How much can I afford to spend on a home in Flagstaff?

When getting ready to buy a home in Flagstaff, you need to determine what you
can afford. Here, we’re talking both about a down payment and up
front cash costs (such as moving expenses, closing costs, etc.) as well as
on going expenses including mortgage payments, tax payments,
insurance and maintenance.

Before you can select a house you need to assess your financial situation. Unless
you know exactly what you can afford, you can get yourself into a great
deal of trouble with a home that becomes a money pit – drawing far
more from you each month than you can afford.

Once you know what you can spend, then the fun
begins – you can begin looking at Flagstaff homes in your price range and have the chance to
find that Flagstaff dream house you have been looking for.

This Is Your Largest Investment

For most people, their house is their largest investment. As time goes
on and you pay down your mortgage, you accumulate equity. Equity, in
its simplest terms is what your house is worth minus any debt on your
home. Some day when you retire, if you have paid down your
mortgage, you will live mortgage free. If you need additional money
you can borrow against your home, with your home being your
retirement nest egg.

Look To The Long Term

Too many people watched real estate prices skyrocket in the late 90’s
and early 2000, only to watch prices and equity crash. The Arizona foreclosure
market is in full swing today because people bought at what was the top
and assumed it would keep climbing getting better. It is a gamble.