When you buy a home in Arizona, it’s essential to budget for closing costs and factor that into your buying decision. Closing costs include things like paying for appraisals and credit checks. However, these costs vary significantly from lender to lender. Therefore, it’s important to understand what you’ll need to pay for and when to pay for it.
Signing the closing documents is the final step before you get the key to your home. However, take the time to review the associated costs before you agree to a mortgage loan.
Average Closing Costs To Buy an Arizona Home
Depending on where you buy in Arizona, the typical home sale price ranges between $300,000 to $400,000. Of course, you might get a home that costs less than this amount. The average closing price was under $4,200, ranging from $3,100 to $5,600. A percentage of 1-1.4 percent of the home’s overall sale price.
Closing Cost Checklist from the Consumer Financial Protection Bureau
The Consumer Financial Protection Bureau put together a checklist for homebuyers. It should give you a good idea of the cost you may encounter when buying a home you love.
- Submit documents and answer requests from the lender.
- Schedule an inspection.
- Bu homeowner’s insurance.
- Secure a mortgage loan.
- Shop for title insurance.
- Review all closing documents thoroughly.
- Sign the paperwork.
It’s also a good idea to review the CFPB’s detailed checklist associated with closing costs in Arizona.
Can You Get a Mortgage Loan With Bad Credit?
Improving your credit score should be a top priority if you have less than perfect credit. Nevertheless, you could be a candidate for several federal mortgage programs. Consider discussing your situation with a HUD-funded counseling agency. Your municipality can also put you in touch with local homebuying programs that can give you the information you need to make a good decision.
Costs Typically Paid by Sellers in Arizona
Buyers only pay some of the costs in Arizona. Here are typical costs paid by the homeowner:
- Property taxes for the current year (may be prorated to the closing date)
- Loan reconveyance fees
- Recording fees (cost to file papers with the court and local municipality)
- Transfer fees
- Real estate agent commission
- Escrow fees
Costs Typically Paid by Sellers in Arizona
Although most closing costs typically fall on the seller, the buyer also covers certain costs. For example, home inspections and termite inspections are usually paid for by prospective buyers as part of the closing process.
Do You Need a Home Loan in AZ?
You can apply for pre-approval with the Potempa Team to get started. A pre-approval proves that a lender has committed to helping you finance a mortgage up to an approved limit. It shows homeowners that you are a serious contender and may help you secure an accepted offer.
Potempa offers several types of loans for first-time and veteran homebuyers. Our home loan products include the following:
- Conventional Loan
- FHA
- VA Loans
- USDA Loans
- Jumbo Loan
Contact the Potempa team to get started today!
