One more year behind us and another on the horizon.  For better of for worse we are all another year older and, hopfully, another year wiser.  2008 holds a lot of promise for Phoenicians. 

We will undoubtedly see the Patriots win the first Super Bowl in Arizona which is quite exciting.  Beyond the prestige that this will bring to our great state the Super Bowl will net millions if not billions in economic revenue.  Market Analysts are pointing to this fall and proclaiming that the end of our housing rut is near and that the light is just on the other side.  I believe that all of the market indicators are in place.  The only thing left is a reduction in inventory and this will be kick started by by the revenues from the Super Bowl.  

We will also be witnesses of the great American machine in the Olympics staged in Beijing this year and will upset the world with our vast superiority.  We will once again show them why the sons and daughters of the worlds tired and their poor and huddled masses who yearned to breath free have become the greatest people on Gods great earth.  We will show them that nowhere on earth do a people with such spirit and determination exist.  We will show Beijing why freedom and democracy is the only way just as we showed Nazi Germany in the '36 Olympics. 

2008 marks the year of another Presidential Election and the American people will decide upon our future.  With great care every American should cast their vote for a stronger America, for our future, and to guarantee that the next generation will have the unalienable rights of Life, Liberty and the pursuit of Happiness.

Another year has come and gone and as we look to the East at the new rising sun we can rejoice in the knowledge that even though we cannot see the unexpected and what this year will bring to our door steps we, in this land, can never be separated from that which makes our spirits great; hope.   

1. W-2 forms or business tax return forms if you're self-employed for the last two or three years for every person signing the loan.
2. Copies of one or more months of pay stubs from every person signing the loan.
3. Copies of two to four months of bank or credit union statements for both checking and savings accounts.
4. Copies of personal tax forms for the last two to three years.
5. Copies of brokerage account statements for two to four months, as well as a list of any other major assets of value, e.g., a boat, RV, or stocks or bonds not held in a brokerage account.
6. Copies of your most recent 401(k) or other retirement account statement.
7. Documentation to verify additional income, such as child support, pension, etc.
8. Account numbers of all your credit cards and the amounts of any outstanding balances.
9. Lender, loan number, and amount owed on other installment loans—student loans, car loans, etc.
10. Addresses where you lived for the last five to seven years, with names of landlords, if appropriate.

Questions For Your Lender

Be sure you find a loan that fits your needs with these comprehensive questions and remember that any good lender will take as long as needed to thoroughly answer all your inquires.

1.  What are the most popular mortgage loans you offer?

2.  Which type of mortgage plan do you think would be best for us? Why?

3. Are your rates, terms, fees, and closing costs negotiable?

4. Will I have to buy private mortgage insurance? If so how much will it cost and how long will it be required? NOTE: Private mortgage insurance usually is required if you make less than a 20 percent downpayment, but most lenders will let you discontinue the policy when you've acquired a certain amount of equity by paying down the loan.

5. Who will service the loan? Your bank or another company?

6. What escrow requirements do you have?
   
7. How long is your loan lock-in period (the time that the quoted interest rate will be honored)? Will I be able to obtain a lower rate if they drop during this period?

    8. How long will the loan approval process take?

    9. How long will it take to close the loan?

   10. Are there any charges or penalties for prepaying the loan?

Used with permission from Real Estate Checklists & Systems (http://www.realestatechecklists.com).

Questions to Ask When Choosing a REALTOR

             Now that we are in a tight market I believe that it is important for me to stress that not all agents are equal.  As consumers we have a responsibility to look out for our own welfare.  As responsible home buyers we must seek out strong representation, we must ask them worthy questions, and we must choose our team based on our needs. The questions that follow are inquires that I believe will give the consumer better insight to an individuals performance.   

1. How long have you been in residential real estate sales? Is it your full-time job? (While experience is no guarantee of skill, real estate, like many other professions, is mostly learned on the job.)

2. What designations do you hold? (Designations, such as GRI and CRS, which require that real estate professionals take additional, specialized real estate training, are held by only about one-quarter of real estate practitioners.)

3. How many homes did you and your company sell last year?

4. How many days did it take you to sell the average home? How did that compare to the overall market?

5. How close to the initial asking prices of the homes you sold were the final sale prices?

6. What types of specific marketing systems and approaches will you use to sell my home? (Look for someone who has aggressive, innovative approaches, not just someone who's going to put a sign in the yard and hope for the best.)

7. Will you represent me exclusively, or will you represent both the buyer and the seller in the transaction? (While it's usually legal to represent both parties in a transaction, it's important to understand where the practitioner's obligations lie. A good practitioner will explain the agency relationship to you and describe the rights of each party. It's also possible to insist that the practitioner represent you exclusively.)

8. Can you recommend service providers who can assist me in obtaining a mortgage, making repairs on my home, and other things I need done? (Keep in mind here that real estate professionals should generally recommend more than one provider and should tell you if they receive any compensation from any provider.)

9. What type of support and supervision does your brokerage office provide to you? (Having resources, such as in-house support staff, access to a real estate attorney, or assistance with technology, can help a real estate professional sell your home.)

10. What's your business philosophy? (While there's no right answer to this question, the response will help you assess what's important to the real estate practitioner—fast sales, service, etc.—and determine how closely the practitioner's goals and business emphasis mesh with your own.)

11. How will you keep me informed about the progress of my transaction? How frequently? Using what media? (Again, this is not a question with a correct answer, but that one reflects your desires. Do you want updates twice a week or don't want to be bothered unless there's a hot prospect? Do you prefer phone, e-mail, or a personal visit?)

