Volatility Rules the Markets.

In This Issue...           Last Week in Review: Volatility was the name of the game, with steep selloffs in Stocks and whipsaw trading. How did Bonds and home loan rates fare? Forecast for the Week: With housing news, manufacturing news, and inflation news, plus the continued credit crisis in Europe, more volatility could be in store. View: Still trying to understand the implications of Standard & Poor's downgrade of the United States' credit rating? Check out the key points below.           Last Week in Review           "Where do we go from here?" That question from Alicia Keys' song was one many traders were probably asking, after a week where we saw a massive and historic selloff in Stocks and rallies in safe-haven instruments like Treasuries and Gold. What happened and what does all of this mean for Bonds and home loan rates? Read on for details. Standard and Poor's downgrade of the United States' credit rating from AAA to AA+ late Friday, August 5th led to an especially volatile week, with the Dow Jones Industrial Average falling over 600 points and the S&P 500 Index experiencing its worst day since December 1, 2008-and that was just on Monday! The extreme volatility continued through the week, including Tuesday after the Fed released their Policy Statement, which was rather downbeat on the economy. In fact, Fed Chairman Ben Bernanke said, "Economic growth so far this year has been considerably slower than the Committee had expected." So where does our economy go from here? The incoming economic data will be under a microscope, as global markets try to decipher if the US (and the world) is slipping back into a recession, or just experiencing a slow patch. If economic reports here in the US show even modest strength and an improvement from the recent weak news, Stocks could retrace some lost ground, which would come at the expense of Bonds and home loan rates. We saw some of this happen late last week, after Initial Jobless Claims fell below 400,000 for the first time in weeks and Retail Sales for July had their biggest increase in four months. That being said, the current and ongoing concerns out of Europe should continue to provide a safe haven bid into the US Bond market... and this will help Bonds and home loan rates. But as you can see, with so many if's, about the only thing we can be sure of is more volatility. Wherever we go from here, the key takeaway is that RIGHT NOW, home loan rates remain near some of the best levels we've ever seen. If you've been thinking about buying or refinancing a home, give me a call or send me an email to learn how you can take advantage of this situation. Or forward this newsletter on to someone you know who may benefit.           Forecast for the Week           A slew of economic reports this week could give us a hint as to where we're heading. Look for: Housing news with July's Housing Starts and Building Permits Report on Tuesday and July'sExisting Home Sales Report on Thursday. Inflation news with the Producer Price Index, which measures inflation at the wholesale level, on Wednesday, followed by Thursday's Consumer Price Index. Inflation readings are important to watch right now, as a deflationary or low inflation environment will support low home loan rates. Manufacturing news with Thursday's Philadelphia Fed Index. Thursday also brings another weekly Initial and Continuing Jobless Claims Report. Last week's Initial Claims came in at 395,000, below the crucial 400,000 level which signals real improvement in the labor market. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. As you can see in the chart below, Bonds and home loan rates reached some of their best levels last week, and still remain at great levels even with all the volatility. Let me know if you have any questions at all about whether you can benefit from this situation. ----------------------- Chart: Fannie Mae 3.5% Mortgage Bond (Friday Aug 12, 2011)           The Mortgage Market Guide View...                   The Downgrade and Home Loan Rates Standard & Poor's (S&P) downgrade of the United States' credit rating from AAA to AA+ was historic-and Stocks have certainly been volatile since the downgrade. But US Bonds and home loan rates haven't been crushed by the news. If you've heard questions about the downgrade and home loan rates, keep the following points in mind: Despite the downgrade, there are a number of factors that bode well for US Bonds and home loan rates. S&P is currently the only credit rating agency that has downgraded the United States. Both credit rating agencies Moody's and Fitch have maintained the United States' AAA rating. More importantly, the ongoing credit crisis in Greece and other parts of Europe means that US Bonds are still considered one of the safest places to invest. The bottom line is that home loan rates remain near their historic best levels, but about the only thing that is certain in the markets right now is the volatility. If you know someone who has been thinking about buying a home or refinancing, call or email today to get started. -------------------------- Economic Calendar for the Week of August 15-19, 2011 Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise. Economic Calendar for the Week of August 15 - August 19 Date ET Economic Report For Estimate Actual

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What Happens In Washington Doesn't Stay in Washington

