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Removing the Fear of Saving for a Home
The budgeting and saving process to buy a home can seem daunting and scary. However, it doesn’t have to be. Understanding the costs you may encounter allows you to plan your finances and prepare your budget. Here are just a few costs experts say you can expect.
Down Payment
The down payment is the highest upfront cost when buying a home. How much you need to save depends on the type of mortgage you get. For example, with a fixed-rate mortgage, you may be able to put as little as 3% down. But with other types of mortgages, you may need up to 20% down. Mortgage Reports states that: “The idea that you have to put 20% down on a house is a myth. . . . The right amount depends on your current savings and your home buying goals.”
Closing Costs
These are the costs of getting your mortgage, like appraisal and loan origination fees. They can add up to 2% – 5% of your home’s purchase price. Bankrate explains that “Closing costs are the fees you pay when finalizing a real estate transaction, whether you’re refinancing a mortgage or buying a new home. These costs can amount to 2 to 5 percent of the mortgage so it’s important to be financially prepared for this expense.”
Homeowners Insurance
You’ll need to insure your home against fire, theft, and other disasters. The cost of premiums depends on factors like the value of your home, your home’s location, and the amount of protection you want. Homeowner’s Insurance may be around $150 a month.
Property Taxes
These are taxes you pay to your local government based on the value of your home. Property tax rates vary widely from one area to another. In Arizona, the rate is around 0.60%.
Tips to Save
To save money, you need to be aware of your spending habits. Take a look at your monthly expenses and see where you can cut back. For example, if you eat out frequently, you may want to cook more meals at home. Or, if you have a subscription to a gym that you never use, you may wish to cancel it. By cutting back on unnecessary expenses, you can save more money each month.
Create a budget to help you track your spending and ensure that you are saving enough money each month. To do this, list all of your income and expenses for the month. Then, subtract your expenses from your income. The remaining amount is what you have left to save. You can use this method to set aside monthly money for your down payment and other costs associated with buying a home.
Saving for a home doesn’t have to be complicated or scary. By understanding the costs involved and making minor changes to your spending habits, you can save the money you need to make your dream of homeownership a reality.
The information provided should not be relied upon as a substitute for financial, home loan or other professional advice. Please consult your a loan professional.
What to Avoid After Applying for a Mortgage
Homeownership is within reach! You have applied for your mortgage, and things are moving forward! But, TAKE CAUTION! Here is a list of things to avoid after applying for a mortgage.
Do not change jobs!
A lender’s favorite word is stability! This includes stable employment history, and a job change can often be a significant cause for loan denial or, at the very least, a delay in processing. If you plan on making a job change, do it before you begin the mortgage application process or after you close. Remember that lenders generally require you to be at your job for at least two years to qualify for a loan.
Do not make any large purchases!
A mortgage lender will pull your credit report at different stages of the loan process: when you first apply and before closing. Making large purchases between these stages could change your debt-to-income ratio and affect your ability to close on the loan. So, no new cars or appliances until after you close your home!
Do not apply for new credit, and don’t close any credit accounts!
During the mortgage process, your credit score is subject to change. New credit applications can lower your score, and closing existing accounts can also negatively affect you. So again, no new cars or credit cards until after you’ve closed on your home!
Do not change your bank account!
Lenders like to see stability in your bank account, so resist the urge to close any old accounts or open any new ones while you go through the mortgage process.
Do not make large deposits!
Depositing a large sum of money into your bank account can cause concern for lenders. If you have a windfall, such as an inheritance or a tax refund, speak to your lender beforehand to find the best way to handle it.
Do not co-sign any loans!
Co-signing a loan for someone else can affect your debt-to-income ratio and may cause problems with your mortgage loan. So, if possible, avoid co-signing any loans while you’re in the middle of the home loan process.
In short, the best thing you can do after applying for a mortgage is to stay the course! Keep up with your payments, don’t make large purchases or changes, and avoid opening or closing any accounts. Doing so will help ensure a smooth and successful mortgage process. Have real estate questions? Give me a call, and I’d love to help!
The information provided should not be relied upon as a substitute for financial, home loan or other professional advice. Please consult your a loan professional.
Making Little Feel Big: Tips to Upsize Your Small House
Are you feeling cramped in your small house? It happens to the best of us. Our ‘stuff’ gradually ends up monopolizing our free space, and then our home, which felt “just right” a few years ago, suddenly feels as tiny as a shoe closet. Fortunately, there are several ways to make your small house feel bigger without spending a fortune. Check out our tips below to start enjoying the extra space you’ve been dreaming of!
