Are there any programs available for first time home buyers?

 

As a first time home buyer you may qualify to purchase a home with as little as 0-3% down payment options with approved credit. Some zero down first time home buyer programs allow you to roll in closing costs so that you can go to the closing table without writing a check!  Most 3% down programs allow the down payment to be in the form of a 100% gift.

Many people believe that you need very low income to qualify for these programs. Not true! For example,some lending programs allow a buyer to have unlimited income to qualify. Don't  put off buying due to a lack of funds since there are many flexible loan programs to meet your financial situation. Regardless of your financial situation, its worth checking into first time home buyer programs to see what may be in your best interest.

The Benjamin Team can put you in touch with lenders who will walk you through the various first time buyer programs that are available and help you select a financing option that is right for you.

If you are a buyer, why is it important for you to select a "Buyer's Agent" to represent you?

 

When you're searching for a new home, you may think the real estate agent that is showing you around town is looking out for your best interests. The same goes for the agent who's phone number from the 'for sale' sign you call for information. But don't assume this is the case.

The old way of selling houses has both the agent who originally lists a home and the agent who finds a Buyer for that home legally working for the seller. Today even if you contact the listing agent and they agree to 'help' you (ie, Duel Agency)., in the purchase, under Arizona law they cannot and will not give you their complete "fiduciary duty". In short, they cannot be looking out for your best interest!

Both agents are required to get the seller the highest possible price. Even if "your" agent (the listing agent that agrees to 'help' you) knows the seller will consider cutting the price, or absorb most of the closing costs, they can not inform of this crucial factor ! However, information you disclose to "your" agent, such as how much you are willing to pay or how soon you need to move in, must by contractual obligations be reported to the sellers, giving them a huge bargaining advantage.

That's why in today's market place more and more Buyers are getting their own Buyers Agent to help them find a house, negotiate the best deal, and close with the least amount of hassle. As your Buyer Agent, The Benjamin Team have access to all of the usual resources used to find houses, including the Multiple Listing Service (MLS).

U.S. Sprint studied the home purchases of relocating employees and it found that those who worked with traditional real estate agents ended up paying about 5 per cent more than those who used "buyer agents". On a $250,000 house, that's $12,500 of the Buyer's money wasted.

As you might expect, many traditional real estate agents don't like the idea of a Buyers Agent fighting for a lower price. But the trend toward equal representation is proving unstoppable. Consumer advocates ( including Money Magazine, The National Home Buying Institute, and syndicated real estate columnist Robert Bruss) have gone on record urging consumers to seek Buyer Representation in purchasing a home.

What does it cost to you, a buyer, to be represented by a "buyer Agent"? In short...nothing. The details of the costs and charges a homeowner agrees to pay are normally set at the outset in their listing agreement with the listing real estate agency. It is here that the commissions, etc., are established no matter who sells the property, the listing agent, another agent in their firm, an outside agent, or a Buyers Agent that exclusively represents the Buyer in the transaction. The only exceptions to this would be if a buyer elects to purchase a property that is does not have a listing agreement, such as a for-sale-by-owner property, where the owner refused to pay a sales commission. Most sellers, however do agree to a listing and sales commission, so therefore this it would be an exception that a buyer would find added costs to be represented by a "buyer agent".

Contact The Benjamin Team to represent you as your "buyer agent".

What are some of the reasons to consider purchasing a new home, instead of a resell?

 

Listed below are 12 of the reasons to consider when purchasing a new home.

Favorable Pricing - Competition among homebuilders makes new homes less likely to be overpriced. New homes are easy to compare with other new homes in the market equating value to value. All the homes are the same age and the options are listed up-front with price breakdowns for comparative shopping.

Simplified Financing - Securing financing is the major obstacle to home ownership. Most homebuilders have done the legwork for you. They have researched the market and negotiated the best rates for their specific type of housing. Many homebuilders now include the closing costs in the price of their new home.

Location Selection - "Location, Location, Location." Being able to select the proper homesite is almost as important as choosing the correct home to fit the buyer's lifestyle. Developers and homebuilders offer a wide selection of sites including golf course, lake front, mountain preserve, mountain view, hillside, cul-de-sac, view lots and more.

