Phoenix Bank Owned Foreclosure Homes--Phoenix Real Estate Vlog » Buyer Programs

Common Costly Home Buying Mistakes You Must Avoid!

Joe Martin — Sun, 28 Nov 2010 21:56:23 +0000

Do You Make Any of These Common Home Buying Mistakes?

What Every Homebuyer Ought to Know About Avoiding These Costly Home Buying Mistakes!

Keep Reading to Discover How You Can Learn to Avoid Them…

John was excited about purchasing his brand new home, but he was preparing to make one of the most common home buying mistakes made by would be home buyers. John thought driving up in his brand new car would be a great idea. The ‘new car’ smell was mesmerizing and the vision of the wind flowing through his wife’s hair as they cruised through their new neighborhood with the top down became irresistible. He drove off the lot with a big joyful smile and a gleam in his smiling eyes.

Unfortunately, his smile soon turned into a frown of sadness when his lender informed him his new car purchase showed up on his credit report right before they were getting ready to fund the loan and close. John’s car purchase had just disqualified him from his new home loan. Indeed, costly home buying mistakes like this happen every day.

The new car monthly payments were added into John’s monthly expenses and raised his debt to income ratio to a higher level, immediately disqualifying him A very sad state of affairs, but common home buying mistakes like this are all too common, I hate to say.

These type of home buying mistakes are very costly, but are not isolated to just new car purchases. Home buying mistakes also occur when would be buyers want to have things in order and finance appliances and furniture in advance of closing on their new home loan. Even racking up charges on your charge cards can increase your debt to income ratios enough to disqualify you for your new home loan.

Recommended: avoid these common home buying mistakes by eliminating all major purchases as much as possible before purchasing a home. If you must make them, check with your lender first and have them re-run the numbers to make sure you don’t end up spending the night in your convertible instead of your new home, like our poor friend John.

More Costly Home Buying Mistakes

Costly home buying mistakes made by many would be tenant buyers lately is to hand over their down payment money directly to the for sale by owner. It looks like a great deal, buying direct from the owner, the price seemed right and the owner was willing to work with you on accepting a fair rent until you were able to qualify for a loan to finish the purchase, but one of the most common (and costly) home buying mistakes was in the making.

One day, typically a real estate agent, knocks on your door asking if you are the owner. You explain you’re the tenant and are purchasing the home from the owner and the agent goes on to inform you the owner has been foreclosed on, asks to view your lease and offers you a relocation assistance program to help you with your move from the new owners at the bank.

I’ve personally seen these type of home buying mistakes made time and again. One would be tenant buyer gave someone posing as the owner, not only their down payment money, but their first and last months rent. Ouch!

Recommended: Use a real estate agent to help you avoid these common home buying mistakes that are running rampant right now with all the foreclosures happening. At worst, get your down payment money into a 3rd party escrow account, so access to the money can’t be gained by either party until either the house closes or the deal falls through. You may want to also screen the owner and get some credentials from them to prove who they really are and check the county recorders office to see if a Notice of Foreclosure Sale has been filed. Search the tax assessor and county recorder websites to find out who really owns the home and don’t ever hand over cash money to the owner, one of the very large and costly home buying mistakes.

Costly Home Buying Mistakes – Utilities Not Turned On…

Believe it or not, some home buyers actually forget to have their utilities turned on in their new home before they move in. Of course, Murphy’s law is in full effect, as this usually is discovered on a late Friday going into a weekend when no one is going to help you until Monday. That makes for a very uncomfortable inauguration into your new home, especially at 110 degrees in Phoenix, Arizona or in the dead of winter with no fireplace. Recommended: make a note to yourself to arrange two things: (1) turning off utilities at your old residence and (2) getting them turned on at your new home.

Avoid Common Home Buying Mistakes…

Having a good real estate agent to look out for your interests as you go through the process of buying your new home is an extremely important asset you don’t want to overlook. Their services are paid for by the seller and they can literally save you thousands of dollars in grief avoidance with their expertise in helping you avoid not only these, but many other common (and costly) home buying mistakes made by would be home buyers.

It’s their job to keep up with all the details of the transaction from day-to-day, and keep everything moving smoothly and on track towards the exciting day of closing. They help shield you from a great deal of the frustration associated with buying a new home and help you stay up with the requirements of the lender as the home progresses to closing too. They arrange home inspections, remind you to turn on utilities and keep things on track.

Many home buyers fail to do this and then find themselves way behind in the process at the very last minute. This can sometimes lead to delay or even cancellation of the transaction. Recommended: take care of your side of the fence by staying on the same page as the lender all the way through the process.

The better educated you are about potential and costly home buying mistakes you could make when buying a home, the better chance you have to keep the entire home buying process cruising along smoothly toward a successful close.

By the way, after you’ve closed and you want the wind blowing through your hair in that new ragtop, go for it knowing you have avoided those treacherous common costly home buying mistakes.

