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When Do You Really Need a Real Estate Lawyer? By Joe Szabo, Scottsdale Real Estate Team

By Joe Szabo, Scottsdale Real Estate Team Price-conscious consumers are constantly looking for ways to snag savings. Be it a do-it-yourself bathroom backsplash or self-help legal documents, the current trend in real estate is shying away from enlisting a perceived-as-pricey professional. However, some projects are too complex, valuable, or regulated to take on as a layperson — and the result is often a frantic call to the local plumber or electrician. In the legal realm — particularly the transfer of real estate — there are definitely times when an attorney is not necessary, and the transaction will most certainly process without the assistance of a real estate lawyer. However, certain states mandate attorney involvement (or at least prohibit non-attorney over-involvement), making it unlawful to participate in a real estate settlement without a licensed attorney presiding. And certain transactions are too complicated, costly, or stressful to go it alone. Here are four situations when you should consult a real estate lawyer.

When it’s mandatory

A handful of states unequivocally mandate the involvement of a licensed attorney in a real estate transaction. These states take a dim view of non-attorney staff members preparing and conducting real estate settlements, calling such acts an “unauthorized practice of law.” This phrase actually derives from the rules of professional conduct (i.e., ethics) that govern attorney practice, and can result in sanctions against an attorney-supervisor for allowing this unauthorized practice with minimal oversight. Currently, Delaware, Georgia, New York, North Carolina, and South Carolina require attorney involvement, oversight, and direction in all aspects of a real estate transfer, from title review to signing documents. In Alabama, a non-attorney can perform a title search and issue title insurance, as long as a licensed attorney drafts all legal documents (e.g., deeds, mortgages and promissory notes). In all these states, the buyer has the unequivocal right to choose his or her legal representation; realtors, brokers, and lenders are not generally permitted to force a buyer to work with a certain attorney.

When it’s complex

For buyers in other states, working with a real estate attorney may still be advisable if the situation involves a complex or unique issue, such as:

Oil and gas rights
Riparian rights (i.e., access to water)
Beachfront property
Any property subject to an easement
Adverse possession claim
Historical property
Preserved property (i.e., farm preservation)
Zoning and/or land use disputes

When any of these issues arise at the outset of a real estate transaction, working with an attorney will inevitably be more cost-effective than dealing with a major conflict or claim later. In addition, the attorney can help review the title and ancillary documentation to ensure all documents comply with state and federal laws.

When it’s high value

Likewise, working with an attorney in a high-value residential transaction can be extremely important, particularly given the extent of the investment. When making a major real property purchase, buyers should ensure that the property is in prime shape — and demanding afull home inspection is one of the most important aspects of this process. Not only can an attorney work with the home inspector to ensure the property meets the buyers’ expectations, but the attorney can help negotiate with the seller if any issues arise. Also, high-end real estate may be subject to several liens, encumbrances, or judgments. A proper title search by an experienced real estate lawyer is the best way to ensure that these issues do not pass to the buyer on settlement day.

When it’s high stress

Lastly, not all real estate transactions are positive experiences, particularly if the seller is in a financial bind or the property is being sold from the estate of a recently deceased individual. When an air of emotion permeates the process, parties are apt to make rash decisions on price, contingencies, or conditions. And when a residential home sale feels “forced,” tempers may flare at the settlement table. By invoking the help of a legal professional to work through the process, buyers and sellers can participate in the transaction with confidence and a full understanding of what is happening, from the initial contract execution to the final closing. 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.

How Mortgage Strategy Differs for Millennials, Gen Xers, and Baby Boomers By Joe Szabo, Scottsdale Real Estate Team

By Joe Szabo, Scottsdale Real Estate Team Early-career home buyers tend to be light on cash, while mid-career home buyers are saving for retirement, and retiree home buyers are facing less income. Each of these life phases requires a different mortgage strategy. Here are some planning tips to help you make smart decisions, no matter where you are in life.