Compatible Neighbors - In most new communities, buyers will be moving in with neighbors in similar circumstances. Often with pre-owned homes, the homebuyer finds themselves in a difficult position as the "new kids on the block" unable to quickly fit into long established social situations.

Floorplan Options - Builders of new homes offer a variety of functional floorplans to fit a buyer's requirements. If it's not a "spec home", the homebuilder may provide the opportunity to eliminate or add rooms, upgrade materials, include new architectural details and generally customize the home.

Interior Design - With a new home, it's possible for the buyer to be "a decorator" before moving in. Choices of carpet, wall coverings, paint colors, lighting fixtures, window treatments, etc. enable the new home owners to live with their personal selections and not be restricted by the taste of the previous owner.

Modern Appliances - Appliance manufacturers introduce new models every year and homebuilders are able to offer the latest state-of-the-art equipment at the time of completion of a new home. And, because the builder buys for the entire production of new homes, the builder's purchasing power can reduce the cost to the home buyer.

Latest Building Materials - Low maintenance is one of the most important features of new homes being built today. New technology in building materials has made the homes of the 1990s virtually maintenance free, especially the exterior. No longer does a homeowner have to worry about painting every 3 to 5 years.

Energy Efficient - A new home built today is required by law to meet stricter energy codes than homes built in the past when legal codes didn't exist or were more lenient. Many homebuilders use materials that are designed to exceed the strict limits in order to produce further savings for their owners.

New Home Warranty - New home buyers are assured of at least a one year warranty on the home itself and most likely five years on major appliances including air conditioning and heating systems. Many of today's homebuilders extend structural warranties for a full ten years usually underwritten by insurance companies.

Increased Life - It is true that all manufactured products have an expected life span. Daily use, weather and quality of care all play a role in longevity. Buying a new home eases the nagging question of "How long before it breaks down?" With a new home the answer is simply, a substantially longer period.

Value Appreciation - Statistics say that the typical home will need remodeling after a life expectancy of 25-30 years. Since new homes have an assured longer life, appraisals will generally be higher than on comparable existing homes, making the conditions more favorable for future re-sale at appreciated prices.

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There are approximately 3,500+ new home plans in the Phoenix and outlying areas. Single family homes, patio homes, townhouses, condominiums, and duplexes are represented. They are available in all types, styles, and sizes. Some builders offer custom and semi-custom designs. Master planned, golf, and adult communities are commonplace. Current plans are the built-to-order home choices offered at each subdivision. In addition to the plans, there are approximately 2,300+ available spec homes usually offered by builders. A spec home is a new home that is already under construction. Spec homes are in all phases of construction, ranging from the initial footing stage to move-in-ready. Spec homes may be an excellent choice if your time line to move is quicker than the typical 6-10 months it may take for a builder to build your selected home "from the dirt". Floor coverings, countertops, cabinet choices, options, and upgrades are often available on many spec homes. New build models, completely constructed home plans for touring, may also be available for sale.

The base prices displayed at a builder's models usually including standard lots, exterior elevations or designs, and the construction of the new home with standard features. Options, upgrades, and lot premiums will effect the final sale price. Spec home and model prices generally include the option, upgrades, and lot premiums.

What are some things to consider when buying a second home?

 

There are some great benefits to owning a second home such as for investment, tax savings, and of course pure pleasure. There has never been a better time to own a second home in the Phoenix Valley. Demographics, lifestyle preferences, lower costs of ownership, tax-saving benefits, and the ongoing property appreciation are driving demand and growing market for second homes in the Valley.

Our baby boom bulge in the population is now pushing into the age categories that include the largest numbers of second-home purchasers in history. Now, an expanding market for second homes coupled with increasing competition among mortgage lenders, record low mortgage rates, Arizona's tax law that allows one second home at a primary home's mortgage interest rate, and competition among property insurers is bringing down the costs and difficulties of second-home ownership. Even changes in the federal income tax laws offer pleasure users and investors a variety of possible new tax breaks and deductions.

Define your lifestyle interests. Often people who buy second homes are primarily looking at areas that have to do with their recreational interests. So ask yourself 'What is it that I like to do?' Some of it is subconscious. It might not be something you are aware of so try to define what is the appropriate type of place where you would like to be.