In This Issue...           Last Week in Review: You could feel the heat last week, both around the country and in Washington DC, as the debt ceiling debate raged on. Forecast for the Week: Earnings season continues, plus reports on housing, the economy, and how the consumer is feeling. View: Flying the skies just got friendlier, thanks to these new rules.           Last Week in Review           "The heat is on." The title of that Glenn Frey song not only applied to the sweltering temperatures around much of the nation last week, it also applied to the debt ceiling debate, as the heat was on our leaders in Washington to finalize a solution to our debt situation. Why is this important? Read on for details. It only takes a look at what is happening in Europe these days to understand why it's crucial that the United States finds a solution to the debt ceiling issue. Not only have eight European banks recently failed a stress test, but last week there was news that Greek, Italian, Portuguese, and French "credit default swaps" (which are insurance policies against default) were trading at record levels. While the European Union is continuing to work to contain Europe's debt problems and prevent a default in Greece (and elsewhere), these events bode a very important lesson for the US. Why? Because solving our debt ceiling debate and finding a long-term plan for lowering our deficit and being fiscally sound will raise confidence in our debt and help the US keep its AAA credit rating from the various credit rating firms like Moody's and Standard and Poor's. This will help investors continue to see the US as the ultra safe haven for their money, which is a key aspect of our continued economic recovery. Speaking of our economic recovery, there was some good news last week for the housing sector, as June Housing Starts and Building Permits were both reported better than expected. While this is only one number and one number doesn't make a trend, this is a good figure, and I will be watching closely for follow through in future readings. If you've been thinking about buying or refinancing a home, give me a call or send me an email to learn how you can take advantage of home loan rates that remain near some of the best levels we've seen this year. Or forward this newsletter on to someone you know who may benefit.           Forecast for the Week           Earnings season continues, with reports from 3M, Ford, and Exxon, among others. Plus, a busy week is ahead when it comes to economic reports. Look for: On Tuesday we'll get an idea about how people are feeling about the economy with the Consumer Confidence Report. Tuesday also brings a report on New Home Sales, which will be followed by the Pending Home Sales Report on Thursday. Thursday also brings another weekly Initial and Continuing Jobless Claims Report. Last week's Initial Jobless claims came in at 418,000, above the 400,000 mark for the 15th consecutive week. This leading indicator on job market health tells us that the labor market pains have not subsided. Rounding out the week is a double read on the state of the economy with Wednesday's Durable Goods Orders, which gives us an update on consumer and business buying behavior on big-ticket items, and Friday's Gross Domestic Product Report, which is the broadest measure of economic activity. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. As you can see in the chart below, uncertainty in Washington and overseas caused volatility and anxiety in the markets last week, which put pressure on the Bond market and home loan rates. But remember, rates are still very attractive right now. Let me know if I can answer any questions for you. Philip Jensen  Arizona Mortgage  Phoenix home loan Arizona homes for sale great Arizona schools ----------------------- Chart: Fannie Mae 4.0% Mortgage Bond (Friday Jul 22, 2011)           The Mortgage Market Guide View...                   New Passenger-Friendly Rules for Air Travel New rules will also raise compensation if you're bumped. By Susannah Snider, Kiplinger.com When Jacqueline Tanzella flew from San Francisco to Florida recently for a family vacation, she paid $25 for Delta Airlines to check her bag. She landed around midnight; her suitcase didn't. Tanzella made it through the night by borrowing pajamas from an aunt and a new Superman toothbrush from her nephew. But she wasn't happy. "I didn't pay a $25 fee only to be inconvenienced by not having my bag until the next morning," she says. "Most retailers would reimburse me or give me a credit in a situation like this." Baggage fees are getting scrutiny in expanded airline passenger protections announced by the Department of Transportation. One rule requires airlines to reimburse bag-check fees if your luggage is lost. That won't help fliers like Tanzella, whose bags are merely delayed, and some experts are grumbling that the protections lack bite. "It is only incremental improvement," says Rick Seaney, of FareCompare.com. The new protections will also increase the amount that airlines must pay passengers who are involuntarily bumped (from a maximum of $800 now to a maximum of $1,300), limit the time international flights may sit on the tarmac, and require taxes and fees to be more clearly displayed in advertised fares. Expect some negative side effects. For instance, less overbooking by airlines to avoid higher "bump" fees could put upward pressure on fares, says CrankyFlier.com's Brett Snyder. The new rules go into effect in August. Reprinted with permission. All Contents c2011 The Kiplinger Washington Editors. www.kiplinger.com. -------------------------- Economic Calendar for the Week of July 25-29, 2011 Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise. Economic Calendar for the Week of July 25 - July 29 Date ET Economic Report For

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Recovery Slows, Housing Opportunity Grows

Phil Jensen Amerifirst Financial Office: 480-682-6613 Phoenix Mortgage  Arizona Home Loans AZ Homes For Sale  Houses For Sale AZ Arizona Homes For Sale  AZ High Schools Phoenix Homes For Sale Arizona Real Estate Lead Generation

In This Issue...

