By james art 
Unless they have a generous relative or do not earn well above the average income, the buyers of a home for the first time in Phoenix and the Eastern Valley need five to six years to save enough money for 20% initial home contribution at current prices, according to a new one study.
Realtyhop.com, a real estate website, analyzes the obstacles to the possession of a home in the 100 largest municipalities in the country and did not find hope for a quick path to owning a home in one of the cities in Arizona included in the study.
Although it will not take as much time as 14.3 years needed to save enough for a standard 20% initial home contribution in Los Angeles, according to the Realtyhop of the average family will take about five years to buy a home in Gilbert to almost seven in Scottsdale.
“More and more households, especially with low and medium-sized incomes, are still struggling to find funds to meet the 20%reduction requirement, even if their city now has a lower cost of home ownership,” Realtyhop found S
The US Census Bureau has recently announced that Americans who own properties have an average net wealth of almost 75 times greater than those who hire.
But Realtyhop noted: “Hosting remains expensive and future buyers have to overcome the financial barrier to home ownership.
“After a few years of rising housing prices and interest rates, some markets are already reaching a balance, which makes ownership of housing a little more accessible,” he said. “However, households who have already spent years saving an initial installment should also balance the high costs of life.
“In addition, mortgage interest rates have decreased slightly in the last year, and buyers in the coastal regions are facing larger insurance premiums due to climate change.”
The study repeated earlier, published last year by the joint housing center for Harvard University.
He examines the larger metropolitan regions and says that for the capital statistical district of Phoenix-Mesa-SCTSdale, an annual household income of $ 144 798 would be needed to afford a $ 470 500 average as it will cost $ 3741 per month for a mortgage payment. This includes $ 2944 principal and mortgage interest rate and another $ 796 per month for taxes and insurance.
The estimates made by Realtyhop suggest that the average household will invest a significant portion of its annual bank profits in order to accumulate enough for a 20% advance payment.
For example, in Phoenix, where the average household income was estimated at $ 77,041 a year, the survey suggests that the family could save $ 15,756 a year to make an initial $ 95,000 contribution to a $ 475,000 home, worth The average catalog price, according to RealtyHub. The duration of time to find this money? Just over six years.
In contrast, buying a home in Scottsdale, where the average catalog price is set at $ 745,000 and the average household income is set at $ 107,372, it will take almost seven years to reach an initial installment of 149,000 dollars if this household dumped $ 21,474 a year.
Realtyhop based on a survey of 1.5 million catalog housing prices on sale between October and December and reports on household income from the population census bureau.
Among the cities in Arizona included in it, virtually no one shows a length of less than five years per household, which wins average annual income to receive a 20% advance payment.
Gilbert had the shortest period of time – just over five years. But this suggested that the buyer had an average host income of $ 121,351 and spent $ 24,270 a year to raise an advance payment of $ 124,000 a home for $ 624,000.
Although the buyer will have to save only $ 10,909 a year to make an initial contribution of $ 68 324 for a Tuson home with an average $ 341 620 catalog price, it will still take more than six years to get to that amount since the average annual household income has $ 54,546, the survey shows.
Not surprisingly, home buyers for the first time in six California cities-San Diego, San Jose, Long Beach, Los Angeles, Anaheim and Irvine-will need the most years in the nation to raise 20% initial contribution , found the study.
“On the other hand, it is noted in it,” it only takes 2.53 years per family in Detroit to afford a 20% initial home contribution. “
Joining Detroit among the five cities in the nation with the lowest barrier to own a home are Cleveland, Ohio (3.5 years); Baltimore, Maryland (3.7 years); Buffalo, New York (3.8 years); and Pittsburgh, Pennsylvania (3.8 years).
In all five cities, the average annual household income varies between $ 39,545 and $ 64,37.
“The barrier to the ownership of a home is usually higher along the west and east coasts,” Realtyhop said. “In Chicago, the third largest city in the United States, it takes 4.66 years per household to qualify for a mortgage with a 20% decrease. This number is 6.19 years less than the largest city of New York and 9.44 years less than Los Angeles.
Realtyhop.com has suggested that some buyers tips for the first time how to overcome the obstacle to raise the money for a 20% advance payment:
Start saving now. “Although 20% is usually the requirement to meet the loan requirements, the more you put in, the better, since your unpaid principal balance will be lower. This, in turn, reduces your monthly debt and less of your money will go for interest rates throughout the loan period. All the extra money you save can also be used to cover some of the closing costs that you as a buyer must bear, including the mortgage detection fee.
Know your credit rating. “Although people can still be approved even with a credit rating 580, the higher your credit rating, the more likely you are to be approved for a mortgage and enjoy a lower interest rate. Check the raltyhop.com/mortgage/Mortgage-rates tariffs and find out if you meet the loan requirements. Follow your revenue, expenses, and the documents for submitting tax documents. “
Select a mortgage broker. “Although it may seem easy to choose the bank to offer you the lowest rate, sometimes lower rates and fees mean poor service and lack of transparency. Make sure you shop and understand the application process and the mortgage products they offer. “
Find a home buyer program for the first time. “Many states, counties and cities are funding home buyers programs for the first time to help Americans afford the high cost of home ownership.”