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Great Questions for My Loan Officer

May 15, 2012 By Tammy Leave a Comment

Don’t be afraid to ask your lender questions! How long have you been doing home loans? How long have you been working for your company? How many of your loans did not close in the last year?

Be sure to ask your lender to provide you a pre qualification form and not a pre approval. If your lender is saying I will give you a pre approval form, likely your lender did not complete necessary upfront work to purchase a home. And, we all know that not doing your upfront work leads to issues or nightmares later.

The number one thing for a lender to do is over communicate and never keep you guessing about problems that may occur with your home purchase. Remember, costs of inspections will run up to $1000 and you are going to be in the process of packing up to make the move. If your loan officer can not complete the mortgage, then you are out money and do not get to move!

By the way, I work with several great lenders who have closed many transactions. Should you need suggestions, I am here when you are ready.

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East Valley Homes under $150,000

April 17, 2012 By Tammy Leave a Comment

Wow! Homes are selling fast in the East Valley cities of Phoenix, Chandler, Gilbert, Tempe, Mesa and San Tan Valley.  If you are a buyer looking to purchase a home in today’s market with a price range under $150K, you may be finding it very difficult to get a nice home – or a home at all.

I took a pre-qualified buyer out the last week. After scrubbing the area, I located a fantastic deal for her. The home is upgraded and the seller paid all of my buyer’s closing costs. This home was a gated community with beautiful mountain views, pool, soccer, basketball, clubhouse, children’s play area and plenty of area to ride your bike.

While scrubbing the area, I found a number of other very nice homes between $120,000 and $150,000.  The locations vary from 15-40 minute drive to town. These won’t last long, so please call me at 480-776-5214 to get one!

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Attention Military Personnel

February 13, 2012 By Tammy Leave a Comment
  • Were you or your spouse on official extended duty outside the United States for at least 90 days during the period beginning after Dec 31, 2008 and ending before May 1, 2010?
  • Were you a member of the uniformed services or Foreign Service, or an employee of the intelligence community?
  • Did you purchase a home after April 30, 2011 and before July 1, 2011?
  • Did you enter into a binding contract before May 1, 2011 to purchase a home before July 1, 2011?

If you answer yes to the above, contact your accountant to file form 5045, you may qualify for a tax credit.

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Ideas for Taking Advantage of the Market

February 8, 2012 By Tammy Leave a Comment

Now is a great time to buy a home and take advantage of this market.  Here are a few tips to get you on the right track:

1)     Be Proactive – By being pre-qualified with a great lender you will be able to know how much you can spend and the structure of your loan.  This knowledge allows me to be more aggressive in negotiating a great deal for you on a new home.

2)     Pick a Great Agent – A knowledgeable real estate will know how to avoid pitfalls in the buying process and show you the ways to take advantage of your local Real Estate Market.

3)     Build a Plan of Action – Great Real Estate Agents want to help you get a special home and like to meet with prospective buyers up front to understand the needs of their clients.  During this meeting, you are arming your agent to help you find the home you truly want and will enjoy for years to come.

Please feel free to contact us today to help get you started!

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Arizona Home Buyers: To Do or NOT To Do?

January 13, 2012 By Jamie Leave a Comment

Many potential buyers of Phoenix Homes for Sale are often unaware that many of their actions in other parts of their lives can have a significant impact on the home buying and financing process. As a prospective buyer looking for a home in the Phoenix Real Estate market, keep in mind these questions:

  • I have a new job offer, should I change jobs? Changing jobs as an upward movement in the same line of work is okay. Changing jobs into a different line of work can be an issue, and changing jobs for less money is a red flag, depending on the circumstances. Regardless of the reason, pay stubs covering the last 30 days will be required for loan approval.
  • We just sold our classic car for a pretty high price. Is it okay to deposit that money? Moving money around is okay as long as you can paper-trail the money. If you move it from one account to another it’s pretty easy to show the money coming in and out of the accounts. Making large deposits that can’t be paper-trailed is a bigger issue – for example, selling items from around the house (like a garage sale) and then depositing those funds into the bank. These funds are nearly impossible to prove their source (especially if it’s a large deposit) and, therefore, would not be included in available funds for closing. Literally, the money is excluded from your qualifying assets. Any deposits outside of payroll deposits (usually over a few hundred dollars) need to be sourced from an acceptable source (i.e. no selling drugs to qualify!).
  • How much money should I save? Generally, savings of 3.5% of the purchase price is enough to qualify for an FHA loan for Phoenix Arizona Homes. However, saving more money to put down is always a great idea. A larger down payment will allow for a better financing, and the extra money could help with purchase of new appliances and potential repairs at your new home.
  • Should I make big purchases before closing escrow? No, no, no – not without speaking to your loan officer first. Large purchases made on credit for a new car, appliances, or even furniture for your new home may push your debt level too high and prohibit the financing of your new home.
  • I was planning on taking a trip out of town – is that a good idea? Probably not, if you can avoid it. But if your trip has already been planned for months in advance, our Phoenix AZ Realtors can help work out the logistics. With faxes and email available throughout the world, most escrows can continue while you are away on business – or enjoying fun in the sun.
  • I have a bankruptcy, foreclosure or short sale on my credit, can I still buy? Most times when a borrower had a past issue on their credit, a good loan officer will be able to give good advice about corrective steps to take. Most borrowers’ past mistakes may be repaired through the passage of time and by establishing new credit. Situations vary, so speak to a good loan officer about your situation.

