By Joe Szabo, Scottsdale Real Estate Team Technology advances have reinvented mobile phones, music, TV, and many other industries in the past decade. And now technology is finally beginning to overhaul the mortgage process. But is it really possible to have a 100-percent digital mortgage? Let’s take a look.

Clarifying the digital mortgage process

The two biggest misconceptions of digital mortgages are that you can get a mortgage with the push of a button, and that you won’t have to provide as much documentation. When you make a video call or stream a song or movie, you’re literally pushing a button or two. But a mortgage is still a major financial transaction requiring documentation and analysis of your full financial life, so you’ll need to put in some effort — even when it’s sped up by a digital process. Likewise, digital mortgages speed you up, but typically don’t reduce the documentation required. Reduced documentation mortgages played a major role in setting off the financial crisis in 2008 as lenders required less and less income, asset, and employment verification to approve mortgages. Then the reverse happened for years after the crisis: lenders would provide seemingly never-ending checklists of required documentation to approve and close your mortgage. Today, you’re still providing the same amount of documentation, but the efficiencies of technology make the process much easier. For example, today you’re answering questions about credit, residence, and employment history in an online form, whereas just two years ago you would have had to write, sign, and send letters to answer acceptably. And today you can authorize your lender to obtain pay stubs, bank statements, and tax returns from the sources rather than assembling and sending all of this documentation yourself.

What you can do digitally vs. what you can’t

The federal laws created after the crisis require lenders to prove (with your full documentation) that they’ve verified your ability to repay your mortgage before you take it out. To do this, lenders must follow eight federally required loan approval factors. So if a digital process doesn’t satisfy these parameters for any reason whatsoever, you can be sure your lender will send you follow-up checklists requesting more documentation. If you applied online originally, follow-up checklists and documentation may be requested and provided online, or the old-fashioned email way. Each lender’s process is different, and your lender will instruct you. Processes are also different depending on loan size and type. For example, if you’re applying for a conforming mortgage up to $417,000; you’ve been a straight salary employee (that is, receiving no bonus or commission) at a large company for more than two years; you file your taxes using an online service; and you have online accounts with all of the financial institutions that have your money, then the digital mortgage process will likely be very easy. You apply online; authorize your lender to directly obtain pay stubs, bank statements, and tax returns on your behalf; and run a credit report. Then the digital process will analyze this documentation, and run an automated loan approval. For a profile like this, you could be approved in 10 to 30 minutes. Conversely, if you’re applying for a jumbo mortgage above $417,000; you’re self employed with multiple sources of income; you have a tax adviser manually prepare your taxes; and you don’t have online accounts with all of the financial institutions that have your money, then the digital mortgage process will require more human intervention by you and your lender. You apply online and provide the same authorizations as above, but you’ll need to assemble and submit a lot of documentation yourself, and you’ll likely see follow-up checklists as your lender manually reviews and approves your file — because loans above $417,000 are often ineligible for automated approval. The process could take hours or days.

How many lenders offer digital mortgages?

Today, the digital revolution is still working its way through the mortgage industry. You might get amazing technology or outstanding service and advice, but not all lenders have married both so far. As more lenders adopt the digital processes described above, your decision as a mortgage shopper will come down to whether you want to run the whole process yourself online, or you want an adviser to help you in person along the way. Because home buying is a large — and often intimidating — financial decision, good advice is likely to remain at the forefront of the mortgage offering. So if you want great advice plus the efficiencies of a digital process, it’s best to start by finding a great local lender, then interviewing them about their digital offerings. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

1. By Joe Szabo, Scottsdale Real Estate Team

It’s funny how after the holidays, living in a Winter Wonderland becomes a whole lot less wonderful. Whether you’re enduring thunderstorms, snow, or gusts of wind, snuggling up at home near a crackling fire or in your personal reading nook is the ideal way to wait out the weather. No matter your interior style, there’s always room to add a few cozy touches. Here are some favorite ways to warm up your home design to face the wintry days ahead.

