Buckle Up for the ride

Luckily for Home Buyers (and Sellers), mortgage rates have hovered around 5% for the past year and a half.  But now rates are starting to inch upwards.  If you have have been waiting, waiting, waiting to buy a property, now is the time, before rates move up further. But, the future is unpredictable in the mortgage world.

According to Michael McDermott, Mortgage Planner at Prime Lending, eighteen months ago, the Fed’s set aside $1.25 Trillion dollars to purchase mortgage backed securities over a period of time (MBS Program).  The program was designed to artificially lower interest rates to assist in a housing recovery.  As the Fed’s poured an average of $17 Billion dollars a week into mortgage backed securities, rates did exactly what we knew they would…lower.  This is largely the reason rates have been right around 5.000% on a 30 year fixed mortgage for the past year and a half.

At the last Fed Meeting on March 16^th, the Fed’s said they still intended to end the MBS Program but they also said, “The Committee will employ its policy tools as necessary to promote economic recovery and price stability.” While this statement gave the Fed’s a little more time to consider extending the program in some capacity, it is now clear that the MBS Program will in fact end on March 31^st. On March 25th Fed Chairman, Ben Bernanke, simply stated that the Fed’s will end the MBS Program as scheduled and will actually become a seller of mortgage backed securities but did not state exactly when.  As we have seen, as mortgage backed securities are purchased, rates fall.  However, the opposite is also true; as mortgage backed securities are sold, rates will rise.

Last week , rates moved about .250% higher.  In the big picture, this isn’t much but it is certainly a sign that the Fed’s are taking the “training wheels” off of the market when it comes to long term interest rates.  So what does all of this mean for us?  It means the “trend” for lower rates is changing and even though we may not like it, this week marks the beginning of a “new normal” for longer term interest rates.

With so many factors influencing interest rates right now, we are certain to see more volatility in the coming weeks. If you are thinking about buying a home, take advantage of the low rates available today. They rates you’ve been eyeing may not be there tomorrow.

2. Not all Lenders offer the same rates and deals.  Shop around.  Ask me about bank lenders vs. mortgage brokers.  Then get preapproved for a mortgage.

3. Great News! You do not have to pay your Realtor ANYTHING!! No kidding!  The Seller pays their Realtor AND the Buyer’s Realtor.

4. Start looking at homes only after you have done the two items above.  I will research homes for you based on what you tell me you want in a home.  I will help you to note positives and negatives of each property.

5. Know what kinds of properties you are looking at. Short Sales, Bank Owned, Preforeclosure, REO’s, Straight Sales are all out there right now.  Ask me to explain what each type of house means to you, your strategy and your timeframe.

6. How to make an acceptable offer.  I will give you the information on comparable properties that tells you what similar homes have sold for recently.  We will discuss your options together and make an educated offer.

7. You have to have money available to go with your offer. This Earnest Money is usually a personal check that we submit to the Seller to show you are serious about your offer.  A general rule is the Earnest Money is 1% of the house price.

8. There are TWO negotiation periods on most houses. The first period is when you are trying to agree on the price and conditions of the sale.  The second period comes after you have a Home Inspection and are trying to get the seller to make repairs.

9. You CAN get out of the deal. If you can’t get a mortgage, if the house doesn’t appraise, if the house has serious flaws the Home Inspector finds, if, if, if… Ask me about this.

10. You will need money for an appraisal, down payment, and closing costs.  Have all of this figured out way before the closing date approaches.

As your Realtor, I will help you with every step of the process in getting into your new home.  Let’s get started!

First time home buyers in AZ

Calling All Apartment Dwellers

3 Reasons to stop paying Rent and become a Home Owner today!

Very rarely do all factors converge to make an ideal situation for buying a home. But, it has happened this month. The top three factors that make it the best time to buy your first home are:

1.1. The Federal Government is offering YOU $8000 to Buy a Home in 2009.

No kidding! First Time home buyers (of those of you who have not owned a home in 3 or more years) qualify. It is a $8000 or 10% of the value of the home in the form of a Tax Credit. This is NOT a tax deduction. A Tax Credit is claimed on your tax return and reduces your tax liability. If you have more credit than you owe in taxes, you will receive a Refund Check. How cool is that? Just stay in the house for three years and you never have to pay back a dime.

22. . Interest Rates are at an amazing 4.875% for a 30 year fixed rate loan. Rates haven’t been this low in years. This means your monthly payment will be less than you would think. Good Deal!

3. 3. Arizona Home Prices are incredibly low right now. Between the rash of foreclosures and short sales along with bank owned properties, the chances of you finding a house at a bargain price on a wonderful home are great. If you are willing to look in outlying areas, the number of properties to chose from quadruples.

First time home buyers have never had so many reasons to buy. If you’ve been thinking about buying but have been waiting to see what the market would do, it’s time to act. Any of these three factors may change this year, but the change may not be in favor of the new homebuyer.