As you prepare to begin the process of buying a home, it will help you greatly to make sure that actions you take aren’t detrimental to your financing and buying process. Give us a call today at 480.776.5214 – we will not only help you search through the prospects in the Phoenix MLS, but we’ll also help you strategize and avoid potential pitfalls to financing.

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Buying a Home: Flipped Homes Provide Opportunity!

December 19, 2011 By Jamie Leave a Comment

Over the last few years and considering the large number of foreclosed homes, short sales, and bank-owned properties, the purchase of a new home at times has seemed like a real pain in the neck for our buyers. However, as time has marched on, one type of property is re-emerging in the Phoenix Real Estate market as a favorite of our buyers: “fix-n-flip” properties are making a big comeback.

A “fix-n-flip” property is defined as a property where an investor purchases a home that needs a significant amount of work done to be livable or (or sellable). The investor fixes up the property to almost new condition and then resells (“flips”) the property to a new home owner. The process takes about 90 days or less for the investor. In the ideal world, the investor hopes to make a profit and the new home owner gets a property that is professionally remodeled and move-in ready.

In our current market – with many Phoenix Arizona Homes going to trustee sale on a monthly basis – the investor picks up the property directly from the bank, clears the title and then remodels the home. With the number of trustee sales remaining high, fix-n-flip properties should continue to be a great source of move-in ready homes.

For buyers that don’t want to be hassled with repairs, it’s of interest to note that many fix-n-flip properties may come with granite counters, upgraded flooring, new interior and exterior paint and other nice upgrades.

Beware, though: if the property is considered a fix-n-flip property, there may be some additional hoops to jump through:

  • The buyer’s lender will likely require a second appraisal verifying the home value.
  • The second appraisal will be charged to the seller who may not want that additional expense.
  • The buyer’s lending underwriting will require review of the property inspection.
  • Currently, only one lender in the valley is offering financing on fix-n-flip properties – which is limiting financing options.
  • Processing the loan usually takes longer than the traditional 30 days, and may take up to 45 days.
  • The buyer’s lender will require the seller to perform repairs before approving the financial package.
  • Some sellers over-improve the properties. By paying too much to improve the property, the seller may be unable to sell the home for the amount of money invested.
  • Many times a buyer will need to plan for backyard landscaping, the purchase of window coverings and blinds, and other move-in items.

Are you wondering if a fix-n-flip property is right for you? Are you in need of an expert to navigate the process and protect your interests? We at the Thompson Group are ready to help. Our  Phoenix AZ Realtors are experts at working the Phoenix MLS  specialists in helping comb through Phoenix Homes for Sale to find just what you’re looking for. Contact us at 480-776-5214 or www.ThompsonGroupAZ.com today!

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Home Buyers: How to Survive the Bidding Wars

November 15, 2011 By Lori Leave a Comment

Since October 2010, the local real estate market has seen reductions in housing inventory of over 40%.  With price points remaining similar to 2010, buyer demand continues to be very strong.  Combining this strong demand and lack of supply, the Phoenix Real Estate market is seeing multiple offers (or “bidding wars”) on hot Phoenix Arizona Homes.  While our clients are glad that their new home purchases should result in immediate appreciation of the property, that feeling does not go very far in offsetting the pain of trying to win a bidding war or losing bidding wars on multiple occasions.  So here are a few thoughts on how to win a bidding war:

  • Be Prepared – Do anything up front that can help prepare for fast decision-making.  Getting homework items out of the way up front should also allow for better decision- making at the time of contract.  Completing items such as loan prequalification with a lender, completion of real estate disclosures, and anything else that would prevent the writing of a real estate contract will allow your Realtor more time to focus on getting and presenting your offer to purchase a property.
  • Avoid Under Priced Homes – Unfortunately, in any market there are items that are overpriced and items that are under-priced.  A savvy Realtor should be able to point out the overpriced and under-priced properties.  With low inventory, under-priced properties inevitably end up in bidding wars.  By focusing on properties priced more at the market, home buyers are likely to avoid the bidding war and get better terms in the contracts that are negotiated.
  • House Shop During the Week – In real estate the primary time for buyers to shop Phoenix Homes for Sale is Saturday and Sunday due to weekly work schedules.  However, most buyers forget about that lunch break or an extra 30 minutes before or after the work day where the viewing of a couple of properties is possible.  Many times buyers can get a hot property under contract before the weekend and before any other buyer ever sees the home.
  • Don’t Hesitate – Last but not least, when you see that great property, don’t hesitate.  While one buyer is hesitating, another buyer is likely to be writing the contract.  If it is a Saturday or Sunday, then there could be two buyers writing a contract.  However, if you hesitate and don’t get an offer accepted on a home, asking why you hesitated is a great idea!  Solving the reason for the hesitation will likely yield a better decision when the next fantastic home comes on the market.