- Invest in some multipurpose furniture: One of the simplest ways to make your small house feel bigger is to choose furniture that can serve multiple purposes. For example, a coffee table that doubles as a storage ottoman can provide a place to stash blankets and pillows while also giving you a place to put your feet up at the end of a long day. Other options include raised bed platforms with drawers built in the frame, a narrow cupboard with a garbage basket that tilts out, or a storage bench that can be used for seating.
- Use vertical space: When you live in a small house, it’s crucial to use every square inch of space – including vertical space. One way to do this is to install shelves along empty wall space. This will give you a place to store books, knick-knacks, and other items that would otherwise clutter up your living space. Hanging racks can do wonders for widening narrow spaces, and hanging pictures higher up on walls can make rooms feel taller.
- Lighten up the walls: Dark paint colors can make a room feel small and cramped, so opt for lighter shades when repainting your walls. White is always a good choice, but pastel colors can help open up a space. If you want something with a little more personality, try painting an accent wall in a light color – be sure not to go too crazy with pattern or design, as this can make a room feel cluttered.
- Widen up the windows: If your small house has narrow windows, you can make them look wider (and let in more light) by hanging curtains or blinds that extend beyond the window frame on either side. Another option is to install mirrored window film, reflecting light and making the room look brighter and more spacious.
- Mirror Magic: Mirrors are a great way to make a small room feel bigger. By placing mirrors opposite windows, you can reflect natural light and make the room feel brighter and more open. You can also use mirrors to visually expand narrow spaces – for example, by hanging a large mirror on a small wall or placing mirrors along a long hallway.
Hopefully, these five tips will make your small house more spacious. If they still don’t make enough room for peace of mind, it might be time to consider upsizing. Contact me today to learn more about today’s housing market!
5 Tips on Saving Money on Your Heating or Cooling Bills
As a homeowner, you are always looking for ways to save money. Your heating and cooling bills can be a large part of your monthly expenses, so finding ways to reduce those costs can significantly impact your budget. Here are five tips to help you save money on your heating or cooling bills:
- Programmable Thermostat: Installing a programmable thermostat can help you save money on your heating and cooling bills by allowing you to set specific temperatures for different times of the day. For example, you can select the temperature to lower when you are asleep or out of the house and rise when you are home and awake.
- Seal Those Leaks: On average, heating and cooling account for almost half of a home’s energy consumption. All the minor leaks can be equivalent to leaving open a 3-foot-by-3-foot window. One way to reduce energy loss and save money on your heating or cooling bills is to weather-strip your doors and windows. This will help to keep the cool or warm air inside your home and prevent it from escaping. (Tip: Take simple steps like caulking windows, sealing leaks around chimneys and recessed lighting, and sliding draft guards under your doors to save up to 20% on heating costs.)
- Change Your Air Filters Regularly: Another way to save money on your heating and cooling bills is to ensure your HVAC system is properly maintained. This means having it regularly serviced and changing the air filters as needed. Dirty air filters can restrict airflow and make your system work harder, which uses more energy and drives up your costs.
- Utilize Ceiling Fans: Ceiling fans can help circulate the air in your home, making it feel cooler in the summer and warmer in the winter. This can help you reduce your reliance on your heating and cooling system and save you money.
- Be Mindful of Your Lighting: In the winter, take advantage of natural daylight by opening blinds and curtains during the day. In the summer, do the opposite and close them to keep the heat out. And no matter what time of year it is, use energy-efficient lighting whenever possible. LEDs are a great example of how innovation and technology can make your life easier. They last 25 times longer and consume up to 90 percent less electricity than incandescent bulbs. (Tip: By switching five of your home’s most frequently used bulbs with ENERGY STAR® certified LEDs, it’s possible to save $75 on energy costs annually.)
By making a few upgrades to your home, you’ll save on your utility bills and improve your home’s energy efficiency. When you’re ready to sell your house, these key features will make it even more attractive to potential buyers. Contact me when you are ready to get together to discuss what buyers are looking for when it comes to energy efficiency options in our area.
Who to Notify When Moving
Are you preparing for a move? In addition to all of the packing, cleaning, and organizing you have to do, you also need to notify the right people and organizations of your change of address. Here is a list of who to notify when you are moving.
- Family and friends: Of course, you’ll want to let your family and friends know that you’re moving. You may even get help from them come moving day!