Planning basics

There are three main considerations in mortgage planning:

Cash to close. Most home loans require a down payment, which can range from 3 percent to 20 percent of a home’s purchase price. In addition, a home purchase will also have closing costs, which can range from 1 percent to 3 percent of a home’s purchase price, and will cover lender fees, title/escrow fees, and various property taxes that vary by county.
Monthly cost. When you rent a home, you have a rental payment plus certain utility bills that your landlord doesn’t pay. When you’re a homeowner, you have a mortgage payment (comprised of interest and monthly pay-down on your loan), property taxes, insurance, all utility bills, and maintenance — plus mortgage insurance and condo homeowners association dues, if applicable. On top of this, you should also be saving a certain amount per month for longer-term maintenance and repairs as your home ages.
Home equity. The percentage of your home’s value that isn’t financed is called equity, and your equity can grow in two ways: by paying your loan down, or by your home increasing in value. Equity is the part of homeownership where your wealth can grow over time.

Let’s see how these planning concepts apply to home buyers in different phases of life.

Millennials: finding the down payment

Millennial home buyers haven’t been in the workforce that long, so cash to close is often the primary consideration for them. A 20-percent down payment means you’ll avoid extra costs like a second mortgage or mortgage insurance. However, if you’re a younger buyer who hasn’t saved 20 percent yet — and you don’t want to postpone the benefits of homeownership while you save — don’t worry: your down payment can be as low as 3 percent. On a $300,000 home purchase, a 3-percent down payment is $9,000, and a 20-percent down payment is $60,000. The tradeoff comes in monthly payment. If you go with the $9,000 down payment, your monthly payment using a 30-year fixed rate of 3.5 percent will be about $1,911. This includes your mortgage payment, property taxes, insurance, and mortgage insurance. The $60,000 down payment scenario gives you a $1,444 payment. Putting 3 percent down costs $467 more per month, but requires $51,000 less down payment. When figuring out your optimal down payment with your mortgage advisor, don’t forget that closing costs of 1 percent to 3 percent on a $300,000 purchase price will be $3,000 to $9,000 on top of down payment.

Gen Xers: balancing spending and saving

Gen X home buyers are mid-career, and monthly costs are often their primary consideration as they save for retirement and their kids’ college expenses. On our $300,000 purchase price example, Gen Xers’ big decision could be the same as the millennial decision: do you choose to pay $467 more per month to save $51,000 in down payment? If you did, we know you’d have a monthly cost of $1,911, excluding maintenance and utilities, for a $300,000 home with 3 percent down. We also know that your property taxes and mortgage interest are tax deductible, and this would result in an after-tax monthly housing cost of about $1,566. Now we need to compare $1,566 in after-tax housing cost to what it would cost to rent a home of the same quality in the same area. If it’s about the same to rent vs. buy, then you have a good scenario to conserve cash and be a homeowner. Your mortgage and financial advisers can run different down payment scenarios to optimize the balance between monthly cost and cash preservation.

Baby boomers: living on less

Because baby boomer home buyers are late-career or retired, living on less income is often their primary consideration. If you’re a baby boomer with equity in your home but less income-generating savings than you planned for, you have a few options to sort through with your mortgage adviser:

Get a reverse mortgage that allows you to convert a portion of the equity in your home into cash to live on.
Get a home equity loan to obtain cash from your home — but this is a traditional loan that comes with a monthly payment.
Sell your home to buy or rent a cheaper home and get cash.

Like any other investing plan, a home-buying plan always proves more effective if you start young, because your home equity grows as you pay down your loan and your home appreciates in value. 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.

