Mortgage Interest Rates Have Dropped!

Let the rates drop! Well, they have. Mortgage interest rates are now at a TWO YEAR low! That is huge for buyers, who are ready and waiting to buy a home. In Phoenix, Arizona it is particularly good news because the inventory of homes is also on the rise.

The current rate for a 30-year fixed rate, conventional loan is at 3.82% with an APR of 3.94%, according to Freddie MAC. Some rates are as low as 3.62% for FHA loans, depending on your financial situation. The Mortgage Bankers Association expects the rate to continue on this path and we may even see another rate cut in the future.

Blah, blah, blah… What does that mean?

If you’re shopping for a home: Lock in your rate! With rates this low, you’ll want to try and lock it down. That will mean that you’re going to have to get serious and find a home you want to make an offer on. Buying a home now will mean that you get more property for your money and will pay less in interest over the life of the loan.

If you own a home: Check out your options for refinancing and see if it can save you money. The refinance process does cost money, so you’ll want to check that the savings is worth the cost.

If you’re almost ready to buy a home: Start getting your finances in order and talk to a mortgage broker. Then you will know what your rate would be and have a better idea on the cost to purchase a home. Your mortgage broker may also give you some homework to get you a better rate or loan.

So now that the rates have dropped, you may want to talk to a mortgage broker. I work with some of the best people in the industry, so give me a call! I can set up an introduction for you. Then they’ll work with you to accomplish your goals.

If one of those happens to be buying a home, let’s get house hunting! I would love to help you.

Talk to you soon,

Buy a House With a FREE Realtor®!

Did you know? When you buy a home it doesn’t cost you a dime to hire a Realtor®!

That’s right!

How is this possible? Well, the seller pays the commission! When you sell your home, the listing agent charges the seller a percentage for commission. That percentage is split between the selling agent and the buyer’s agent.

Why? In order to list your home on the Multiple Listing Service, where everyone who’s looking to buy can see it, you have to offer a commission. So the selling agent lists the percentage a buyer’s real estate agent will get paid listed with the rest of the home’s information.

So it’s a no-brainer to hire a Realtor®, whenever you buy a home. Why wouldn’t you want to hire a professional, who can negotiate for you, when it doesn’t cost you a dime? You get a lot of protection, advice, and solid experience when you decide to hire a Realtor®. So DO IT! It’s completely FREE! Let’s work together and find you, your perfect home!

Watch to learn more:

5 Reasons to Buy a House in the Fall

Fall isn’t thought of as “the best” time to buy but that may be changing. Savvy buyers have an advantage when shopping for a home during the fall season. So here’s 5 reasons why fall is a great time to buy a home.

1. Year-End Tax Breaks: any mortgage interest or property taxes paid by December 31st are tax-deductible for that year. This could increase what you get back or reduce what you owe the IRS.

2. Less Competition: The National Association of Realtors® reports that almost half of the homes sold, happen between May and August. Luckily fall is the best time in Arizona for the weather, so house hunting will be cooler and even less stressful. You could avoid a bidding war, since most people wait until summer!

3. Eager Sellers: not all homes will sell during that summer rush. So homes on the market during the fall will have sellers that are ready to move on. That may allow you to negotiate a better deal, with less competition.

4. Less Expensive to Move: with most people focused on the holidays, moving companies have lighter schedules than during the summer. Pricing and scheduling during this time of year may be more flexible.

5. Quicker Transactions: title companies are also experiencing a slow down as transactions tend to decline in the fall and winter. Pair that with a motivated seller and you could be in a house before the holidays hit!

If you’re ready to buy and just have been waiting for more homes to come on the market, let’s start looking now. You may end up finding the perfect deal, that you would have missed or had more competition on during the summer months.

Ready to start looking? Email me at kyle@teamclayton.com!

How to Lose a House in Today's Market

Home buying is one of the biggest decisions we make in our adult life. Unfortunately, there are tons of things that can make a deal fall through– especially if you aren’t working with an experienced professional.

Here are 10 ways you might to lose out on your dream home (and how to avoid them):

1. You don’t have enough saved for a down payment. Surprise! Houses are expensive. The down payment for which you’ve spent so much time saving might not be enough. In addition to closing costs, there can also be other fees. Make sure that you have significant cushion savings, in addition to whatever you plan on putting down for your house.

2. You don’t have your ducks in a row. Staying organized is essential when you’re house hunting. Are you serious about the bid you’re putting down? Make sure that you’re fully aware of all deadlines, contingencies, and paperwork involved in moving forward with your home purchase.

