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Archive for June, 2011

Buy AZ investment properties! Buy AZ investment properties! Buy AZ investment properties! (subliminal message)


Buy AZ investment properties! Buy AZ investment properties! Buy AZ investment properties! (subliminal message)

NOW IS THE TIME! Buy Arizona Investment Properties!

Why am I saying this again? I know from personal experience! I recently got married. Yes. Yay for me! In doing so, we bought a house together. This required me to determine what I was going to do with the house I already owned. Never having been a landlord, I was concerned. My fear was outweighed by the fact that I am underwater on my mortgage. Leslie Landlord here I am! S

o, I listed it as a rental in MLS and waited. What? 35 minutes? That is probably a liberal guess. My phone INSTANTLY started ringing. Literally.

Now I know I am not telling you anything you don’t already know I just thought from hearing my personal experience you may have a different listening for the story.

In 21 days, I had over 15 people look at it. More who just called but were eliminated from the amount of the monthly rent. I have put my heart and soul into remodeling the property so I wanted to find just the right tenant. In the end, I had several applications, all from qualified tenants, to choose from! Hopefully, I found the tenant that is going to care for my property as their own, and given their prior landlord verification, they will leave it nicer than when they got it! Now thats the tenant anyone would want!

With rates being CRAZY low, property availability still abundant enough to find viable options and even HOMEPATH financing which allows for 10% down and no appraisal…why would you NOT want to look into the next level of investing?

Wish me luck!

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner First Class Financial Services, proudly mortgage lending since 1999!

602.294.9288(O) 602.294.9830(F)

www.fcfs.net

MB#0902810

NMLS #162494

AZDFI Loan Officer # LO-0911453

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Arizona real estate market update!


Thank you Sarah Moran of Equity Title for providing me some up to date info on the Arizona real estate market!

This is the Market Update through the end of May 2011.

Good News: Total active listings have dropped by another 3051 units over the beginning of last month. As of June 12, we sit at 31,227 Actives. Sales are at 9963 for the last 30 days (as of June 12), which is trending up. We are currently sitting at a 3.1 months of supply. If you subtract out the AWC Contracts (which are included in Actives in the Cromford Report), we are at 2.4 months of supply. Traditionally, 3-4 months of supply indicate a balanced market. We are teetering on a Seller’s Market!

Distressed Market: This represents the percentage of distressed properties that are being listed and sold. Short Sales currently represent 21% of the Closings and 39% of the active Listings for a 5.7 Months of Supply. Distressed Sales (Short Sales and REOs combined) accounted for 65% of the total sales for May.

Closings: There were 8848 closings in May 2011 vs. 8536 closings in May 2010 ~ which equates to a 4% increase over last year! 

Reality Check: The Median Sold Price for Maricopa County for May 2011 was $120,000. In May 2006, the Median Sold Price was $253,418! In May 2000, the Median Sold Price was $125,000. Use this at your listing appointments to help explain what has happened to our market and get realistic list prices!

We currently sit at a 3.1 months of supply valleywide. And we are finally seeing movement in the high-end market. In the MLS, there were 98 properties that sold for $1+ million for the month of May – and currently in the $1+ million segment, there is a 12.3 months of supply – down drastically from previous months. An astounding 93% of the closed MLS Sales for May were less than $400,000!

MONTHS OF SUPPLY

East Valley: 2.7

NorthWest: 3.0

Paradise Valley: 6.1

Luxury ($1mil+): 12.3

Southwest: 2.7

Peoria/Glendale: 2.5

Camelback Corridor: 3.8

Cave Creek: 4.4

Ahwatukee: 3.3

Scottsdale: 4.8

Apache Junction: 3.3

Fountain Hills: 4.4  

Buckeye: 3.4  

Desert Ridge & Tatum Corridor: 3.3  

Thank you again Sarah Moran from Equity Title Agency for providing this “we are teetering on a seller’s market” info! LOVE THAT!  Sarah can be reach at Equity Title at sarahm@eta-az.com or 602-769-1438.

Having a dream is good, owning one is better!

 

Leslie Pelletiere, Owner

First Class Financial Services, proudly mortgage lending since 1999!

602.294.9288(O)

602.294.9830(F)

http://www.fcfs.net

MB#0902810

NMLS #162494

AZDFI Loan Officer # LO-0911453

How can I help make your Arizona mortgage process easier?


How can I help make your Arizona mortgage process easier?

1. First and foremost, buying a home is in the top 5 most stressful things one will do in their lifetime. I certainly do not expect you to understand what, when, why and how. ASK! Call. E-mail or to make it a bit easier there is also a wealth of information online.

2. You can apply for your mortgage online at https://secure.web-loans.com/security-logon.aspx?timeout=1 – this is a SECURE webpage allowing you to enter your e-mail address, save your data and come back to it at a later time.

3. How much is it costing you to rent and what are the financial benefits to buying? You can compare renting versus owning here: http://fcfs.net/loancenter-calculators-rentvsown.aspx

4. How much can you borrow? Use this calculator to help you find out – http://fcfs.net/loancenter-calculators-prequalify.aspx

5. How will making an extra monthly payment affect the payback of your loan? Use this calculator – http://fcfs.net/loancenter-calculators-extrapmt.aspx

6. Check out the Frequently Asked Questions section – http://fcfs.net/faq.aspx

Your question may be covered here too! No question should go without asking!

Remember, my goal- Having a dream is good, owning one is better!

Leslie Pelletiere, Owner First Class Financial Services, proudly mortgage lending since 1999!

602.294.9288(O) 602.294.9830(F)

www.fcfs.net

MB#0902810 NMLS #162494

AZDFI Loan Officer # LO-0911453

AZ Mortgage at 100% financing? YES!


