Tuesday, December 29, 2009
Interest Rates to Rise 2010
According to Realtor magazine we may see interest rates creep up throughout 2010. The prediction according to Amy Crews Cutts- deputy chief economist at Freddie Mac they will likely rise to 6% by the end of 2010. The cause is the end of Federal Reserve program that buys mortgage backed securities. This will drive rates up because private lenders will demand more return then the Feds. So if you are looking to buy in 2010 buy early on to avoid these rate increases and be able to avoid more home for your payment. Give us a call if you would like a free list of homes that fit your interest.
Tuesday, November 17, 2009
FHA Pushing Buyers Out?
When we were uncertain if the homebuyers could handle the FHA increased downpayment from 3% to 3.5% last year we now have new information that FHA may increase their downpayment requirements from 3.5% to 5% according to a bill introduced to Congress last month. Now when FHA is playing a larger role in financing and insuring new home mortgages, this also poses a higher risk in the current marketplace. FHA has decided in a statement released September 18th that it will tighten its credit and appraisal requirements. During this time there has been an increase in first time home buyers purchasing homes the potential increase in downpayment can deter those prospective buyers from moving further in their pursuits due to lack of funds. This particular bill also proposes prohibiting buyers from rolling their closing costs into the balance of their loan, requiring more out of pocket costs for the buyer. This bill has yet to be approved and will require final approval from the House of Representatives before being passed. As information changes and is updated I will continue to keep you posted on this issue. If you have any Real Estate related questions or would like to be put in touch with a lending partner, give us a call.
The Jen Team-
480-980-2677
The Jen Team-
480-980-2677
Wednesday, June 17, 2009
Bidding Wars? Is it still a buyers market?
Some markets like Phoenix are experiencing bidding activity on short sale and foreclosed homes. I have seen this first hand in showing and writing contracts for multiple clients. Homes are still low in prices similar to what we saw in 2001. Do we see these bidding wars as a sign of turn around in the market or just that the "good ones" are few and far between and therefore desirable by many?
I have definitely seen the market activity increase over the past few months. Right now may be the best time ever to buy that new home! Low housing costs compared to income generation have an extremely favorable ratio at this time and while interest rates are still low you may find now IS the most desirable time to buy or upgrade your home.
If you are waiting around to buy until the market hits bottom-- I think such market conditions such as bidding wars where I have seen up to 14 contracts on one property, prove if you wait any longer it may just be TOO LATE! If you factor in that prices may still drop a little more, but on the chance that interest rates go up, your "deal" will long be history.
For information on the top 10 HOT buys in the area you are looking call The Jen Team for more information.
I have definitely seen the market activity increase over the past few months. Right now may be the best time ever to buy that new home! Low housing costs compared to income generation have an extremely favorable ratio at this time and while interest rates are still low you may find now IS the most desirable time to buy or upgrade your home.
If you are waiting around to buy until the market hits bottom-- I think such market conditions such as bidding wars where I have seen up to 14 contracts on one property, prove if you wait any longer it may just be TOO LATE! If you factor in that prices may still drop a little more, but on the chance that interest rates go up, your "deal" will long be history.
For information on the top 10 HOT buys in the area you are looking call The Jen Team for more information.
Monday, June 8, 2009
Steps to take when buying a home
Here are a few things that you may want to consider when purchasing a new home.
RESEARCH your potential Neighborhoods
This is extrememly important if you are going to be in an area for a few years or more. You want to like, if not love where you live!
Become the detective in the neighborhood, talk to neighbors find out how they like living there. Research the schools in the area, even if you don't have children, if there is a good school in the area then the resale value of your home will likely go up, than in a neighborhood where a school does not rate as high.
Check out the school information on our website at www.jenteam.com
Look at more than one house!
Even if you fall in love with the first house you set foot in, make sure you do a little comparing to know you are really certain it is the house for you. (Unless your agent told you that the area homes are getting bought up fast, then put your offer in and research it in the 10 day inspection period, to avoid loosing it)
Compare the house and neighborhood, the size, the ameneties that it has and what features may increase your property value.
Invest in a PROFESSIONAL Home Inspection
This is really important, it may uncover underlying costs that you might have right after move-in or down the road that can not be seen on the surface, or by Uncle Frank who was a contractor 15 years ago. A truly good home inspector will have the knowledge to tell you what problems are pressing and which are easily fixed.
Then once a list is compiled this will help you determine if you still want to purchase that house or not. A $300-$450 investment to find out about a house far outweighs your overall investment of thousands of dollars in repairs down the road.
Get a Home Warranty!