Last Week in Review: Volatility was extremely high... but the bottom line is a tremendous opportunity. Read the details below! Forecast for the Week: Go beyond economic reports! Find out what to watch and why. View: Know a college student who graduated or will soon? Here are 10 great gift ideas you may never have considered!

Last Week in Review

"SLOW DOWN... YOU MOVE TOO FAST." Maybe the economic recovery is taking acue from these 1960's lyrics by Simon and Garfunkel, as the economic recovery seems to be in a sluggish state at the moment. And while it doesn't leave too many Americans "feelin' groovy," there are some amazing opportunities at hand in housing. Here's what you need to know about the economy and housing industry - along with one sure thing about the current situation. Volatility was extremely high last week - not just in the financial markets, but also in the economic reports and economic outlook. The big news of the week was the official Jobs Report, which came in well below expectations. In fact, in the private sector alone, the report indicated that only 83,000 jobs were created in May - and that number was almost 100,000 less than expected! Although the Hourly Earnings component of the report came in a little better than expected, the overall report was just plain bad. Even for a market hungry for good news, there was no way to spin this report. Now the markets will have to wait and see if this was a one-off bad report and just a bump in the road to recovery... or if things have indeed slowed down once again. Manufacturing slowing? New data on the manufacturing sector of the economy also indicated a possible slowdown, as the Chicago PMI and the ISM Index - which both measure manufacturing - came in below expectations. Rumors of a bailout lower the US Dollar. In news across the pond, reports came out last week that Germany is putting together a plan to bailout Greece. The plan would "kick the can down the road" a little longer for Greece, allowing them more time to figure out a strategy to get their debt in order. As a result of these bailout hopes, the Euro was strengthened and the US Dollar dipped lower. Remember, a softer US Dollar helps US Stocks, as US companies benefit from stronger exports with a weakening Dollar. But a lower Dollar isn't so good for Bonds, so this news stalled the rise of Bonds early last week. Home prices still very affordable. Moving from Europe back home to the US, we also received new data last week on home prices across the country. According to the 20-city Case-Shiller Home Price Index, prices were down 0.8% in March. Overall, foreclosures and bank-owned sales continue to weigh on housing - and are expected to do so for a couple more quarters. That said, the housing market is very localized, so only a local real estate professional can help you understand where home prices are at in your community - let me know if you need a referral to someone great in your area. One thing's for sure... If you or someone you know is considering purchasing a home or refinancing, this is an ideal time to see how you can benefit from the current market conditions. Home prices are extremely affordable right now and home loan rates are near historic lows. It only takes a few minutes to look at some options that fit your unique goals and situation. Call or email today to see how you can benefit from the current situation!

Forecast for the Week

After last week's volatility, the markets receive a bit of a reprieve - with no major reports due out until mid-week. Here are some reports to watch, followed by some news items that may impact Bonds and home loan rates in the days ahead: The Fed's Beige Book will be released on Wednesday. The Beige Book contains anecdotal information on the current economic and business conditions. Although some people consider the Beige Book to be a lagging report, it can serve as a helpful indicator of the Fed's policy decisions. It reflects data from bank reports, as well as interviews with key business contacts, economists, market experts, and other sources. After the volatility and negative news last week, this report will be as important as ever. The Jobless Claims report comes out Thursday. Last week, Initial Jobless Claims were within expectations, so it wasn't a horrible reading. That said, the disappointing Jobs Report demonstrates that employment is definitely still a concern, so the markets will be watching the Jobless Claims report closely this Thursday. Also on Thursday, we'll see the Balance of Trade report, which focuses on exports and imports. Remember, a negative balance of trade - or a deficit - occurs when imports surpass exports. Rising deficits can be reflective of increased consumption, which can be a sign of a strengthening economy. But don't let the slow week of economic reports fool you. With just a few economic reports to digest and the earnings season over, the Bond markets will take their cue from how the Stocks markets move. Soft economic data has put a dent in Stock prices in the past month, so investors may be leery to commit any new funds into the equity markets and could support Bonds. However, the Bond markets will have to contend with $66 Billion in Notes and Bonds to be offered by the Treasury - and the auctions could weigh on Bonds and home loan prices. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. As you can see in the chart below, Mortgage Bonds and home loan rates have benefited from weak economic data the last couple of weeks. That makes now a great time to purchase a home or refinance. Call or email to see some options that may pleasantly surprise you. Chart: Fannie Mae 4.0% Mortgage Bond (Friday Jun 03, 2011)

The Mortgage Market Guide View...

