Scottsdale Real Estate Blog - Financing/Mortgage

What is the Difference Between Mortgage Pre-qualification and Pre-approval?

A guest author just wrote an article on benefits of getting pre-approved before purchasing a home getting pre-approved before buying a home. It really isn't just an idea or suggestion, most sellers will not accept an offer without at least a pre-qualification letter. If a seller doesn't understand the importance of this, the listing agent will educate them.

How it used to be done

When I first started selling real estate in 1983 there were no pre-qualification expectations. We would go through an entire loan process, waiting on pins and needles to see if the buyers would get approved for the mortgage. In many cases, they didn't.

In fact, we did our own pre-qualification process. We would just ask the buyers questions about their job history,…

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Benefits of Getting Pre-Approved Before Purchasing a Home

When buying a home, the typical sequence of events should be to first find the right property and then deal with the loan, right? Well, there are some significant benefits of getting pre-approved before purchasing a home. They can make a very important difference in many ways. Read on and discover how putting this step ahead of others gives you a head start.

Uncertainty will not torture you as much

Getting pre-approved before purchasing a home can take the uncertainty out of the process

Unless you have cash prepared, you will probably need a loan to buy yourself a house or an apartment. You may even be sure a bank will provide you with a certain amount. But nothing is certain until the loan provider says it is. Even if you are an expert in…

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Will Increasing Mortgage Rates Impact Scottsdale Home Prices?

There has been a lot of attention on the current trend of both increasing home prices and mortgage rates. Some of the attention has been due to arguments over whether house prices should drop when mortgage rates rise. That all seems logical, but this is rarely the case for reasons which we will discuss in the next section.

Shouldn't Scottsdale Real Estate Prices Decrease if Interest Rates Increase?

The theory of home prices decreasing is typically discussed by those people who are looking for a home to purchase. If you are a homebuyer, you like to think you are getting a good deal by paying more for a home, and you should be able to see a decrease in price somewhere else as well. Unfortunately, there are several causes for home price increases…

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Get Your Real Estate Purchase Offer Accepted by Using Knock

Are You Tired of Losing Out on Real Estate Offers?

Are you making offers on homes you love but you have to sell or close on your current home first?  This is happening to most buyers all over the nation, and the real estate market in Scottsdale, Cave Creek, North Phoenix, Carefree, Fountain Hills, and Paradise Valley are just as crazy, if not more so.

When we recently sold two of our personal homes, we received 18 offers in 1 1/2 days on one and around 8 in 1 day on the other.  That means with the 18 offers there were at least 17 buyers that did not get the home they wanted.  I know it's even more than that because several agents said their buyers loved our home but they didn't want to be involved in a bidding war.

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What do Historically Low Interest Rates Mean for Scottsdale Real Estate?

When I purchased my first house at the age of 22, we didn't bat an eye at the 10.5% interest rate for my first mortgage.  We were also required to put down 20% and it was only a 10-year mortgage (not our choice).  That house also only cost $18,300, and our monthly payment was around $210.00 total (including taxes).

I didn't think I'd ever see rates this low. And I'm talking about 6%, 5%, 4%, and 3%.  So I never expected less than 3%, but that's what happened in July of 2020.

Did you know that in 1971 the average mortgage rate was 7.31%?  I was a few years out from owning my own home, and interest rates were higher when I bought, but in my 37+ years in the real estate business, 7% was a good rate.  In fact, at one point in time, around 2012,…

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Is Getting a Home Mortgage Still Too Difficult?

 Potential Scottsdale home buyers are cautioned to be mindful of lending standards as well as the current housing market condition. The market will still be tight, at least in the near future. Potential home buyers would do well to do some homework before making a commitment to purchase a home. This would help them to identify a lender who is willing to lend money as well as to ensure that they are qualified.

You should speak to a local loan officer (we can provide you with great lenders) prior to going out to look at properties. This way you won't have any doubts that you're looking in the right price range and you should be able to qualify for a mortgage. In fact, you would be in a much better position if you get fully approved. This is the next…

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Before You Buy a Scottsdale Home You Need to Get Your Credit in Shape

I have to admit that I'm kind of surprised when I begin working with a buyer and they truly don't know their FICO score or much about their credit at all. I've worked with several buyers that assured me they were pre-qualified by a mortgage lender only to find out that they weren't. These buyers just figured they could buy a house. When I had them speak to one of my lenders, they had to clean up their bad credit.

The first thing you need to do before looking at homes is to check on your credit. It's not a good feeling when you fall in love with a house only to find out you can't get a mortgage on it. You put time, effort, and emotions into house hunting and it really hurts when you find out you are not creditworthy to buy after you've found the…

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The Home Buyer’s Guide to Getting Mortgage Ready

Don’t wait until you’re ready to move to start preparing financially to buy a home in Scottsdale. If you’re like the vast majority of home buyers, you will choose to finance your purchase with a mortgage loan. By preparing in advance, you can avoid the common delays and roadblocks many buyers face when applying for a mortgage.

The requirements to secure a mortgage may seem overwhelming, especially if you’re a first-time buyer. But we’ve outlined three simple steps to get you started on your path to homeownership. Even if you’re a current homeowner, it’s a good idea to prepare in advance so you don’t encounter any surprises along the way.

Lending requirements have become more rigorous in recent years, and changes to your credit history, debt…

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Scottsdale Real Estate 2018: What to Expect

As we head into a new year, the most common question we receive is, “What’s the outlook for Scottsdale real estate in 2018?”

It’s not just potential buyers and sellers who are curious; homeowners also want reassurance their home’s value is going up. The good news is that a strong U.S. economy, coupled with low unemployment rates, is expected to drive continued Scottsdale real estate growth in 2018. However, changes on the horizon could significantly impact you if you plan to buy, sell or refinance this year.

SCOTTSDALE HOME VALUES WILL CONTINUE TO RISE

Get ready for another strong year! U.S. home values and sales volume will continue to rise in 2018.

Experts agree that Scottsdale home prices will increase in 2018, but predict a slower rate…

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What is Your Scottsdale Home Buying Power?

The first thing you need to do before ever contacting a real estate agent to start showing you homes is to find out what you can actually afford.  Many agents won't take you out until you can show them a pre-qualification letter from a lender.  And sometimes if the agent has never heard of that lender, or it's an online lender that isn't trustworthy, the agent will ask you to get pre-qualified by their preferred lender.

Then there are some agents that will show you a couple of homes to get to meet you, but once you've seen some they will ask you to get pre-qualified before they show you any more.  I have done that and some of those buyers, who thought they were fully qualified, ended up falling in love with a home I showed them, only to find out…

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