3. You’re shopping out of your budget. Looking for houses way outside of your budget is the first way to “lose a house”—you’ll just be losing a home you never had a chance of having. When you shop above your budget you’re sure to find a dream house that’s nothing more than that: a dream.
   
   Plan for the strong possibility of putting in an offer above asking price. This may mean looking at homes listed a few thousand below your budget to create padding in your budget to make a higher offer. 

4. You lose a bidding war. Quick, decisive, assertive—these are all necessary traits to winning a bidding war. Working with an agent who can negotiate on your behalf is a great way to ensure you play your cards right.

5. You come down with a case of buyer’s remorse. Buyer’s remorse plagues homebuyers across the nation. What’s the most obvious symptom of this condition? Cold feet. Sales contracts fall through all the time because buyers back out at the last second, succumbing to the fear of such a life-altering decision. Trust your gut.

6. You close too slowly. Sellers are trying to get sales contracts through as swiftly as possible. In this climate of high demand and limited inventory, residential real estate is a hot market. There will almost always be someone behind you, vying for your potential future home—if you really want it, work hard to satisfy the seller and make things official as soon as possible.

7. You don’t have an experienced agent. None of the above issues are simple. Having someone on your side that knows the ropes of the home buying process is the most valuable tool in your box. Your agent is there to take the brunt of the work off your shoulders and hold your hand along the way. Let a professional help you with the most important purchase of your life.

8. Your inspections aren’t timely. If you’re lucky, all you’ll need is one inspection. However, the inspection is just a first step. If an inspector discovers any problems, you’ll have to start making appointments with specialists to look further into the house’s issues. Don’t waste any time getting the inspections going or you might find yourself without a house to inspect.

9. Your Seller receives a low appraisal. An appraisal that comes in lower than anticipated is always taken by the seller as a personal blow. This proves to be an issue for the buyer, too. Either the seller will become difficult or, even worse, you’ll have to pay the difference between the appraisal and the sales price out of pocket.

10. You can’t secure a mortgage. You’re so close to the finish—and then your mortgage application is declined. Nothing will lose you a house faster than the inability to pay for it! Apply for pre-approval so the seller knows that you’ll actually be able to buy their home; don’t wait for something to go wrong. If you are proactive throughout the buying process the odds of you losing the home are significantly slimmed.

Have questions or need an experienced Realtor® to help you win? Email me at Kyle@teamclayton.com or call 623-334-5144.

6 Tips for Curb Appeal

First impressions are important in so many situations, like: meeting new people, interviewing for a job, and when buying or selling a house. Curb appeal can create a great first impression and make your home welcoming for visitors. So here's some tips:

1. Red Door: Not only are they classic, red doors create a universal feeling of being welcome. Visitors will be drawn to the front door, wanting to come right inside! Talk about a great way to welcome people to your home!
2. Flowers: Color is huge, so grab a tray of seasonal flowers and get them planted! In pots or in the ground, add some pop of color to your front yard. Just don't forget to water them!
3. Curved Pathways: From the sidewalk, add a slightly curved pathway to your door. It will create a traffic pattern and give visitors a direct way to enter your home. Plus you can line it with flowers or other cool, local plants!
4. Wreaths: Adding a seasonal wreath on your door adds another layer of curb appeal. People love the "homey" feeling a wreath can bring to a home. Tap in to those feelings! Not a wreath person? Do a cute sign or colorful mat!
5. Contrast: Make your house stand out with contrasting colors! Have a white house? Try black! Have a gray house? Paint some aqua accents! The contrast in colors will make your home unique and memorable. 
6. Fly a Flag: Owning a home is part of the American Dream, so fly your flag! Have a family member in the Military? Fly their branches' flag! Everyone loves a flag, so put one outside of your home!

These are some easy ways to spruce up your home, even if your not selling! Spring is the perfect time to do these projects, so just pick one that you can handle and tackle it! Share your pictures with me on Instagram or Facebook! I'd love to see what you do!

Buying a New Home with a REALTOR®

When you want to buy a new home, you need to get a REALTOR® on your side, even before you visit the model homes. This is a crucial step that can save you money but more importantly, ensure you have representation on your side!

Usually when you buy through a new home builder, you use their financing too. So no one is on your side for the purchase contract OR the financing. You're all alone and the builder uses that to their advantage sometimes. Having a REALTOR® that can look over the contract and ensure nothing extra is in there, or who's aware of rates and loan costs, making sure you don't over pay! If costs seem high, they'll encourage you to shop the builders lender. Always on your side.