15K Down Payment Assistance for Phoenix Area First-Time Home Buyers

Joe Martin — Sat, 23 Oct 2010 01:03:51 +0000

15K down payment assistance is available for Phoenix area first-time home buyers via a second Neighborhood Stabilization Program (NSP2) awarded by HUD to Chicanos Por La Causa, a statewide community development corporation (CDC) whose goal has been to promote the well being of Arizona’s socially and economically deprived communities.

Other perks of the program include buyers can receive a free home warranty and security system as well as the homes in many cases are already rehabbed and move-in ready as well as energy efficient.

The program is available to every ethnicity and in qualifying areas. There are some eligibility requirements for borrowers that must be met such as an income verification and borrowers must still come up with the required FHA down payment amount of 3.5% of the purchase price.

www.youtube.com/watch?v=igU97cIaarg

Fill out the form below to receive information on how to receive 15K down payment assistance on the purchase of your first Phoenix area home.

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First Dibs for First-Timers on Freddie Mac Owned Foreclosure Homes!

Joe Martin — Thu, 30 Sep 2010 22:40:57 +0000

Buyers who plan to live in their Freddie Mac-purchased home will get to see properties for the first 15 days they’re on the market — before the listing opens up to would-be landlords/investors.

Many Phoenix area bank-owned foreclosure properties are snatched up by cash investors who can wait out the downturn to sell later at a profit.

“It gives families who want to buy a home to live in the opportunity to look and bid without competition from cash-rich investors,” says a Freddie Mac spokesman.

Knowing that you are not going to be out bid by a savvy cash investor helps put local Phoenix home buyers at ease during the negotiation phase. However, it is important to note that just because there are no cash investors to compete with buyers still need to make sure they make a competitive offer and work with a Realtor that will get them the most information on offers they possibly can before submitting an offer.

This holds true especially if the home is in good shape and will not require much out-of-pocket expense after moving in. Move-in ready homes for obvious reasons attract attention from all qualified buyers looking in a specific area because 1. ) less out-of-pocket expense, and 2.) the property will meet FHA loan required condition.

If a home is priced right and move-in ready most likely it will have competition among buyers and with Freddie Mac they also offer a home warranty which is even more incentive for buyers to place a bid on a Freddie Mac owned foreclosure home.

Ask Joe Weekly Vlog–What Buyer Incentives Are Still Available?

Joe Martin — Mon, 27 Sep 2010 21:31:51 +0000

Fannie Mae is offering buyers up to 3.5% in closing cost assistance on HomePath properties through December 31, 2010.

This is a great opportunity for owner occupied home buyers and first-time home buyers looking for a great value on a Phoenix area foreclosure home.

www.youtube.com/watch?v=Jxs4bGrr0hw

Tell us what you are looking for in a home and sign up for our FREE Fannie Mae Home Hunter Service below.

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10-day Owner-Occupant Priority Bidding Period–No investor competition on HUD Homes!

Joe Martin — Wed, 22 Sep 2010 19:48:01 +0000

FHA REO properties are offered on an exclusive, priority basis to people who are buying the home as their primary residence via the 10-day Owner-Occupant Priority Bidding Period. Other benefits available when placing an offer on a HUD home for owner-occupied buyers is there is no appraisal required in most cases and property condition reports are available prior to writing an offer.

As a buyer interested in purchasing a HUD foreclosure home you must be working with a Certified HUD Broker such as RE/MAX Diamond located in Mesa. It is also imperative that you work with a real estate agent experienced in the HUD transaction process as it is quite different from a traditional or lender owned transaction.

$0 Down Payment Required–Queen Creek and San Tan Valley Foreclosure Homes Qualify!

Joe Martin — Wed, 04 Aug 2010 01:35:06 +0000

San Tan Valley and Queen Creek homes are eligible for the USDA Single Family Home Loan Program.

San Tan Valley and Queen Creek are great areas for First Time Home Buyers for several reasons, mainly because buyers can easily buy a home for under 85K and the homes are new and primarily in great condition. Add that with the USDA $0 down loan program (compared to the 3.5% required as a minimum down payment for FHA loans) and you have a win-win for any First Time Home Buyer.

There are income and property eligibility requirements that have to be met in order to qualify to buy a home with this loan program and YES foreclosure homes do qualify!

Income Eligibility: Applicants for loans may have an income of up to 115% of the median income for the area and families must be be able to afford the mortgage payments, including taxes and insurance.

Property Eligibility: The home to be purchased must be located in an eligible rural area as defined by USDA.

For additional foreclosure homes that qualify for $0 down payment USDA Loan Program follow these links:

San Tan Valley foreclosures or Queen Creek foreclosures

If you want to find out if you qualify just fill out the form below and we will contact you right away.

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24 Days Left Until Phoenix Home Foreclosure Auction Event!

Joe Martin — Wed, 14 Jul 2010 20:58:31 +0000

This is NOT your ordinary foreclosure home auction event!

Freddie Mac, New Vista (first time home buyer focused firm) and REDC (largest real estate auction firm in the U.S.) have teamed up to create this awesome opportunity for Phoenix area home buyers.