Kevin along with wife, Jessica, fought against a lot of naysayers in 2005 to get his site started. Friends said it just wouldn’t work.  An attorney told him it was illegal to give money to people in third world countries and then have them mail their loan payment back. So, Kevin researched the case law and policy on this topic, but could not find anything illegal about it.  Venture capitalists did not see how anyone could make enough money on this type of deal.  Foundations would not support the idea because it did not appear to be charity but instead, a type of commerce.  Kevin and Jessica went ahead with their plans for the site.

Today, Kiva.org is one of the hottest sites on the web.  When you visit, you can look up struggling business owners around the world and see their pictures.  They receive recommendations by other Kiva uses.  You are able to read their profile and decide if their business is something you would like to support.  A tally shows how much money they need and how much they have received to date.  You can start teams among your friends/family to give as a group.  Team tallies are also displayed on the site. 

Some loaners have even gone as far as visiting the Kiva entrepreneurs they have loaned money to.  The site has been featured in every major magazine and many Senegal, Peru, or the Ukraine. For example, Justina, Ayacucho, Peru is 48 years old and married with five children. She sells potatoes from a stand in the Las Americas market, she also travels to regional fairs to sell clothing and buy grains. She is requesting a loan of $275 to buy more potatoes. As of today she has received $75.  You can see her picture on line.  She is just one of thousands of individuals affiliated with the site.  You do not get this same kind of feeling when you donate to a big charity. You just don’t.Check out the site: http://kiva.org  This is an amazing “Feel Good” site.  You’ll be talking about it, too.  Very cool!

Justine, Peruvian Potato Seller

news shows. (Where have I been?)  This site is hot because it lets a loaner feel like they are really helping a specific

person. You actually feel like you are forging a connection with someone in

Luxury Homes Magazine

Phoenix and Scottsdale Arizona have amazing bargains available in the luxury home market right now.  Due to a confluence of factors including the Overall US Economy, Government Administration Transition, Stock Market failings, Unprecedented Number of Foreclosures, and Recession Fears, to name a few factors, the high end market is experiencing a glut of homes on the market.  This glut translates into bargains for the savvy home investor.  I specialize in Luxury Properties in the Phoenix area.  Take a look at three stunning properties listed in Luxury Homes Magazine (Nov/Dec 08 Issue).  For more information on these and other Arizona properties, visit www.HomeSweetAzHome.com

Luxury Homes Magazine Nov/Dec Properties

Perfect Patio Home in Chandler, AZ – Just Listed

For other bargain listings in AZ visit: www.HomeSweetAzHome.com

Of course I have heard about these phony prize notifications being generated from Nigeria.  But when I received a notice from Italy that a relative with my last name had died and left me an inheritance, I was intrigued.  They had my last name and email correct.  I guess it was possible I had a long lost relative named Giuseppina Loschiavo, even though I had never heard of her.  The letter told me I had been left a large sum of money and that all I had to do was contact the sender. Visions of vacations in my own Italian villa floated through my mind. The sender’s return email looked official, like some sort of law office in Florence.  When I showed the email to my family, they sadly shook their heads.  Don’t be take in, they told me.  It’s a scam.

Darn! Good-bye vacation villa.

Phony lottery, sweepstakes and inheritance notification are among the most successful scams in history.  We can thank the World Wide Web for this success.  Consumers receive a notice that they have won a lottery, prize or have money from a deceased relative waiting for them.  Usually, the consumer has never heard of the contest or relative.  But, it sounds plausible.  Just maybe it’s true.  That thinking is what the scammers are counting on.

In the long lost relative scam, the scheme requires a small payment for ‘processing’ or ‘taxes’ or ‘conversion of currency’.  The writer usually claims to hold a high-ranking position.  The foreign ‘lawyers’ advise the heir to keep the inheritance a secret to protect the money from the Internal Revenue Service.  They then request bank account information to facilitate sending the alleged money and may ask for a ‘good faith’ payment up front.  The ultimate goal is to obtain these advance fees and the personal financial information is a bonus to these scammers.

Chances are if you have never heard about a relative overseas, they don’t exist.  Even if you have unknown relatives, the chances of them wanting to leave YOU an inheritance are slim to none.  If you receive one of these emails or letters, delete or shred it as fast as you can. 

Red Flags to watch for:

1. Beware of request to wire or mail money to cover administrative fees, taxes or legal fees involved in processing ‘your winnings’ or ‘your inheritance’.
2. Beware of any attempt to prod or threaten you into sending money immediately or the money will be lost.
3. Beware of requests for bank account information so your prize/money can be deposited directly into your account.
4. If you have lost money, report it at once.  Mail victims should contact the US Postal Service. Others should contact their state Attorney General’s office. 
5. Once you have fallen victim to one scam, you will most definitely be targeted for future scams.

Our goal is to provide our clients with access to properties at below market value!!Depending on your investment needs, we have access to wholesale homes and can find one or more for you based on your individual criteria and resources. Whether you’re a long-term investor looking to build a rental portfolio, a short term fix-and-flip investor, or an individual investor looking to lend money that is secured by real estate, Home Sweet AZ Home is your #1 resource.

To view a sample of current properties available for wholesale prices click here