5 Types of Mortgages

coins and houseBefore you purchase a home, it’s important to educate yourself on the various types of mortgages you can get so you can make the right decision when the time comes to choose yours.

CONVENTIONAL MORTGAGE A conventional mortgage is a home loan that’s not insured by the federal government. There are two types of conventional loans: conforming and non-conforming. Conforming loans are loans for amounts that fall within the maximum limits set by Fannie Mae or Freddie Mac (government agencies that back most U.S. mortgages). Loans that do not meet these guidelines are considered non-conforming. Jumbo loans are the most common type of con-conforming loans.

JUMBO MORTGAGE Jumbo mortgages are conventional loans that have non-conforming loan limits. Your credit score generally must exceed 700 and you are required to make a larger down payment. However, it allows buyers to to borrow more money to purchase a more expensive home.

GOVERNMENT-INSURED MORTGAGE The U.S. Government is not a mortgage lender, but it plays a role in helping more Americans become homeowners. There are several types of government backed mortgages including Federal Housing Administration (FHA loans) , U.S. Department of Veterans Affairs (VA loans), United States Department of Agriculture (USDA loans) and more. Government-insured loans are ideal for buyers who do not have funds for aa large down payment and can not qualify for a conventional loan.

FIXED-RATE MORTGAGE The most popular mortgage is the fixed-rate mortgage. It is ideal for homeowners who expect to stay in their home for many years. With a fixed-rate mortgage the interest rate stays the same over the the life of the loan. Fixed-rate loans are typically available in terms of 15 years, 20 years or 30 years.

ADJUSTABLE-RATE MORTGAGE This type of mortgage offers a lower interest rate and monthly payment at first, then slowly increases as time goes on. An adjustable-rate mortgage can be beneficial if you only plan to own the home for a few years.

Do you have more questions about the different types of mortgages? Give us a call, we would love to discuss the different types of mortgages of available. Chris 480-754-9077 & Cheryl 480-754-9477

What to Look for When Buying an Older Home

arizona home for saleThere are many outstanding reasons to purchase an older home in Arizona. They tend to have more character and they may even be available in architectural styles that aren’t built anymore. Nonetheless, there are things to keep in mind when you’re shopping for an older home. It’s easy to get drawn in by the charm of an older house, yet always remember to think it over before you spring on something that could cause problems down the line.

Frame and Foundation
Check the foundation of any older home you’re considering buying. These homes have been sitting there for a long time and, if they haven’t been kept up with perfectly, there’s a good chance they’re going to have some foundational damage. Take a look at the frame of the home, too. While you may end up with a house that has a real, heavy wood frame, you may also have one that has too much space between the frame and walls, which can be a fire hazard.

Look for Hazardous Materials
Older homes may contain a variety of hazardous materials. Homes built before 1985 are at risk for having lead pipes, and homes built before 1978 may have lead paint on the walls. Homes built before 1980 may also contain asbestos in their insulation, roofs, fireplaces and walls if they haven’t been updated. Homes built before the 1970s may be prone to radon gas buildup and should be tested.

Plumbing and Electrical
Lead or steel pipes can be very dangerous and should be replaced before you move into an older home. Many homes have probably already had this taken care of, but not all of them. Have a home inspection to find out what type of pipes the property you’re considering has. Electrical wiring may be made of aluminum in older homes, this is a serious fire hazard.

Working Smoke Detectors
Always check for working smoke detectors in an older and newer house. Functioning carbon monoxide detectors are also necessary to have. If the house doesn’t have any in place, don’t buy it until they have been installed or you have tested for the presence of carbon monoxide in the home.

Older homes come are typically located in established neighborhoods, larger lots and are surrounded by mature landscape. If you truly like the charm of an older home, don’t let any of this stop you form purchasing what you real want. Your real estate agent will hire an experienced and thorough inspector who knows exactly what to look for.

When you are ready to buy a home, new or older, we can help you find a home that meets your needs and lifestyle. Call us today to get started! Chris 480-754-9077 & Cheryl 480-754-9477

Why You Should Use an Agent vs. For Sale by Owner

coming soon for saleBuying or selling your home is a major and oftentimes emotional life decision. It’s also one that is best handled by a professional real estate agent that knows the ins and outs of the industry. While it might seem like a smart idea to save that 6 percent commission, here are some reasons why it can greatly benefit you to work with an agent.

Expertise: Real estate agents are not only knowledgeable about your home and its value, they’re also in tune with the rest of the market and are able to leverage local knowledge while conducting negotiations on your behalf. While selling a home is an emotional experience, real estate agents can look at the transaction from an unbiased point of view and determine the value and marketing strategy best suited for your home and the real estate market. They’re also able to help guide you in the best way to modify your home for sale without wasting money on modifications that may not boost your home’s value.