Determine the ideal travel distance. Ideal traveling time is a matter of personal preference and tolerance. Consider what is comfortable for you. As you consider a second home in the Phoenix Valley, is it important for you to be closer to the airport because you will plan to have a lot of visitors arriving? Will you, yourself, be coming to Phoenix often and need to consider distance to the airport and Phoenix traffic as you plan where to buy?

Research locations. You may like golf, but is it important you live in a golf community, or do you just want to be close to where you can play? Phoenix has many golf courses, and its possible to live "close-to" golf courses and not have to live in a golf community. You can do a lot of research on the internet about specific areas, but if you are presently living in another part of the USA, connecting to a Realtor and having them work with you as your selected representative will make your search so much easier. The Benjamin Team is very comfortable in working with clients thru the internet and helping to make your research and search for a home "from a distance" very easy. If you live in Michigan or New York, you can't do a drive-by to find out if the East Valley or North Scottsdale to determine which is more expensive, what the ammenedies are.

Select the desired location. Within the Phoenix area it comes down to picking the actual community. Let's say you decide you want to be in Scottsdale Do you want a new planned development or do you want to be in closer to downtown Scottsdale ? Do you want a patio home or town home for less maintenance? If it's a single family home, do you want a back yard pool and/or BBQ ? ? If you are into golf communities, do you also want a golf home on the fairway ? If you want Gold Canyon, let's say, do you want a view of Superstition Mountain from the rear of your home, or the front. Working with a realtor helps make the search for the perfect home easy, and can save you trips back and forth as you initially begin your search. The Benjamin Team can provide you with information via e-mail, and of course as needed, by regular mail.

We will be your eyes and ears in distant places. You can do a lot of things without a real estate agent, but there is a point when that picture you saw and that virtual tour isn't enough. Your need a Realtor who you can trust who will be there to help you! Our knowledge can help highlight areas of interest. When you work with The Benjamin Team you can rely upon someone who knows the area, rather than someone who merely sells homes.

What does the term "Master-Planned Community" mean and how does this differ from a typical suburb or subdivision?

 

Master-Planned Communities have a unique and ongoing history in the U.S. housing market. The origins of the Master-Planned Community in the Phoenix Valley can be traced to a Californian named Simon Eisner. In the mid 1960's the city fathers of Scottsdale foresaw the coming tremendous growth in the area and asked Eisner to assist the city planners in developing a "General Master Plan" for the city.

The first tangible outcome of the city's efforts was the Master-Planned Community of McCormick Ranch. The first in the Valley it was truly a Master-Planned Community in that in addition to the housing plats, the city included office parks, recreational parks, and commercial centers. The original planners also even incorporated hotels/motels into the community's plans.

But how do you know if you're in a Master-Planned Community or a typical subdivision ? Mostly by the tremendous number of amenities and conveniences, and the over-all enormous land area the community encompasses.

For example, because of their sheer size, Master-Planned Communities will incorporate extensive recreational amenities like lakes, golf courses, and expansive parks with bike paths, jogging trails, etc.

On the other hand the typical subdivision may have an occasional smaller park or recreation area, and the size of the local neighborhood(s) will be much smaller than found in a Master-Planned Community.

Subdivisions will be surrounded with general shopping, strip and/or commercial centers, but these local amenities are not part of the over-all original plan for the subdivision. Builders will build and hope/assume that retail and commercial development will follow. In the Master-Planned Community all these amenities are planned and included in the initial stages by the city and developers before shovel one is turned over in the development.

However, Master-Planned Communities and subdivisions do have one thing in common. Because of the sheer size of new home projects in the Valley today, most projects are simply too large for one builder or developer to handle. Usually a group of individual builders/developers will join together and develop 'localized' sections of the subdivision and/or Master-Planned Community.

One really important side benefit of this 'multi-developers' concept is there is almost always a wide variety of building styles, house floor plans, lots sizes, landscaping styles, and of course pricing throughout the community. In addition each 'section' that is developed by individual builders or a group of builders will have it's own unique Codes, Covenants and Restrictions (CCandR's) that maintain the quality and over-all standards of the community.