With up to 150 or more pre-selected foreclosure homes on the auction block and no investor being allowed, this event will prove to be a windfall for owner occupant buyers who have been unable to get their offers accepted in the active buyers market we’re in now.

This event is for home buyers planning on owner occupying the property and/or first-time home buyers ONLY!

Some highlights below:

No investor competition

Up to 22% down payment assistance available for qualified buyers via the Neighborhood Stabilization Program (NSP)

3% closing cost incentive

2 year home warranty

Homes will not be pre-sold so they are guaranteed available.

We have received the list of foreclosure auction homes that will be sold at auction on August 7th. Please contact us to schedule a preview.

Arizona Foreclosure Auction Event for First Time Home Buyers ONLY!

Joe Martin — Wed, 30 Jun 2010 01:10:26 +0000

Table of contents for NSP Auction August 8th

Arizona Foreclosure Auction Event for First Time Home Buyers ONLY!

Freddie Mac is rolling out the red carpet for home buyers in Arizona via The NSP (Neighborhood Stablization Program) Auction on Saturday, August 7th for owner occupants and First Time Home Buyers only! No investors will be permitted at this event.

As an “owner occupant” bidder, this is great news as this will mean less competition, less overbidding and a much higher chance of getting a great home bought at an outstanding value due to the slower auction style.

Open houses for this exclusive auction event start in late July. Be prepared and register now for the required home buyer counseling course in order to take advantage of NSP funds.

Pre-registered qualified Buyers at this auction can receive…

Up to 22% down payment assistance from the state

3% closing cost incentive plus refrigerator

2 year home warranty

**Participants must take a home buyer counseling course in order to take advantage of NSP funds so preparation is key for this event!**

Call 480.270.5201 or email us for details.

$8000 Tax Credit: The End Is Near

Joe Martin — Tue, 11 Aug 2009 15:41:10 +0000

The end is near.

The end of the $8000 tax credit (as it currently stands) is approaching and everyone who is considering taking advantage of it should be actively looking for a home in order to get it done by the deadline.

The $8000 tax credit program is scheduled for termination as of December 1, 2009 – which doesn’t leave as much time as you may think. I know, I know – you might be thinking “December is a long ways off – I can wait a while…” but consider this:

Due to current market conditions, houses in the sub-$300k range are getting multiple offers – which means you may need to “bid” on multiple properties before “winning” one.
It “normally” takes 30 days to get your financing arranged once you have a sales contract.
According to the IRS, you must actually close on the home home for it to be considered occupied and qualified for the credit.

Will The 8000 Tax Credit Be Extended?

Yes. That is my official prediction. And now that I have said that, you must know that I am wrong about these things more than I am right.

So don’t take my word for it.

No one really knows whether or not the $8000 tax credit will be extended – but it will take an act of Congress to get it extended — so my best advice is that if you are even considering buying a home and taking advantage of the $8000 tax credit then don’t count on it being extended.

Act fast!

Thanks to Justin McHood for contributing to this article.

New National Stabilization Program (NSP) could mean free money for your home purchase

Joe Martin — Fri, 17 Jul 2009 16:11:42 +0000

Free money for your new home purchase? If you are buying a Phoenix foreclosure property there could be free money for you as long as you qualify. Under the new National Stabilization Program, if you combine it with an FHA loan not only could you get into the home with less money down, you could save tens of thousands off your mortgage.

You may also hear this called a 1% down FHA loan. FHA guidelines still require 3.5% down, but when combining the FHA and NSP program, you could indeed get into the home for only 1% down up front.

So what are the details and qualifications of the National Stabilization Program?

You must use a qualified lender.
You must attend an eight-hour class which will counsel you on purchasing a home.
You must be purchasing a bank owned foreclosure.
The property must be used as a primary residence. If you already own a home that home must have been leased for at least 12 months before applying for this program.
You must meet FHA debt-to-income ratios.
You can purchase the home with cash, which means you would get up to 22% off the purchase price as a silent second.
You must be approved for the program prior to submitting an offer on a house.
Maximum purchase price in Maricopa County is $346,250.
You must meet income requirements (see below).

Maximum income to qualify in Maricopa County

Family of 1   $55,350
Family of 2   $63,250
Family of 3   $71,750
Family of 4   $79,100
Family of 5   $85,400
Family of 6   $91,750
Family of 7   $98,050
Family of 8+ $104,400

How the NSP works:

You can receive free money for up to 22 percent of the purchase price.
All loans are zero percent interest with no monthly payments.
The balance of the loan is forgivable at compete of the the term.
All loans are forgivable after a period
- 5 years for assistance of $15,000 or less
- 10 years for assistance between $15,000 and $40,000
- 15 years for assistance of more than $40,000

The program acts as a silent second mortgage on your home and once you meet the timetables above the loan is forgiven. If you do sell early the loan needs to be paid off, but is interest free.

For more details contact a lender or visit YourWayHomeAZ.com