 

AZ Mortgage at 100% financing? YES!

You can still have access to 100% financing on specific properties available through the USDA Rural Housing program. There are income and property restrictions so be sure to speak to your loan officer about availability. Through the USDA Rural Housing website, your loan officer can specify the property address of the Arizona property you are interested in and it will advise if the property is eligible. As the name implies, it is typically on RURAL properties but in Arizona that can include areas of Anthem, Maricopa, Buckeye, and outlying areas so don’t dismiss without checking.

There are also income restrictions for the borrowers depending on the size of their family and monthly income. The website also allows your loan officer to run the eligibility here too.

Listing agents… check your property against the website. Your listing may be eligible and it would be a great sales tool to highlight on your listing! Ask your loan officer, they can run them for you!

Having a dream is good, owning on is better!

Leslie Pelletiere, Owner First Class Financial Services, proudly mortgage lending since 1999!

602.294.9288(O) 602.294.9830(F)

www.fcfs.net

MB#0902810 NMLS #162494

AZDFI Loan Officer # LO-0911453

AZ Mortgage Question of the Day: IF my ex-husband signs a quit claim deed, does that remove him from the mortgage liability?


AZ Mortgage Question of the Day:  IF my ex-husband signs a quit claim deed, does that remove him from the mortgage liability?

 

No.  The quit claim deed ONLY deeds the ASSET of the property to the remaining party.  It does not remove responsibility from the mortgage.  The mortgage would need to be refinanced with the remaining borrower qualifying to carry the mortgage alone.  Once the new mortgage is closed, the escrow company would take care of recording the new deed in the remaining party’s name.

IF the one borrower signs a Quit Claim deed but does not have the remaining borrower refinance, BOTH borrowers are still liable on the mortgage and it’s repayment requirements.  It also will remain on BOTH borrower’s credit reports. 

Many borrower’s make this mistake during a divorce.  Especially if they are trying to handle their divorce without an attorney.  It makes sense that if a borrower deeds the ASSET to the other party, that also transfers the mortgage liability, however this is not the case.  It is very important to handle this correctly during the proceedings as it can affect the leaving party in their ability to mortgage qualify down the road.  Providing the divorce decree and the quit claim deed will not suffice in removing the mortgage liability when qualifying.

Having a dream is good, owning one is better!

 

 

Leslie Pelletiere, Owner

First Class Financial Services, proudly mortgage lending since 1999!

602.294.9288(O)

602.294.9830(F)

www.fcfs.net

MB#0902810

NMLS #162494

AZDFI Loan Officer # LO-0911453

 

AZ Mortgage Question of the Day: My wife mortgaged our primary residence only in her name, do I need to count that against me when I qualify?


AZ Mortgage Question of the Day: My wife mortgaged our primary residence only her name, do I need to count that against me when I qualify?
 

Simple answer, YES. Arizona (and many other states- see below) is a community property state so debt is considered “common” between husband and wife regardless of who signed the note.  This is important for several reasons but primarily for asset requirements.  Every loan has a “reserve” requirement.  This means “a number of months of principal/interest/taxes and insurance for EVERY property that you own needs to be available in liquid funds.”

 

IF the wife, in this case, holds the Arizona mortgage note but BOTH parties are on the deed, this is considered community property and is subject to reserve requirements.  We want to make sure that the amount of assets available meet the reserve requirement.

 

Reserves are considered checking, savings, stocks, mutual funds, bonds, and retirement accounts.  Retirement accounts only receive credit for 60% of their balance (due to restrictions on having access to the money).

 

Special rules apply to spousal property and income in the community property states:

  • Arizona
  • California
  • Idaho
  • Louisiana
  • Nevada
  • New Mexico
  • Texas
  • Washington
  • Wisconsin

Feel free to contact me if you have any questions.

 
Having a dream is good, owning one is better!

 

 

Leslie Pelletiere, Owner

First Class Financial Services, proudly mortgage lending since 1999!

602.294.9288(O)

602.294.9830(F)

http://www.fcfs.net

MB#0902810

NMLS #162494

AZDFI Loan Officer # LO-0911453

AZ Mortgage Rental Property Home Insurance Tips!


Arizona mortgage rental property home insurance tips:

First, THANK YOU to Loel Weatherly! My favorite American Family Insurance Agent!  He has provided me some important pointers when it comes to home insurance for those of us that call ourselves landlords. 

From Loel Weatherly, American Family Insurance Agency:  “… A couple of points come to mind immediately…

•1)      The proper policy form should be obtained once the property is rented out…typically called a “landlords” policy,  “rental dwelling protection” policy, or a BOP (Business Owners Policy).  The standard homeowner policy is not written or rated to provide coverage other than to the owner/occupant of the property.

•2)      As part of these types of policies there is generally coverage provided for “loss of rents” or “loss of income”  in the event that the property would be uninhabitable due to a covered loss.

•3)      Another crucial part of these types of policy forms is the Liability coverage to protect the property owner….typically a minimum of $300,000 per occurrence and in many cases can be increased to $1 Million in coverage for a slight additional premium charge.

•4)      Also, coverage for damage to the structure, walls and flooring as a result of a broken pipe either in the wall/ceiling or floor should be included. ”

Many times clients call me AFTER something has happened to ask how they should handle it.  I am new to this landlord gig so I want to make sure to pass on all that I get as I go through the process!

Again, thanks Loel!  You can reach Loel at American Family Insurance at 480.926.2766.

Having a dream is good, owning one is better!

 

Leslie Pelletiere, Owner

First Class Financial Services, proudly mortgage lending since 1999!

602.294.9288(O)

602.294.9830(F)

http://www.fcfs.net

MB#0902810

NMLS #162494

AZDFI Loan Officer # LO-0911453