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3 Reasons Why You Should Still Buy a Home When Interest Rates are High

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While high interest rates may make buying a home more expensive in terms of mortgage payments, there are still several reasons why it can be advantageous to purchase a home even during such times. Here are the top three reasons:

  1. Long-term investment: Buying a home is often considered a long-term investment. Over time, the value of real estate tends to appreciate, which means that even if you have higher interest rates initially, you could still benefit from the potential increase in the property’s value over the years. This appreciation can provide you with substantial equity, allowing you to build wealth and potentially gain a return on your investment when you sell the property in the future.
  2. Stability and control: Owning a home provides stability and control over your living situation. When you rent, you are subject to the landlord’s decisions regarding rent increases, lease renewals, and potential evictions. By purchasing a home, you have more control over your living environment, and you don’t have to worry about sudden changes or disruptions in your housing situation. Additionally, you have the freedom to personalize and make changes to your home according to your preferences.
  3. Tax benefits: Homeownership can come with various tax advantages. One significant benefit is the ability to deduct mortgage interest from your taxable income, which can help reduce your overall tax liability. Additionally, property taxes and certain home-related expenses may be tax-deductible. These tax benefits can provide financial relief and potentially offset some of the costs associated with higher interest rates.

It’s important to note that the decision to buy a home should be based on your personal financial situation, goals, and market conditions. While high interest rates may impact your affordability, they may also reflect an overall robust economy, which could present other opportunities for financial growth. Consulting with a financial advisor or mortgage professional can provide you with personalized advice based on your specific circumstances.

Mortgage Pre-Approval Letters

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A mortgage pre-approval letter is not a guarantee your loan application will be approved, but pre-approval at least shows the seller you mean business and are likely to secure the financing needed to seal the deal. Furthermore, some sellers require a pre-qualification or pre-approval letter before they will consider or accept your offer.

Depending on the mortgage lender you work with and whether you qualify, you could get a pre-approval in as little as one business day, but it usually takes a few days or even a week to receive – and, if you have to undergo an income audit or other verifications, it can take longer than that.
Mortgage pre-approval letters can last anywhere from 30-90 days, so it’s important to check with your lender prior to submitting any offers to make sure your letter is valid. The letter expires so lenders know exactly where your finances stand prior to buying a home.
Have more questions about mortgages? Give us a call, we are here to help! Chris 480-754-9077 & Cheryl 480-754-9477

What to Know About Property Taxes

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First-time homebuyers, this ones for you! Property taxes are an important thing to consider when you’re looking at homes because they can add a lot of money to your monthly mortgage payment. The amount you pay in property taxes depends on the property value and where the property is located since each state and city has a different tax rate. If you have a mortgage, your property taxes are usually wrapped into your monthly payment. If you’ve paid off your mortgage or bought in cash, you are still responsible for paying the tax and the bill will usually get sent by mail. When you’re looking at homes, pay attention to the mortgage breakdown to see how the property taxes add up.

Have any other questions about property taxes? Give us a call! Chris 480-754-9077 & Cheryl 480-754-9477

Tips for Buying a House on a Budget

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phoenix home for saleJust because you have a low budget doesn’t mean there isn’t a great home waiting for you to discover it. However, shopping for a home on a budget can be challenging. You may feel nervous telling your realtor or you may not know how to approach your bank about it, either. Just remember that there are plenty of people who buy houses on a budget, follow the tips below for great results!

Consider Foreclosures
Foreclosures are usually homes that were repossessed by a bank or lender because the owner could no longer make mortgage payments on the property. The bank is then trying to sell the property to get it off their hands and recoup the money they lost on financing the home in the first place. Because of this, however, another bank isn’t likely to finance this type of purchase, so you may not have the benefit of a loan to help you out. Also be aware that these homes are almost always left in disarray and poor conditions because the owners couldn’t afford to keep up with repairs – or, in some instances, were angry about the foreclosure and trashed the home before leaving.

