If You Plan on Buying a Home, the Time to Act Is Now

 

If you’re a homebuyer, the time to buy is now—here’s why.

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Are you waiting for the market to soften to buy a home?

A lot of buyers have this plan because they’re afraid that what happened during the last economic downturn will happen again soon. However, according to my guest today, Tom Ross of Bay Equity Home Loans, the last economic downturn was a once-in-a-century event, and the current market features a totally different set of circumstances. 

If you plan on staying in your home for at least three years, there are plenty of underlying reasons why now is a great time to buy.

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The last economic downturn was a once-in-a-century event, and the current market features a totally different set of circumstances.

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According to the statistics, Phoenix is the fastest-growing city in the U.S. Not only are we ranked in the top 10% of all cities in terms of job growth, but we’re also in the top 20% in terms of historical appreciation. 

We have about 70,000 households being formed annually, but only 25,000 homes being built. To be exact, we have less than three months of inventory, and we don’t see supply catching up to demand in the foreseeable future. Furthermore, appreciation is also expected to continue to rise. 

If you look at the big picture, it’s a great time to buy or sell, so if you plan on doing either anytime soon, don’t hesitate to reach out to me. I’d love to help you.

How to Respond to Rising Interest Rates

 

What should you do about interest rates knowing that they’re on the rise? Tom Ross from Bay Equity is here to explain.

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I’m here today with my preferred lender, Tom Ross from Bay Equity, to discuss a question about interest rates: “What should you do about interest rates, knowing that they’re on the rise?”

Tom’s short answer is: Lock your rate in now.

People have it in their head that if they just wait long enough, they’ll end up with a lower rate eventually. But rates in the 3% area are long gone; at our highest this year, we’ve brushed 5% and came back down into the high fours. This time next year, the 4% rates will be long gone as well.

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Try not to turn down any showings, if possible.

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Those in the market need to wrap their heads around the fact that this climb in rates we’re going into will be long-term and sustained. We’re in the midst of a sort of trade war with China, and inflation tends to raise interest rates as well. In fact, the Federal Reserve has gone on record to say that they’re going to raise the federal funds rate at least four times between now and the end of next year. Two of those jumps might occur even before the end of this year.

Now the federal funds rate doesn’t directly impact mortgage rates, but as it rises, you tend to see interest rates come up.

If you have any questions for Tom about rising interest rates, you can reach him at Bay Equity by calling (602) 791-5861 or by sending an email to tross@bayeq.com. 

For any questions about real estate in general, we always encourage you to reach out to us here at RE/MAX Excalibur. We’d love to answer your questions.

How Do Agents Earn Their Commission?

 

If you are wondering how an agent earns their commission, here is a rundown of everything we do for our clients.

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How do we agents earn our commission? There are six important ways: 

1. We identify and solve problems quickly by providing solutions to our clients.

2. We pre-qualify buyers. If I am your listing agent, it is my job to ask buyers the right questions so you can go under contract with one who is fully qualified and can close within the escrow period. 

3. We manage expectations. I need to manage expectations for my clients so they know what the process is like and we can work together to execute it properly.

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My ultimate goal is to get them the most amount of money in the least amount of time.

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4. We have communication skills. We have to communicate with both our clients and the public at large. We get paid to tell the truth, which is difficult sometimes because of market conditions we have no control over. Part of these communication skills also involves forecasting what’s to come in our market in the near future. 

5. We can find buyers for our seller clients. One of my favorite things to do in my job is prospect for buyers.

6. We can effectively and efficiently guide buyers and sellers through the whole home sale process. I have a full-service team working with me, and our whole goal is to prevent clients from waiting on me. Rather, my team should be waiting on them. 

When people hire me, my ultimate goal is to get them the most amount of money in the least amount of time. 

If you would like to know more about how I am able to accomplish this goal or you have any other real estate questions, please feel free to reach out to me. I would love to help you.

What 3 Questions Do You Need to Ask Every Agent?

 

Before hiring a real estate agent, you need to do some vetting. Here are the questions that we recommend you ask.

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Selling or buying a home can be one of the largest transactions of your life. A trusted consultant and Realtor can be an invaluable partner to have. When you interview a Realtor to hire, here are three really good questions to ask them:

1. "How many homes have you sold in the last 12 months?" It’s interesting to find out how long an agent has been in the market, but noting their productivity in the last 12 months is a better indicator of whether or not they are a productive, full-time agent.

