What is HARP? Well, HARP stands for the Home Affordable Refinance Program. The HARP program is designed for homeowners who have financing through Fannie Mae or Freddie Mac and find themselves in a position of oweing more on the mortgage than their home is worth. Unfortunately you won’t be able to take advantage of the very low VA rates or FHA rates with this program as we have already mentioned that it is only for those home owners who have their mortgage through Fannie and Freddie.

If you are in this position, or think that you are close it is worth a phone call to see if you are eligible to refinance using the HARP program. The main qualification requirement for HARP is to owe more than your home is worth and to not owe more than 125% of your home’s value. If you are over this limit you may run into a snag with refinancing. Below you will see some of the additional requirements of HARP that you should know as you make some calls to find a lender to help you. Oh, one option about finding a lender to work with you is to call your current mortgage company and ask them if you qualify for the HARP refinancing program.

Requirements of HARP

• You must be current on your mortgage
• You must not have had any payments that were more than 30 days late over the past 12 months
• Refinancing must make financial sense – examples: lower your payments, switch from an ARM or an Interest Only to a 30 year fixed rate mortgage
• You must be employed with an income, or be able to prove that you have the financial means to make the new mortgage payment.

Hopefully, with this information you can find some relief with your mortgage payment by taking advantage of the super low mortgage rates right now here in 2011. Again, finding out whether you qualify for the HARP program will only cost you a phone call and some time on the phone.

If you are one of the lucky ones to have bought your home in Arizona long before the mortgage crash and you didn’t happen to pull money out when your home’s value ran up a few years ago you may have some refinancing options that other folks may not.

Interest rates are still attractive to make refinancing a your mortgage a smart choice under some circumstances. But to take advantage of streamline low va rates and programs, FHA mortgage refinancing or Conventional loan refinancing programs you need to be sensible and practical about what you want and can do.

To get the most out of your refinancing quest if you have the equity use the following tips to help you get the best deal.

1. Start with your credit. This is simple – the better your scores the better interests you can get. There are thresholds to cross like 620, 660, 700 and 740 for example. There is plenty of information on the Internet to help you get your scores up like: pay down debt, increase your credit card limits, don’t close older cards, don’t open new accounts, and don’t pay collections that are older than 1 year just before and during the mortgage application process.

2. Use a shorter lock period. This is a tricky suggestion, but if you can get your refinance mortgage approved before you lock your interest rate you can lock for a short period which can improve your interest rate or reduce the amount of money your mortgage company charges you. Either way, if you are going to use a shorter lock period you’ll have to work closely with your mortgage loan officer.

3. Shorten up your loan terms. If you can reduce the amount of time you’ll be paying your mortgage back, you’ll save money in the long run by paying less mortgage interest. Shorter term mortgages typically offer a slightly better interest rate for the same mortgage loan amount. What comes with a shorter term however is a higher payment for the same loan amount. Make sure you compare the differences between loan terms to see if a short term works for your budget.

With the three tips you can save some money on your next mortgage through a refinance. Hopefully you are one of the lucky ones who still has some equity left to allow you the opportunity to take advantage of lower rates while they last.

One of the biggest advantages of a VA loan is that you don’t have to have a down payment. A VA loan has no property restrictions, meaning you can buy in urban and rural areas except for trailer parks. There are also no income restrictions for the Veteran so you can make $200,000 a year and still buy a home going VA with no down payment.

Why is income and property restrictions even an issue?

The reason I bring this up is because the only other loan that exists that will allow no down payment is the USDA loan. This loan can only be used in certain areas, mainly rural areas and smaller towns, and it has limitations as to how much money you can make depending on the state and county that you reside.

• What about a Conventional or FHA Loan?

These two loans require at least a 3% down payment and they also have mortgage insurance. Mortgage insurance ads an additional $130 or so to your monthly payment or more depending on your loan size. VA loans do not have mortgage insurance.

Conclusion: VA has no down payment requirement so you can finance 100% of the sales price. You can buy anything from stick built homes to manufactured homes on their own property to approved condos and townhomes either urban or rural. Lastly, regardless of how much money you make you can utilize your VA loan.

More often than not, mortgage professionals come across the question of which mortgage program is better when it comes to the down payment. The answer to this question can come from several different angles

• giving the loan prospect the best loan program based on the prospect’s available financial resources,
• looking to see what loan program fits their prospect’s credit score range,
• and/or giving the loan prospect the best loan program based on eligibility.

In summary upfront – if all things are equal, all of these loan programs from VA loans to conventional mortgages have the same playing field when it comes to down payment assistance coming in the form of a gift.