- Landlord: If you’re currently renting, give your landlord your notice as specified in your lease agreement.
- Employer: Be sure to let your employer know of your upcoming move so that they can update your records and contact information.
- Utilities: Make sure to notify your gas, water, and electric company at least a week in advance so they can shut off/transfer service to your new address.
- Internet/cable: Call your internet and cable providers to set up or transfer service to your new place a few days before the move.
- Postal services: Don’t forget to fill out a change of address form with the post office to forward your mail to your new home.
- Banks/financial institutions: Be sure to notify your bank(s) of your upcoming move.
- Subscriptions: If you have any magazine or newspaper subscriptions, remember to update your address with the publisher. The same goes for any online subscriptions like Netflix or Hulu.
- DMV: Don’t forget to change your address with the Department of Motor Vehicles so that your driver’s license and registration reflect your new home.
- Government agencies: Any federal, state, or local government agencies that you deal with should be notified of your move. This includes the IRS, social security office, and your voter registration office. Change your address for tax purposes by filing Form 8822 with the IRS.
- Medical and educational facilities: If you have children in school or see a doctor regularly, be sure to update your contact information with their office.
- Insurance companies: Let your insurance company know of your move so that they can update your records and make sure you’re still covered.
Make sure you give yourself plenty of time to notify everyone on this list. The last thing you want is to be worrying about changing your address while you’re trying to settle into your new home.
Moving can be a lot of work, but it’s worth it when you finally settle into your new home. Have you not found that dream home, but are you ready to make a move? I’d love to help you with your real estate needs. Let’s connect today!
As a professional REALTOR®, my primary focus is customer service and satisfaction. I bring each real estate transaction to its ultimate success with integrity and professionalism. I am motivated to excel and serve all my clients with honesty and enthusiasm.
Events this June in Phoenix, AZ
Are you looking for something fun to do this June in Phoenix, AZ? Check out our list of summer events! From star gazing to farmers markets, there’s sure to be something that interests you. So mark your calendar and enjoy everything our captivating city has to offer.
- Downtown Phoenix Farmers Market | Every Saturday
“At this local farmers market, expect to find local produce, grass fed meats, fresh eggs, baked breads and treats, jams and honey, peanut butter, flours and mixes, prepared foods, gluten free and vegan options, ready-to-eat meals, food trucks, local artisan wares and health and wellness products.” LEARN MORE. - Reptile Encounter Talk | Recurring weekly on Friday
“Join Assistant Curator of Reptiles and Amphibians Charlie DePuy as he introduces guests to some of Butterfly Wonderland’s most amazing and charismatic rainforest animal friends! Be amazed watching Bennie the Ball Python climb a rock wall and meet Draco, the most charming and charismatic Chinese Water Dragon! Special Q & A session for guests as well. FREE WITH ADMISSION.” LEARN MORE. - Stargazing at Adero Scottsdale Resort | Every Friday in June
“Come enjoy stargazing like you’ve never experienced before at ADERO Scottsdale, the only Autograph Collection destination in a certified Dark Sky Community. Every Friday night through the end of June, guests are invited to meet the Star Dudes, a group of local astronomers, as they guide the audience through laser-powered constellation tours using impressive high tech telescopes. For more information contact Guest Services at info@aderoscottsdale.com.” LEARN MORE. - Cars and Cowboys | June 19th
“Come out and bring the family, celebrate Father’s Day looking at cars (pre1980) and have fun at BE WILD. There will be vendors and music.” LEARN MORE. - Scottsdale Margarita Festival | June 11th
“This sacred mixture of tequila, triple sec, lime and many other flavors is championed across the nation as one of the tastiest beverages known to planet Earth. Let’s enjoy 20 of them (included with your ticket) at the Margarita Festival on June 11 at Wasted Grain.” LEARN MORE. - Salt River Tubing | Daily
“Salt River Tubing returns with its annual invitation to float, splash and enjoy the best natural water recreation in Maricopa County. Join thousands of fun-seekers for Arizona’s “floating picnic” on the Lower Salt River in Tonto National Forest — home to refreshing, mountain-stream waters, pristine views, local in habitants (wild horses) and more. Salt River Tubing is open daily, weather permitting. See website for rules and additional information.” LEARN MORE.
We hope you enjoy your June in Phoenix, AZ! If you’re looking to buy or sell a home in the area, contact me today! I am licensed to help you with your home purchases in the Sedona – Verde Valley area, Prescott, and Phoenix.
