdale

Besides determining how much you can afford to pay for a home in Scottsdale and elsewhere, it pays to consider prudent steps you can take to increase that amount. This can expand the number of homes you can consider looking at and making an offer on.

Continue reading for 5 steps you can take to increase the amount you can afford to pay for a home in Scottsdale.

1. Save more or commit more to your down payment
   
   The more money you have up front for a down payment, the better lenders will look at you. Ratios lenders use to determine your credit worthiness like debt-to-income and housing expense ratios will be a bit more lenient, increasing the amount of the monthly payment you can afford and thus, the amount of money they are willing to loan you.
   
   
2. Obtain a gift from a loved one
   
   We all know the difficulty in saving money, which is why lenders will allow you to use money you received in the form of a gift for your down payment or closing costs. But beware that most lenders require a “gift letter” stating the money doesn’t have to be repaid. Some may also require you pay at least a portion of the down payment with your own cash.
   
   
3. Negotiate closing costs
   
   Through negotiation, some sellers may be willing to pay all of most of the closing costs if you agree to their full asking price for example. This can boost the amount you can afford to pay for a home but if you decide to do this, consult with your Scottsdale realtor for advice.
   
   
4. Find loan programs
   
   You can also search for any special loan programs available through your local, state or the federal government. There are many incentives for first-time homebuyers like reduced interest rates, little to no down payment options or tax breaks.
   
   Check with your local housing authority for more information.
   
   
5. Consider different loan types
   
   Significant differences exist between different types of loans. Some homebuyers choose a 30-year loan over a 15-year one because of big differences in the monthly payment amount. Others may choose an adjustable rate mortgage because of initially low interest rates. Discuss the pros and cons of each loan option with your Scottsdale realtor and your lender before making any decisions.

These 5 steps can help boost the amount you can afford to pay for a home in Scottsdale and anywhere for that matter. Carefully examining each of these steps along with other factors can make that once unaffordable dream home in Scottsdale a reality.

Contact a Scottsdale realtor today to begin your home buying adventure.

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