Tuesday, March 16, 2010
Tucson Real Estate and Homes - March 2010
Realty Executives, Southern Arizona
Over 600 Homes Sold
Gregory Maul, ABR, CRS, GRI
Senior Associate Broker
7 Mistakes Buyers Make & How to Avoid Them
Dear Friend,
The rules of real estate have changed over the past five years. On the one hand, affordability is hovering at all-time high levels, interest rates remain low and there are a large number of homes to choose from. The bad news? Lending practices are tighter and creative financing is, well, a little less creative due to strict regulations. Still, buyer power for those looking to purchase a home is incredible, and there are some great opportunities in this market. If you're looking to get into a home soon, be sure you know the mistakes buyers make and how to avoid them. Here are the top seven.
1. Holding onto your home.
Before you begin the home search process, sell the one you're in. Chances are its going to take longer than you expect to find a buyer because of stricter lending practices and current market conditions. The last thing you want is the added financial responsibility of carrying a second mortgage while you try to sell your home.
2. Not addressing your credit score.
Stand around the real estate water cooler and you'll hear one thing: Credit markets and lending practices are tighter than ever. This means you must have an excellent credit score to secure financing at a low interest rate. You're allowed to pull your credit score at no cost to you. Request yours, and then take the necessary steps to fix any lingering issues that could affect your ability to secure financing.
3. Skipping the pre-qualification and pre-approval processes.
One of the biggest mistakes buyers make is not knowing how much they can afford. By getting pre-qualified AND pre-approved you walk into the home search process knowing the exact amount of money you can spend. This narrows your search, lessening the time it takes to find a home that fits your individual needs. That also gives you more time to spend in the homes that could potentially be yours down the road. Pre-approval also gives you big buying power during the negotiations process since sellers can't reject your offer based on unavailable financing. The bottom line: Once you have your credit in check talk to your trusted lender to get pre-qualified AND pre-approved.
4. Not knowing when to stay and when to walk away.
It's worth repeating: buyers have more power than ever during the negotiating process. Don't be afraid to make a low offer on the home. But don't make the mistake of walking away because of a few thousand dollars. Think about it this way: a few thousand dollars could translate to less than $ 100 a month on your mortgage.
5. Not knowing the total costs involved.
Some buyers, especially first-timers, aren't entirely aware of the costs associated with buying a home. These include: closing costs, title insurance and lawyer fees as well as ongoing costs such as property taxes, homeowners association dues, utilities, and yard maintenance. When you first begin shopping for a home, always ask your real estate agent and mortgage representative to provide you with an average amount of additional closing costs so that you can work them into your budget.
6. Signing contacts with contingencies.
This is a critical mistake that could end up costing you big bucks. For example, avoid signing any contracts that allow the seller to stay in the home for an extended period of time. Why? Depending on how long they stay, you run the risk of losing your interest rate. Or worse, the deal falls through the cracks and you're back at square one: more listings. Bottom line: have your real estate agent review the contract and explain any and all contingencies so that you understand what you're getting into.
7. Not purchasing a home protection plan.
You never know what problems will arise once you purchase the home. Not protecting is a mistake and extremely costly when the problems are big. Be sure to purchase a home protection plan. This is essentially a mini insurance policy that usually lasts one year from the date of sale. It typically covers basic repairs you may encounter and can be purchased for a nominal fee. Talk to your agent to help you find the protection plan you need.
Learn More
The best way to avoid any and all of these big buyer mistakes, is working with a professional real estate agent. If you're looking to buy in the near future, give me a call. I'll walk you through every step of the home buying process so you have the most positive buying experience possible.
Get started today! Call (520) 471-8088.
You can also learn more about my 2010 outlook for the Tucson Real Estate market, by watching my Industry Review on CityZing.biz - Where people talk about local businesses.
Sincerely,
Gregg Maul
(520) 471-8088
Gregg@TucsonRealEstate-golf.com
Oh by the way...if you know of someone who would appreciate the level of service I provide, please call me with their name and business number and I will be happy to follow up and take great care of them.
http://www.funintucson.com
http://www.tucsonrealestate-golf.com
Realty Executives
Over 600 Homes Sold
Gregory Maul, ABR, CRS, GRI
Senior Associate Broker
7 Mistakes Buyers Make & How to Avoid Them
Dear Friend,
The rules of real estate have changed over the past five years. On the one hand, affordability is hovering at all-time high levels, interest rates remain low and there are a large number of homes to choose from. The bad news? Lending practices are tighter and creative financing is, well, a little less creative due to strict regulations. Still, buyer power for those looking to purchase a home is incredible, and there are some great opportunities in this market. If you're looking to get into a home soon, be sure you know the mistakes buyers make and how to avoid them. Here are the top seven.