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You want to get a sense that this agent is somebody you can trust.

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2. "Can I have the contact info for your last three deals?" This question may be a surprise to the agent, but it could provide you with an honest, authentic answer to help you feel comfortable with them.

3. "What specific strategies are you going to use to get my home sold?” Some agents specialize in buyer sales. Some agents specialize in listing and selling. A specific, proven plan is essential for any buyer or seller.

To get my answers to these questions and more, feel free to reach out and give me a call or send me an email. I would love to hear from you today.

Do You Want to Buy or Sell Outside of Arizona?

 

If you’ve ever thought about buying or selling real estate outside of Arizona, I would be more than happy to connect you with the right Realtor for the job.

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As you will see in the background of today’s video, I’m definitely not in Arizona. Actually, I’m coming to you from San Diego for a real estate conference with 2,000 of the very best Realtors in North America. So if you’re looking to buy or sell property outside of Arizona, call me and let me connect you with the very best Realtor for the job. To see my full message, watch this short video.

How Tom Ross at Bay Equity Can Help You

 

Our preferred lender, Tom Ross, has moved over to Bay Equity! How will this change benefit you?

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I’m here with Tom Ross, our preferred lender, who recently moved over to Bay Equity.

As a result, Tom is able to offer a higher level of service to our clients. Why?

One of the reasons Tom made the move to Bay Equity is to take advantage of new technology in the industry. Bay Equity is based out of Sausalito—you can’t establish a business that close to Silicon Valley without knowing something about technology!

Technology is incredibly important and provides speed and convenience for our customers. After signing up with Bay Equity, Tom has been able to eliminate some redundancies in the loan process. From the origination to DocuSign, all these new bells and whistles mean Tom can operate more efficiently and serve you at a higher level.

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Tom guarantees a quick closing process, even for jumbo loans.

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If you are getting a loan and want to close in three weeks, Tom can make that happen. He’s always been able to do so, but at Bay Equity, it’s just a bit easier. Tom guarantees a quick closing process; he can even close a jumbo loan within three or four weeks—assuming that you let your lender order an appraisal.

“Being able to underwrite everything within our own four walls has been a massive benefit,” says Tom.

Working with a lender like Tom to buy in today’s market will make your offer appear stronger to other buyers, as you’ll be able to close in three or four weeks.

If you have any questions for Tom, you can reach him at 602-791-5861 or tross@bayeq.com. As always, if you have any real estate questions for me, just give me a call or send me an email. I would be happy to help you!

What Your Loan Officer Should Be Able to Tell You

 

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We’re back again with our preferred lender, Tom Ross, with Nova Home Loans. We’re here at his office to talk to him a little bit about some of the most important questions you should be asking your loan officer when you’re trying to get a mortgage. Tom’s been in the business for 18 years, and we’ve spent the last decade working together to help so many people with many different loans. There are a few different questions that Tom thinks you should be asking your loan officer.

The first that comes to mind may be “How much do I qualify for?” but that’s the wrong question to ask. The officer should actually ask you where you are comfortable making your payments. You shouldn’t be miserable making a high payment just because you qualified for it. We want to find the sweet spot you are comfortable paying each month.

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There are plenty of great loan options available.

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Down payments are another specific topic you should discuss. It’s true that with 20% down, you can get out of paying mortgage insurance. However, some people simply don’t have that much liquid cash. If you’re comfortable with your monthly payment at 5% down, that could be a good option too. You’ll definitely keep more money in your pocket up front. There’s really no right or wrong answer.

What about financing options? Many people are stuck on the 30-year fixed rates because they are so low, but there are other great options in addition to those. Adjustable-rate mortgages are one possibility, as are 15-year fixed rate loans. When people have the ability to qualify for a 15-year rate and don’t even look at it, it’s a loss. Your payment will be higher but you will ultimately pay far less for your mortgage.

If you have any questions for us or Tom, don’t hesitate to give us a ring or send us an email. You can reach Tom at 602-791-5861 or tom.ross@novahomeloans.com. We can answer any questions you may have or point you in the right direction of someone who can. Hope to talk to you soon!