The Benefits of Multigenerational Households
Whether it’s for financial or health-related circumstances or simply because you’ve reached a new phase of life, you might be wondering if living with multiple generations under the same roof is a good move for you.
According to Generations United, multigenerational households rose from 42.4 million in 2000 to 64 million in 2016. More families have been making this change in recent years.
The Benefits of Multigenerational Living
Toll Brothers state, “In recent years, there’s been a steady rise in the number of multigenerational homes in America. Homeowners and their families are discovering new ways to get the most out of home with choices that fit the many facets of their lives.”
Generations United also reported that: “Nearly all Americans who live in a multigenerational household (98%) feel their household functions successfully, citing various aspects of home design, family relationships and interactions, and supports and services influencing their success.”
Top 5 Benefits of Multigenerational Living
- Shared Expenses: When you live with other family members, you can share the load for expenses like groceries, housing, utilities, and more. Especially if you’re on a tight budget, multigeneration homes are a great way to save money.
- Shared Responsibilities: From cooking, cleaning, childcare, or eldercare, responsibilities can be shared when you live in a multigenerational household. This can help ease the burden on one family member and make life easier for everyone.
- Strengthened Family Bond: Spending more time with family can help to enhance relationships and create lasting memories. “While most families come together on special occasions, multigenerational families have the luxury of seeing each other every day. By living under one roof, these families develop a high level of attachment and closeness.”
- Ensured Family Safety: Living with multiple generations under one roof, likely, someone will be present in the case of a family member having an accident. Along with this, your home will rarely be left unoccupied, which lowers the chance of burglaries.
- Positive Impact on Mental Health: Research has shown that living in a close-knit community can positively impact mental health, and a multigenerational household is one way to create that sense of community.
Do You May Need More Space?
Living in a multigenerational household has real and impactful benefits. Are you deciding to make a move to have a multigenerational household? Or have you already made the change? Do you need additional space for privacy? This could mean more bedrooms and bathrooms or features like an in-law suite or a basement. Contact me today! Let me help you through this process and find a house that fits your changing needs.
Why Pre-Approval Is Crucial for Homebuyers
Why is preapproval so crucial today? In this today’s market, being intentional and competitive is vital, and preapproval gives you that edge. Here are a few reasons why:
Know Your True Price Range:
Preapproval from a lender is the only way to know your true price range and how much money you can borrow for your loan. Editor of The Mortgage Reports, Peter Warden, states that:
“The lender will check out your personal finances and issue you a letter confirming the amount you’re eligible to borrow. This not only gives you a firm budget for house hunting, but also lets sellers know you’re qualified to make an offer.”
Sellers Know You’re Qualified:
There are more buyers than homes available, creating competitive bidding wars. According to the National Association of Realtors (NAR), the average home gets 4.8 offers per sale. Your preapproval gives you a leg up in these situations. You know what you’re approved to borrow before you write your offer, and the seller knows you’re qualified to buy their home. Along with this, this helps both you and the seller feel confident in what you’re bringing to the table, giving you a better position to win a bidding war potentially.
Peter Warden states,
“There’s another important reason to get preapproved, too. And that’s because there are way more buyers than homes in today’s market — which means you need to be ultra-prepared if you want to win a bidding war. Most sellers are getting multiple offers right now. And most won’t even entertain an offer without a preapproval letter included.”
You Can Lock In Your Mortgage Rate:
With mortgage rates rising, you want to do everything in your power to lock in the lowest rate possible. Preapproval gives you that chance. When you’re preapproved, your loan is essentially approved, pending a home appraisal. This means that if rates rise before you find a home, you’re still getting the lower rate. Whereas if you get prequalified, which is based on an estimate of the loan amount, your interest rate isn’t locked in and could be subject to change.
A Solid Foundation for Your Home-Buying Journey:
Preapproved gives you a firm foundation as you start your home-buying journey. You know exactly how much money you can borrow and what you can afford. You’re not going into the process blind and are instead armed with the knowledge and tools you need to be successful.
Questions for Sellers to Ask Agents
The odds are the day will come when you need to speak to a real estate agent to help you sell your home. When that day comes, you want to be sure you have the knowledge you need to choose someone who has the background and skills to represent your interests, meet your needs, and make the process a positive experience.
Having rapport with your agent is essential. It is ideal for working with someone you like and who will communicate well with you. There is another effective way to sort the amateurs and the pros, and those are to look at the agent’s track record.