1. Holding onto your home.
Before you begin the home search process, sell the one you're in. Chances are its going to take longer than you expect to find a buyer because of stricter lending practices and current market conditions. The last thing you want is the added financial responsibility of carrying a second mortgage while you try to sell your home.
2. Not addressing your credit score.
Stand around the real estate water cooler and you'll hear one thing: Credit markets and lending practices are tighter than ever. This means you must have an excellent credit score to secure financing at a low interest rate. You're allowed to pull your credit score at no cost to you. Request yours, and then take the necessary steps to fix any lingering issues that could affect your ability to secure financing.
3. Skipping the pre-qualification and pre-approval processes.
One of the biggest mistakes buyers make is not knowing how much they can afford. By getting pre-qualified AND pre-approved you walk into the home search process knowing the exact amount of money you can spend. This narrows your search, lessening the time it takes to find a home that fits your individual needs. That also gives you more time to spend in the homes that could potentially be yours down the road. Pre-approval also gives you big buying power during the negotiations process since sellers can't reject your offer based on unavailable financing. The bottom line: Once you have your credit in check talk to your trusted lender to get pre-qualified AND pre-approved.
4. Not knowing when to stay and when to walk away.
It's worth repeating: buyers have more power than ever during the negotiating process. Don't be afraid to make a low offer on the home. But don't make the mistake of walking away because of a few thousand dollars. Think about it this way: a few thousand dollars could translate to less than $ 100 a month on your mortgage.
5. Not knowing the total costs involved.
Some buyers, especially first-timers, aren't entirely aware of the costs associated with buying a home. These include: closing costs, title insurance and lawyer fees as well as ongoing costs such as property taxes, homeowners association dues, utilities, and yard maintenance. When you first begin shopping for a home, always ask your real estate agent and mortgage representative to provide you with an average amount of additional closing costs so that you can work them into your budget.
6. Signing contacts with contingencies.
This is a critical mistake that could end up costing you big bucks. For example, avoid signing any contracts that allow the seller to stay in the home for an extended period of time. Why? Depending on how long they stay, you run the risk of losing your interest rate. Or worse, the deal falls through the cracks and you're back at square one: more listings. Bottom line: have your real estate agent review the contract and explain any and all contingencies so that you understand what you're getting into.
7. Not purchasing a home protection plan.
You never know what problems will arise once you purchase the home. Not protecting is a mistake and extremely costly when the problems are big. Be sure to purchase a home protection plan. This is essentially a mini insurance policy that usually lasts one year from the date of sale. It typically covers basic repairs you may encounter and can be purchased for a nominal fee. Talk to your agent to help you find the protection plan you need.
Learn More
The best way to avoid any and all of these big buyer mistakes, is working with a professional real estate agent. If you're looking to buy in the near future, give me a call. I'll walk you through every step of the home buying process so you have the most positive buying experience possible.
Get started today! Call (520) 471-8088.
You can also learn more about my 2010 outlook for the Tucson Real Estate market, by watching my Industry Review on CityZing.biz - Where people talk about local businesses.
Sincerely,
Gregg Maul
(520) 471-8088
Gregg@TucsonRealEstate-golf.com
Oh by the way...if you know of someone who would appreciate the level of service I provide, please call me with their name and business number and I will be happy to follow up and take great care of them.
http://www.funintucson.com
http://www.tucsonrealestate-golf.com
Realty Executives
Labels: buy a home, credit repair, first-time home buyers, sell a home, tucson real estate, tucson realtor
Friday, January 15, 2010
Tucson Real Estate and Homes - January 2010
Realty Executives, Southern Arizona
Over 600 Homes Sold
Gregory Maul, ABR, CRS, GRI
Senior Associate Broker
Make a resolution to redeem your home-buying potential
Dear Friend,
If you're looking to buy a house within the next 12 months, why not make your resolution one that will improve your financial situation and position you as an ideal home buyer? That's right - we're talking about your credit score.
The lending world has changed considerably since the boom days and so has the credit score required to qualify for a loan, not to mention a low interest rate. "About two years ago, you could have had a score of about 620 or so to get a lender's best rate on something. Now, lenders are really looking at a rate of 760 at the least," said Kelli Grant with SmartMoney.com. First-time home buyers fare much better, needing a credit score of at least 660 unless they try for an FHA loan. The truth is, to be a "good" buyer in the eyes of lenders you need to keep a close watch on the state of your credit score. Here are several tips to maintain and improve upon your current number.
Get Copies of your credit report -- then make sure the information is correct.