Marketing: Marketing your home online is not as easy as you might think. Real estate, like any other industry, involves a background and expertise in marketing. This involves brochures, advertisements in both print and digital, and having a vast network of potential buyers that are looking for homes like yours. Real estate agents have access to tools and networks that

Access to Legitimate Buyers: It’s not only important to find qualified buyers that are interested in your home, professional real estate agents are knowledgeable in a potential buyer’s credit-worthiness, their financial history and can also verify buyers with all cash offers. This is crucial in ensuring your home is properly and legally sold with no financial mistakes.

Incentivizes Buyers: You may not realize it, but listing agents also get 3 percent commission once their buyers purchase your home. This can sometimes be an incentivizing reason for buyer’s agents to show your home, and can increase the number of showings you have. If you list your home for sale by owner, you are likely not attracting as many potential buyers as you could.

Contact us next time you consider selling or buying a home. We can offer guidance, expertise and local area knowledge that you never knew you needed to sell your home successfully. Chris 480-754-9077 & Cheryl 480-754-9477

Phoenix/Scottsdale Real Estate Market June Update – May 2019 Stats

Here is the Phoenix/Scottsdale area Monthly Real Estate Market Report for June 2019, which shows 10,485 homes sold in the month of May compared to 10,0097 homes in May 2018. This is a 3.8% increase in the number homes sold year over year, and an increase of 7.8% from last month! It is the most homes sold in a the last 5+ years, and the market remains strong with the average sale price is up 4.7% year over year. And the amount of listed homes is up by 2.4% to 16,628 from 16,245 in May 2018, but down from 17,724 in April.

Demand is still gaining strength into Summer and the market is expected to remain strong. Sales activity may still be constrained by the lower supply of listed homes but the number of listed homes has come down a bit again. The average days on market is down 4.7% from last month to just 60 days.

Click here to see the full April 2019 Market Report & Statistics

Give us a call or text us at 480-754-9477 or 480-754-9077 and let us know if you’re thinking about buying or selling a home this Spring/Summer, as the strong market continues to be good for both buyers and sellers, or if you have questions about this information. And don’t forget to explore our website AzDreamHomesScottsdale.com to see Scottsdale area homes and more helpful articles. – Chris & Cheryl Park

Scottsdale is #1 Profitable City for Airbnb

Realtor.com has ranked Scottsdale as the #1 profitable city to own an Airbnb! This is no surprise to us since the City of Scottsdale has long been a popular destination for families and American corporate elites looking for a vacation getaway filled with golf, hiking and outdoor adventures.

With the growing popularity of short term rentals across the country, many cities have created tighter rules or banned Airbnb rentals altogether. Yet, Arizona has gone in the opposite direction. In 2016, Arizona signed a law that prevents cities from banning short-term rentals. Arizona’s legal protection combined with vacation rental demand, makes Scottsdale the perfect place for real estate rental investors.

Scottsdale Residential Real Estate-
Median list price: $685,100
Average daily rate: $301
Occupancy rate: 81%
Active rentals: 5,178

With our years of experience in Scottsdale real estate, we are prepared to find your next profitable investment property! Chris 480-754-9077 & Cheryl 480-754-9477

www.Realtor.com

Phoenix/Scottsdale Real Estate Market May Update – April 2019 Stats

Here is the Phoenix/Scottsdale area Monthly Real Estate Market Report for May 2019, which shows 9,671 homes sold in the month of April compared to 9,165 homes in April 2018. This is a 5.3% increase in the number homes sold year over year, and an increase of 12.1% from last month! The market has increased seasonally and remains strong with the average sale price is up 5.1% year over year. And the amount of listed homes is up by 7.2% to 17,724 from 16,450 in April 2018. Demand is still gaining strength into Spring/Summer when the market is strong seasonally. And sales activity that had been constrained by the lower supply of listed homes has improved but the number of listed homes has come down a bit again. The average days on market is down 4.5% from last month to just 63 days.