Make sure your agent asks for seller to pay for home warranty, in the case of some bank owned or short sales that will not pay for buyers warranty coverage, I seriously urge you to buy this for yourself. $350-$500 is nothing when your A/C compressor blows and you are faced with a $800-$2000 bill. Yes, it is sometimes like car warranties, you may buy and never need it, but I'd rather be safe than sorry.
Buy Within Your Means
Many of us can qualify for home loans that are beyond our real means of living. Don't max yourself out. Make a list of your needs, put your wants second. I have seen too many people buy a home at their max thinking that they will get a raise the next year, or that they can stop doing dinner and movies. It really never works like that. Jobs these days are unpredictible and the likelyhood that we want to sacrifice going out on the town or taking trips or buying things to get the house we want is usually a front we put up for ourselves to convince ourselves that we can stick to that.
Be wise!
Stay in tune with yourself, accept your friends advice and recommendations, but stick with the professionals, your agent, your lender and your home inspector and remember, they are experts in their fields, your friends are not. Your professionals have had schooling and experience which give them the knowledge they need to give you the facts that allow you to make the right decision for you.
RESEARCH your potential Neighborhoods
This is extrememly important if you are going to be in an area for a few years or more. You want to like, if not love where you live!
Become the detective in the neighborhood, talk to neighbors find out how they like living there. Research the schools in the area, even if you don't have children, if there is a good school in the area then the resale value of your home will likely go up, than in a neighborhood where a school does not rate as high.
Check out the school information on our website at www.jenteam.com
Look at more than one house!
Even if you fall in love with the first house you set foot in, make sure you do a little comparing to know you are really certain it is the house for you. (Unless your agent told you that the area homes are getting bought up fast, then put your offer in and research it in the 10 day inspection period, to avoid loosing it)
Compare the house and neighborhood, the size, the ameneties that it has and what features may increase your property value.
Invest in a PROFESSIONAL Home Inspection
This is really important, it may uncover underlying costs that you might have right after move-in or down the road that can not be seen on the surface, or by Uncle Frank who was a contractor 15 years ago. A truly good home inspector will have the knowledge to tell you what problems are pressing and which are easily fixed.
Then once a list is compiled this will help you determine if you still want to purchase that house or not. A $300-$450 investment to find out about a house far outweighs your overall investment of thousands of dollars in repairs down the road.
Get a Home Warranty!
Make sure your agent asks for seller to pay for home warranty, in the case of some bank owned or short sales that will not pay for buyers warranty coverage, I seriously urge you to buy this for yourself. $350-$500 is nothing when your A/C compressor blows and you are faced with a $800-$2000 bill. Yes, it is sometimes like car warranties, you may buy and never need it, but I'd rather be safe than sorry.
Buy Within Your Means
Many of us can qualify for home loans that are beyond our real means of living. Don't max yourself out. Make a list of your needs, put your wants second. I have seen too many people buy a home at their max thinking that they will get a raise the next year, or that they can stop doing dinner and movies. It really never works like that. Jobs these days are unpredictible and the likelyhood that we want to sacrifice going out on the town or taking trips or buying things to get the house we want is usually a front we put up for ourselves to convince ourselves that we can stick to that.
Be wise!
Stay in tune with yourself, accept your friends advice and recommendations, but stick with the professionals, your agent, your lender and your home inspector and remember, they are experts in their fields, your friends are not. Your professionals have had schooling and experience which give them the knowledge they need to give you the facts that allow you to make the right decision for you.
Sunday, June 7, 2009
Private Country Club in East Valley
So I checked out the New Encanterra Country Club in the East Valley. A private country club in Queen Creek you say? Really? Yes, and it is AMAZING. You can have it all. The Scenery will take your breath away. The homes are GREEN and Extrememly Energy Efficient (one resident received a SRP bill for $1.75!) The Golf is incredible, the homes are stunning, the amenities are endless. Active Adult you ask, why no! Do you still have kids in school but are looking for this lifestyle? Are you retired but not yet 55? Are you looking for somewhere for your parents to retire? You can have it all here. Superstition Mountain Views. Resort Style Pool. 42,000 square foot activities center. Homes from 1400-4000 square foot, golf cart gargages, starting at 205K. Let me know and I can arrange your private tour. Or you can pick the stay and play package for Only $199, 4 day 3 night. Contact Dani for more info.
Thursday, February 19, 2009
Short Sale Vs Bank Owned
So I have had a lot of people ask me lately what the difference between a short sale and bank owned property and which is better to buy.
I think that has a lot to do with personal preference, patience and desire.
The short sale procedure can be a lenghty process. It is a good alternative to a forclosure on the record of the seller. The credit is slightly smudged but does not put the permanent 7 year halo on the credit of the seller. It has better tax benefits for the seller who is an investor and it avoids eviction.
