Again… You Do Not Need 20% Down to Buy NOW!

Again… You Do Not Need 20% Down to Buy NOW!

A survey by Ipsos found that the American public is still somewhat confused about what is required to qualify for a home mortgage loan in today’s housing market. There are two major misconceptions that we want to address today.

1. Down Payment

The survey revealed that consumers overestimate the down payment funds needed to qualify for a home loan. According to the report, 40% of consumers think a 20% down payment is always required. In actuality, there are many loans written with a down payment of 3% or less.

Many renters may actually be able to enter the housing market sooner than they ever imagined with new programs that have emerged allowing less cash out of pocket.

2. FICO® Scores 

The survey also revealed that 62% of respondents believe they need excellent credit to buy a home, with 43% thinking a “good credit score” is over 780. In actuality, the average FICO®scores of approved conventional and FHA mortgages are much lower.

The average conventional loan closed in February had a credit score of 752, while FHA mortgages closed with a score of 686. The average across all loans closed in February was 720. The chart below shows the distribution of FICO® Scores for all loans approved in February.

Bottom Line

If you are a prospective buyer who is ‘ready’ and ‘willing’ to act now, but are not sure if you are ‘able’ to, let’s sit down to help you understand your true options. Contact us, Beth & James Adams, the Adams Team with Realty One Group Mountain Desert. 

Arizona Home Maintenance Checklist

What do you need to do to get your Sedona AZ Home ready for Spring? Check out our home maintenance check list below...

If you’ve ever owned a home in Arizona before, you know that just like your vehicle needs regular maintenance like oil changes to run well—so does your home. It can be easy to ignore or put these things off, but a well-maintained home will save you money from costly repairs in the long run, and make your home easier to sell when the time comes.

Start giving your home some TLC with some of these must-do maintenance tips:

Monthly

• Change HVAC or furnace filters. If your family is small and pet-free, simply inspect the filter and replace every 2-3 months.
• Clean range hood filters. Mix a degreaser with hot water, let it soak, then rinse it off.
• Check water softener. Check the salt level, add some if needed, and read the display to make sure no error codes are displayed. You’ll usually only add salt a few times a year.

Biannually

• Deep clean. Roll up your sleeves and deep clean appliances, windows, lighting, and every crevice and corner. Keeping a clean Sedona home and not letting dirt build up will help keep it polished.
• Test the pressure relief valve on the water heater. This prevents corrosion—protecting leaks and helping it run efficiently.
• Replace batteries in smoke/carbon dioxide detectors. Make it a habit to change batteries every time you set the clocks for daylight savings time.
• Vacuum refrigerator coils. The fridge can account for up to 15 percent of your home’s total power—keep it running efficiently.

Annually Organized by Season

Spring – There’s a reason it’s called “Spring Cleaning”

• Service central air. Do this before Sedona heats up– you can often get this done at a discounted rate with enough time to spare before it gets sweltering hot.
• Check gutters and drainage. When April showers start coming down, will the water flow away from your house? Keep gutters clear so the water can flow where it’s supposed to.
• Check grout in the bathroom and kitchen. Fix the grout where needed—This will extend the life of tiled surfaces and keep them looking new.
• Check windows and screens. Clean window wells of fall and winter debris.

Summer – Shift your focus to the outdoors and enjoy the sunshine

• Clean ducts, sweep the chimney and get heating systems ready. You’ll be turning these on at the first hint of crisp fall weather, so do this now.
• Check and clean the clothes dryer vent. While running, check the exhaust for the smell of fresh laundry. If the exhaust is marginal, check for blockages. Also, vacuum the lint from dryer hose.
• Clean garage. The garage is easy to ignore, get out there while the weather is nice, and check garage door sensors are working while you’re in there.

Fall – prepare for winter during this in-between season

• Winterize A/C systems. Store window units and, if you have central air, cover the outside unit with a tarp. Don’t forget to fasten with bungee cords for secure coverage throughout the season.
• Flush and store hoses. Drain the water so it doesn’t freeze.

Winter – cozy up and stay warm

• Break Icicles. As pretty as they look, don’t let them grow—they could fall unexpectedly, hurt someone and cause damage from their weight. When they melt, they can cause water damage to the foundation.
• Remove showerheads and clean deposits. This will keep your water pressure strong and keep them lasting long.
• Check the foundation for cracks. Use caulk or silicone to repair any small cracks before the Spring thaw.

While this list is comprehensive, this is not a complete list of all the things your Sedona home needs. Don’t forget to reach out to us, Beth & James Adams, your local real estate specialists for more information on other crucial home upkeep.

Happy Spring! 

Making an offer? 4 tips for success!

So you’ve been searching for that perfect house to call a ‘home,’ and you finally found one! The price is right, and in such a competitive market that you want to make sure you make a good offer so that you can guarantee your dream of making this house yours comes true!

Freddie Mac covered “4 Tips for Making an Offer” in their latest Executive Perspective. Here are the 4 Tips they covered along with some additional information for your consideration:

1. Understand How Much You Can Afford

“While it's not nearly as fun as house hunting, fully understanding your finances is critical in making an offer.”

This ‘tip’ or ‘step’ really should take place before you start your home search process.

As we’ve mentioned before, getting pre-approved is one of many steps that will show home sellers that you are serious about buying, and will allow you to make your offer with the confidence of knowing that you have already been approved for a mortgage for that amount. You will also need to know if you are prepared to make any repairs that may need to be made to the house (ex: new roof, new furnace).

2. Act Fast

“Even though there are fewer investors, the inventory of homes for sale is also low and competition for housing continues to heat up in many parts of the country.”

According to the latest Existing Home Sales Report, the inventory of homes for sale is currently at a 3.6-month supply; This is well below the 6-month supply that is needed for a ‘normal’ market. Buyer demand has continued to outpace the supply of homes for sale, causing buyers to compete with each other for their dream homes.

Make sure that as soon as you decide that you want to make an offer, you work with your agent to present it as soon as possible.

3. Make a Solid Offer

Freddie Mac offers this advice to help make your offer the strongest it can be:

“Your strongest offer will be comparable with other sales and listings in the neighborhood. A licensed real estate agent active in the neighborhoods you are considering will be instrumental in helping you put in a solid offer based on their experience and other key considerations such as recent sales of similar homes, the condition of the house and what you can afford.”

Consider ways of making your offer stand out! Many buyers write a personal letter to the seller letting them know how much they would love to be the new homeowners. Your agent will be able to help you figure out if there are any other ways your offer could stand out above the rest.

4. Be Prepared to Negotiate

“It's likely that you'll get at least one counteroffer from the sellers so be prepared. The two things most likely to be negotiated are the selling price and closing date. Given that, you'll be glad you did your homework first to understand how much you can afford.

Your agent will also be key in the negotiation process, giving you guidance on the counteroffer and making sure that the agreed-to contract terms are met.”

If your offer is approved, Freddie Mac urges you to “always get an independent home inspection, so you know the true condition of the home." If the inspection uncovers undisclosed problems or issues, you can discuss any repairs that may need to be made, with the seller, or cancel the contract.

Bottom Line

Whether buying your first home or your fifth, having a local professional on your side who is an expert in their market is your best bet to make sure the process goes smoothly. Happy House Hunting! 

Contact us, Beth & James Adams we are your unique and different local Realtors® serving the Sedona and Verde Valley Areas. Call or text 928-362-0568 or adamshomesaz@gmail.com