The Waiting Period After a Short Sale

When can I buy again?

That’s what my clients who’ve recently had a short sale keep asking me. Today I’m joined by Tom Ross from Nova Home Loans to help give you some answers.

As to the when, it depends on what kind of financing you’re going after. For conventional loans—meaning anything less than $417,000—you’re looking at a four-year waiting period before you can buy again. For an FHA loan—meaning $271,050 or lower—you’re looking at a three-year waiting period. For VA loans, you only need to wait one year.

If you need help with your credit or finances, it might be a good idea to speak with a loan officer and utilize their free credit services department. After a short sale, though, the tendency with some people is to completely withdraw from staying active with their credit score.

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It might be a good idea to speak with a loan officer.

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Depending on the type of financing you’re looking to obtain, the loan officer has to be able to see that you’re using credit. Many times, after four years, your credit score will have naturally increased to a point where you can qualify.

Regarding foreclosures, the timeframe is slightly different. In this instance, the waiting period is seven years for conventional loans, three years for FHA loans, and two years for VA loans.

For more information specifically about home loans, be sure to contact Tom by phone at 602.791.5861 or email at tom.ross@novahomeloans.com.

If you have any other real estate questions, be sure to give me a call or send me an email. I’d be glad to help you in any way I can.

Expert Money Saving Tips for Phoenix Homeowners

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Today, Tom Ross from Nova Home Loans joins us to discuss PITI, which stands for principal, interest, taxes, and insurance. There are a few things you can do with PITI that will save you money as a homeowner in the long run.

Principal is what you owe on your house. There is not a lot you can do to save money on principle unless you put more money down in the first place.

There are two ways you can save money on interest. First, you can refinance if interest rates get 0.5% better. Popular wisdom usually says to wait for a full point of improvement in rates, but when you do a no-cost refinance, you don’t need that full point. Tom and his team will run the numbers to make sure refinancing makes financial sense for you.

The other way to save money on interest is to make an extra payment each month. Instead of paying the minimum mortgage payment, put a little extra money into the interest. That way, you can turn your 30-year loan into a 25-year loan.

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You can save money in interest and on your insurance policy.

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Taxes are what they are. There is not much you can do to save on taxes.

A lot of people don’t think about looking at their home insurance policy. However, there are a couple of major carriers that recently upped their rates by 20% to 30%. These companies retooled their models and if you didn’t have a tip-top credit score, your insurance rates went up. It’s not a bad idea to look at your policy every couple years to check if anything has changed with your insurance.

If you have any questions for Tom, you can give him a call at 602.791.5861 or send him an email at tom.ross@novahomeloans.com. As always, if you have any real estate questions, please don’t hesitate to reach out to us. We look forward to hearing from you!

Don’t Shop for Homes Without Pulling Your Credit

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Today, I’m here with Tom Ross, our preferred mortgage lender, to talk about pulling your credit. When should you pull your credit before the home buying process?

Pull your credit as soon as you know you’re prepared to buy a home. This helps determine your buying power in the transaction. However, this needs to be done with a respectable lender, not an online service.

The problem with free online credit reports is that they don’t include FICO scores. There’s a difference between FICO and credit scores. They use different algorithms. Ultimately, you can have two totally different scores, but the FICO score is the most important.

Does it hurt your credit if you pull it too early? Fortunately, the impact is minimal. Your credit score is only affected by three points per bureau. After 90 days, it will not show up and likewise, not hurt your credit.

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There are only advantages to knowing your credit ahead of time.

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Tom’s company, Nova, has its own in-house credit services department, which makes the process easier for you. Six months prior, we request your FICO score to help you improve it by the time you want to buy a home. Plus, this service is free of cost!

There are only advantages to knowing your credit ahead of time. Pull your credit ahead of time and even try improving it if necessary. To reach Tom, call him at 602-791-5861 or send him an email at tom.ross@novahomeloans.com.

As always, if you’re thinking about buying or selling a home, give me a call or send me an email. I’d be happy to answer any real estate questions you might have!

How TRID Makes an Easier Process for Buyers

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Today I'm here with Tom Ross from Nova Home Loans, and we are going to discuss a massive change in the lending world. It's called TRID, which stands for Truth in Lending RESPA Integrated Disclosure. TRID is designed to simplify the lending process for the consumer. How will the new TRID law affect you?  

