Scottsdale Real Estate Blog - Financing/Mortgage

2024 Housing Market Pulse: Insights for Buyers and Sellers at Mid-Year

It was thought that mortgage interest rates would settle around 6% around this time. But midway through 2024, the Federal Reserve's plan for rate cuts has been delayed due to persistent inflation, maintaining the average 30-year mortgage rate at around 7%. Despite the impact of elevated mortgage rates on home sales and affordability, there are positive developments for frustrated homebuyers, including a gradual easing of the inventory shortage and an increase in starter homes on the market, slowing the median home price growth rate.

Sellers are also adapting to the higher rate environment, with a growing number listing their properties for sale. Economists predict a stable market due to a persistent housing deficit, tighter lending standards, and…

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Securing Financing for Home Purchases: Exploring Loan Options and Pre-approval

Understanding the intricacies of loan options and pre-approval processes is a great help when securing financing for home purchases! After all, there are many different loan types; each option offers unique benefits and considerations. Navigating these choices can be daunting, but you can confidently embark on your homebuying search with the right knowledge. So, let’s go over the various loan options and pre-approval steps to help you make solid decisions and achieve your homeownership goals!

Understanding loan options

Conventional loans

Once you decide to purchase a home , conventional loans offer flexibility and competitive interest rates when securing financing for home purchases. Unlike government-backed loans, traditional options are…

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5 Ways You Can Use Home Equity

Owning a home is more than just having a place to hang your hat; it's a significant financial asset that can unlock a world of opportunities. Understanding how to use home equity effectively to tap into these opportunities is essential. A document explaining home equity is the portion of your property you've genuinely paid off. That is calculated as the difference between your home's current market value and the remaining balance on your mortgage. Such understanding paves the way for numerous financial benefits and strategies to enhance wealth.

Knowing how to leverage this asset is key to optimizing your financial portfolio. Many homeowners sit on a treasure trove of equity without realizing its potential. This untapped source can be your pathway…

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Great Strategies on How to Save Money on Your Mortgage

Are you on the path to becoming a proud Scottsdale homeowner but worried about the financial burden of a mortgage? Fear not! Welcome to a comprehensive guide on how to save money on your mortgage without compromising your dream home. Of course, purchasing a home is a significant investment, and finding ways to minimize mortgage costs is essential. So, let's delve into practical and effective strategies to help you keep more money in your pocket while securing your ideal property. From securing lower interest rates to exploring first-time homebuyer programs and more, these insider tips will empower you to make informed decisions and maximize your savings.

Secure a Lower Interest Rate

One of the most impactful strategies is securing a lower…

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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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