Last week, a future Scottsdale home buyer told me that he’d heard it’s hard to get a loan to buy a house. I was a bit taken by surprise because the majority of home buyers are using conventional mortgages to purchase homes in today’s market. Interest rates are still incredibly low when looked at historically. And, while lenders want solid credit and a lot of documentation, they are lending money.
The chart above shows that from about 2004-2007, approximately 1 in 10 homes in the Phoenix Metro area was purchased with cash. Cash buyers then became a more significant part of the market, purchasing 35-40% of the homes, for the past several years. Looking at 2013, you can see the trend is changing, with cash buyers now comprising only 30% of the market, so that 7 in 10 local home buyers are getting home loans.
I’ve worked with a lot of great lenders over the years, and have listed several here on my web site. If you are thinking about buying a home, and don’t plan to pay cash, definitely call a lender and get an idea of what you can afford, and what you are willing to pay. This first step will get your home buying process started off on the right foot.
If you have any questions about the home buying process, please call or email me. I’m here to help.