Fireplaces: Light up the night (or day)

There might be nothing in the world as comforting as a beautifully decorated fireplace. While it’s typical to have these fixtures in the living room or even the dining room, consider the charm of having one in your own bedroom. The soothing crackling of a fire is the perfect way to wind down at the end of the day, and with so many styles to choose from, you’re sure to find one that fits your interior style.

Reading nooks: Bookworms’ paradise

Creating a little getaway within your own four walls is a fantastic way to warm up on a particularly cold day. A reading nook can inspire calm and creativity with a few simple furnishings and accessories. Pair a fun patterned chair with an ottoman, and a unique side table to set your reading material on. Make sure you have sufficient lighting and a cozy throw blanket nearby for those days when you just want to curl up with a good book.

Window seats: Room with a view

On your day off, there’s nothing quite like sipping a cup of coffee while enjoying a beautiful view. What better way to soak up your surroundings than with comfy window seating? Traditionally found in older homes with Victorian style, window seating is versatile and complements most styles of design. If your home is modern, consider a bright white seating display with patterned pillows. If your look is more traditional, opt for textured seating in a timeless print. Whatever your choice, you won’t regret spending time in this cozy spot.

Area rugs: Keeping toes toasty

Hardwood floors are a luxury, but they can be painfully cold in the winter months. Help insulate your home with plush area rugs throughout the space for visual warmth and added coziness. Rugs with texture like shag or a high pile offer extra comfort while walking around the house. Put one in each high-traffic area, as well as under your bed to ensure you wake up with warm feet. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

By Joe Szabo, Scottsdale Real Estate Team There are many ways to bring the ambiance of the tropics into your home to get you through winter, but nothing conjures up visions of swaying coconut palms better than adding — what else? — potted palm trees as houseplants. Light a coconut-scented candle, crank up the heat and some hula tunes, close your eyes and brush your face against a palm frond: You’re not in the living room anymore, my friend, and your spouse isn’t looking up the psychiatrist’s cell phone number on your behalf. You’re in the tropics! It might take a bit of imagination, but you’d be surprised at what one or two potted palm trees can accomplish with the right placement. Here’s how to transform your home with little more than a couple of potted palms.

Pick your spot

Place a single large palm in a rattan/wicker cachepot, basket or trashcan, set it beside an armchair, and it magically anchors the room with visual weight and tropical flair. Complete the look with a tropical cocktail of your choosing, or take it overboard by buying the parrot you’ve always wanted. Want to make a fancy-schmancy vignette with a nothing more than a hall table and whatever you happen to have lying around? Hang an ornately framed mirror on the wall above the hall table and place two small parlor palms in ornate pots (especially urns) on the table — one to each side of the mirror. Beneath the mirror and between the palms, stack a few large coffeetable books and fill a big bowl with pinecones, balls of yarn, or anything else you have lying around in quantity.

Choose the right palm

Easy palms that can tolerate neglect and low light are easy to find and include:

• Lady palm (Rhapis excelsa)
• Howea palm (Howea belmoreana)
• Bamboo palm (Chamaedorea seifrizii)
• Pygmy date palm (Phoenix roebelinii)
• Kentia palm (Howea forsteriana)
• Parlor palm (Chamaedorea elegans) — the easiest and most affordable palm of all.

Still, there are palms to avoid if you’re just starting out. The majesty palm (Ravenea rivularis), cat palm (Chaemadorea cataractum), fishtail palm (Caryota mitis) and Chinese fan palm (Livistona chinensis), for example, need more light and humidity than most homes can provide — especially in the winter months.

Caring for palms

If you’re growing one of the palms that I’ve included in the ‘easy list’, you don’t have to do very much to keep them happy. First, make sure the pot has drainage holes so that water won’t collect and rot the roots. If you really want to use that pot without drainage holes, keep the plant in its plastic container and use the pretty one as a decorative cachepot, removing any water that accumulates in the base. Place your palm in a spot with bright, indirect light — bright enough to read comfortably, but not so bright that you have to squint. Palms in the ‘easy’ list will tolerate lower light, but will be more susceptible to problems like pests over time. Their petioles (leaf stems) will also become longer as they reach for more light, giving you a different-looking palm than the one you purchased. Water your palm when the top one or two inches of the potting mix becomes dry. The potting mix shouldn’t be dripping wet, nor should it be bone dry. Palms can take a lot of abuse, but they won’t necessarily look good. Fertilizing your palm isn’t necessary, but using an organic palm fertilizer according to the label instructions will help it cope with any pests that arise. It will also provide any missing nutrients that palms need to stay healthy.

