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James Servoss

Home Buying Mistake #5

Home Buying Mistake #5



There are several mistakes some home-buyers make, and some of them are huge!

MISTAKE #5: CHOOSING A LOAN BASED ONLY ON THE INTEREST RATE MYTH

I have been told that a fixed rate mortgage at today's rate is the best mortgage loan. But many different types of loan programs are available. It is a mistake to think that just because Aunt Sue got an 8.5 percent 30-year fixed rate you should get the same loan.

You should get together with an expert who can explain the many different types of loan programs. Each program may have its own series of special benefits for you and your specific needs.

When considering such an important decision, it is best to explore all possibilities. It may well be that a fixed rate is the best type of loan program. It may also be that you can save a significant amount of money by exploring alternative adjustable programs.

A full-service lender with relationships throughout the mortgage industry is a must in today's market. Lenders need the flexibility of the small business owner with the clout of a large company.

Today there are almost as many different loan programs as there are housing options. A few considerations are:

Anticipated time in the home

Available asset base

Current income situation vs. future income situation

It is wise to pick a program that fits YOUR lifestyle. Example: If you pay off a loan in fifteen years versus thirty years you will obviously save a lot of money in interest expense. It is important to note that this savings is due to repaying the loan in half the time. The savings is not due to a significant savings in interest rates. You would expect that there would be a much lower interest rate since the loan has a quicker repayment and, therefore, a loan with less risk. The difference in interest rate is not that significant. Rates on 15 year loans may be 1/4 percent to 3/8 percent better than 30 year rates. Payments on 15 year loans will be approximately 25 percent higher on a monthly basis.

MYTH: I should go to my bank to get the best loan at the cheapest interest rate. Typically a commercial bank will own a separate business entity which shares the bank's name and happens to offer mortgage financing. But this does not mean that you will get a special deal just because you are the bank's client. The bank's mortgage subsidiary has no special access to your financial records as you might expect. The bank's mortgage subsidiary must request your financial records from the bank just as any other mortgage company. Your mortgage loan process will not be simplified or viewed differently from any other applicant making a request.

The perception of most people who go to their bank's mortgage subsidiary is that their loan payments will always be made to their bank; thus, all of the individual's banking needs will be under one roof. However, most mortgage subsidiaries sell their loans on the secondary market and may sell the loan servicing just as any other mortgage company will.

Another important consideration is that a typical bank mortgage subsidiary works with a small number of mortgage products. You may not find a wide variety of loan programs and your loan officer may not have a good comprehension of all the different programs offered. It is doubtful that they can adequately advise you as to the best program for your needs. It is possible that you, or the property you are buying, may need to have special underwriting to approve your loan application.

Just as you should interview your Realtor, you should also interview your lender. Not all lenders look after your needs. Select a lender who is willing to discuss your needs and help you choose the loan program that is best for your situation, not the best for the Lender!


James Servoss
(520) 918-4857
jservoss@LongRealty.com
http://jservoss.longrealty.com

Home Buying Mistakes

Home buying Mistake #1

There are several mistakes some home-buyers make, and some of them are huge!

MISTAKE #1: FAILING TO HAVE A PLAN

Deciding to buy a home is probably the biggest financial decision you will ever make. It is an exciting decision, but it is serious business, too, and you deserve serious advice.

Zig Zigler, a famous motivational speaker, once said that people don't plan to fail, they fail to plan. With a game plan, you will eliminate many of the headaches involved in this complicated transaction.

You need a clear plan when deciding to buy a house. Evaluate your current situation. Do you currently own a home? If so, will it be necessary to sell before making another purchase? Are you renting? How much time is left on your lease? Do you and your family plan to use the back yard? What is important about the location of your house? Do you want to live within 10 minutes or one hour from the office?

Make a list of features which are important in your home. Write down desirable locations you would consider, an acceptable price range, number of bedrooms and bathrooms, and any other amenities. Be specific. It is unlikely that you will find a home that offers every feature you desire. However, without a wish list, it will be more difficult to recognize a home which meets your expectations.

Provide your list to your Realtor. Your Realtor will look for homes that match your criteria. This will save you time – you won't need to look at homes that do not fit your needs and desires.

A proper game plan will save you time and reduce the hassle of shopping for a home. Spend a little time in advance and save a lot of time and money in the future!



James Servoss
(520) 918-4857
jservoss@LongRealty.com
http://www.luxurytucsoncondos.com

What’s more important - cost or price?

What’s more important - cost or price?

With so many moving pieces in the housing market these days, it may get confusing to know what is more important for buyers - cost or price? Are cost and price the same? Not necessarily. For an example, think in terms of buying a car. Most buyers can’t recall the actual "price" of the car they bought, what is more important is their cost - or the actual monthly payment. The same applies to real estate. For a buyer, it is not just the "price" of the home that can impact cost, the interest rate on the mortgage is also an important factor. So while the "price" of the home may fall, if mortgage interest rates increase then the actual "cost" of the home may vary, depending on the magnitude of the price decline and rate increase. Lots to consider here. If you are in the market to purchase a home - make sure you understand the difference cost and price and how that impacts your wallet. You may find that if you wait too long for prices to drop, your cost may actually increase with higher rates - and no one wants to increase their cost.