What does “in the form of a gift” mean? Simply put, in the form of a gift means that a parent or relative is “giving” money to you (the home buyer) for using as a down payment or for closing costs or both – with no strings attached. No strings attached means that there is no requirement from the person giving the money to have the money paid back. If it has strings attached like some sort of loan then you will need to tell the mortgage company about the details and the payment will be counted against your qualifying ratios. It will also potentially require you to have even more money set aside for your down payment and closing costs because this money is now part of the debt you owe as a liability versus and asset.

Until recently – December 2010 – Fannie Mae and Freddie Mac (the makers of conventional mortgages) have always required that a home buyer have at least 5% of the home’s sales price of their own money into the deal. Whereas VA and FHA loan programs have allowed any of the homebuyer’s funds to come in the form of a gift from a relative or some other authorized source. It is good news that Fannie Mae opened up this requirement to compete with FHA and VA.

In terms of credit – if your credit scores are not at least above 660 then you will most likely have to look at either the FHA mortgage or VA home purchase program as both of these program allow for lower credit scores.

In terms of eligibility – the only folks who can get a VA loan are those who are specifically eligible. Not everyone can get this mortgage.

To get more clear on the mortgage program for you in purchasing a home in Arizona please get in touch with us and we’ll recommend a few highly qualified mortgage professionals for you to speak with.

Factors that used to matter in getting a mortgage matter even more today and can stop you from qualifying for the all important home loan when it comes to buying a home if you can’t just pay cash for it.

The items most likely to stop your from qualifying for a mortgage – even for a VA home purchase – include: a low credit score, little or no down payment, lot’s of debt, and not enough income to cover your mortgage payment for the home you want to purchase. That’s the ugly. Now for the good: you can impact or change everyone of these factors thus paying your way to owning a home.

Let’s start with a low credit score: for most loan programs credit scores below 580 are pretty much unavailable. You will need a very compelling story to get a loan with scores less than 580. However, the more accepted minimum score cutoff is 620. Below 620 it will take using either a FHA or a VA home purchase program. Forget about using a Fannie Mae or Freddie Mac loan to buy a home with credit scores lower than around 660. The good news however, is that there plenty of ways to increase your credit scores.

Next, little or no down payment: in the case where you have no down payment then you will either need down payment assistance or you’ll need to use a VA loan or a USDA loan. If you have little down payment you’ll need to look at down payment assistance and the FHA loan program. You may also look at the Homepath Mortgage program which for qualified borrowers allows you to purchase a home with next to nothing out of your pocket.

The third factor that can stop you from buying a home is having a lot of debt. A lot of debt will affect your credit scores (in many cases) as well as whittle into your allowable debt to income ratios. With more outbound debt payments like credit cards and auto loans the less of a home your qualify for if you are blessed with an equally hefty monthly income check. You may have to pay off some of your debt in order to qualify for the home you want.

Finally, the last factor that can keep you from buying a home is related to number three and that is not having enough income to purchase the home you want. This factor should be pretty easy to understand – less money coming in means less money you can spend on a home. When it comes to your income you have two choices – either get a newer higher paying job or lower your home price expectations.

Like we pointed out in the beginning, these factors are the most common stoppers for people for buying a home, but the good is that they are each managable by the person trying to buy a home.

There are a lot of things to consider when buying a home, especially if you are a first time home buyer. I’m not going to bore you with the typical stuff about how much monthly debt you have, what your credit report says, or a VA hybrid arm and other loan program details. I’ll leave that to all the other blog posts and articles out there in the blogosphere. What I am going to cover are some other considerations to help you completely analyze what you can afford if you plan to get a mortgage to help you buy a house.

Depending on where you live you need to take into consideration your utility bill. If you are moving from a rental situation where you didn’t pay rent you will need to look at the monthly utilities bills of your new place. You should also take a look at the age of the heating and air conditioning unit of the place you are looking to buy. One thing you don’t want to do is buy a place that needs an upgrade shortly after you move in.

Commute time is another item to consider as you decide on where to buy a house. Finding the right place in the suburbs is one thing but are you ready for the extra time you may have to spend driving to and from work and the cost of gasoline? My advice, pay attention to what your costs will do based on where you are looking to live – it could make a difference of several hundred dollars a month.

Buying a home that needs work, even the slightest project, could cause expenses way beyond what you were originally expecting. With the extra expense you could be stuck with either a crimp in your budget, or stuck with an unfinished house. Make sure if you are going to take a house that needs some improvements that you have the financial backing to finish the job.

The last, but not the “last” item to consider, in buying a home is all the extra utilities you may have to pay if you move to a home versus an apartment. Extra expenses include utilities, garbage pickup, recycle pickup, water, sewage, perhaps landscaping, and house maintenance items like windows and paint.

If you want to take into consideration these items you should talk to a local real estate agent – like us. Much of this information is readily available to real estate agents through the Multiple Listing Service – all you have to do is ask for it.