The popularity of the Master-Planned Community concept is illustrated by the number of homes that are being built and sold in the Valley. It is estimated that almost 75% of all resale homes that go through our standard escrow/title process in the Valley are in Master-Planned Communities. And recently it is estimated that over 80% of new home construction permits issued by Valley building departments were issued for homes in a Master-Planned Communities !

What is a "clue" report?

 

A "clue" report is a report issued by the Comprehensive Loss Underwriting Exchange, or CLUE. It is a clearinghouse of information relating to underwriting factors for issuing insurance policies on homes or other real property.

Formerly, by law, an insurance company had up to 60 days after issuance of a homeowner's insurance policy to cancel the policy, based on a CLUE-type report, a credit report or a consumer report.

But due to complaints from consumers because of cancellation of homeowner's insurance policies, a new law, effective Jan. 1, 2004, was passed by the Arizona Legislature. This law prohibits cancellation of a homeowner's insurance policy more than 30 days after the application by the homeowner, as opposed to 60 days under the current law, if such cancellation is based on a CLUE-type report, credit report or consumer report.

As a home buyer, its important for you to be working with a Realtor who is knowledgeable about this and other issues that will arise as you go through your buying transaction.

The Benjamin Team, and our team of support affiliates can assist you with all of the issues that may arise.

What is the difference between being "pre-approved" and "pre-qualified" for a loan? And why is this important?

 

Many buyers think getting pre-qualified is the same thing as getting pre-approved when in fact they are quite different. Knowing the difference between getting pre-qualified and getting pre-approved can help you avoid costly mistakes - including bidding on a home that is outside your price range While definitions change in the market, below are general descriptions of what each process entails.

Getting pre-qualified is simply getting an idea of the price range you can afford. It is based on your stated income, assets, and liabilities. With a pre-qualification, your information is not verified and the loan your pre-qualified for is not guaranteed.

After a loan officer has made inquiries about a borrower's debt, income, and savings, he or she can write a written statement (pre-qualification) about the borrower's chances for qualifying for a home loan.

The pre-approval process is when the information you provide a lender is verified.

You give your lender permission to obtain your credit report. Your credit report will often confirm the information you provided them about debts, your employer and how long you have lived at your current address.

It will also give them your credit score, or your credit rating. If the credit score falls within the acceptable range for the program that you're interested in, you become pre-approved. If your credit score is too low for your preferred loan program, your lender will discuss your credit report with you. Some erroneous information on the report that can be removed to improve your rating, or perhaps you have a situation that the lender will allow an exception. If you don't qualify for a particular program, there may be another program that best fits your situation; your lender is there to help you work through this process and find the right loan for you.

The lender also commits, in writing, to making that loan if a purchase occurs within a set amount of time. In a pre-qualification, the customer provides the information, but the lender doesn't check it and there's no assurance that the loan will be approved.

During a pre-approval the mortgage company does all the work of a full-approval, except for the appraisal and title search. When you are pre-approved -- you become like a CASH BUYER and have more negotiating clout with the seller. In some cases (especially in multiple offer situations), having a pre-approval can make the difference between buying a home and not buying a home. In other instances home buyers have been able to save thousands of dollars as a result of being in a better negotiating situation.

Many sellers do not want their homes shown to would-be buyers who are not "pre-approved". They do not want to waste their time or the would-be buyer's time, if the would-be buyer is not qualified and approved to make a purchase.

Final approval is when you have found your home, it has been appraised, the title report has been received and everything has been found to be acceptable to the lender. Once you receive final approval, you're ready to close.

With pre-approval, the lender pulls a credit report, verifies a borrower's income and takes other preliminary underwriting steps to come up with a maximum allowable loan amount, which usually doesn't change.

Pre-approval requires the home-shopper to fill out a loan application and provide supporting pay stubs, bank statements, employment information and W-2 forms. Lenders charge for the service -- generally from $20 to $50 -- but it's worth it. Pre-approval puts you in the strongest possible bargaining position with sellers and their real estate agents. Those who are in a hurry to move a property often will accept a lower bid from a pre-approved buyer because they can be certain the deal will go through. Many sellers do not even want to see offers from would be buyers who are not pre-approved.

The Benjamin Team can make recommendations of lenders to you who can help walk you thru the process of becoming pre-approved. Contact us for a list of some referred lenders.