Time Your Listing in the Magic Window to Sell Faster and for More Money By Joe Szabo, Scottsdale Real Estate Team

By Joe Szabo, Scottsdale Real Estate Team In early May, homes sell fastest and for more money, according to the newest data. This is the new magic listing window for the country’s 25 biggest metro areas. Weather and housing market dynamics affect the exact best window to sell in different areas, and this year, a low supply of homes on the market has pushed the window later in the spring. In Zillow’s first analysis of the best time to list, homes listed between mid-March and mid-April sold fastest and for the highest price. But the decline of the number of homes on the market has increased competition, so shoppers who start looking for a home in early spring may need to look at several homes and will often still be shopping a few months later. By May, some buyers may be anxious to get settled into a new home before the next school year — and will be more willing to pay a premium to close the deal. For sellers hoping to sell quickly and get the maximum sale price for your home, the time to list is right in the first half of May. Nationally, homes sold May 1-15 sell about 18.5 days faster and for 1 percent more than the average listing. That means an average premium of $1,700 for the seller of a median home. Today, Zillow has launched a new tool to personalize this data for individual sellers. The new Best Time to List feature estimates how much more money a seller can make by changing the listing date on their individual home. The tool is live for 71 million off-market homes, and registered Zillow users can find it by clicking the “Sell Your Home” on the home details page for an individual home. The methodology for the analysis, originally featured in “Zillow Talk: Rewriting the Rules of Real Estate,” is detailed on Zillow Research. 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.

The Do’s and Don’ts of Home Equity Loans By Joe Szabo, Scottsdale Real Estate Team

By Joe Szabo, Scottsdale Real Estate Team With home values rising, homeowners who have equity, a much-valued resource, might be tempted to tap some of that wealth and use it for other purposes. But depending on your personal situation and how you’d like to use the equity, it may not necessarily be the right thing to do. Here’s when a home equity loan, which allows you to use the equity of your home as collateral, makes sense — and when it doesn’t.

DON’T: Fund a lifestyle

Remember a decade ago when homeowners yanked cash out of their homes as if they were bottomless piggy banks to fund affluent lifestyles they couldn’t really afford? These reckless borrowers, with their boats, fancy cars, lavish vacations, and other luxury items, paid the price when the housing bubble burst. Property values plunged, and they lost their homes. Lesson learned: Don’t squander your equity! A home equity loan should be looked at as an “investment,” and not as “extra cash” when making spending decisions.

DO: Make home improvements

The safest use of home equity funds is for home improvements that will add to the home’s value. If you have a one-time project (for example, you need a new roof), then a home equity loan might make sense. Need access to money over a period of time to fund ongoing home improvement projects? Then a home equity line of credit (HELOC) would make more sense. HELOCs let you pay as you go, and usually have a variable rate that’s tied to the prime rate, plus or minus some percentage.

DON’T: Pay for basic expenses/bills

This is a no-brainer, but it’s always worth reiterating: basic expenses like groceries, clothing, utilities, and phone bills should be a part of your household budget. If your budget doesn’t cover these and you’re thinking of borrowing money to afford them, it’s time to rework your budget and cut some of the excess.

DO: Consolidate debt

Consolidating multiple balances, including your high-interest credit card debts, will make perfect sense when you run the numbers — who doesn’t want to save potentially thousands of dollars in interest? Debt consolidation will simplify your life, too, but beware: It only works if you have discipline. If you don’t, you’ll likely run all your balances back up again, and end up in even worse shape.

DON’T: Finance college

This may seem like an attractive use of home equity for those with college-age children. However, the potential consequences down the road could be significant. And risky. Remember, tapping into your home equity may mean it takes you longer to pay off the loan. It also may delay your retirement, or put you even deeper in debt. Furthermore, as you get older, it will likely be more difficult to earn the money to pay back the loan. Don’t jeopardize your financial security. 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.

12201 E Mountain View Rd Scottsdale AZ 85259 | Scottsdale Real Estate

Welcome to 12201 E Mountain View Rd Scottsdale AZ 85259. Private charming home on 1.32 acre lot in Paradise Heights with no HOA! This split floorplan of 4 bedroom plus Den, 2 baths, 2,763 sq ft home situated on a large N/S 1.32 acre lot includes an inviting Pebble-Tec pool, circular driveway, charming gated courtyard entry with fireplace and more!