Because the short sale ends in the lender loosing funds they are never quick to agree to this procedure without careful consideration of the market and how it will affect them as an institution. Since most lenders are not equipped to handle the amount of short sale requests that they receive they often work at a snail's pace to get your request processed. I have seen anywhere from 45-180 days for a short sale to be accepted by the bank.
Some Realtors use a middle man or 3rd party negotiator who have prior lending experience or have made good connections with these institutions in order to more quickly process the short sale along. Some Short Sale contracts take so long that the buyers fall through. If the bank approves a price based on the 1st offer, the Realtor can then advertise that approved price and once the new contract is presented the new contract will get pushed through a lot faster than the first. Be aware that most bank acceptance offers are only good for about 30-45 days and may need to be extended for the next sale
During the Short Sale process the buyer, seller and Realtors are subject to each banks indivdual time frame, procedures and ability to handle the short sale request at hand. No two banks are alike and no two will require the same paperwork or procedure. So make sure as a buyer that you are willing to wait it out. Some could happen quick and some may take 6 months.
As I said it depends on how much you really desire "THAT" house!
Now the difference between short sale and already bank owned homes... yes that depends on the home. However, in my experience, short sale homes (especially owner occupied ones) seem to be presented in a lot better condition then the homes that have already been foreclosed on. The people who are trying to negotiate a short sale want a buyer and so they are going to try their best to keep their home in tip-top shape. (I have seem some homes that are going short sale and not so nice, these in my experience are homes that were occupied by not so clean tenants).
Bank owned homes on the other hand that are in close to perfect condition have been few and far between and taking a buyer to see them often time results in excitement for such a great "deal" and ends in disappointment when you find out the home currently has multiple offers or often times the offer that was accepted just hours ago. The other bank owned homes that seem to last a little longer on the market tend to be those that are missing appliances, sometimes cabinets, light fixtures, thermostats and often air conditioning units as well, these homes tend to have stained up carpet, dirty walls, sometimes drywall issues and so on. If you are the ultimate in the fix up mood, you would love a challenge... but let me make sure that you get that much needed home inspection, and if you are not going to do all the work yourself you get quotes during your 10 day inspection period so you are aware of what this home may cost you. In reality the home that is the same in better shape for 15-20 thousand dollars more, may be more cost effective for you to buy then the one you have to put 10-15 thousand worth of work into to get it liveable. The $5,000 savings just may not be worth all your time or the headache of organizing all the repairs.
What ever your decision is, make sure you do your homework, you are well informed and you use a good agent and home inspector who will be looking out for your best interest in the transaction.
I think that has a lot to do with personal preference, patience and desire.
The short sale procedure can be a lenghty process. It is a good alternative to a forclosure on the record of the seller. The credit is slightly smudged but does not put the permanent 7 year halo on the credit of the seller. It has better tax benefits for the seller who is an investor and it avoids eviction.
Because the short sale ends in the lender loosing funds they are never quick to agree to this procedure without careful consideration of the market and how it will affect them as an institution. Since most lenders are not equipped to handle the amount of short sale requests that they receive they often work at a snail's pace to get your request processed. I have seen anywhere from 45-180 days for a short sale to be accepted by the bank.
Some Realtors use a middle man or 3rd party negotiator who have prior lending experience or have made good connections with these institutions in order to more quickly process the short sale along. Some Short Sale contracts take so long that the buyers fall through. If the bank approves a price based on the 1st offer, the Realtor can then advertise that approved price and once the new contract is presented the new contract will get pushed through a lot faster than the first. Be aware that most bank acceptance offers are only good for about 30-45 days and may need to be extended for the next sale
During the Short Sale process the buyer, seller and Realtors are subject to each banks indivdual time frame, procedures and ability to handle the short sale request at hand. No two banks are alike and no two will require the same paperwork or procedure. So make sure as a buyer that you are willing to wait it out. Some could happen quick and some may take 6 months.
As I said it depends on how much you really desire "THAT" house!
Now the difference between short sale and already bank owned homes... yes that depends on the home. However, in my experience, short sale homes (especially owner occupied ones) seem to be presented in a lot better condition then the homes that have already been foreclosed on. The people who are trying to negotiate a short sale want a buyer and so they are going to try their best to keep their home in tip-top shape. (I have seem some homes that are going short sale and not so nice, these in my experience are homes that were occupied by not so clean tenants).