10 Great Gifts for College Grads Help them get a head start in the real world. By Cameron Huddleston, Kiplinger.com Some college seniors may be hoping Mom and Dad will spring for an all-expenses-paid trip to Europe so they can go "find themselves" or just take time off before starting the daily grind of 9-to-5 life. Aside from the fact that most parents can't afford this sort of gift, it won't help new grads get a head start in the real world. If you're looking for practical graduation gift ideas, consider these: Interview attire. It's crucial to project the right image if you want to get a job and get ahead. But college seniors are more likely to have closets filled with shorts, jeans and t-shirts than work-appropriate attire. So take your grad shopping for a good suit. For families on a budget, give a nice tie, dress shirt and perhaps some sensible shoes. And share these ten tips with your grad so he or she can ace an interview. Financial advice. If your child knows little about the basics of investing or personal finance, help her learn with a few good books. For easy-to-read primers, see 4 Great Financial Books for Recent Grads. Or get her a subscription to Kiplinger's Personal Finance magazine for just $12. Gym membership. Help your grad release steam after a long day of work at a new job with a gym membership, the price of which tends to drop in spring and summer (so you'll get a deal). Kitchenware. This is a gift people often think of for newlyweds. But college grads can benefit from having pots and pans to cook meals at home and save. Plus, kitchenware tends to go on sale in May, so you should be able to find deals. Grocery gift card. Encourage your grad to cook at home with a gift card to a grocery store. Hopefully, she'll be less tempted to dine out if she can stock her refrigerator for free. You can find discount grocery gift cards at Gift Card Granny. A mattress. Everyone has to sleep. So your college student will surely appreciate a real bed -- rather than that worn-out futon he was sleeping on in his college apartment. And May is a good time to buy mattresses, which can be marked down by as much as 50% as retailers try to make way for newer models. Security deposit for an apartment. For grads just starting out, coming up with the first month's rent and a security deposit can be tough if their first paycheck won't show up until the end of the month. And you don't want them to have to rely on a credit card to make these payments. So consider chipping in by offering to write a check for the security deposit or one month's rent. Renter's insurance. First-time renters often don't realize that they'll have to pay to replace their stuff if it's stolen or damaged by fire or another disaster -- unless they have renter's insurance. You can help them protect their belongings and finances by purchasing them a policy, which usually costs $200 to $300 a year. Help with student-loan payments. Students with loans usually get a six-month grace period before they have to start making payments. If your grad doesn't have a job by that point, he might need help footing the monthly bill because you don't want him to default (see The Dark Side of Student Loans). Consider pitching in until he gets a steady paycheck or can find relief through a loan-deferment program. A head start on retirement savings. If your grad will have earned income from a job, you can open and fund a Roth IRA for her. Even if she has a workplace retirement account, she'll benefit from a Roth because she'll be able to withdraw the money tax-free in retirement. She also can withdraw contributions (not earnings) at any time tax- and penalty-free. To learn more, see The Basics of Roth IRAs. Reprinted with permission. All Contents c2011 The Kiplinger Washington Editors. www.kiplinger.com. Economic Calendar for the Week of June 6-10, 2011 Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise. Economic Calendar for the Week of June 06 - June 10 Date ET Economic Report For Estimate Actual Prior Impact Wed. June 08 02:00 Beige Book         Moderate Thu. June 09 08:30

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Recovery Slows, Housing Opportunity Grows

Phil Jensen Mortgage Director AmeriFirst Financial Phone: 602-692-7445 Fax: Phil@JensenTeam.com Phoenix Mortgage AZ Homes for Sale Arizona Home Loans Houses for sale AZ Phoenix Homes Arizona Homes for Sale Arizona Schools