With these items in mind, you may consider buying a slightly less expensive house to give yourself room for some of these unexpected costs.

In this turbulent economy, stable employment has become a luxury. Specifically in Arizona, where the unemployment rate is amongst the highest in the nation at 9.5%, these are truly hard times – but not hopeless. Here is a quick look at 10 of Arizona’s top employers that are currently offering a wide range of employment opportunities for a wide range of people.

1. Jawa is a software and media company based in Arizona; founded in 2005. They develop cutting-edge software and interactive media solutions that enable people to stay connected at home or on the go to real-time information, interactive entertainment and personal networks via their desktop computers and mobile phones.

They are one of the top employers in Arizona and have a number of job opportunities with full benefits available including Director of Paid Search (100k), Systems Analyst, Flash Software Engineer, QA Tester, Senior Software Engineer, etc.

With an outstanding company culture and kind employee benefits, these techy job opps are some of the best around.

2. Banner Health As Arizona’s second biggest employer, Banner Health offers an ever-expanding selection of job opportunities in the healthcare industry. Founded in Phoenix in 1911, this company has deep roots in the many Arizona communities. By simply browsing the employment section of their website, one is sure to find their niche within the 200,000 person organization.

3. Bashas’ Supermarkets Based in Chandler, AZ, and stationed in many other Arizona metropolitan areas, Basha’s Supermarkets is the seventh biggest employer in Arizona and still growing. Founded in 1932, Bashas’ regional retail grocery company proudly offers a wide variety of positions that are both challenging and rewarding – from entry level to management.

4. Avnet Inc. Avnet Inc is a worldwide leader in the distribution of electronic components and computer products. Based in Phoenix, they are amongst the largest employers in the state of Arizona and are therefore constantly seeking qualified individuals to help them grow their arsenal in both the marketing and service arenas that make up the distribution business.

5. CIGNA Healthcare Arizona based CIGNA Healthcare is a local company that is known for its employee benefits; committed to developing talent and rewarding accomplishment within their workforce. As their operations grow they are searching for the finest and brightest – energized, hard-working and goal-oriented professionals for hire.

6. Empire Southwest LLC Based in Mesa, Empire Southwest is a prominent heavy equipment company that ranks amongst Arizona’s top employers. With many openings for experienced mechanics, they pay top dollar for top performers.

7. Scottsdale Healthcare As another cornerstone in Arizona’s healthcare community, Scottsdale Healthcare was founded in 1962 and is always seeking new team members to join their organization – they offer a variety of exciting opportunities.

8. Intel Corp. Though Intel is a worldwide corporation, based out of California, they are Arizona’s a fifth largest employer and growing rapidly. As manufacturers of semi-conductors since 1968, they already employ about 11,000 people in Arizona but they’re always looking to add more local talent. In fact, the Career and Jobs section of their website offers a wide-range of possibilities to be explored.

9. Advance Security Phoenix-based company, Advance Security, is seeking security guards to work holiday shifts! As long as you’re 18 or older, have a valid AZ DPS Security Guard Card and are willing to work without shift restrictions, Advance Security should be able to keep you employed during this holiday season.

10. Roehl Transport Based in Vail, AZ and servicing much of the West Coast, Roehl Transport is currently hiring flatbed drivers for positions in their Flatbed Western Regional Fleet. If you have a Class A Commercial Driver’s License and a minimum of 60,000 OTR flatbed miles, you are an eligible applicant – you may even qualify for their $1,500 sign-on bonus for experienced flatbed drivers.

The future is here…  You can view property listings on your Smart Phone now. QR Codes are now available too help sell your listings.  A QR codes  look like a bar code.  These codes are on real estate signs and other real estate advertising sites now. The QR code will allow your Smart phone or other device with mobile scanning ability to gather the listing details as well as photo’s of the property.  With this technology, no more paper flyer’s to mess with.

www.homesweetaz.com QR code

A QR Code is a matrix bar code (or two-dimensional code), readable by QR scanners, mobile phones with a camera, and smart phones. The code consists of black modules arranged in a square pattern on white background. The information encoded can be text, URL or other data.

Another term to describe a QR Code (short for Quick Response Code) is just like a bar code but is used by an owner of a smart phone. People with iPhones, Androids, Blackberry’s and others can quickly scan the QR Code by using their built in camera and a program on the phone called a QR Reader, which is FREE.  When the code  is scanned, the user is taken to a Mobile Single Listing website with photos and features about that property and information to contact the Agent marketing the property.  All of the necessary detail and pictures are their to view.

Real Estate professionals currently have access to these codes.  In the very near future, you will start to see more of these codes in various locations to advertise both their home listings and there websites.  It’s simple to do:

To view a mobile Listing or Agent Site requires downloading a FREE QR code reader App for your Smart phone. The Free QR reader APP we tested is ScanLife. ScanLife works well on all popular Smart Phones (or you can Google “Free QR scanners for your Phone model”.  Other sites are out there, Click here to see free downloads.