12201 E Mountain View Rd has a beautiful Kitchen with granite countertops, large island, water ionizer, breakfast room, double ovens, built-in desk and French doors leading to backyard. Other features include: multiple patios off rooms, travertine and wood flooring throughout, dining room with high ceilings and skylight, charming Den off Master bedroom with wood flooring and French doors opening to front courtyard, Master retreat with wood flooring, beehive fireplace, sitting area, jetted tub, walk-in travertine shower, double sinks, makeup vanity & French doors leading to backyard, 2 car side load garage with storage closet & epoxy finish. Backyard with large Pebble Tec pool, Saltillo tile patio with ceiling fan, artificial grass, built-in BBQ & more. This home is special! A must see!

8230 E Sutton Drive Scottsdale AZ 85260 | Sunrise Estate Home for Sale

Welcome to 8230 E Sutton Dr Scottsdale AZ 85260 in Sunrise Estates! Timeless architecture and finishes! Luxury awaits you from the moment you drive up & enter the front door of this spectacular home. Completely rebuilt in 2003! Why go to Italy when you can be in Scottsdale! 5,265 sq. ft., 5 bed + Office, 5.5 bath on .84 acre lot w/side entry garage in Sunrise Estates .

At 8230 E Sutton Dr Scottsdale AZ 85260, every detail is attended to in this beautiful home: exterior just painted in 2016, interior authentic Venetian plaster walls, custom cabinetry with slab granite countertops in kitchen and all baths, chiseled edge limestone flooring, wine/corking room with gorgeous custom wrought iron door, 3 laundry areas, arched barrel ceilings & much more. Incredible resort backyard paradise that is a entertainers dream with a huge heated pool/spa, fountains, sunken Ramada with outdoor kitchen/granite swim-up bar with refrig & sink, built in BBQ, detached guest house with full kitchen, great room, bedroom & attached garage. This home at 8230 E Sutton Drive is one of a kind estate is a must see! Great location, schools and convenient access to the 101! Check out the home tour of 8230 E Sutton Dr Scottsdale AZ below: VIRTUAL TOUR! For more information about 8230 E Sutton Dr Scottsdale AZ or other homes in Sunrise Estates, please call 480.688.2020 or simply fill out the form below:

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Your Guide to Buying Brand-New Kitchen Appliances By Joe Szabo, Scottsdale Real Estate Team

By Joe Szabo, Scottsdale Real Estate Team If the kitchen is the heart of the home, its major appliances are what keep it pumping. So it’s no surprise that 46 percent of American homeowners cite the cook space as the area where they’d most likely splurge on a remodel — and 56 percent of those planning work have set their sights on new appliances, according to a recent national survey by LG Electronics. If your last kitchen remodel was years ago, a lot has probably changed since the last time you bought a fridge, dishwasher, range, or cooktop-oven combo. You’ll need to factor in the latest high-tech features, as well as your kitchen’s size and layout, your family’s cooking and eating habits, your aesthetic taste, and, of course, your budget. To save money, it’s smart to comparison shop online, hunt for coupons, and negotiate with retailers for a better deal or perks like free delivery and installation. And think ahead: Buying a model that has earned an Energy Star label can mean lower electric bills over the lifetime of your new appliance. Above all, before you make any big purchase, measure not just your space but also your doorways to make sure your sparkly new appliance will actually fit in your home.

Finding a fridge

A family of four is usually fine with fridge capacity of 19 to 22 cubic feet, though there are now models on the market boasting 30 cubic feet and more. Beyond size, your primary consideration is door style.