Right now when you close a loan, there are three essential pieces of paperwork: the good faith estimate, the truth in lending statement, and a settlement. The problem is that those three pieces don't seem to fit together. It is simply a counter-intuitive process that causes stress and confusion for the buyer. 

The new TRID law essentially compiles those three pieces of paperwork together. Instead of the good faith estimate, you will get something called a loan estimate. It will look similar to the good faith estimate, but it will also have information that usually goes on the truth in lending statement. When you go to close, instead of getting a settlement, you will get a form called a closing disclosure. The closing disclosure looks exactly like the loan estimate. This way, your initial documents will look like your final documents, which creates less confusion. 

Another change is that our consumers will now have a mandatory three day waiting period before they can sign their final loan documents. The waiting period eliminates rushing around to assemble all the papers  you need in order to close the next day, which is phenomenal for our consumers. 

Overall, the TRID law will probably add about 15 days to the escrow process, which is currently 30 days. The new 45 day escrow process is really aimed to protect the client, as it allows more time for things like inspections and assembling paperwork. 

If you have any questions, you can contact Tom at 602-791-5861, or email him at Tom.Ross@NovahomeLoans.com. As always, if you have any questions about real estate, call us or send us an email. We'd love to hear from you!

Why You Should Hire a Buyers Agent

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Today, I'm here with my buyer specialist, Holly Huntimer. We're going to discuss the many benefits of hiring a buyer's agent.

First of all, by hiring a buyer's agent, you know you're going to get fair representation. In the past, there was just one agent. Now, you have a listing agent to represent the seller's best interests and a buyer's agent will invest all of their time in helping you meet your home buying goals.

What sets the Monique Walker team apart from the rest are our skills and our experience. Holly is a certified negotiation expert. She helps the MIke Ferry organization with a buyer specialist training program. As for experience, our team did over 100 deals last year, and over 80 deals this year, so we certainly know our way around the process.

A good buyer's agent will tell you that it's very important to be committed to the buying process. Get pre-qualified before you even start looking for a home and sit down and do the buyer consultation so we can figure out what you're looking for. Our goal is to save our clients time and money, so we need to know what your goals are.

We give our clients an edge simply by communicating with everybody in the transaction. It's very important to continue communication with the lender and the seller's agent. That way we can make your offer more appealing, because we know what the seller needs and can get you the home without necessarily raising the price.

To see the reviews on Zillow, click here. 

Even if you're buying new construction, you should have a real estate agent to represent your needs. People forget that the builder's agents are essentially salespeople, and they work with the builder's interests at heart.

If you are a buyer and have question for Holly, you can call her at 623-451-8494 or email Holly@MoniqueSells.com. As always, if you have any questions for me, give me a call or send me an email. I look forward to hearing from you.

Where Will Phoenix Interest Rates Head in 2015?

There are many great Phoenix area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a Market Analysis so you know what buyers will pay for your home in today's market. You may also call me at (602) 413-8195 for a FREE home buying or selling consultation to answer any of your real estate questions.

Hey everyone, today we are joined once again by Tom Ross of Nova Home Loans to talk about predictions, specifically predictions for where interest rates will be headed in 2015. 

There is a huge opportunity for buyers in our current market. Interest rates are at 2-year lows and there is a lot of smart money to be saved by purchasing a home in this market.

There is also a huge opportunity in our market for refinancing. There are a lot of people coming back into the market and readjusting their mortgages to get a better rate. In fact, if you got an FHA loan at any time in 2014, you need to refinance. It will save you thousands on your payments. 

Tom and Nova Home Loans are great at helping people refinance. They structure their refinancing a little differently, making the first payment cash positive right out of the gate.

If you have any questions or if you are curious about refinancing, give Tom a call. He can really help you out and make sure the decisions made about your home's future are in your best interest.

What's Going on with Interest Rates and What Does it Mean for You?

There are many great Phoenix area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a Market Analysis so you know what buyers will pay for your home in today's market. You may also call me at (602) 413-8195 for a FREE home buying or selling consultation to answer any of your real estate questions.

Today, we have our good friend Tom Ross from Nova Home Loans joining us to talk about a favorite topic of his - interest rates. While the general trend for current rates is in the low 4% range, it's hard to be definitive since the rates themselves are largely determined by an individual's credit score.  

