Tucson Real Estate - A Buyer's Guide

How to Buy a Home in the City of Tucson, Arizona

Are you thinking of buying a home in Tucson, Arizona? If so, you'll find this real estate buyer's guide helpful. We have assembled some helpful information, tips and resources to make your Tucson real estate experience a good one.

Steps to Buying a Home

The first thing you should do before buying real estate in Tucson is to study the home buying process in general, especially if this will be your first time buying a home. Knowing what steps to expect along the way is the key to preparing for those steps.

For example, in order to prepare for your real estate closing / settlement process, you'll need to know what the process entails. That's the benefit of studying the process of buying real estate in Tucson (or anywhere else for that matter).

Before buying your little slice of Tucson real estate, you need to make sure your financial house is in good order. In other words, you need to look at your finances the way a mortgage lender would examine them. One of the first things you should do is request copies of your credit reports and credit scores.

You'll notice I said reports and scores, in the plural sense. Yes, you have more than n of each — one from each of the major credit-reporting companies: Experian, TransUnion and Equifax.

1. Get Your Credit Reports / Scores

There are actually several places you can go to request all three credit reports and scores at once. But the key is to request this information through a trustworthy website. Here's the good news, in conjunction with Credit.com (one of the most trusted names in credit report distribution), we are able to offer their service right here:

Click here for a free credit report

When you have your credit reports and scores, you'll be able to perform two key actions. First of all, you'll know where you stand in terms of your credit score. This is a critical piece of information that will either help or harm your chances of buying real estate in the Tucson area. You'll also be able to review your credit history for accuracy. Sometimes erroneous information appears on these reports, so it's important to review them early on and to request corrections if need be.

But remember, this stage in the Tucson real estate process begins with you ordering your credit reports and scores. And you should do it early on so you can review them for accuracy:

Order your free credit report today

You should also take a look at your debt-to-income ratio while you're at it. Tucson mortgage lenders will also look at this ratio when qualifying you for a real estate / mortgage loan. This ratio is basically a comparison between your monthly income and your existing monthly debt. In other words, it's a contrast between how much you owe each month on personal debt and how much you earn.

Here's how to determine your debt-to-income ratio in the first place, and to find out whether it will help or hurt your chances of buying real estate in Tucson, Arizona:

First, add up your fixed monthly expenses. This includes your minimum credit card payments, car payments, and anything else you pay each month such as student loan balances, child support, etc. Don't worry about grocery or utility bills at this point. Next, add the amount of money you think you'll pay each month for a mortgage loan (you'll have to use a mortgage calculator to get this number). This number should include the actual mortgage amount plus private mortgage insurance, homeowner's insurance and property taxes. Lastly, divide this total by your gross monthly income.

Most mortgage lenders in Tucson have a general rule of thumb with debt-to-income ratios. They prefer them to be below 36 percent. In other words, your debt is not more than 36 percent of your income. If you are out of this window and have too much debt compared to your income, start paying down that debt! It could hurt your chances of being approved for a mortgage loan to make your Tucson real estate purchase a reality.

Request your credit report here

2. Find a Tucson Real Estate Agent

If you've purchased homes several times in the past, then you may know enough about the real estate process to go it alone. But if you're new to the world of home buying, it's essential that you have professional help the first time around. This means hiring a Tucson real estate agent.

An agent can help you in many ways when buying a home. For one thing, he or she can help you validate the asking price of the home. It's called an "asking price" for a reason! Your Tucson real estate agent can also help you make your offer, negotiate with the seller if necessary, arrange all of the other steps like home inspections, and prepare for the settlement process.

There are plenty of ways to find a real estate agent, but few are as convenient as using the Internet. For example, using the link below, you can request contact from multiple Realtors in the Tucson area. Then you can simply choose the one you want. Nice!

Find and Compare Tucson Realtors

3. Find a Home in Tucson

So now you've reviewed your finances and found a Tucson real estate agent to help you with the home-buying process. What's next? Now comes the fun part. It's time to start house hunting! This is where you actively seek, compare and evaluate homes in Tucson to see how they stack up against (A) each other and (B) your list of wants and needs.

This is another area where the Internet can save you time and energy. By reviewing Tucson homes online first, you'll know whether or not the homes fall into your price range, desires location, desired size, etc. That way, you can save yourself a trip if the home doesn't match your needs.

As with everything else related to Tucson real estate shopping, there are many websites that can help you shop for homes in the area. Here's one such website:

Shop for Homes

4. Get Mortgage Quotes

Unless you've just won the lottery or inherited money from a rich uncle, buying real estate in Tucson means you'll need to obtain a mortgage loan. This is the case for most home buyers. You should thoroughly research the different types of mortgage loans so you can find the type that's best for you.

Once again, the Internet can simplify this process for you. These days, you can go online and request mortgage quotes for multiple lenders at once. Then, you can review the terms and details of each mortgage quote to see if it's worth pursuing.

LendingTree is a good place to start, because they have access to a large number of mortgage lenders:

LendingTree Mortgage Loans

5. Consider Buying Tucson Foreclosures

If you've been watching the news lately, you know that the number of home foreclosures in the U.S. have reached record levels in the last few years. This is certainly unfortunate for those people who lost their homes, but it's also a good investment opportunity for people buying Tucson real estate ... and trying to save some money.

By purchasing a foreclosure home, it's possible to pay less than market value for the home. After all, the banks who foreclose on these homes simply want to get them off the books — they're not usually interested in making a profit, but just selling the home quickly.

Of course, the key to buying foreclosed homes in Tucson is knowing about them in the first place. This is why you need to sign up for a foreclosure tracking service. These services (such as the one below through RealtyTrac) notify you of new homes going into foreclosure in your area ... in this case Tucson, Arizona.

View Arizona Foreclosures

Conclusion and Summary

I hope you've enjoyed this buyer's guide to the Tucson real estate process, and I hope the tools I've provided above make your home-buying process a little easier.

Remember, start by learning the various steps to buying a home, so you can plan accordingly. Then conduct a thorough review of your own finances, including your credit report, debt-to-income ratio, etc. Get yourself a qualified Tucson real estate agent to help with the process. And educate yourself on the pros and cons of the various types of home loans.

Good luck with your Tucson real estate experience!