Traditional top-freezer models offer ample storage for small kitchens.
Bottom-drawer freezers store popular fare at eye-level, as folks tend to reach for fresh foods more often than frozen ones.
Side-by-sides (fridge on the right, freezer on the left) are well suited to narrow spaces.
French door models, with a freezer on the bottom, tend to be taller and wider. Some high-capacity four-door units even include one versatile compartment that can function as a fridge or freezer.
Finally, a pricey built-in fridge with your choice of door configuration can lie flush with, and possibly even match, your cabinets for a sleek look.

In terms of key features, look for temperature-controlled meat and produce bins, humidity monitoring for freshness, and easy-to-arrange shelves. If you can splurge, other cool conveniences include door-in-door storage and through-the-door ice/water dispensers — a handy option that, alas, tends to be the first thing to break in a fridge.

Deciding on a dishwasher

Today’s dishwashers work harder (no prerinsing required) and more quietly than their predecessors. A conventional dishwasher is often all the average family needs, though premium versions have bells and whistles like flexible loading, extra flatware slots, and a stain-resistant stainless steel tub. First, settle on style. Your available space will dictate whether you choose a fold-down door unit or spring for a more compact drawer model. Of those, single-drawer units are ideal for small kitchens (and small families), while dual-drawer machines let you run each compartment independently — for instance, a short delicate cycle for stemware and a simultaneous power wash for pots. Next, factor in features. If you entertain a lot, you’ll want flexible loading. Look for adjustable racks, three racks instead of the usual two, and foldable tines that accommodate odd-shaped or oversized cookware. Controls may be traditional buttons or sleek touch screens, or they may be hidden altogether. It’s best, however, to select a model that has a visible cycle-time display so you’ll know if the machine is still running.

Selecting a range/oven

What’s cooking? Good question, as it may dictate your choice in range, oven, or cooktop. If you’ve got a small kitchen and are generally an “everyday” cook, a range — an all-in-one oven and stovetop unit available in standard cabinet size — typically makes the most sense. But if you’ve got more room, often whip up elaborate meals, or share the kitchen with another home cook, the flexibility of an in-counter cooktop and wall oven (single or double) might be the better choice. Still wishy-washy on what you want? Consider also:

Budget. Though you can certainly drop a bundle on a professional style, ranges are usually the more affordable option, not to mention easier to install.
Aesthetics. A hefty-looking range can function as a focal point for the room (especially if your kitchen lacks an island), yet some people prefer the streamlined look of built-ins.
Ergonomics. A wall oven at eye and arm level suits folks with back or knee issues, eliminating the need to bend down to lift heavy pans.

The next big question is fuel source. Gas burners are known for even heating, while electric burners heat faster. An induction cooktop — an electric cooktop that relies on magnetic coils — is a pricier option that promises both quick and precise heating. Also worth considering is a convection oven, in which fans circulate hot air, resulting in more even heat distribution (a bonus for bakers). Finally, assess what additional features suit you. Do you need a variable broil setting? Touchpad or screen controls? Some designs even include the flexibility of a baking or warming drawer that lets you prepare items at different temperatures simultaneously. 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.

3 Signs You Shouldn’t Put Your Home on the Market Yet By Joe Szabo, Scottsdale Real Estate Team

By Joe Szabo, Scottsdale Real Estate Team Many sellers think they’re ready to sell, but scratch the surface and you may find fear, anxiety, or undue pressure to make a move. Since typical real estate transaction contracts don’t provide an exit for the seller — only the buyer — it’s best to hold off listing if you’re not sure you’re ready to sell. Having your home sit on the market for an extended time will make buyers wonder what’s wrong with it. If you’re about to list your home for sale but any of the following warning signs apply to you, you should give some serious thought to waiting.

You haven’t emotionally detached from the home

Selling a home isn’t like selling your car — there are major emotional considerations involved. Have you been in your home for 10 years or more? Did you grow up or make incredible memories there? Is your home sale the result of a major life event, like a death or divorce? If so, the thought of packing up your home, moving out and allowing complete strangers to traipse through it could spark a panic attack. It’s better to hold off, mourn the loss of your home or life event, and list the property when you’re fully prepared to move on. Otherwise you face an uphill battle.