Here are some direct questions which will help you compare agent experience and performance:
- How many continuous years have you been in real estate?
- How many homes did you sell last year working as the seller’s agent?
- Of the homes you’ve sold in the past year, what was the average number of days the home was on the market from the initial listing date until the final accepted offer?
- Looking at your past 12 months of closed sales, what percentage has the final selling price been compared to the initial listing price?
- How much will you charge me to sell my home? What sort of marketing efforts does this cover?
- Do you have an assistant to help you sell homes?
- Does your company’s owner consider you to be one of the top producers in your office?
As a professional REALTOR®, my primary focus is customer service and satisfaction. I bring each real estate transaction to its ultimate success with integrity and professionalism. I am motivated to excel and serve all my clients with honesty and enthusiasm. Whether you are purchasing land, selling a home, or purchasing a new home, my role as your Realtor is to provide the most satisfactory service while utilizing my strong negotiating skills. Each step of your real estate transaction will have my thorough and complete attention.
As a 3rd generation Arizona native raised in Scottsdale, I have watched this excellent state change through the years. I was blessed to spend my childhood summers with my grandparents here in Prescott. Back in 1998, I fulfilled a lifelong dream and settled here. The Prescott Area is an extraordinary place to live, work, and raise your family. It is a premium location to retire to and relax in an exceptional combination of beauty, convenience, comfort, and peace.
It would be my pleasure to share my knowledge of the area and work with you to find the perfect match that you can call home or help you move to the next stage of your life selling your current home. Allow me the opportunity to listen to you, identify your real estate needs, and then assist you in realizing your real estate goals. My guarantee is your utmost satisfaction using my core principles of Honesty, Integrity, and Teamwork.
Tips to Dispute an Error on Your Credit History
It’s an excellent idea to check your credit report for inaccuracies periodically, especially when you’re attempting to get pre-approved for a mortgage.
Checking your credit reports is easy to do. Each of the nationwide credit reporting companies, Equifax, Experian, and TransUnion, are required to provide you with a free copy of your credit report, at your request, once every 12 months.
What Happens When Your Find an Error?
If you discover an error on your credit report, the recommended way to attempt a correction is through a dispute letter. Dispute letters allow you to request the reporting agency to correct the error. Though it may take a little time to get the errors fixed, cleaning up these mistakes can have a direct (and favorable!) effect on your credit score. Higher credit scores help you secure lower interest rates and better terms on your mortgage.
Here’s what you’ll need to include for each mistake on your credit report that you find:
- Refer to which account has the error.
- Spell out precisely what is incorrect about the account and reference where it appears in the report.
- Outline the requested changes and explain why those changes are necessary.
- Include supporting evidence or documentation which will bolster your claim.
- Send the letter by certified mail with a return receipt requested so that you can document what the credit reporting company received.
For example: “In my report, the Chase Visa ending in XXXX shows my account is still active. I closed this account in 2012. Please market the account ‘closed’ on the report, not ‘active.’ Included is a letter from Chase bank, confirming the date of the account’s closure.”
It’s a good idea to keep copies of everything you send. Also, be sure to send the correction to all three major reporting agencies (Equifax, Experian, and TransUnion) as well as the original creditor (i.e., the credit card company, utility, etc.). You can find the current dispute mailing addresses on these company’s websites. Federal law mandates that agencies must help you within 30 days. Keep records of your disputes and when/how you communicated with the agencies.
An article by Experian offers insight on credit scores and disputes. Filing a request has no impact on your score. However, once your dispute is processed, that is where your credit score could change. Along with this, updating or changing information such as identification or address information will not affect your credit score.
Why Clean Your Credit
Having the cleanest credit report as possible will result in a higher credit score, which in turn increases your chances of getting pre-approved for a mortgage. A low credit score results in a much higher interest rate when you apply for a home loan. Besides, if you have a low credit score, you will be required to contribute a much larger down payment of cash.
When looking to be pre-approved for a mortgage, you first need to get your credit report as clean as possible, pay off as many debts as you can, and make on-time payments. One of the hands-on things you can do today is set up payment reminders and pay your bills on time. Take these steps, then sit back and watch your credit score rise!
According to the law, negative credit information stays on your credit report for seven years. On the other hand, positive information can remain on your credit report indefinitely. That is why getting your credit in shape is a crucial step to take when you’re preparing to buy a home.
I help buyers prepare every day! Contact me today. I would love to help you buy your next home, 928-458-9815.