Once you load the application, all you do is click on the camera icon and focus and click… Once that’s done, just wait and you will see the listing details along with all of the photos that have been saved on the listing site.

We have started this with our current listings and the seller’s are excited for this new feature to help sell their homes.  The time is now for home buyers to learn this new technology to help in the home buying process.  If you have any questions, don’t hesitate to give us a call.  It’s simple and it does work.  We wish you the best of luck in your home buying experience.  The future is here… I think that you will like it.

No matter whether you are using Veteran Loans, FHA loans or  conventional mortgage programs to buy your first home you can use these real estate home buying tips to guide your journey and keep you from making significant and costly mistakes.

Buying real estate takes a keen eye, a good mortgage loan officer, a great real estate agent, and following your gut. Always keep in mind, if it doesn’t feel right, either don’t do it or keep asking questions until you get the answers you need to feel comfortable about your choices.

Mesa AZ First Time Home Buying Tips

• Get pre-approved first. Get your financing questions answered first before you start looking at homes. Programs and qualifications make a huge difference on what you can buy so don’t be led down the wrong path only to be disappointed later.

• See multiple homes. Even if you find the perfect home, or what you think is the perfect home first make sure you visit at least 5 or more homes. Keep the faith that the right home will be there for you when you have looked at enough homes. Forcing something has a way of coming around later to bite you. Other homes may have features that you haven’t thought of so seeing some other options may make all the difference in getting you into the right home for you.

• Work with the right agent – yes we prefer you work with us. You may need to interview a few agents to find the right one. Even if you were referred to an agent by your mom, make sure you check out a few agents. You aren’t looking for a new friend, you are looking for someone who connects with you and that you get along with. Buying a home is a journey and you want to make sure your agent is a good fit and is someone you want to make the trip with.

• Get an inspection. Don’t skimp on getting a home inspection and even paying for an extra appraisal if you need to. You may even want to pay for a specialty inspection for something like the roof or the heating and air conditioning units. Making sure the home that you want to purchase is in tip top shape, or that there are no surprises is imperative for getting you set up in the best possible situation moving forward. The last thing you want to do is to have the heating unit go out 6 months after you bought the place when you could have prevented it.

• Imagine the property vacant. Remember that the homes that you are looking at have probably been staged or at least in the best presentation condition possible. You want to imagine your furniture – your stuff – in the home. Does it work, or are you prepared to get new stuff to match the house when you move in?

• Ask questions. This is very important. Do you have questions about the condition of the home, the crime rates in the neighborhood, how many homes around are rented versus owner occupied? Make sure you ask about the appliances – do they stay or will you have to buy a new stove the day you move in? The more questions you ask the less surprises you’ll experience later.

Get it in writing. Keep this motto in mind: “if it isn’t written down then it doesn’t exist.”

Albeit desirable, selling a home in Mesa AZ fast like you could in 2005 is unrealistic in 2010. Right now, homes are on the market for better than 6 months in many cases with the average time on the market closer to 10 months. With this said, is there anything that can be done to speed up the sales cycle?

One thing that can make a difference for you is to make your home as presentable as possible to potential home buyers. Many homes on the market right now are foreclosures and short sales where either the home is vacant or the owner has given up caring what their home looks like because they know that they are going to lose it soon. Therefore, having a home that is well kept may make a huge difference in how long your home is up for sale before you get an offer. You may have to hire a Phoenix weed control company to help keep your home’s exterior looking good, or get help from other landscaping professionals to help keep up your curb appeal while your home is up for sale.

One of the first steps you may need to take in getting your home ready to stage is to find some self storage facilities to close to your home and put your extra stuff there. A cluttered home is very hard for a potential home buyer to imagine what it would look like with their stuff in your home. You want to make sure you don’t have any extra personal items around to cloud their imagination; they don’t need or want to see all of your memories. The garage is not a good place to put your stuff either as the home buyer will want to go into the garage and inspect it. They won’t like it if they can’t have a good look around.

Once your stuff is gone, you may want to consider hiring a home stager. We know a few home stagers who know the Mesa marketplace real well. A home stager can walk through your home and quickly give you ideas about how to make your home stand out. They may also be able to bring in some props and furniture if need be to enhance how your place looks if it needs some help. We can also help identify what you can do to help you home stand out more.

Other items to consider doing if you are looking to get your home sold more quickly are:

• Get a seller’s home inspection
• Make the kitchen and bath upgrades
• Go Green in and around your home
• Reduce your utilities
• Get an appraisal

If you have any questions about any of these home selling tips please don’t hesitate to contact us and we’d be more than happy to talk to you about how you can prep your home in Mesa to sell faster.