Your desired price is more than 10 percent off what agents are telling you

The first few weeks a home is listed is when it gets the most action from the serious buyer pool. If you’ve priced your home too high, it could still be languishing on the market six months down the line. At that point, you’ll drop the price — but the buyers will punish you for those greedy first few months, and your ultimate sale price will end up being a lot less than what your agent suggested. If more than one agent recommends pricing your home at more than 10 percent below what you want for it, that’s a sign you should hold off and not test the market.

You don’t have a sound exit strategy if you get a deal

No plan to relocate, rent or buy a new home? You might not be the best candidate for listing. Without a plan, you have zero motivation to clean, organize, stage, paint or make the home market-ready. And if it doesn’t show well, you leave money on the table. Sellers with a well-developed game plan spend time and money in advance of listing. They also keep their home in great condition for the duration of the sale. It’s not easy, but hard work pays off. If you’re not ready to make the commitment, don’t put your home on the market. 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.

5 Steps to Ease Home-Buying Anxiety by Joe Szabo, Scottsdale Real Estate Team

By Joe Szabo, Scottsdale Real Estate Team Many consumers have misconceptions about what it takes to qualify for a mortgage. Most believe the requirements are tougher than they actually are, according to a recent Fannie Mae survey. When asked about key mortgage qualification criteria (such as down payment percentage, credit score, and debt-to-income ratio), roughly half of consumers selected “don’t know” or provided an invalid answer. “This research suggests there are too many eligible home buyers sitting on the sidelines due to misperceptions or anxiety about being turned down for a loan,” says Steve Deggendorf, director, business strategy for Fannie Mae’s Economic & Strategic Research (ESR) Group. To be sure you’re ready to buy a home, and ease any anxiety you have about the process, Fannie Mae offers the following five suggestions.

1. Learn all you can about mortgages

Mortgages have changed a lot in recent years as lenders and investors make adjustments reflective of American households. For example, several adults in the household may be working and contributing to the household budget. Fannie Mae’s HomeReady mortgage lets lenders consider income from other household members when qualifying the borrower. Additionally, some buyers may qualify for zero-down options, including VA loans (guaranteed by the U.S. Department of Veterans Affairs) for veterans, service members, and surviving spouses, and U.S. Department of Agriculture loans for low- to middle-income borrowers in qualifying rural areas. Use of both loan types is on the rise, according to the Census Bureau’s American Housing Survey, especially among first-time buyers.

2. Talk to a professional

Don’t know how to save or what your credit score is? No problem. The U.S. Department of Housing and Urban Development (HUD) sponsors counseling agencies nationwide that provide free or low-cost pre-purchase counseling to help you understand the terminology you’ll hear from lenders and assess your own financial situation. “Our job as home credit counselors is to demystify this crucial transaction by educating the people who come to us, so that when it comes time to buy a house, they know what questions to ask and what issues to look out for,” says Rick Harper, a senior vice president at San Francisco’s Consumer Credit Counseling Services.

3. Explore down payment assistance

Seventy percent of U.S. adults are unaware about down payment programs available for middle-income home buyers in their community, according to NeighborWorks America, a national nonprofit community development corporation based in Washington, D.C. “I would argue that percentage is even higher,” says Rob Chrane, president of Down Payment Resource. There are dozens of down payment assistance programs and homeowner education options in most areas, he notes. His organization maintains a database of programs you can search for free.

4. Compare mortgage quotes

Only one-third of home buyers shop around for a mortgage, according to ESR research — and that’s often at a later stage of the home-buying process, which means they could be missing out on saving money. “As large and infrequent as the mortgage transaction is in most people’s financial lives, borrowers may be leaving money on the table by not shopping around and negotiating for the best terms they can get,” comments ESR’s Sarah Shahdad. “Getting a better deal can help borrowers sustain their mortgage even in the case of unexpected increases in expenses, or decreases in income.”

