There is a reason so many homebuyers are drawn to Cave Creek. It offers a combination that can be difficult to find elsewhere in the Valley: desert scenery, larger properties, a distinctive Western character and convenient access to North Scottsdale and the greater Phoenix area.
But buying a home in Cave Creek can also present some financing considerations that aren’t always encountered in other parts of the Valley.
At Marketline Mortgage, LLC, we help buyers understand their mortgage options before they make an offer so they can approach the process with confidence.
Start With the Financing — Not the House
One of the best things a buyer can do before touring homes is determine what financing options are available and what monthly payment is comfortable.
A mortgage preapproval can help establish a realistic purchase range and identify potential issues before you’re under contract.
It can also make your offer stronger by showing the seller that you’ve already taken important steps toward obtaining financing.
But a preapproval shouldn’t simply answer, “How much can I borrow?”
A better question is:
“What mortgage structure makes the most sense for the home I’m buying and my financial goals?”
Conventional Financing in Cave Creek
Conventional mortgages are a popular option for qualified Cave Creek buyers.
Depending on the loan program and borrower qualifications, conventional financing may be available with significantly less than a 20% down payment.
Conventional loans can be used for primary residences, second homes and investment properties, subject to applicable guidelines.
For buyers who have been waiting because they believe they need 20% down, it may be worth having a conversation about the options actually available.
Jumbo Loans May Be Important in Cave Creek
Because Cave Creek includes many higher-value properties, some buyers may need financing above the applicable conforming loan limit.
That’s where jumbo mortgage financing can become important.
Jumbo loans may have different requirements for credit, reserves, income documentation and down payment than conventional conforming loans.
Rather than assuming that a higher-priced property requires a particular down payment, it’s important to evaluate the available jumbo programs and your individual financial profile.
We’ll discuss jumbo financing in greater detail in our next Cave Creek article.
FHA and VA Financing
Cave Creek buyers shouldn’t automatically assume FHA or VA financing isn’t an option simply because they’re shopping in a higher-priced community.
FHA loans can provide flexible qualification and down-payment options for eligible borrowers and properties.
For eligible Veterans, active-duty service members and certain surviving spouses, VA financing can provide significant benefits, including the possibility of purchasing with no down payment in qualifying situations and no monthly private mortgage insurance.
The appropriate program depends on the borrower, property and transaction.
The Property Can Affect the Mortgage
In Cave Creek, it’s particularly important to discuss the property itself with your mortgage professional.
Certain properties may involve characteristics such as acreage, wells, septic systems, unique construction, guest houses or other features that can require additional consideration during financing and appraisal.
That doesn’t necessarily mean the property will be difficult to finance. It means your lender should understand what you’re buying before problems arise late in the transaction.
Don’t Choose a Mortgage Based Only on the Interest Rate
Interest rate matters—but it isn’t the entire mortgage decision.
Two loan options can have different rates while also differing in closing costs, mortgage insurance, down payment, monthly payment and long-term financial impact.
A good mortgage analysis should consider:
- How much cash you want to put down
- Your desired monthly payment
- How long you expect to own the home
- Whether preserving cash or investments is important
- Your long-term financial goals
- The characteristics of the property you’re purchasing
Sometimes the mortgage with the lowest advertised rate isn’t necessarily the best financial strategy.
Work With a Mortgage Professional Who Knows the Area
Real estate is local, and mortgage lending benefits from local knowledge as well.
Marketline Mortgage has been helping Arizona homebuyers navigate mortgage financing for decades. Whether you’re purchasing your first home, moving into Cave Creek, buying a luxury property or considering a second home or investment property, we’ll help you evaluate your options.
Thinking About Buying a Home in Cave Creek?
Before you start making offers, let’s talk about your financing.
We’ll help you understand your available mortgage options, determine an appropriate price and payment range, and prepare you to make a competitive offer when you find the right home.
Contact Marketline Mortgage, LLC to discuss your Cave Creek home financing options.
Loan programs, rates, terms and eligibility requirements are subject to change. All loans are subject to credit approval, underwriting requirements and property eligibility. This information is provided for educational purposes and is not a commitment to lend.