In This Issue...           Last Week in Review: Volatility was extremely high... but the bottom line is a tremendous opportunity. Read the details below! Forecast for the Week: Go beyond economic reports! Find out what to watch and why. View: Know a college student who graduated or will soon? Here are 10 great gift ideas you may never have considered!           Last Week in Review           "SLOW DOWN... YOU MOVE TOO FAST." Maybe the economic recovery is taking acue from these 1960's lyrics by Simon and Garfunkel, as the economic recovery seems to be in a sluggish state at the moment. And while it doesn't leave too many Americans "feelin' groovy," there are some amazing opportunities at hand in housing. Here's what you need to know about the economy and housing industry - along with one sure thing about the current situation. Volatility was extremely high last week - not just in the financial markets, but also in the economic reports and economic outlook. The big news of the week was the official Jobs Report, which came in well below expectations. In fact, in the private sector alone, the report indicated that only 83,000 jobs were created in May - and that number was almost 100,000 less than expected! Although the Hourly Earnings component of the report came in a little better than expected, the overall report was just plain bad. Even for a market hungry for good news, there was no way to spin this report. Now the markets will have to wait and see if this was a one-off bad report and just a bump in the road to recovery... or if things have indeed slowed down once again. Manufacturing slowing? New data on the manufacturing sector of the economy also indicated a possible slowdown, as the Chicago PMI and the ISM Index - which both measure manufacturing - came in below expectations. Rumors of a bailout lower the US Dollar. In news across the pond, reports came out last week that Germany is putting together a plan to bailout Greece. The plan would "kick the can down the road" a little longer for Greece, allowing them more time to figure out a strategy to get their debt in order. As a result of these bailout hopes, the Euro was strengthened and the US Dollar dipped lower. Remember, a softer US Dollar helps US Stocks, as US companies benefit from stronger exports with a weakening Dollar. But a lower Dollar isn't so good for Bonds, so this news stalled the rise of Bonds early last week. Home prices still very affordable. Moving from Europe back home to the US, we also received new data last week on home prices across the country. According to the 20-city Case-Shiller Home Price Index, prices were down 0.8% in March. Overall, foreclosures and bank-owned sales continue to weigh on housing - and are expected to do so for a couple more quarters. That said, the housing market is very localized, so only a local real estate professional can help you understand where home prices are at in your community - let me know if you need a referral to someone great in your area. One thing's for sure... If you or someone you know is considering purchasing a home or refinancing, this is an ideal time to see how you can benefit from the current market conditions. Home prices are extremely affordable right now and home loan rates are near historic lows. It only takes a few minutes to look at some options that fit your unique goals and situation. Call or email today to see how you can benefit from the current situation!           Forecast for the Week           After last week's volatility, the markets receive a bit of a reprieve - with no major reports due out until mid-week. Here are some reports to watch, followed by some news items that may impact Bonds and home loan rates in the days ahead: The Fed's Beige Book will be released on Wednesday. The Beige Book contains anecdotal information on the current economic and business conditions. Although some people consider the Beige Book to be a lagging report, it can serve as a helpful indicator of the Fed's policy decisions. It reflects data from bank reports, as well as interviews with key business contacts, economists, market experts, and other sources. After the volatility and negative news last week, this report will be as important as ever. The Jobless Claims report comes out Thursday. Last week, Initial Jobless Claims were within expectations, so it wasn't a horrible reading. That said, the disappointing Jobs Report demonstrates that employment is definitely still a concern, so the markets will be watching the Jobless Claims report closely this Thursday. Also on Thursday, we'll see the Balance of Trade report, which focuses on exports and imports. Remember, a negative balance of trade - or a deficit - occurs when imports surpass exports. Rising deficits can be reflective of increased consumption, which can be a sign of a strengthening economy. But don't let the slow week of economic reports fool you. With just a few economic reports to digest and the earnings season over, the Bond markets will take their cue from how the Stocks markets move. Soft economic data has put a dent in Stock prices in the past month, so investors may be leery to commit any new funds into the equity markets and could support Bonds. However, the Bond markets will have to contend with $66 Billion in Notes and Bonds to be offered by the Treasury - and the auctions could weigh on Bonds and home loan prices. Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. As you can see in the chart below, Mortgage Bonds and home loan rates have benefited from weak economic data the last couple of weeks. That makes now a great time to purchase a home or refinance. Call or email to see some options that may pleasantly surprise you. Chart: Fannie Mae 4.0% Mortgage Bond (Friday Jun 03, 2011)           The Mortgage Market Guide View...

