Flagstaff Home Buyers Guide Table of Contents
I. How to Get Started...................................................................................... 6
II. Are You Ready To Own Your Own Flagstaff Home? ............................................. 7
Why People Buy Homes ........................................................................ 7
Why Others Choose to Rent ................................................................. 7
III. What Can You Afford? .................................................................. 9
Your Biggest Investment ............................. 9
Think Long Term Flagstaff Investment.................................. 9
Tax Benefits of Home Ownership ....................................................... 10
While Mortgage Payments Can Be Fixed, Other Costs Can Rise ........ 10
How Mortgage Companies Determine What You Can Afford ............ 11
Still Not Sure What Your Monthly Budget Is? ..................................... 11
Have a Budget in Mind Before Your Start House Hunting .................. 12
TIP: Borrowing from Relatives ............................................................ 12
IV. Get Your Finances in Order: Start with Your Credit .................... 13
The Fair Credit Reporting Act ............................................................. 13
Check Your Credit Score 6‐12 Months in Advance ............................. 13
Write Directly to Each of the Three Major Credit Bureaus ................. 14
Request Your Credit Reports and Review Them Carefully ................. 14
Does Applying for Credit Hurt Your Credit Score? .............................. 14
Dispute Any Items that are Wrong ..................................................... 14
Credit Bureaus are Required to Remove Erroneous Information ...... 14
Avoid Taking on Any New Debt .......................................................... 15
Consolidate Your Funds in One or Two Places ................................... 16
Do Not Apply for Credit with Dozens of Sources ................................ 16
V. Stability is Important ...................................................................... 17
Financial Stability is Important ........................................................... 17
Job Stability is Important .................................................................... 17
VI. Down Payment ............................................................................ 18

Most Mortgages Require a Down Payment........................................ 18
You Down Payment is also Important to the Seller ............................ 18
Price, Down Payment and Credit Score – the Magic Triangle ............ 19
Typical Down Payments are 10% of the Purchase Price ..................... 19
VII. Neighborhood Hunting ............................................................... 21
How Much Can You Afford? ................................................................ 21
Location, Location, Location ............................................................... 21
Do you have a location in mind? ........................................................ 22
VIII. Real Estate Brokers ..................................................................... 24
IX. Find a Mortgage Company .......................................................... 26
Mortgage Bankers vs. Mortgage Brokers ........................................... 26
Avoid Less Credible Mortgage Companies ......................................... 27
Mortgage Companies in Your Area Who Help Home Buyers ............. 27
X. What Kind of Home Do You Want? ................................................ 29
What Features Do You Want in Your Home? ..................................... 30
XI. The Interior of the Home ............................................................ 35
XII. The Exterior of the Home ........................................................... 40
Other Questions to Ask ....................................................................... 41
XIII. Is a Fixer Upper for You? ............................................................. 43
Do You Want to Do The Renovations Yourself? ................................. 43
XIV. How Much to Offer? ................................................................... 44
Focus on Value and not Price ............................................................. 44
Can You Afford this House? ................................................................ 45
Is the Asking Price Reasonable Based on Value? ................................ 45
XV. Putting Together an Offer Letter ............................................... 47
What Goes In The Offer Letter? .......................................................... 47
The Purchase Price .............................................................................. 47
The Amount You Will Put Down on the Purchase Price ..................... 47
The Size of the Mortgage You Are Seeking ......................................... 48
The Terms of the Mortgage You Are Seeking ..................................... 48
Proposed Closing Date ........................................................................ 48
Good Faith Deposit ............................................................................. 48

Items To Be Included in the Sale ......................................................... 49
Offer Should Be “Subject To” the Inspection Report .......................... 49
Offer Should Be “Subject To” a Satisfactory Appraisal ....................... 50
XVI. Ask About Defects and Problems with the Home ..................... 51
XVII. Let the Negotiations Begin! ...................................................... 53
Negotiate from Strength with Justifications for Your Offer ............... 53
XVIII. Getting Your Mortgage ........................................................... 55
Contact Your Mortgage Broker or Mortgage Banker ......................... 55
Types of Mortgages ............................................................................ 55
Do You Want to Pay Points? ............................................................... 56
Get Your Documents in Order ............................................................ 57
Do You Need a Cosigner? You May Want To Plan Ahead .................. 58
Mortgage Costs and Fees .................................................................... 59
XIX. Home Inspection ......................................................................... 63
XX. Prior to Closing ............................................................................ 65
XXI. The Closing .................................................................................. 67
Don’t Forget to Bring These Items ...................................................... 67
XXII. Home Ownership ........................................................................ 69
Home Centers ..................................................................................... 69
Renovations – Now or Later? ............................................................. 70
XXIII. Renovating Your Home ........................................................... 71
Hiring a Contractor ............................................................................. 71