5 Real Estate Trends That Will Impact the Purchase or Sale of a Home in 2022 in Phoenix The sharp increases in home prices over the past couple of years were fueled by low interest rates, record high demand, and supply constraints. However, 5 trends have emerged and should help homeowners decide whether or not they want to buy or sell during the remainder of 2022. Whether you’ve recently been thinking about buying a home or selling your current one, here are 5 real estate trends you need to be aware of: ● appreciation of home values will start slowing down from its record pace According to the U.S. Department of Housing and Urban Development, the median price of a home in the US hit $404,700 (an all-time high) during the 3rd quarter of 2021. This was an increase of nearly 20% from the 3rd quarter of 2020. So, if you’re hoping for some relief in the competitive, overcrowded housing market this year, there may be a light at the end of the tunnel. The National Association of Realtors has predicted that the available housing inventory is soon to hit the market which should slow the pace of increasing housing costs. https://www.google.com/maps?cid=6744959272592205627 Learn morefrom https://local.google.com/place?id=6744959272592205627&use=posts&lpsid=6768121833458832667
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3 Reasons W2hy 2022 Will Be the Year to Buy or Sell a Home in Phoenix When it comes to home shopping, the top 3 motivations for buying include 1) re-sizing (42%), 2) the desire to be a homeowner (40%), and 3) wanting a home with features that are more appealing. For those individuals selling their homes, their reasons for doing so vary by generation. For instance: ● For Baby Boomers, downsizing and moving closer to family members and friends are driving their decision to sell. However, sellers across these generations are less motivated by their financial needs (job-related issues, lower interest rates, needing the cash, etc.) than they were at the start of 2021. The use of social media to find real estate has become a significant factor with buying and selling homes as well. According to recent data, 7 out of every 10 prospective buyers, or 70%, are scrolling through social media platforms to find homes a minimum of 3 times per week. Millennials are outpacing other generations in this area with 72% of them actively browsing for homes on social media platforms such as Facebook, Instagram, and Tik Tok. https://www.google.com/maps?cid=6744959272592205627 Learn morefrom https://local.google.com/place?id=6744959272592205627&use=posts&lpsid=7261740883707546573 Buyers and Sellers Top Location Preferences in Phoenix Over the past couple of years, we’ve seen an ever-increasing number of Americans purchasing homes in the suburbs. In addition to having the opportunity to get more home for their budgets, buying in the suburbs offers individuals the top 3 features that they look for when moving to a different neighborhood including: ● access to suburban parks and the outdoors Interestingly enough, Millennials are the demographics driving this particular trend with nearly 40% considering a relocation to suburban areas compared to just over 20% only 2 years ago (2020). With the onset of COVID-19, increasing numbers of Millennials selling their current homes feel that working remotely enables them the flexibility they need to move elsewhere, which may explain the current shift. Furthermore, the trend was comparable where Gen Z was concerned as 49% of them were living in the suburbs in 2021 compared to 41% in 2020. Consequently, these Gen Z and Millennial relocations are evidence of increasing affordability outside of urban areas where remote working young professionals are concerned. Additionally, the COVID-19 factor is driving Millennials to search for affordable living options outside of urban areas. https://www.google.com/maps?cid=6744959272592205627 Learn morefrom https://local.google.com/place?id=6744959272592205627&use=posts&lpsid=1076885997196378402 4 Pieces of Advice for First-time Home Buyers in Phoenix If you’re thinking about purchasing your first home, congratulations! Owning your own home is an incredible experience and the journey through the home buying process is often an exciting one. As one of the largest (if not the largest) investment in your life, it’s different from any other large purchase you’ve ever made. Here are 4 pieces of advice that every first-time home buyer should consider: Develop a home buying budget – you have to determine how much home you can afford. Experts recommend setting a budget of 2.5 times your annual earnings and not spending over 30% of that income on monthly mortgage payments. Exercise patience – although TV shows make home buying look simple. But the reality is that you’ll need to look at several homes before making your decision. House hunting can get frustrating so be patient. Re-evaluate your expectations – it’s okay to dream about owning your first home, but be realistic with your expectations. Before you start searching, evaluate which features are the most important. Talk with a reputable agent or broker – finding an honest realtor and communicating openly with them are the keys to having a successful home buying experience. Let them know how much home you can afford and what you consider non-negotiable. https://www.google.com/maps?cid=6744959272592205627 Learn morefrom https://local.google.com/place?id=6744959272592205627&use=posts&lpsid=2266159837732049592 5 Helpful Tips for Investing in Real Estate in Phoenix Remember how excited you were when you bought your first home? You’ll probably be just as excited when the time comes to invest in a second property. Even though there are similarities with each process, there are a handful of different aspects to consider when investing in real estate. Here are 5 helpful tips for the novice real estate investor: Determine how you’re going to use the property – is it for an investment, vacation purposes, or for your daughter or son when going off to college? Consider all costs involved – despite the significant gains you’ll realize in the long run, you’ll need to calculate certain added costs into your budget such as furnishings, maintenance expenses, etc. Figure out how you’re going to finance the property – can your first home help you pay for that second property? Do you have equity that you can access? Maybe interest rates have dropped so you can do a cash-out refinance. Prepare yourself for stricter underwriting – try to settle your large debts and add to your savings in the process. You’ll probably be looking at a larger down payment and need a higher credit score. Most importantly, work with a reputable lender – it’s always crucial to work with a lender that has your best interests in mind and avoid predatory lenders. https://www.google.com/maps?cid=6744959272592205627 Learn morefrom https://local.google.com/place?id=6744959272592205627&use=posts&lpsid=CIHM0ogKEICAgID2iMT2JQ What are the 5 most common Signs of Predatory Lending in Phoenix? When shopping for mortgage companies for a home loan, it can be challenging to find a lender that prioritizes your best interests. The situation can get more complicated when predatory lenders trap you into less-than-ideal financial circumstances with deceptive tactics. To avoid getting victimized by a predatory lender, watch for these 5 common signs and tactics that they often use: Abnormally inflated or higher than standard interest rates – predatory lenders will take advantage of borrowers who are in less-than-ideal financial situations by charging higher interest rates. Blank spaces – leaving blank spaces on documents enables predatory lenders to add new information. A good rule of thumb to follow is “If it wasn’t discussed, then you shouldn’t sign it.” Loan flipping – predatory lenders will often flip your loan rate so that you don’t save any money when refinancing your mortgage (one of the main reasons you decided to refinance in the first place). No credit checks – while this may sound appealing, reputable credible lenders always ask for your credit history, credit score, and debt. Rushing through the contract – mortgage lenders who have your best interests in mind will literally hold your hand throughout the contract process so that you understand all conditions and terms. https://www.google.com/maps?cid=6744959272592205627 Learn morefrom https://local.google.com/place?id=6744959272592205627&use=posts&lpsid=402609570192862350 Start Preparing In Advance For Your VA Loan in Phoenix Whether you’re a current or former member of the military, you know that preparation is essential when facing a new duty station or are retiring. Preparation skills are especially useful when financing a home with a VA loan. Being prepared to buy can eliminate or at least greatly reduce the stress of the home buying process. You never know when those added expenses may creep up. A plan is the best way of preventing this from happening! While there is no down payment required for a VA loan, there may be uncovered closing costs that you need to be aware of. So you’ll want to start preparing by tightening your budget. Once you’ve established a budget for buying a home, stick with it, even after you have moved in. In addition to the above, part of your preparation will involve checking your credit score. You’ll want to keep yours above 620 which is the minimum allowed by the VA. If you have credit card debt, start paying that down and avoid making any large purchases (e.g. cars, furniture, etc.). Furthermore, get your COE (Certificate of Eligibility) and all required VA documents including bank statements, tax returns, and W-2”s. https://www.google.com/maps?cid=6744959272592205627 Learn morefrom https://local.google.com/place?id=6744959272592205627&use=posts&lpsid=CIHM0ogKEICAgIC2o8XRaQ Locking in the Interest Rate on Your VA Loan Interest rates are one of the key factors to consider when choosing a VA lender. That’s why when you find the best rate for your VA loan you’ll want to lock and ensure that it doesn't change during the loan process. Since the Department of Veterans Affairs backs these loans if you are unable to repay them, lenders tend to offer more favorable interest rates and terms. During times of market volatility, interest rates often change quickly, even increasing and decreasing the same day. Locking in your interest rate enables you to concentrate on other aspects of the property buying process and gives you peace of mind. But you must give the lender written permission to do so. There may be variables involved when securing your rate, but there are some aspects common among all lenders. For instance, your loan application must be on file with your lender and you must have the home you want to purchase in mind. Furthermore, you’re responsible for monitoring your interest rate and determining when it’s time to lock it in. Although your lender will contact you with any updates, you’ll want to keep an eye on the market yourself. Keep in mind that most lenders will post daily updates online regarding the current rate. https://www.google.com/maps?cid=6744959272592205627 Learn morefrom https://local.google.com/place?id=6744959272592205627&use=posts&lpsid=6756444888889872619 Working With a Refinancing Lender in Phoenix When it comes to refinancing your mortgage, you have choices such as working with your original lender or a new one. Once you’ve made that decision and have locked down the type of loan that’s best for your current financial situation and its terms, here’s what you can expect: ● You’ll complete your application and provide the following information: o 2 years of W-2’s ● Your lender will submit the above for approval. The process usually takes 30 to 45 days. So it’s important to be prepared and respond to any communication from your lender. https://www.google.com/maps?cid=6744959272592205627 Learn morefrom https://local.google.com/place?id=6744959272592205627&use=posts&lpsid=3084163436956347737 5 Tips For Choosing the Right Refinance Lender in Phoenix Finding the right mortgage lender when refinancing your home can put additional savings in your pocket. The following 5 helpful tips will help you in your search for the right refinance lender: ● Check your credit score – the higher it is, the lower the interest rate you’ll get on your home loan. ● Compare refinance lenders – in other words, comparison shop several refinance lenders to ensure getting the best interest rate and terms. ● Consider how lenders fit your situation – some lenders are known for their level of customer service while others may be experts in government loan refinance. Just keep in mind that you’re the customer and the decision rests on your shoulders. ● Negotiate with lenders for lower fees – contrary to popular belief, you can actually negotiate with lenders for better fees; remember, everything is negotiable. Remember, it’s always a good idea to shop multiple lenders because no two are alike. Additionally it enables you to negotiate a better deal and save more money in the long run. https://www.google.com/maps?cid=6744959272592205627 Learn morefrom https://local.google.com/place?id=6744959272592205627&use=posts&lpsid=1280262351305652001 |
About UsDesert Springs Mortgage, LLC is a mortgage lending company in Phoenix that is dedicated to making the mortgage borrowing process easier for anyone looking for ways to finance the purchase of a new home. We have a team of experienced loan originators and processors that will guide you through the whole application process from start to finish. They will also give you advice on what loan products best suits your situation and ambitions. Aside from that, we also help with loan refinancing where we can adjust the terms of your loan to suit current market conditions. For more information, give us a call today on (623) 432-1309. ArchivesNo Archives Categories |