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Top 10 Arizona Home Buying Mistakes

TOP 10 HOME BUYING MISTAKES

Here are some of the most important and common mistakes made by home buyers. Keeping these in the forefront will help you go thru the mortgage process without major issues and help ensure a more enjoyable experience. While the following list includes many of the concerns you might encounter, it by no means is exhaustive.

1. Shopping for a home without being pre-approved. As a potential buyer competing for a property, you'll have a better chance of getting your offer accepted by being as prepared as possible. Consider this hierarchy of preparedness:
   • Noy pre-qualified nor pre-approved
   • Pre-qualified (Meaningless)
   • Pre-approved
   • Full approval, Commitment Letter from a local Phoenix Mortgage Company (AmeriFirst Financial )

When a seller looks at the qualifications of the buyer they are concerned with one thing! If I accept this offer will the buyer be able to perform. Meaning will you be able to obtain the loan in order to complete the purchase. As you can imagine, the sellers comfort level with any offer increases according to the documentation the buyer is able to provide demonstrating their ability to obtain loan approval. You must also remember the seller will for all practical purposes be taking the home off the market and be forgoing any other offers while engage in a contract with you. In addition, while the seller is looking at your offer and ability to perform, they are also comparing your offer with any other offers they may have. As a seller, let’s consider what type of buyer you would feel the most comfortable with.

Not pre-qualified or pre-approved

This buyer provides no evidence that they can afford to purchase your property. You may wonder how serious they are since they're not at least pre-qualified.

Pre-qualified

This buyer has met with a mortgage broker (or lender) and discussed their situation. The buyer has informed the broker regarding their income, expenses, assets and liabilities. The broker may also have seen their credit report. The buyer provided you with a letter from the broker stating an opinion of what the buyer can afford.

Pre-approved

This buyer has provided a broker written evidence of income, expenses, assets, liabilities and credit. All information has been verified by a lender. As a result, much of the paperwork for this buyer's loan has been completed. This buyer will probably be able to close quickly. They provide you with a letter (pre-approval certificate) from the lender. You're as certain as possible that this buyer can close. As a potential buyer, you can see that being pre-approved will give you the best chance of getting your offer accepted. This is critical in a competitive situation.

Full Approval from Local Phoenix Mortgage Company

Similar to a Pre-Approval in that the buyer has provided documentation supporting income, assets and has a credit report evaluated. However, working with The Arizona Mortgage Experts also include an automated approval and expertise on Arizona Purchase contract, guidelines and programs that help ensure a smooth transaction for everyone involved.

1. Verbal Agreements. Never agree to sign any document that contains instructions or commitments at odds with any verbal agreements you have with the seller. For example, the seller verbally agrees to include the washing machine in the sale, but the written purchase contract excludes it. The written contract will override the verbal contract. Do not expect oral agreements to be enforceable.
2. Choosing a lender because they publish the lowest rate. While the interest rate is important, you should consider the total cost of your loan including the loan fees, origination and discount points. When receiving a quote from a lender or broker, insist that the discount points (used to reduce the rate) be separated from origination points (charge for originating the loan).

   While the cost of the mortgage is very important, it shouldn't be your sole criteria. It is essential that you have confidence that the company you select is reputable and will deliver the loan with the terms and costs they promised. I can’t stress this enough, many unscrupulous mortgage company’s both online and in person can and will offer mortgage terms they can’t deliver. The old saying is still true, if it sounds too good to be true it is! With recent changes to Arizona Real Estate contracts it is more important than ever to select a mortgage company that you can trust.

3. Not receiving a Cost Estimate. Within three business days after the broker or lender receives your complete loan application, you must receive a written statement of fees associated with the transaction. This is both the law and the best way to determine what you'll pay for your loan. Bring the Good Faith Estimate (GFE) with you when you sign loan documents. You should not be expected to pay fees which are significantly different from those contained in your GFE.
4. Not getting a rate lock in writing. When you decide to lock your interest rate and the lender tells you they have, it’s a good idea to get the lock confirmation in writing and should include the length of the rate lock, and program details.
5. Using an dual agent--i.e., an agent who represents the buyer and the seller in the same transaction. Buyers and sellers have opposing interests. Sellers want to receive the highest price, buyers want to pay the lowest price. In the standard real estate transaction, the seller pays the real estate commission. When an agent represents both buyer and seller, the agent can tend to negotiate more vigorously on behalf of the seller. As a buyer, you're better off having an agent representing you exclusively. The only time you should consider a dual agent is when you get a price break. In that case, proceed cautiously and do your homework, making sure your agent is qualified for the job!
6. Buying a home for sale in Arizona without professional inspections. Unless you're buying a new home with warranties on most equipment, it's highly recommended that you get property, roof and termite inspections. This way you'll know what you are buying. Inspection reports are great negotiating tools when asking the seller to make needed repairs. When a professional inspector recommends that certain repairs be done, the seller is more likely to agree to do them.