Go to www.annualcreditreport.com. This is the only authorized online source for a free credit report. Under federal law, you can get a free report from each of the three national credit reporting companies every 12 months.
Pay your bills on time.
One of the most important and easiest things you can do to improve your credit score is pay your bills by the due date. You can set up automatic payments from your bank account to help you pay on time, but be sure you have enough month in your account to avoid overdraft fees.
Understand how your credit score is determined.
How many and what types of credit accounts do you have?
Many credit-scoring models consider the number and type of credit accounts you have. A mix of installment loans and credit cards may improve your score. However, too many finance company accounts or credit cards might hurt your score. To learn more about credit scoring, see the Federal Trade Commission's website, Facts for Consumers.
Beware of credit-repair scams.
Sometimes doing it yourself is the best way to repair your credit. The Federal Trade Commission's, "Credit Repair: How to Help Yourself" explains how you can improve your creditworthiness and lists legitimate resources for low-cost or no-cost help.
Your credit score is just one piece of the home buying process. Start your search by utilizing the experience and knowledge of a qualified Real Estate Professional. Call me today to get started towards making your home-buying resolution come true.
Sincerely,
Gregg Maul
(520) 471-8088
Gregg@TucsonRealEstate-golf.com
Oh by the way...if you know of someone who would appreciate the level of service I provide, please call me with their name and business number and I will be happy to follow up and take great care of them.
http://www.funintucson.com
http://www.tucsonrealestate-golf.com
Realty Executives
Over 600 Homes Sold
Gregory Maul, ABR, CRS, GRI
Senior Associate Broker
Make a resolution to redeem your home-buying potential
Dear Friend,
If you're looking to buy a house within the next 12 months, why not make your resolution one that will improve your financial situation and position you as an ideal home buyer? That's right - we're talking about your credit score.
The lending world has changed considerably since the boom days and so has the credit score required to qualify for a loan, not to mention a low interest rate. "About two years ago, you could have had a score of about 620 or so to get a lender's best rate on something. Now, lenders are really looking at a rate of 760 at the least," said Kelli Grant with SmartMoney.com. First-time home buyers fare much better, needing a credit score of at least 660 unless they try for an FHA loan. The truth is, to be a "good" buyer in the eyes of lenders you need to keep a close watch on the state of your credit score. Here are several tips to maintain and improve upon your current number.
Get Copies of your credit report -- then make sure the information is correct.
Go to www.annualcreditreport.com. This is the only authorized online source for a free credit report. Under federal law, you can get a free report from each of the three national credit reporting companies every 12 months.
Pay your bills on time.
One of the most important and easiest things you can do to improve your credit score is pay your bills by the due date. You can set up automatic payments from your bank account to help you pay on time, but be sure you have enough month in your account to avoid overdraft fees.
Understand how your credit score is determined.
- Do you pay your bills on time? The answer to this question is very important. If you have paid your bills late, have had an account referred to a collection agency, or have ever declared bankruptcy, this history will show up in your credit report.
- What is your outstanding debt? Many scoring models compare the amount of debt you have and your credit limits. If the amount you own is close to your credit limit, it is likely to have a negative effect on your score.
- How long is your credit history? A short credit history may have a negative effect on your score, but a short history can be offset by other factors, such as timely payments and low balances.
- Have you applied for new credit recently? If you have applied for too many new accounts recently that may negatively affect your score. However, if you request a copy of your own credit report, or if creditors are monitoring your account or looking at credit reports to make pre-screened credit offers, these inquiries about your credit history are not counted as applications for credit.
How many and what types of credit accounts do you have?
Many credit-scoring models consider the number and type of credit accounts you have. A mix of installment loans and credit cards may improve your score. However, too many finance company accounts or credit cards might hurt your score. To learn more about credit scoring, see the Federal Trade Commission's website, Facts for Consumers.
Beware of credit-repair scams.
Sometimes doing it yourself is the best way to repair your credit. The Federal Trade Commission's, "Credit Repair: How to Help Yourself" explains how you can improve your creditworthiness and lists legitimate resources for low-cost or no-cost help.
Your credit score is just one piece of the home buying process. Start your search by utilizing the experience and knowledge of a qualified Real Estate Professional. Call me today to get started towards making your home-buying resolution come true.
Sincerely,
Gregg Maul
(520) 471-8088
Gregg@TucsonRealEstate-golf.com
Oh by the way...if you know of someone who would appreciate the level of service I provide, please call me with their name and business number and I will be happy to follow up and take great care of them.
http://www.funintucson.com
http://www.tucsonrealestate-golf.com
Realty Executives
Labels: buy a home, credit repair, first-time home buyers, sell a home, tucson real estate, tucson realtor