5. Consider long-term costs

As any home buyer knows, there are costs you can anticipate: your monthly mortgage or homeowners association fees, for example. There are also unexpected costs like paying for a new roof. Angie Hicks (of Angie’s Lists) advises that homeowners set aside three to five percent of the value of their home every year to use for repairs and improvements. “You’ll want to tuck that money away so you don’t get stressed when something goes wrong — because things can, and will, go wrong,” she says. 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.

Insurance 101: Review Your Insurance Policy at Renewal by Joe Szabo, Scottsdale Real Estate Team

By Joe Szabo, Scottsdale Real Estate Team Home insurance can be confusing. Policies are customized to fit the needs of each policyholder, so coverage can vary widely. If you’ve never read your policy cover to cover, stop what you’re doing and find the time to do so. Do you know if you’re covered in the event of a meteor hitting your home? What about if heavy rainfall leads to a flood in your basement? If the former occurs, you’re likely protected, as this seemingly random coverage is typically included in standard policies. The latter? You may not be as lucky, as flood insurance often is a completely separate entity. About 32 million households throughout the country do not have appropriate insurance, according to Trusted Choice, an Independent Insurance Agent company. Some have far too much coverage, while others are rolling the dice with holes in their policies that could lead to financial hardships. To know the situations in which you are and aren’t covered, review your policy. The following are some tips for when, with whom and how to comb through your coverage.

How much coverage should you have?

There are three main coverages you need to have in order to protect your home — structure, contents and liability. Structure This coverage is the amount it would cost to rebuild your home if it were completely destroyed by a covered peril. Determining your home’s value can be tricky, because it’s not exactly the same as the amount you purchased your house for. For example, the cost likely includes the plot of land, and if your home was destroyed, you wouldn’t need to rebuy the land. Also, you have to factor in the cost of materials, which can change quite often. It’s important to review your policy regularly to ensure you have the correct amount of coverage to rebuild the home from scratch. Contents Contents coverage is typically set between 50 percent and 70 percent of your home’s value, and can help pay to repair or replace your belongings if they’re damaged or destroyed at the hands of a covered peril. Again, determining the amount of coverage necessary can be tough, as there’s often a cap of $1,000 to $2,500 for high-value items. Meaning that if you have a rare art collection, an extensive number of antiques, or gems aplenty, you may not be adequately covered if your home is the victim of a burglary or fire, for example. The best way to determine the amount of coverage that fits your needs is to create a home inventory — an itemized list of everything you own and the value of each item — and go over it with your insurance agent. You may need to add a floater policy to cover your more expensive possessions. Liability Liability coverage is an absolute must. If someone is injured on your property and racks up costly medical bills, you could be on the hook. To determine the amount of liability coverage that’s right for you, it’s important to be completely transparent with your insurance provider. For example, if you own a dog, your insurance carrier needs to know. Your monthly payments may be a little higher each month, but if your provider doesn’t know that you have a pup and it bites a guest, you likely won’t receive any help with the resulting medical expenses. And dog bites account for about one-third of all home insurance claims, with the average claim costing $32,072, according to theInsurance Information Institute. Speak with a licensed agent to accurately assess the risks in your home so you have exactly the amount of liability coverage you need. There are additional home insurance coverages that you can add to your policy. Said protections include other structures (such as detached garages or sheds on your property) and additional living expenses, such as hotel rooms and meals if you’re displaced due to a covered peril. Discuss additional coverages with a licensed professional to determine if they should be added to your policy.

When to review your policy

When it’s time to renew your coverage with your insurance provider — likely an annual occurrence — walk through your policy with an agent and ask questions. Walking and reading through your policy with a professional will help ensure that you have coverage that’s accurately tailored to your individual needs. 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.

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