While moving to a new community can be exciting, it can also be stressful. All of my clients move to our community have worked out very well, but the stress of finding the right home, in the right area, in your budget can sometimes make you have second thoughts!
My clients have all found great homes, in lovely neighborhoods, and made new friends in the process. Talk about a positive experience!
Make sure to choose your Realtor with care so that you too can have a positive experience when moving to our valley.
Make sure your Realtor is honest, service oriented, and LISTENS to your wants and needs! Also make sure they can think, they know the area, and is someone you feel good about. Check the REALTOR's license at the Arizona Department of Real Estate to see if any actions have been taken against them.
So just who is moving here...well they have stopped moving here in droves 2008/09 due to our economy, but that will return at some point in the future.....But in the first 4 months of 2007 DMV counted the following:
- Nearly 36,000 Californians
- Texas lost 7,800 residents
- Illinois with 7,500
- Colorado with 5,900
- Michigan with 5,400
Contact me for a Free Relocation Kit.
The market is still a "Buyers Market" with about 4.5 months of inventory on hand. Just as in the stock market, this is the time to buy, Real Estate is on "sale", buy low, and sell high! You the buyer tend to get better deals in this market. However the inventory on hand is falling and the amount of sales has been increasing, so don't expect this 'Buyers Market" to last forever!
BUYING SHORT SALES AND LENDER OWNED PROPERTIES
- SHORT SALES - These are properties that are marketed for sale BELOW what the owner owes on the mortgage. If the Lender has not "pre-approved" the Short Sale amount, then any offers made must be approved by the lender, and this process can take anywhere from 3 days to 3 months (or lender could come back with another price altogether!). If the Lender has Pre Approved the price, then the process takes much less time. The Short Sale homes are usually not in the best condition, the sellers usually have not kept up the normal home maintenance items, and they usually are sold in as-is condition. Some of these homes are pre-foreclosure, which means the lender has filed the paperwork for foreclosing on the home, and the sellers are at least 6 months behind in payments. The Lender will add the late payments and missed payments to the amount owed. Short sales as of Summer 2009 are taking between 2 months and 2 years (yes one Realtor has two with Countrywide that have been in process for 2 years), it all depends on the lender holding the notes on how long the process could take.
- LENDER OWNED PROPERTIES - These properties have already gone through the foreclosure process and are owned by a Lender. The are marketed for sale at reduced prices that are approved by the Lender, which reduces the time to close. Many of these properties are missing all or most of the appliances, and have need of some cosmetic repairs (and some need major cosmetic repairs), such as new carpeting, new pjaint, and pools have not been serviced for at least 4-7 months! They are sold in As-Is condition, and the Lender will not repair or replace anything and will not provide the buyer with a Sellers Property Disclosure Statement (SPDS). Buyers should however ask for a copy of the SPDS in their original offer. There will be Lender Addendums for the buyer to sign waiving all sorts of items, so read them carefully! There has been great investor interest in purchasing these lower priced properties in the first half of 2009 with 5-15 offers on most of the homes within days of them being listed.
With our record setting growth rate, investors flock to our area both for residential and commercial deals. We have new businesses moving to town, low unemployment rates, and a population that doubles every 25 years. You may be surprised at how much you can comfortably be able to purchase. This is not my area of specialization, however I know specializes in Real Estate Investments in our area and they can show you the options that are available to you. The growth rate has slowed during the 2008/9 time period due to economic conditions worldwide, but we expect that to increase again after this recession is over.
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You will need to obtain a Loan Status Report (LSR) from a lender of your choice. This LSR will need to be signed by both the Mortgage Company and buyer, and it will tell the sellers what you are qualified for, and the loan program. Effective July 1, 2010 all non-bank Loan Officers must be licensed by the State of Arizona to close loans. Please ask to ensure your loan office is LICENSED! morSome lenders that I work with that might be able to help you obtain a mortgage:
What are some of my Financing Options???