Look for “As-Is” Homes
Once again, you may have trouble getting the bank to approve a loan for an “as-is” home, but if you’re in good standing with your bank you may be able to qualify for assistance with one of these properties. These homes may have only minor cosmetic damage, but in some cases, they could have serious structural or roof problems that will need to be repaired at your expense. If you plan to buy an “as-is” home, be prepared to spend a long time shopping around before you find a home that doesn’t need anything too significant in terms of repairs. Otherwise, in the long run you may end up going way over your budget.

Stay Up-To-Date on Neighborhood Changes
If you live in the city, think about neighborhoods that seem to be transitioning from low-quality to better-quality. While you may have to deal with more growing pains than you might prefer in these areas, at least for a few years, chances are good you can get a great home in a neighborhood many outsiders aren’t considering yet. In a little while, these neighborhoods will improve and you’ll be living in a great part of town. The same is true of suburbs surrounding cities that are expanding. Give it a few years, and you’ll be closer to town than you used to be.

Are you looking to buy a home? Get started with this custom home search. We are real estate experts who can help you find a home that meets your needs and lifestyle. Chris 480-754-9077 & Cheryl 480-754-9477

Top 3 Questions to Ask a Realtor®

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With so many agents available in the valley, it can be overwhelming when it comes to picking the right one. That’s why we put together a list of the top 3 questions to ask a Realtor®.

How many showings should I expect each week?
Expectations are the key to success! If you’re selling your home, wouldn’t you like to know the probability of having a showing every day vs once a week? We know it’s a pain to be cleaning, leaving the lights on, opening the curtains or blinds, vacuuming, and sweeping off the patios. Will you need to do that every day or once a week? Whatever the answer, you’ll want to be prepared.

What single upgrade will bring me the greatest return?
The majority of homes in our area were built between 1970 and 2010. Adding a pool, updating cabinets, replacing countertops, adding a bathroom or replacing your flooring are all items that could get you a positive return on your dollar… as long as they are done wisely. Even newer homes that are less than 10 years old can see a value variance of 15% for the exact same floor plan based on interior upgrades. Knowing the best tips to get you top dollar when selling is key.

How accurate are your estimates of property value, upgrade costs, and ROI?
Anyone can throw out random numbers, but it takes experience to throw out accurate estimates.

We have the experience and expertise to answer these Top 3 questions and all other real estate questions you may have. We are accurate with our advice and offer services to help prepare your home. We look forward to answering all of your questions! Chris 480-754-9077 & Cheryl 480-754-9477

Property Taxes: What to Expect

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laptops photoAre you a first-time homebuyer or someone who hasn’t purchased a home in a long time? Do you find yourself wondering what to expect when it comes to property taxes? This is a common question that tends to come up pretty quickly when the topic of buying a home is addressed. Many first-time homebuyers are cautioned to keep their property taxes in mind when budgeting for their new home, and with good reason. Depending on where you live, your property taxes could be significant, and they could make a big difference in the overall price of your home and your monthly mortgage payment as well. Below, we’ve outlined some important information to help you learn what you can about what to expect and how to prepare for your property taxes.

How is property tax calculated?

Property taxes were created as a way to pay government employees of your town or county (such as police officers, firefighters and others) for their work. Therefore, it’s up to your local government to determine your property taxes. In order to do this, your home and the property it sits on are both assessed based on the market value of other houses that have sold recently in your area. You can also figure out an estimated property tax price by multiplying the tax rate you pay in your area by the value of your home in its assessment. You can do this yourself, and you can also ask your realtor to help you determine the property taxes on any home you’re looking into purchasing. You should have at least some idea of property taxes before you make an offer on your home.

When are property taxes paid?

When you purchase your home, you will need to pay property taxes as part of your closing costs. Depending on how you are buying your home, the way in which you make this payment may differ. For example, in some instances, you’ll need to pay these through a cashier’s check or another similar method. In other instances, you can group the payment into the same check you use to pay the rest of your closing costs. The time of year in which you close on your home will affect how much you need to pay in property taxes at the time, too; the rate will be prorated so that you only pay for the months in which you will own the home in the given year. When the next year begins, your taxes will go up to their normal annual amount.

Are you considering pre-qualifying for a mortgage loan?  Contact us or call  480.754.9477 or 480.754.9077.