12. Could you please give me the names and phone numbers of your three most recent clients?

Five Reasons You Need a REALTOR

         As many of you are probably aware I am a Realtor. In being so, I will always advocate the use of a real estate professional in buying and selling a home but I will advocate using a Realtor above all others. Below are the top five reasons to use a Realtor a member of the National Association of Realtors.

1. A real estate transaction is complicated. In most cases, buying or selling a home requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page government-mandated settlement statements. A knowledgeable guide through this complexity can help you avoid delays or costly mistakes.

2. Selling or buying a home is time consuming. In today's market, homes in the Phoenix area stay on the market for an average of four months. And it usually takes another 60 days or so for the transaction to close after an offer is accepted.

3. 3. Real estate has its own language. If you don't know a CMA from a PUD, you can understand why it's important to work with someone who speaks that language.

4. REALTORS have done it before. Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. And even if you've done it before, laws and regulations change. That's why having an expert on your side is critical.

5. REALTORS provide objectivity. Since a home often symbolizes family, rest, and security, not just four walls and roof, home selling or buying is often a very emotional undertaking. And for most people, a home is the biggest purchase they'll ever make. Having a concerned, but objective, third party helps you keep focused on both the business and emotional issues most important to you.

6. REALTORS are members of the NATIONAL ASSOCIATION OF REALTORS, a trade organization of more than 1 million members nationwide. REALTORS subscribe to a stringent code of ethics that helps guarantee the highest level of service and integrity.

10 Tips for First-Time Homebuyers

As a Realtor I though it might be helpful if I gave out a few pointers for those of you who might be buying a home in the near future. Here are 10 tips for first-time homebuyers:

1. Be picky, but don't be unrealistic. There is no perfect home.

2. Do your homework before you start looking. Decide specifically what features you want in a home and which are most important to you.

3. Get your finances in order. Review your credit report and be sure you have enough money to cover your downpayment and your closing costs.

4. Don't wait to get a loan. Talk to a lender and get prequalified for a mortgage before you start looking.

5. Don't ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion.

6. Decide when you could move. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area?

7. Think long-term. Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer? This decision may dictate what type of home you'll buy as well as the type of mortgage terms that suit you best.

8. Don't let yourself be "house poor". If you max yourself out to buy the biggest home you can afford, you'll have no money left for maintenance or decoration or to save money for other financial goals.

9. Don't be naïve. Insist on a home inspection and, if possible, get a warranty from the seller to cover defects within one year.

10. Get help. Consider hiring a REALTOR as a buyer's representative. Unlike a listing agent, whose first duty is to the seller, a buyer's representative is working only for you. And often, buyer's reps are paid out of the seller's commission payment.

8 Ways to Improve Your Credit

What Does Credit Mean to You?

Credit scores range between 200 and 800. Scores above 620 are considered desirable for obtaining a mortgage. These five factors will affect your score.

8 Steps to Getting Your Finances in Order

1. Develop a family budget. Instead of budgeting what you'd like to spend, use receipts to create a budget for what you actually spent over the last six months. One advantage of this approach is that it factors in unexpected expenses, such as car repairs, illnesses, etc., as well as predictable costs such as rent.

2. Reduce your debt. Generally speaking, lenders look for a total debt load of no more than 36 percent of income. Since this figure includes your mortgage, which typically ranges between 25 percent and 28 percent of income, you need to get the rest of installment debt—car loans, student loans, revolving balances on credit cards—down to between 8 percent and 10 percent of your total income.

3. Get a handle on expenses. You probably know how much you spend on rent and utilities, but little expenses add up. Try writing down everything you spend for one month. You'll probably see some great ways to save.

4. Increase your income. It may be necessary to take on a second, part-time job to get your income at a high-enough level to qualify for the home you want.

5. Save for a down-payment. Although it's possible to get a mortgage with only 5 percent down—or even less in some cases—you can usually get a better rate and a lower overall cost if you put down more. Shoot for saving a 20 percent down-payment.

6. Create a house fund. Don't just plan on saving whatever is left toward a down-payment. Instead decide on a certain amount a month you want to save, then put it away as you pay your monthly bills.

7. Keep your job. While you don't need to be in the same job forever to qualify, having a job for less than two years may mean you have to pay a higher interest rate.

8. Establish a good credit history. Get a credit card and make payments by the due date. Do the same for all your other bills. Pay off the entire balance promptly.

Budget Basics Worksheet

6 Creative Ways to Afford a Home

If your income and savings are making home buying a challenge, consider these options.

1. Investigate local, state, and national down-payment assistance programs. These programs give loans or grants to cover all or part of your required down-payment. National programs include the Nehemiah program, http://www.getdownpayment.com, and the American Dream down-payment fund from the Department of Housing and Urban Development. http://www.hud.gov/news/release.cfm?content=pr02-014.cfm

2. Get the seller to provide financing. In some cases, sellers may be willing to finance all or part of the purchase price of the home and let you repay them gradually, just as you do with a mortgage.

3. Consider a shared-appreciation, or shared equity, arrangement. Under this arrangement, your family, friends, or even an third-party may buy a portion of the home and thus share in any appreciation when the home is sold. The owner/occupant usually pays the mortgage, property taxes, and maintenance costs, but all the investors' names are usually on the mortgage. There are companies that can help you find such an investor if your family can't participate.

4. Get help from your family. Perhaps a family member will loan you money for the down-payment and/or act as a cosigner for the mortgage. Lenders often like to have a cosigner if you have little credit history.

5. Lease with the option to buy. Renting the home for a year or more will give you the chance to save more toward your down-payment. And in many cases, owners will apply some of the rental amount toward the purchase price. You usually have to pay a small, nonrefundable option fee to the owner.

6. See if you can qualify for a short-term second mortgage to give you the money to make a higher down-payment. This may be possible if you have a good income and little other debt.