Negotiation time comes and it's just You vs Them, and the builder has more experience. So you may not do your best negotiating when it comes to add ons, landscaping, finishes, and final price. Plus if the builder discounts homes after your purchase, are you going to walk in there and renegotiate your price? Probably not but a good REALTOR® can and should be doing that for you!

So grab your REALTOR® (me) and let's go look at model homes together! I'll get you registered with the builder and I'll stay by your side until move-in. Let's buy a new house!

What Makes Team Clayton Different

Everybody seems to know someone who's a REALTOR®, however some important things set us apart from the average real estate agent. Tom and Janet, have been full-time agents since 2002, that's a lot of experience supporting you! When you hire us, you're supporting a family business! You're also getting a whole team of agents for the price of one. That's just the beginning...

• We're charitable: Team Clayton was just recognized as a Top 10 contributor in RE/MAX Professionals to the Children's Miracle Network, supporting Phoenix Children's Hospital. Not only that RE/MAX Professionals raised over $20,000 for PHX Children's in 2018!

• We're top performers: Top 5% of agents nationwide! We do over 40 transactions every year, so all of that experience is working for you, to get you the best deal!

• A team on your side: Tom, Janet, and Kyle Clayton are all full-time Realtors®! You get all of us, plus Stephanie, our Transaction Coordinator for no additional cost to you.

• We don't drop the ball: We have the systems in place to get your transaction closed and the expertise to get your offer accepted. That's huge! Diann will be in constant contact with you and you can call any of us with questions.

We want to make buying and selling your home, an easy process. Our goal is to not only make sure you know what is going on at all times but also to ensure your transaction closes. Our experience and media presence can make the all the difference when selling your home. Team Clayton is the whole package and we continue to innovate. So let's work together!

House Hunting In A Seller's Market

The real estate market today, has become a Seller's Market. That means there's not enough homes for sale, to keep up with the demand of home buyers. Finding the home you love, may be a challenge. 

When a new house comes on the market, there's going to be a lot of eyes on the property and if it meets a seller's needs, people will jump on putting their offers in. Buyers are having wait longer to find homes they like, so when a desirable home is on the market, they're ready to pounce on it! The house you saw today, may be the house someone else loved yesterday. So how are you going to navigate the market?

Here's some tips on finding a home in a Seller's Market:

1. Be patient but vigilant. You're going to have to exercise your patience, especially if you have a certain area or budget. You may have to wait for new homes to come on the market. When you see a home you like, it's time to be vigilant and tour it as soon as possible. 
2. Be ready to make an offer. Your competition for a home is ready to offer too, so be on the ball and get your offer out as soon as you can. In this market, it's important to submit offers that makes it easy for the Seller to say yes!
3. Expand your possibilities. You may have to think about expanding your search area or what you will accept. Smaller house? Fixer-upper? Maybe your not getting the house you thought you would but you can turn it into your dream home.
4. Negotiate. If you're asking for closing cost, could you come up in price? If you have a big down payment, is your REALTOR® making that clear to the Seller. Crafting a good deal for the Buyer that appeals the the Seller is an art. An experienced real estate agent won't have a problem explaining their method of negotiation. 

Don't worry, you'll find something, the journey may just be a little longer. 

As your REALTOR®, I will make sure you get the home you want but more importantly, want the home you get. So let's get together and talk about how we can work together to accomplish your real estate goals!

Down Payment Assistance in Arizona

Down payment assistance programs are talked about a lot but some how they're still confusing! So here is some of the information about down payment assistance programs in Arizona. You DO NOT have to be a first-time home buyer to qualify for some of these programs. 

Home In 5 Program: This is the most popular down payment assistance program. 

• 640 minimum credit score. Higher credit equals more assistance. 
• Debt to Income ratio needs to be no higher than 45%
• Online homebuyers course is required.
• You can only buy a primary residence for under $370,000
• No repayment is required after 3 years of living in home as primary residence.

What do you get? Up to 4.5% cash to help you with a downpayment. Now, that is the maximum amount of assistance, keep that in mind.

• Teachers, Veterans, Law Enforcement, First Responders get an additional 1% in downpayment assistance!
• 30 year Fixed Rate Loan.
• Your APR depends on the loan type and financial data. It will be higher than market rate.

This is the most popular program in Maricopa County. I have seen buyers get almost $10,000 dollars towards the purchase of their home. That is a huge help and depending on your Realtor's® negotiating skills, you may be able to buy a home with little money out-of-pocket. 

See also: Home Plus Program or watch this video!

So if one of your dreams is homeownership, this can take you one step closer! Talk to a mortgage broker and see where your at, then give me a call! I'm here to help you get the home you want and want the home you get!