Maybe you are a first-time home buyer needing help understanding the logistics of your first home purchase.  Or, maybe you are looking to move up to a bigger, more spacious home.  We at the Thompson Group pride ourselves in helping you search the Phoenix MLS to find that special home that will be enjoyable for years to come!  Please contact any of our Phoenix AZ Realtors for your private, no-obligation consultation at www.ThompsonGroupAZ.com or 480-776-5214.

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Purchasing a Home: How Fast Can I Close?

October 14, 2011 By Jamie 3 Comments

After a few weeks to a few months of preparation, searching the internet for Phoenix Homes for Sale, writing contracts and coming to terms on that new home purchase, our buyers always find a special home. Then, the next inevitable questions arise: “When is the Big Day? How fast can I close escrow and move in?” Well, here are a few items to consider that will help guide you to that big day if buying in Arizona.

  • Disclosures – In Arizona, the real estate contract calls for the seller to make seller property disclosures, insurance claims disclosures and to delivery a copy of the title report for review. Each should be delivered within five days of contract and each allows for a review period of five days.
  • Lead-Based Paint Disclosure – If the buyer is purchasing a home built prior to 1978, the Arizona contract allows for a 10 day risk assessment or inspection period. The risk assessment period begins upon delivery from the seller of the Lead-Based Paint Disclosure which may happen as late as 5 days after contract acceptance or requiring a full 15 days to determine Lead-Based Paint risk at a property.
  • Home Inspections – Most buyers prefer to have a general home inspection and a termite inspection of a potential home purchase to uncover unseen problems. While most home inspections don’t turn up deal-breakers, some issues can arise such as termites, roof replacements or mold. When these larger repair issues arise, the buyer and seller generally will have a second negotiation as to who will cover which repair costs. When selling Phoenix Arizona Homes, the Arizona contract calls for this 2nd negotiation to begin no later than 10 days after acceptance and to end at 20 days after contract acceptance.
  • Home Owner Association (HOA) Disclosures – While the Arizona contract calls for delivery of all HOA information to the buyer, state law allows HOAs 14 calendar days from the time of the request to delivery to provide all necessary information. Normally, the title agency involved will make the request for HOA documents at 5 days after contract acceptance, so delivery of these documents may not happen for 19 days.
  • Cash or Financing? – The good news here is that if a buyer is paying cash and does not need financing, close of escrow can happen as soon as all above items are complete and the buyer feels comfortable. In Arizona, some buyers may close within 10-15 days if all vendors are on top of their game. However, if a buyer requires financing, closing may happen as soon as 23 days for conventional loans and 30 days for FHA loans. Situations do vary, so be sure to consult your Arizona mortgage consultant to determine how long of a close of escrow will be needed.

So… are you:

  • Tired of just reading and talking about a new home purchase?
  • Itching to get started finding that special home?
  • Ready to find out how to get a great deal?

…then the Thompson Group is ready to help!

Our Phoenix AZ Realtors are specialists in combing the Phoenix MLS and knowing the Phoenix Real Estate market to find the perfect home for you. Don’t wait! Give us a call today at 480-776-5214 or www.ThompsonGroupAZ.com to get going and find your new home.

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Finding the Perfect Neighborhood

September 15, 2011 By Jamie Leave a Comment


Good news! You finally saved up for the down payment on your new home and it is time to start your house search. You go out and hit the internet and start looking at virtual tours. Wow, there are some fantastic houses spread out all over the place! How do you decide which ones to look at first and which neighborhoods are the best?

Unlike most purchases in life such as a TV, car, boat, or RV, the enjoyment of a Phoenix Real Estate

purchase has a whole lot more to do with location and the neighborhood than most realize. Crime statistics, schools, proximity to parks and freeways are just a few important details that are controlled by the location of your home. Not to mention the quality of your neighbors! These factors all add up to determine value of your home will appreciate in the long term.

