Tips for Getting a Mortgage

Are you considering buying a Phoenix property as a second home or investment? Perhaps you are looking for a small cottage or apartment where you can escape for vacation, or maybe you want to have another home closer to family. Maybe you want to rent out your second property and make a steady income from your investment. Whatever the reason, a second piece of real estate can be a fantastic investment. However, sometimes getting a mortgage on your second home can be a challenge.

Generally, a mortgage lender will have tougher standards for second home loans than primary home loans. This is because usually when you are buying a second home your finances will be stretched thinner and you will have less money to spare because you are already paying a mortgage on your primary home. This will mean that your second home mortgage can be harder to get and might have a higher interest rate.

Here are some tips to keep in mind that will help you to get the best mortgage on your second property: Build up a decent amount of savings. Your mortgage lender will want to be able to see that you have a large amount of savings so that you will have enough to pay for the mortgage even if you were to lose your job.

Pay off any credit card debt. Many lenders will be hesitant to approve your second home mortgage if they see that you have a lot of debt on your credit card. They will want to see that you have a low debt to income ratio so that you will be able to pay back the loan.

Use the first mortgage as a good reference. If you have always made your payments on time and you are most of the way through paying off your first house, you could ask someone from your current mortgage company to vouch for you. The lender for your second mortgage will be reassured that you are a reliable person to loan money to.

These are just a few tips to keep in mind in order to make getting a mortgage for your second property as easy as possible. To find out more about investing in Phoenix property, contact me at aliciadelacruzrealtor@gmail.com phone me at 480-414-7202.

How Ready is Your Home's Air Conditioner This Summer

Your home’s air conditioner needs a regular tune-up just like your car does. If you don’t know much about air conditioners, here are some quick tips and facts:

Your home’s air conditioner consists of three main parts:

1. The compressor: It’s the large outdoor unit which is usually on the side of your house or behind the garage. It compresses the refrigerant, or Freon®, into a liquid that then evaporates, resulting in cooling.
2. The blower unit: Pushes the air throughout the system.
3. The ductwork: Circulates the air. Cool air is carried into the home; warm air is exhausted.

Anything having to do with refrigerant should be left to professionals. Hire someone to inspect the refrigerant and the compressor lines.

Here are several do-it-yourself tune-up tasks for your home’s air conditioner:

• Change the air conditioner filters: Schedule a day each month to change your filters. It can be the first, the fifteenth or any day you will remember each month, just pick a date so you do not forget. Check the number on the filter that is already in the system, and buy the same size when it needs to be replaced.`Check for debris: After you change the filter, walk around the outside unit and check for obstructions. Clear any leaves or debris that might be caught in the grate. Cut back bushes that may be preventing airflow to the unit. There should be two feet of clear space around the unit.
• Check the condensate removal system: Condensation occurs when warm air passes through the cooling coil. That condensation drips to a drain or a pan under the unit. If there is a pan, you need to empty it as it gets full.
• Clean the compressor: The outdoor unit will get dirty and need cleaning, at least annually. Make sure you shut off the power to the unit before beginning. You can then hose off the dirt.

If you’d like a referral to an air conditioning specialist for those times when you need to hire a professional, I’m happy to share my recommendations.

Call me at 480-414-7202 or email me at aliciadelacruzrealtor@gmail.com for more information

Loan Demand Softens as Rates Rise

Mortgage applications fell 2.3 percent last week as interest rates ticked up slightly, the Mortgage Bankers Association reports in its seasonally adjusted application index. Broken out, applications for home purchases dropped 3 percent while applications for refinancing fell 2 percent.

"With rates little changed for the week, we saw a dip in application volume. It is important to note that purchase volume remains 7 percent above last year's level, and has been up on a year-over-year basis for six weeks now," says Mike Fratantoni, MBA's chief economist.

The 30-year fixed-rate mortgage rose slightly to 3.87 percent from 3.86 percent the prior week, MBA reports. Tight credit conditions persist, which are keeping many would-be buyers out due to regulations over appraisals as well as inconsistent incomes for self-employed individuals, Peter Carroll of Quicken Loans said at FSR’s Housing Policy Council forum this week. The appraisal process, for example, may keep some buyers out who don’t have a lot of money for a down payment, Carroll said.

“We are seeing a chronic tightening of appraised values that very frequently come in below the sales price and when you are talking about consumers with lower down-payment loans, that's going to pull a lot of people out of eligibility with these products," Carroll said.

Source: Daily Real Estate News | Weekly Mortgage Application Drop as Rates Tick Higher (CNBC.COM)  April 15, 2015

Why Homeowners Need to Get Moving

Realtor Magazine posted whether sellers in the market need convincing. An article in CNN Money recently highlighted several reasons why this spring would be the perfect time for home owners to get off the fence. After all, many markets across the country are still tilting in sellers’ favor. Here’s why:

Mid-March to mid-April is the best time to hang the sale sign nationally, with homes selling 15% faster and for 2% more than the average sale, according to Zillow. The window tends to be a little earlier for sellers in warmer climates and a little later in colder climates.

