Why buy with us

Setting Your Strategy

Every decision in a real estate transaction could SAVE or COST home buyers tens of thousands of dollars in unnecessary expenses.

Smart Home Buying Strategy

  • Determine timing & motivation
  • Evaluate needs & wants
  • Out-of-pocket expenses
  • Financing needs & pre-approval
  • Neighborhood & lifestyle
  • Quality of life
  • Set expectations according to market
  • Customized plan

Market Intelligence

  • Economic indicators
  • Trends analysis
  • Interest rates
  • Knowledge of loan options
  • Seasonal advantages
  • Local market conditions
  • National market conditions
  • Market stability
  • Builder confidence
  • Absorption analysis
  • Inventory of short sales, foreclosures & vacant homes

Funding Your Home

Trusted Lenders

  • Best rate & terms
  • Close on time
  • No surprises
  • Over deliver vs. over promise
  • Thorough Communication
  • Gets documents on time to the title company

Decisions on Cost

  • 15 year vs 30 year mortgage
  • Long term hold
  • Short term hold
  • Buy first or sell first
  • Rental property
  • 13th payment

How much can you afford? Key factors to consider:

  • The down payment
  • The interest rate
  • Your debt-to-income ratio
  • The closing costs associated with the transaction

Down payment requirements

LOAN TYPEDOWN PAYMENTDETAILS
CONVENTIONAL5%+You can put as little as 5% down and as much as you want. If you put less than 20% down, you may have to pay mortgage insurance, but that drops off after you reach 80/20% value.
FHA3.5%The lowest traditional down payment program; there is additional mortgage insurance for the life of the loan.
DOWN PAYMENT ASSISTANCE$1,000+A program for people who qualify with credit and income but do not have enough savings for a down payment.
VA0%A special program for military buyers that allows them to put almost nothing down toward the purchase.
USDA Rural Loan

Your Home Options

Traditional Sale

  • Most common
  • Best condition
  • Reflect ‘market value’ for the neighborhood
  • Seller is not ‘upside down’ on their mortgage
  • Response to an offer generally within 24 hours
  • Transaction process completed within 30 days

New Construction Sale

  • Brand new homes, built to your tastes
  • WarrantiedLess expensive to maintain
  • Already built, in the process, or from scratch
  • Great for buyers who know exactly what they want
  • Think about location for cost per sq. ft (some school districts demand a premium)
  • Transaction process varies, typically 4-6 months unless already built

Bank Owned Sale

  • Bank owns the home
  • 2 party transaction - 1 buyer and 1 bank
  • Priced below a comparably sized traditional sale
  • Home almost always sold “As Is”
  • Best financing: cash, conventional or renovation
  • Response to an offer within 24 hours to 5 days
  • Transaction process completed within 30 days
  • No seller disclosures or insurance claims history provided
  • Bank will typically require a closing within 30 days

Short Sale

  • Selling for less than what is owed to the bank
  • 3 party transaction - 1 seller, 1 buyer, and 1 bank
  • Bank has to agree to the accepted offer
  • Bank sends out a 3rd party to value the property
  • Bank will accept, counter, or reject an offer
  • Bank doesn’t always accept listed price
  • Typically Seller is unable to make repairs
  • Response to an offer can be more than 90 days
  • Can be great deals, but wait time involved for all parties can be extreme and very hard on a buyer wanting to purchase quickly
  • Transaction process varies, typically 4+ months

Negotiating Your Terms

Once we’ve found the home you wish to purchase, you’ll need to determine what offer you are willing to make on the home. After all, you are the one making the payments!

Making an offer

  • Pre-approval in hand
  • Type of financing
  • Sales price
  • Comparable market analysis (comps)
  • Earnest money
  • Home warranty
  • Inspection repair costs
  • Property tax assessment review
  • Walk away leverage

Multiple Offer Strategy

  • “Dear Seller” letter
  • Zero repair allowance
  • Increased earnest money
  • Closing date

Closing Costs

  • Prepaid Insurance ($300 - $1500)
  • Prepaid Taxes (up to 6 months)
  • Prepaid Home Owners Association Fees (when applicable)
  • Mortgage Origination Fee (~ 2%)
  • Appraisal Fee (~ $450)
  • Title Fees (Depends on company and sale price)
  • Closing Fees (< $1000)

You will be required to pay fees for loan processing and other closing costs. These fees must be paid in full at the closing, unless you are able to include them in your financing. Typically, total closing costs will range between 4-5% of your mortgage amount. In today’s market it is often common for the seller to pay some of your closing costs. This is called sellers contribution to your closing costs and is negotiable

Protecting Your Home

Home Inspection

We highly recommend you have a Certified Home Inspector conduct a thorough inspection. The inspection is to eliminate potential surprises to the buyer. Your home cannot “pass or fail” an inspection. The inspector’s job is to report on major damage or serious problems that require repair and make you aware of repairs that are recommended or necessary. Home owners insurance must be done during the inspection period

The Inspection will include:

  • Appliances
  • Plumbing
  • Electrical
  • Heating and Air conditioning
  • Roof and Attic (if accessible)
  • Foundation
  • General Structure
  • Pool & Spa

We would also recommend that you get a separate Termite Inspection as this is not typically included in the Home Inspection. The seller may be willing to negotiate completion of repairs or a credit for completion of repairs, or you may decide to cancel the offer. Your inspection is a contingency to the purchase agreement and is usually a 10 day period.

Home Warranty

Previously-Owned Home Warranties: When you purchase an existing home, you can purchase warranties that will protect you against most ordinary flaws and breakdowns in major mechanicals and appliances for at least the first year you own the home. The warranty may be offered by or negotiated with the seller, or you, as the buyer can choose to purchase the home warranty. New Construction Home Warranties: When you purchase a newly-built home in the state of Arizona, the builder offers a full home warranty on things such as the quality of design, materials, and workmanship.

  • 1 year on defects caused by faulty workmanship and defective materials
  • 2 years on defects caused by faulty installation of plumbing, electrical, heating and cooling systems
  • 10 years free from construction defects due to noncompliance with building standards

Closing Your Home

Home Owner’s Insurance

  • Impacts your monthly payment
  • Obtain several estimates and choose at least a week before closing

Updating Information

  • Transfer of utilities
  • Forward mail with USPS
  • Update accounts and subscriptions

The Final Details

  • All documents to lender in timely manner
  • Title company manages the closing process
  • Appraisal
  • Lender repairs

The Closing

Who will be there?

  • You, the Buyer(s)
  • Closer, the party representing the title company

What will you need?

  • Bring valid government-issued photo ID
  • Bring a cashier’s check for your cash to close (your mortgage officer will tell you the amount prior to closing)

What is expected from you at the closing?

  • If financing the property, your lender will require you to sign a document, called a promissory note, as evidence that you are personally responsible for repaying the loan. An escrow account will be set up for you at this time to pay any expenses incurred on the property (taxes, assessments, insurance, etc.).
  • You will also sign all title and deed documents putting you as the official homeowner!

Areas We Cover