Palm problems

The most common pests on indoor palms are mealybugs, which are cottony fluffs that hide under leaves and inside leaf axils; scale insects, which appear as hard barnacle-like growths; and spider mites that are too tiny to see but can be identified by dried out leaves and specks of dusty black fecal matter. Pests also spread viruses to indoor palms, resulting in distorted, streaked foliage and eventual death. There is no cure for viruses on palms, and any affected plants must be destroyed to prevent the viruses’ spread. Luckily, viruses are rarely found in healthy indoor palms. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

By Joe Szabo, Scottsdale Real Estate Team The final walk-through in real estate was designed so that the buyer can confirm the home is in the same condition as when they made their offer and had the home inspected. Its also an opportunity to make sure the seller has actually vacated. From time to time, a buyer and seller will have negotiated any number of fixes during escrow. The walk-through gives the buyer a chance to make sure all the agreed-upon work has been done to specifications, and that everything is in working order. Sometimes, buyers are so excited to close that they quickly whisk through the walk-through without taking time to inspect the property. This can lead to small issues once the buyers take ownership. On the other hand, the final walk-through can raise both positive and negative emotions during this final part of the sale process. It’s smart to take the walk-through seriously. Don’t see it as simply checking a box.  You should run all the faucets and check for leaks. Flush the toilet bowls, open every window and close it and make sure the appliances work. Here are some tips for buyers to help complete a smooth and effective walk-through.

Don’t do the walk-through the day of closing

A walk-through can uncover repairs that need to be made, but that you didn’t know about before. If you do the walk-through the same day as the closing, there may not be time to get problems remedied. It’s not uncommon for two walk-throughs to happen. The first identifies some issues for the buyer, and the second makes sure those issues were addressed. The alternative is to push the closing back to address the issues.  The problem here is that your lender may not have approved a delayed closing. It’s better to hammer out any issues in advance.

Use your mobile phone to check the outlets

Plug a phone into all of the outlets to make sure the electricity works. You want to avoid moving in all your stuff, only to realize some outlets don’t work, and you lack light in a bedroom. Bring your phone and charger to the walk-through and test all the outlets. It’s quick and easy.

Be on the lookout for the sellers’ leftover belongings

Sellers are notorious for leaving junk behind, so take the time to check the garage and attic, and under the deck. The sellers may just assume you want their old paint cans or a propane tank for a future grill. In fact, they should leave the place completely empty. Some left-behind items, such as the paint, can be toxic or require special provisions for disposal. For example, one seller left behind all kinds of used oil that needed to go to a certain, state-approved car repair shop to be disposed of properly. These unwanted items become yours after you close.

Be emotionally prepared for a surprise

Buyers often fall in love with a home that’s full of furniture, art and belongings. They see it as a home, and remember a warm feeling. Fast-forward to the close of escrow and you’re faced with an empty home, which can feel cold, sterile or hollow. Buyers are often surprised by how they feel entering an empty home. Not only is it absent any furniture and “stuff,” but sometimes an empty home shows its imperfections, too. The sun may have slightly bleached floors, showing the outline of a rug. There may be carpet stains or holes in the wall from a flat-screen TV or paintings. An empty home tends to show poorly, so prepare yourself before the walk-through. The journey toward homeownership is often a long one, filled with lots of excitement and ups and downs. The final walk-through is one of the very last steps of what could be a multiple-year process. Consider the walk-through in advance and prepare for it mentally, emotionally and physically. Know what you want to look for, have a checklist, and keep your emotions and feelings in check. Doing so will make for a smooth ride to the close of escrow. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.