If you haven't heard, Fannie May has recently made a huge announcement. Their policy usually stipulates that you must wait 7 years after a foreclosure before you can get a conventional loan. However, if you filed for bankruptcy and included your home with it, you can now get a home loan 4 years after foreclosure. This is huge because there are probably many buyers out there who don't even know they are now eligible for a loan!

Home sales are currently down 20% and we're seeing a pretty balanced market, so now is a good time for buyers to start their home search. If you know anyone that is looking to buy a new home, don't keep us a secret. You can reach Tom at (602) 791-5861 or Tom.Ross@NovaHomeLoans.com. We're always here to help make your real estate venture a successful one!

How you can get back in the housing market after a short sale or foreclosure

There are many great Phoenix area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a Market Analysis so you know what buyers will pay for your home in today's market. You may also call me at (602) 413-8195 for a FREE home buying or selling consultation to answer any of your real estate questions.

Today we're here with our preferred lender Tom Ross with Nova Home Loans. What we want to talk to you about today is getting back in the housing game after having a short sale or foreclosure. This happened to many of us between 2008 and 2010 and right now there are a lot of options for you to get back out there and get back into a home.

The fastest way to get back into a home is with Nova Home Loans. If you went through a strategic short sale or foreclosure, meaning that you were only laying on the mortgage and not anything else, you qualify for our Home Again product. You can get this loan one day after a short sale or foreclosure and you can get up to a million dollars. You do need 25% down, and it has to be a strategic default for you to qualify.

For conventional financing on a foreclosure, you will have to wait 7 years no matter what. The good news for those of us that had a foreclosure in 2008 is that next year you will be able to buy again. For conventional financing on short sales, you basically have 3 tiers: 

• The first tier is 20% down, which you can get after 2 years. 
• The second tier is 4 years after a short sale and 10% down. 
• The third tier drops to 5% down after 7 years.

For FHA financing, foreclosures and short sales are treated equally. It's a 3 year waiting period either way. The FHA price is maxed out at $271,050. VA financing is also an option and with this loan you can purchase again only 2 years after a foreclosure. If you have a good credit score, you could qualify even sooner.

Nova Home Loans has a great credit services department. You can contact them to figure out where you are at with your credit and where you need to be. Many of our clients have utilized this service and have really patched up their credit scores and gotten some solid advice.
 

If you have any questions about credit or financing, please feel free to give us a call. We would be happy to help you.

Let us Find the Right Financing Plan for You

There are many great Phoenix area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a Market Analysis so you know what buyers will pay for your home in today's market. You may also call me at (602) 413-8195 for a FREE home buying or selling consultation to answer any of your real estate questions.

Today I am here with my preferred lender, Tom Ross, and we are going to be talking about some typical loans that you might run into. We want you to be prepared to make informed decisions when you decide to participate in the Phoenix real estate market.

First off, there are 4 main loan types: FHA financing, conventional, VA financing, and there is also jumbo financing. 

1. FHA Loans: This loan requires the smallest minimum down payment of 3.5%. It will cap at $271,050 dollars, so buy whatever you want, but you're going to have to put down whatever it takes to get to that $271,000 mark. 
2. Conventional Loans: You can get this financing for as little as 5% down. The loan amount is up to $417,000 dollars, and the cost of conventional mortgage insurance at 5% down is typically cheaper than FHA mortgage insurance. 
• With a 680 credit score, conventional should come out to cheaper monthly payments than FHA. If your credit score is under 680, FHA may be the best way to go.
3. VA Loans: This is Tom's favorite loan product because they have a $417,000 dollar loan amount for 100% financing. There is no mortgage insurance and you also get better rates than conventional loans. They also have a great jumbo loan product available. 
4. Jumbo Loans: If you're in a situation where you need to finance a house that is worth more than $417,000 dollars, you will generally need to put down at least 20%. There are also other products that will get you in there for 10% down.

Hopefully this information has been helpful to you. If you have any questions about loans, then please give Tom a call at (602) 791-5861 or email him at tom.ross@novahomeloans.com. I refer all of our clients to him, and they are always satisfied with his services.

As always, if you have any comments or questions, please feel free to contact me. I am always willing to help with any of your Phoenix real estate needs.