You have just found a great deal on a home/condo but you don't have the cash to purchase it, now what do you do? The following is a partial list of financing options you have to purchase your home. Each program has different requirements and they seem to be changing on a daily basis, so your loan officer will be able to get you the latest information. Please note that the minimum credit score you must have to obtain most of these loans is 620 (640 for some banks).
- FHA Loan - This is the loan of choice for 80 to 85 percent of the loans in 2009 and 2010. The down payment requirement is only 3.5%, and the maximum purchase price for a home is limited to $346,250.
- FHA Buyer Assist - This is an FHA Loan that "gifts" 2 to 2.5 percent of the 3.5 percent required down payment to the buyer. Buyer is required to spend $60 for an on-line class and make less than $150,870 (family income/year), and can be used only for owner-occupied dwellings.
- FHA 203K - This is an FHA Loan program used for the rehabilitation and repair of single family homes (home improvement loan). This loan can be used to purchase one-to four unit dwellings, and then rehab it. It is strongly suggested that you work with someone that knows how to navigate this programs requirements.
- Conventional Loans - These used to be the mainstay of the local mortgage industry, but due to new requirements, their popularity is limited. Generally speaking a minimum of 10% down will be required, and that has killed these loans in today's market. This can be combined with the 'Your Way Home AZ" loan and that will reduce the down payment to 5%. The loan limit for federally insured conventional loans is $417,000. The new Fannie Mae lender rules effective July 1, 2010 require your loan rep to pull your credit report again just prior to closing to make sure no new credit lines appear or that your credit is essentially the same - if not it will delay or even result in a loan denial.
- Jumbo Loans - These are loans for the "expensive" homes (generally ½ million and above). They require a minimum of 20 to 30 percent down (if you have great credit you might be able to find a 10% - 15% down). The larger the percent down the better interest rate you will find. The amount of companies that supply this loan is VERY limited.
- VA Loan - If you served in the military, you can qualify for a VA Loan. You can obtain a loan up to $417,000 with no down payment. There are eligibility requirements, and the loans are made by private lenders (banks, mortgage companies) but are guaranteed by VA.
- Your Way Home AZ - This is a State program that assists homebuyers purchasing foreclosed homes in Arizona . The State will offer 22 percent purchase assistance (second mortgage) to qualified buyers buying only foreclosed homes. The maximum purchase price for a home in Maricopa County is $346,250. Buyers must complete an education class, must use an approved lender, and the home purchased must be used as the buyers primary residence. The loans are zero percent interest with no monthly payments.
- USDA Zero Down Prime Loans - The USDA loans are available for the rural areas of Maricopa County . Income limits vary between $70,000 to $95,000 depending on number of dependents, and interest rates vary between 5.5% and 5.5% with no monthly mortgage insurance.
- City Programs - Many cities offer programs, I will list some from the City of Phoenix here. The programs are not primary mortgages, but are assistance in the form of a second loan (deferred, no payback if requirements are met) to assist buyers with closing costs and down payments.
- Neighborhood Stabilization Program - for properties foreclosed on/bank owned. Property must be sold at a 1% discount. City will give up to $15,000 in a deferred loan (junior lien) to be used for down payment or closing costs. Home purchased must be owner occupied, a buyer education class is required, and the buyer must be able to come up with a minimum of $1,000 from their funds and meet eligibility requirements.
- American Dream Down Payment Initiative, Down Payment Assistance Program, and Flex - all of these programs can be used for down payment/closing cost assistance. The amount varies by program but can go up to $40,000. All require buyers to live in the home for the length of the mortgage term; buyers must attend an education class, and must meet eligibility requirements.
Note to Condo Buyers - In order to get an FHA loan on a condo, it must either be FHA approved ( Look it up here), or "warrantable". Generally speaking, for existing condo communities not under construction the community is warrantable if 70% of all units have been sold, and they must have been sold to OWNER OCCUPANTS. For recent condo conversions you must add the requirement that not more than 15% of the current owners are more than one month delinquent in payment of HOA dues or assessments.
Link to Info before you buy page
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