Bank owned homes on the other hand that are in close to perfect condition have been few and far between and taking a buyer to see them often time results in excitement for such a great "deal" and ends in disappointment when you find out the home currently has multiple offers or often times the offer that was accepted just hours ago. The other bank owned homes that seem to last a little longer on the market tend to be those that are missing appliances, sometimes cabinets, light fixtures, thermostats and often air conditioning units as well, these homes tend to have stained up carpet, dirty walls, sometimes drywall issues and so on. If you are the ultimate in the fix up mood, you would love a challenge... but let me make sure that you get that much needed home inspection, and if you are not going to do all the work yourself you get quotes during your 10 day inspection period so you are aware of what this home may cost you. In reality the home that is the same in better shape for 15-20 thousand dollars more, may be more cost effective for you to buy then the one you have to put 10-15 thousand worth of work into to get it liveable. The $5,000 savings just may not be worth all your time or the headache of organizing all the repairs.
What ever your decision is, make sure you do your homework, you are well informed and you use a good agent and home inspector who will be looking out for your best interest in the transaction.
Monday, February 16, 2009
Is it a Buyers Market?
Just wanted to post a quick update as to how interest rates are doing this new year. Everyone is out looking.... is it time for you to buy now? Well, I have sure seem a great amount of "deals" out there in the past few weeks, if you are quick enough. I have run into many situations where by the time you see the home your client is interested in, since it is very low in price, there are multiple offers and it can be anywhere from 10,000 dollars to 50,000 dollars higher than what the agent has it listed at. Is this a good strategy or is it creating another waive of buyers bidding on the good homes and the homes priced slightly higher loosing the advantage? I think that if you take a 3 bedroom 2 bath home in the Queen Creek area that is in decent condition and you place it on the market for say 69,000 dollars you are definitely going to get more lookers than the same floorplan 2 streets over listed for 85,000 dollars, but is that 69,000 dollar deal really selling for 69,000 when it closes escrow? This is not likely. So I recommend buyers to try and look at everything as a whole and not just the cheap "deals" that don't really prove to be "deals" when it is all said and done anyway and you could have saved yourself the trouble by going to look at the 85,000 dollar house and putting in an offer that gets accepted without all the multiple offer senarios and over bidding. Set a price for yourself and take a look at everything in between your high and low so that you get the best possible picture and overall choices that are out there. Avoid only seeing homes that sound good and are the cheapest. Chances are by the time your agent sends them to you, or you find them online, if they truly are a good "deal" they will have multiple offers already or you will be competing against several buyers and may even be priced out of the range by the time they accept an offer. This is not only disappointing but frustrating.
I will post last weeks interest rates below courtesy of Quicken Loans.
Remember, many things affect the mortgage rate you may qualify for, including credit score, income, debt, and home value.
Mortgage rates on a typical $240,000 home loan (for a $300,000 home with a 20% down payment of $60,000) from Quicken Loans for Friday, February 6, 2009 (as of 1pm) are as follows:
30-Year Fixed
Monthly Mortgage Payment (includes taxes and insurance) - $1,528
Mortgage Rate - 4.875%
APR - 5.10%
Points - 2
30-Year VA Loan
Monthly Mortgage Payment (includes taxes and insurance) - $1,638
Mortgage Rate - 5.50%
APR - 5.651%
Points - 1.125
FHA Express
Monthly Mortgage Payment (includes taxes and insurance) - $1,743
Mortgage Rate - 5.50%
APR - 5.639%
Points - 1
15-Year Fixed
Monthly Mortgage Payment (includes taxes and insurance) - $2,094
Mortgage Rate - 4.50%
APR - 4.846%
Points - 1.75
Rates will vary based on your specific situation
I will post last weeks interest rates below courtesy of Quicken Loans.
Remember, many things affect the mortgage rate you may qualify for, including credit score, income, debt, and home value.
Mortgage rates on a typical $240,000 home loan (for a $300,000 home with a 20% down payment of $60,000) from Quicken Loans for Friday, February 6, 2009 (as of 1pm) are as follows:
30-Year Fixed
Monthly Mortgage Payment (includes taxes and insurance) - $1,528
Mortgage Rate - 4.875%
APR - 5.10%
Points - 2
30-Year VA Loan
Monthly Mortgage Payment (includes taxes and insurance) - $1,638
Mortgage Rate - 5.50%
APR - 5.651%
Points - 1.125
FHA Express
Monthly Mortgage Payment (includes taxes and insurance) - $1,743
Mortgage Rate - 5.50%
APR - 5.639%
Points - 1
15-Year Fixed
Monthly Mortgage Payment (includes taxes and insurance) - $2,094
Mortgage Rate - 4.50%
APR - 4.846%
Points - 1.75
Rates will vary based on your specific situation
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