So, when determining the neighborhood you would like to live in, first consider its overall location approximate to your job as well as schools, public transportation, shopping, museums, theaters and other attractions that might interest you. Consider the major pluses and minuses of the location, before narrowing to specific neighborhoods. If you are too close to an airport, jail or superfund site, then you might want to review other locations. If you are finding good freeway access, your favorite restaurants, and are able to manage the commute to work, then you may be narrowing your search to a great location.

In a general location, there can be 10-100 different neighborhoods. Some will be fantastic and some will not! One great way to learn about your location is to drive around the neighborhood and talk to residents. If you find a higher volume of smart soccer moms you might find a strong indication that the long term value of the neighborhood is headed up.

As you are pinning down your favorite neighborhoods, view lots of homes in those neighborhoods. Builders tend to build the same floor plans when developing neighborhoods, so if you don’t like the floor plan in a neighborhood or are not finding what you like, then keep looking for new neighborhoods. However, if you find home that is perfect floor plan but lacks in other qualities, take note! Even though one house may not be  your perfect home, if you like the floor plan, a new property could be coming on the market that may have the other qualities you will love.

Some other great questions to ask about your Phoenix Arizona Homes neighborhood:

  • Where are the closest parks?
  • How good are the local schools?
  • What is the neighborhood like at night?
  • Do all the homes have large lots or small lot sizes?
  • Are there any special features that draw you and others to the neighborhood?
  • Does it include all of the minimum amenities for your lifestyle?

After you’ve narrowed your search down to a few great neighborhoods, we will help point out the pros and cons of each home from a professional standpoint. Once we weed out the homes that do not interest you, we‘ll  consider the details of the ones you like, including the amount of work that needs to be done if you purchase the home. Does anything need to be repaired or replaced? Find out if the seller will do these things or offer an allowance for the buyer to do them. If you are happy with the details, we should go back to the final contestants for a second look. This will help us select the perfect home for you. Don’t be discouraged if you don’t find what you want right away. On average, buyers of Phoenix Homes for Sale will walk through fifteen houses before selecting one.

Are you ready to start looking for that special neighborhood? Need assistance searching the Phoenix MLS? We can help! Please feel free to contact me – or any of our Phoenix AZ Realtors – with any questions or concerns. We can be reached at 480-776-5214 and ask4jamie@cox.net.
 

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Arizona Home Buyers: To Do, or NOT To Do?

August 17, 2011 By Jamie Leave a Comment

Many potential buyers of Phoenix Homes for Sale are often unaware that many of their actions in other parts of their lives can have a significant impact on the home buying and financing process. As a prospective buyer looking for a home in the Phoenix Real Estate market, keep in mind these questions:

I have a new job offer, should I change jobs?

Changing jobs as an upward movement in the same line of work is okay. Changing jobs into a different line of work can be an issue, and changing jobs for less money is a red flag, depending on the circumstances. Regardless of the reason, pay stubs covering the last 30 days will be required for loan approval.

We just sold our classic car for a pretty high price. Is it okay to deposit that money?

Moving money around is okay as long as you can paper-trail the money. If you move it from one account to another it’s pretty easy to show the money coming in and out of the accounts. Making large deposits that can’t be paper-trailed is a bigger issue – for example, selling items from around the house (like a garage sale) and then depositing those funds into the bank. These funds are nearly impossible to prove their source (especially if it’s a large deposit) and therefore would not be included in available funds for closing.  Literally, the money is excluded from your qualifying assets. Any deposits outside of payroll deposits (usually over a few hundred dollars) need to be sourced from an acceptable source (i.e. – no selling drugs to qualify!)

How much money should I save?

Generally, savings of 3.5% of the purchase price is enough to qualify for an FHA loan for Phoenix Arizona Homes. However, saving more money to put down is always a great idea. A larger down payment will allow for a better financing, and the extra money could help with purchase of new appliances and potential repairs at your new home.

Should I make big purchases before closing escrow?

No, no, no — not without speaking to your loan officer first. Large purchases made on credit for a new car, appliances, or even furniture for your new home may push your debt level too high and prohibit the financing of your new home.

I was planning on taking a trip out of town – is that a good idea?

Probably not, if you can avoid it. But if your trip has already been planned for months in advance, our Phoenix AZ Realtors can help work out the logistics. With faxes and email available throughout the world, most escrows can continue while you are away on business – or enjoying fun in the sun.

I have a bankruptcy, foreclosure or short sale on my credit, can I still buy?

Most times when a borrower had a past issue on their credit, a good loan officer will be able to give good advice about corrective steps to take. Most borrowers’ past mistakes may be repaired through the passage of time and by establishing new credit. Situations vary, so speak to a good loan officer about your situation.

As you prepare to begin the process of buying a home, it will help you greatly to make sure that actions you take aren’t detrimental to your financing and buying process. Give us a call today at 480.776.5214 – we will not only help you search through the prospects in the Phoenix MLS, but we’ll also help you strategize and avoid potential pitfalls to financing.

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