Is There Life After the Homebuyer Tax Credit?

Is There Life After the HomeBuyer Tax Credit?

Now that we have passed the April 30, 2010 homebuyer tax credit deadline to enter a qualified purchase contract, the question becomes "Is there life after the tax credit"?

Survey Says!

One way to get a perspective on where the housing market is heading in Arizona is to ask those that are working with buyer and sellers every day. Long Realty Company recently conducted a survey of its agents to find out what their perception is on how much impact the homebuyer tax credit has had and in what direction the housing market will go for the balance of 2010.

Here is some background information on the survey:

230 Survey Responses

846 closed transactions reported in the first 3 months of 2010 by the respondents

606 pended transactions (in escrow, not closed) reported in the first 3 months of 2010 by the respondents

Survey Results

What percentage of your buyers will take advantage of the home buyer tax credit program?

Your average sales price for all of your transactions in 2010 is:

After the homebuyer tax credit ends on April 30, do you think buyer activity in your marketplace will:

So What Does It Mean?

Almost half of the agent respondents said that the tax credit will impact 0-10% of their buyers, and 58% of the respondents said they thought that buyer activity will stay the same for the balance of the year. While it is certain that the homebuyer tax credit has had some impact to the market, it appears that, at least from a Long Realty agent perspective, that it may not have been the primary driver of business so far this year. Agents feel that the right house at the right price with low mortgage rates are driving buyer activity, and that the tax credit has been a secondary incentive. Which, if true, means that those primary drivers of the housing market remain after April 30, 2010.

Pinnacle Canyon Tucson Condo For Sale

MLS#: 21009805
Residential / Condo
Const. Status: Existing
Status: Active


List Price: 182,500

SqFt +/- / Source 1,074 /
Year Built: 1996
Area: North
Municipality/Zoning: Pima County - TR
County: Pima
Year/Taxes: 2009 / 1,687
HOA Fee Amt P/Month: 172

School District: Catalina Foothills
Elementary School: Canyon View
Middle School: Esperero Canyon
High School: Catalina Fthls
Subdivision: Pinnacle Canyon Condos
Community: None
-
List Price/SqFt: 169.93
TRS: 13 / 15 / 18
Lot Acres: 0
Lot Dimensions: Condo
Lot Sqft:
Lot Size Source: Assessor
Tax Code: 114-15-673B
Assessments: 0
Ownership: CND
FEMA Flood Ins Req: No
Fire Prot Incl Taxes: No
Terms: Cash; Conventional
Cross Block: 5500 - N
| Pima County GIS | Pima County Assessor
Address: 7050 E Sunrise Drive 4104 Tucson, AZ 85750
Directions: From Sunrise and Kolb, East to Pinnacle Canyon Condo entrance. Take right gate to building #4.
Legal Description: Pinnacle Canyon Condominium Bldg 4 Unit 32 @ garage @ .691% Int in common elements
Bedrooms:2
Total Baths:2 (2-0-0 -0)
Dining Room: Area
Family Room: Great Room
Breakfast: Area
Guest Facilities: None
Laundry: Closet
Extra Room: Storage
Pool: Community
Spa: Community
Patio: Covered
Guest Facilities: None
Window Cover: Stay
HmeProt: None
RV Parking: None
Landscape - Front: Low Care
Landscape - Rear: Grass
Environmental Discl: Unknown
Construction: Frame - Stucco
Style:Contemporary
# of Stories: 1
# of Garage Spaces:1
# of Carport Spaces: 0
Roof: Built-Up - Reflect
Fence: Wrought Iron
#Fireplaces/Loc: 0 / None
Floor Covering: Carpet; Ceramic
View: Mountain
New Construction:
A/C: Central
Evap: None
Heat: Forced Air - Elec
Gas: None
Water: City Water
Sewer: Connected
Mobile Home:

Appliances: Alarm; Dishwasher; Disposal; Dryer; Garage; Microwave; Oven/Stove; Refrigerator; Washer
Miscellaneous: Athletic Facilities: Yes Basement: No Cable Available: Yes Deed Restrictions: Yes Disability Adapted: No Dividable Lot: No Fix Up: No Gated Community: Yes Horse Facilities: No Horses Allowed: No Interior Steps: No On Golf Course: No Paved Street: Yes Split Bedroom Plan: Yes Split Level: No Subdivided Lots: Yes
Facilities: Exercise Facilities; Lighted; Rec Center
Green Features:
Terms: Cash; Conventional
Loan Information:
Remarks: Fully furnished remodeled ground floor condo and garage located in the luxury gated community of Pinnacle Canyon. This private 2BR/2BA treasure overlooks park-like grounds & features 1074 sqft, split bedroom floorplan, high ceiling with crown molding & a spacious master suite. Resort style common area includes heated yearround pool & spa, exercise facility, clubhouse, bbq areas, romantic fireplace and a soothing waterfall. Conveniently located.
Listing Provided Courtesy Of: Long Realty Company
James Servoss,
Long Realty Company
6410 E. Tanque Verde Rd.
Tucson, AZ 85715
jservoss@longrealty.com
520-603-1549
http://www.luxurytucsoncondos.com