   If the seller agrees to make repairs, have your inspector verify that they are done prior to settlement. Do not assume that everything was done as promised.

7. Not shopping for home insurance until you are ready to close. Start shopping for insurance as soon as you have an accepted offer. Many buyers wait until the last minute to get insurance and do not have time to shop around.
8. Signing documents without reading them. Whenever possible, review in advance the documents you'll be signing. (Even though some specifics of your transaction may not be known early in the transaction, the documents you'll sign are standard forms and are available for review.) It's unlikely that you'll have sufficient time to read all the documents during the closing appointment.
9. Not allowing for delays in the transaction. In a perfect world, all real estate transactions close on time. In the world we live in, transactions are often delayed a week or more. Suppose you asked your landlord to terminate your lease the day your purchase transaction was scheduled to close. A day or two before your scheduled closing date, you discover your transaction is delayed a week. In a perfect world, no one is inconvenienced and your landlord is willing to work with you. More likely, however, your landlord is inconvenienced and angry. Will you be thrown out? Will you have to find interim housing for a week or more? The eviction process takes a little time, so the Sheriff won't immediately remove you, but this type of stress-producing episode can be avoided. How? Terminate your lease one week after your real estate transaction is scheduled to close. That way, if there is a delay in closing your transaction, you have some leeway. This approach might cost a little more, but then again, it might not.

 

For additional information on Phoenix Mortgages visit the Arizona Mortgage Experts.

For information on AZ Homes For Sale visit Phoenix AZ Home Deals.

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Five Tips for Buyers Entering the Phoenix Home Market

FIVE TIPS FOR NEW HOME BUYERS ENTERING THE MARKET

Market Timing
Many Buyers try and time the market hoping to get the lowest possible price. In areas where prices are declining, it is very enticing for potential buyers to try to wait as long as possible in the hopes home prices will decline even further. This strategy can be costly because when there is high inventory, smart sellers price their homes accordingly. Typically they are not priced according to past sales but according to current conditions. 

Shopping  Around Is Alright But Don't Over Do It
The latest reports from the National Association of REALTORS indicate that homes are staying on the market for several months. Due to the increased inventory, it affords homebuyers a great opportunity to compare several homes that meet their requirements. This does not mean that homebuyers should wait too long. If you view a home that has all the features you love, by all means, put in an offer! If you wait too long you run the risk that another buyer my get there first.

 

 
Follow Mortgage Rates
The first half of 2011 has seen some of the lowest, Phoenix mortgage rates in recent memory.  This presents a great opportunity for new buyers and first time home buyers to enter the market. Basic mortgage calculators can help you determine just how much you will pay per month, based on a given rate.  For example, a monthly payment on a 5.00% 30-year fixed mortgage on a 200,000 loan will be $1,073.64, and APR of 5.31%.  You will still need to add Homeowners insurance, Taxes and HOA charge (if applicable).  Feel free to contact us today or click Phoenix Mortgage to apply online to see where you stand

 

Don’t Delay
After you have shopped around and know what features you would like in your new home and the area you would like to live in as well as the market prices. Once you find the home that fits the criteria, when the right home come up, don’t’ delay, many people will attest that they let the perfect home slip away after procrastinating for too long.  Once you choose a home, make a solid offer and don’t look back.  If you have selected a good agent, you should feel confident about your decision.  If the offer isn’t accepted or they sellers counter and the property no longer meets your terms, move on to the next property knowing that you have gained something from the experience.

Negotiate

Sellers want that are motivated to move due to job relocation, divorce, foreclosure or short-sale might offer you a number of concessions including paying closing costs, conveying furniture or appliances or other things of value. In any event, it is important that whatever is offered makes sense for you. Giving you a houseful of old furniture might be worth less to you than say remodeling a bathroom. We are here to help you qualify for your next home purchase as well as inform and advise you on all the nuances of the market and ever-changing laws.  Call us today with any questions!

 

 

 

 

 

 

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