"It's still predominately a seller's market, but less so than the last year or two," said Stan Humphries, Zillow's chief economist. "Some advantages are moving back to buyers; but largely and broadly ... it's still favoring the sellers."

Here are four reasons you might want to list your home:

1. Low housing supply: Tight inventory is a main reason the ball is still in the sellers' court. The level of unsold homes was 4.6 months in February, according to the National Association of Realtors. That means it would take a little less than five months for all available inventory to sell. In a normal market, a five-to-seven month supply is considered balanced, said Danielle Hale, director of housing statistics at the NAR. Tight inventory tends to prop up home prices and can result in multiple offers and spur bidding wars.

2. Fewer cash buyers: All-cash and investment buyers helped buoy home sales in the last couple years. And while the acceleration of home prices has slowed from its recent double-digit growth, experts still expect modest gains this year, but with fewer cash buyers. All-cash offers made up nearly 31% of sales in 2014, according to RealtyTrac, a 13% drop from 2013 and the lowest level in four years. "We are predicting a more stable and sustainable housing market in terms of price growth," said Ralph McLaughlin, Trulia's housing economist. "A lot of the growth we saw was from cash buyers, but now we are thinking those buyers will play less of a role."

3. Higher interest rates: While mortgage rates remain low, experts predict more buyers will enter the market in the coming months. The Federal Reserve's recent hint that higher interest rates are coming sooner rather than later could prompt buyers to start their house hunt in order to take advantage of lower mortgage rates.

4. Rising rents: Rising rental prices could motivate tenants to make the leap into home ownership. Rent prices have risen 15% nationwide in the past five years in 70 metro areas across the U.S. and income growth hasn't kept up, according to NAR. "Every time there's an increase, it triggers the decision processes on whether [renters] should go into the market and buy," said Huskey. Getting more buyers into the market, especially first-timers, can help sellers feel more comfortable about their prospects. "It allows others to move up the chain in the market."


Posted by Realtor Magazine and CNN Money

Hello Spring

Spring 2015 Forecast

Last August, courtesy of The 2015 Farmer's Almanac, they had predicted a cold winter for two-thirds of the nation—what we called a "refrigernation."

The good news? Spring brings above-normal temperatures to the eastern half of the nation from late March through early May. Temperatures will be below normal, generally in the West.

Precipitation will be below normal in most states near the Atlantic and Pacific coasts, but above normal in most spots in the central two-thirds of the nation.

Below are some more regional U.S. highlights for April and May of 2015:

• Northeast: Snowy periods early to mid-March. April and May will be warmer and wetter than normal in the north and much warmer and drier than normal in the south.
• Atlantic Coast: Along the coast from Boston down to Richmond, and along the Appalachians regino, April and May will be warmer and drier than usual.
• Southeast: April and May will be warmer than normal. Rainfall will be below normal in the north and slightly above in the south. Watch for an early tropical storm threat in mid- to late-May.
• Florida: April and May will be hotter than normal, with below-normal rainfall in the north and above in the south. Watch for an early tropical storm in mid-May.
• Lower Great Lakes: April and May will be warmer than normal, with near-normal rainfall.
• Ohio Valley: April and May will be warmer and slightly drier than normal.
• Deep South: April and May will be warmer than normal, with rainfall above normal in all but easternmost areas.
• Upper Midwest: April and May will be warmer than normal in the east, with near-normal precipitatino, while the west will be cooler and wetter than normal.
• Heartland: April and May will be warmer than normal, while rainfall will be a bit below normal in the north and a bit above in the south.
• Texas-Oklahoma: April and May will be warmer and rainier than normal, on average.
• High Plains: April and May will be cooler than normal, with precipitation above normal in the north and below normal in the south.
• Inter mountain and Pacific Northwest: April and May will be slightly drier than normal, with near-normal temperatures.
• Desert Southwest: April and May will be cooler than normal, with near-normal rainfall.
• Pacific Southwest: April and May will be drier than normal, with temperatures near-normal in the north and below in the south.
• Alaska: April and May will be warmer than normal, with near-normal precipitation and less snowfall than normal.
• Hawaii: April and May will be rainier than normal, especially on the Big Island. Temperatures will be near or slightly above normal. 

Source: www.almanac.com

Buying A House in the Winter?

Some people may think that you are crazy buying a house in the winter but some people think that will be a great idea.  Yes, that is true since majority of the sellers that wants to sell their house before the year is over will be more willing to re-negotiate the price and terms of the sale.

From another point of view, as the number of the sellers diminishes, so is the number of the buyers. Therefore, you’ll have less competition! And what does this mean to you? Less competition means more chances for you to get the property at the price you want!  Here are the pros and cons!

Bet You Didn't Know: Christmas

Christmas is both a sacred religious holiday and a worldwide cultural and commercial phenomenon. For two millennia, people around the world have been observing it with traditions and practices that are both religious and secular in nature.

Christians celebrate Christmas Day as the anniversary of the birth of Jesus of Nazareth, a spiritual leader whose teachings form the basis of their religion. Popular customs include exchanging gifts, decorating Christmas trees, attending church, sharing meals with family and friends and, of course, waiting for Santa Claus to arrive. December 25–Christmas Day–has been a federal holiday in the United States since 1870.