Click here to see the full April 2019 Market Report & Statistics

Give us a call or text us at 480-754-9477 or 480-754-9077 and let us know if you’re thinking about buying or selling a home this Spring/Summer, as the strong market continues to be good for both buyers and sellers, or if you have questions about this information. And don’t forget to explore our website AzDreamHomesScottsdale.com to see Scottsdale area homes and more helpful articles. – Chris & Cheryl Park

Phoenix/Scottsdale Real Estate Market April Update – March 2019 Stats

Here is the Phoenix/Scottsdale area Monthly Real Estate Market Report for April 2019, which shows 8,507 homes sold in the month of March compared to 9.596 homes in March 2018. This is a 11.4% decrease for the number homes sold year over year, but an increase of 23.8% from last month! The market has increased seasonally and remains strong with the average sale price is up 6.7% year over year. And the amount of listed homes is up by 9.4% to 18,547 from 16,814 in March 2018. Demand is still gaining strength into Spring/Summer when the market is strong seasonally. And sales activity that had been constrained by the lower supply of listed homes has improved as the number of listed homes has come up from the recent 5+ year low. The average days on market is down 7.1% from March 2018 to just 66 days.

Click here to see the full March 2019 Market Report & Statistics

Give us a call or text us at 480-754-9477 or 480-754-9077 and let us know if you’re thinking about buying or selling a home this Spring, as the strong market continues to be good for both buyers and sellers, or if you have questions about this information. And don’t forget to explore our website AzDreamHomesScottsdale.com to see Scottsdale area homes and more helpful articles. – Chris & Cheryl Park

Phoenix/Scottsdale Real Estate Market March Update – February 2019 Stats

Here is the Phoenix/Scottsdale area Monthly Real Estate Market Report for March 2019, which shows 6,489 homes sold in the month of February compared to 7,046 homes in February 2018. This is a 7.9% decrease for the number homes sold year over year, but an increase of 15.7% from last month! The market has increased seasonally and remains strong with the average sale price is up 6.0% year over year. And the amount of listed homes is up by 10.0% to 19,233 from 17,319 in February 2018. Demand is gaining strength going into Spring when the market is strong seasonally. And sales activity had been constrained by the lower supply of listed homes but the number of listed homes has come up from a 5+ year low. The average days on market is down 9.5% from February 2018 to just 67 days.

Click here to see the full February 2019 Market Report & Statistics

Give us a call or text us at 480-754-9477 or 480-754-9077 and let us know if you’re thinking about buying or selling a home this Spring, as the strong market continues to be good for both buyers and sellers, or if you have questions about this information. And don’t forget to explore our website AzDreamHomesScottsdale.com to see Scottsdale area homes and more helpful articles. – Chris & Cheryl Park

Phoenix/Scottsdale Real Estate Market February Update – January 2018 Stats

Here is the Phoenix/Scottsdale area Monthly Real Estate Market Report for February 2019, which shows 5,474 homes sold in the month of January compared to 6,198 homes in January 2018. This is a 11.7% decrease for the number homes sold year over year. The market has slowed seasonally but does remain strong with the average sale price is up 3.9% year over year. And the amount of listed homes is up by 9.1% to 19,338 from 17,441 in January 2018. Demand slowed a bit at years end but remains strong going into February/March when the market improves seasonally. And sales activity has been constrained by the lower supply of listed homes. Supply of listed homes has come up from a 5+ year low. The average days on market is down 5.8% from January 2018 to just 66 days.

Click here to see the full December 2018 Market Report & Statistics

Give us a call or text us at 480-754-9477 or 480-754-9077 and let us know if you’re thinking about buying or selling a home this Winter, as the strong market continues to be good for both buyers and sellers, or if you have questions about this information. And don’t forget to explore our website AzDreamHomesScottsdale.com to see Scottsdale area homes and more helpful articles. – Chris & Cheryl Park

Phoenix/Scottsdale Real Estate Market January Update – December 2018 Stats

Here is the Phoenix/Scottsdale area Monthly Real Estate Market Report for January 2019, which shows 6,508 homes sold in the month of December compared to 7,204 homes in December 2017. This is a 9.7% decrease for the number homes sold year over year. The market has slowed seasonally but remains strong with the average sale price is up 5.9% year over year! And the amount of listed homes is up by 3.5% to 17,745 from 17,128 in December 2017. Demand has slowed seasonally but remains strong going into January/February when the market improves seasonally. And sales activity is still constrained by the lower supply of listed homes. Supply of listed homes is just off a 5+ year low. The average days on market is down 3.2% from December 2017 to just 62 days.

Click here to see the full December 2018 Market Report & Statistics

Give us a call or text us at 480-754-9477 or 480-754-9077 and let us know if you’re thinking about buying or selling a home this Winter, as the strong market continues to be good for both buyers and sellers, or if you have questions about this information. And don’t forget to explore our website AzDreamHomesScottsdale.com to see Scottsdale area homes and more helpful articles. – Chris & Cheryl Park