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Why Prequalify?

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 When shopping for a new home, it’s easy to go straight to property listings and open houses. But there’s a key factor in home purchasing that should take place long before you ever start looking: prequalifying for a loan.

 You might wonder why you should set out to prequalify for your mortgage loan before you even start house hunting. Of course there’s no harm in just casually looking for possible houses, but a with a pre-qualification in hand, it will give you a guided direction to know where to start looking, before you spend time and energy searching for homes in a neighborhood you can’t afford.

There are a lot of benefits to being pre-qualified when house hunting, especially in today’s market. One, when you sit down with a lender, you have the option of discussing loan options that fit your budget instead of running your search based on estimations. Two, the lender can check your credit so that you’ll know if there are any issues ahead of time. You can also learn the maximum available loan which will guide you to houses in your price range, saving you time and energy and helping to narrow down your search. And lastly, in today’s market, home sellers will actually be more willing to negotiate with you if you have a pre-qualification. Having a pre-qualification shows to the seller that you’re serious about buying, and sometimes, with other offers on the table, having a pre-qualification can be the asset that tips the scales in your favor.

 In short, taking time to apply for a pre-qualification is always beneficial, not only for the time and energy it will save you in the long run, but because of the peace of mind it will give you as you shop for you new home.

Should I buy an existing home or build a new home?

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Many times new home owners are caught between the question of should I buy an existing home or build a new home of my own? This is a great question, and it really comes down to the potential owner’s personal preferences in several different areas. To make it easier to decide, let’s break it down into the pros and cons of each.

 

Pros of buying an existing home:

 

  • For an existing home, one of the main pros is convenience. You can move in immediately after closing and are instantly ready to begin your new life.
  • You also have the potential of upgrades when buying an existing home. You can upgrade the house or the property in small ways — or major ways — in your own timeframe and whenever your budget allows.
  • Another upside is that the cost of an existing home can be negotiated, unlike when building a home, where prices are fixed, and sometimes there are unexpected costs.
  • With an existing home, most times, you are usually moving into an established neighborhood, which gives you the ability not only to socialize and entertain, but it usually means that stores, schools, and hospitals are nearby.
  • Another benefit to buying an existing home that’s sometimes under-considered is the landscaping. If you move into an existing home, you’ll have mature landscaping and trees to work with and add to, as opposed to having to cultivate the bare lot of a newly built site.

 

Cons of buying an existing home:

 

  • One of the cons of buying an existing home is somewhat of an obvious one — you will always be competing with other buyers for the home, whereas you’re less likely to have steep competition over a vacant lot.
  • Another downside is the compromise on some of the existing features of the home. Unless you’re lucky enough to find your perfect dream home, it’s likely that you’ll have to settle on some of the aspects of the house and its floor plan.
  • You may also end up needing to repair or restore certain aspects of the home, such as heating, cooling, or roofing, depending on its age and condition.

 

Now let’s look at some of the positives and negatives that come with building your own home.

 

Pros of building your own home:

 

  • When building your own home, you can have it designed to fit your lifestyle and your preferences and get exactly what you want.
  • You can also have custom details put in, things that make your house unique and intriguing.
  • Should something go wrong with an aspect of your new home, large repairs are usually covered by a warranty.
  • New homes are also more energy efficient and can cost you less in the long run.
  • A new home is also less likely to contain toxic construction materials than an existing home, and you can take special measures to ensure the building materials you use are as eco-friendly as possible.

 

Cons of building your own home:

 

  • When building your own home, the timeframe will be the main issue you face. You’ll have to budget a length of time in advance for the new house to be built, and sometimes, unforeseen things happen, pushing your timeframe out farther than expected.
  • Building your own home can also be more expensive than outright buying an existing home; with a new home, there tend to be more upfront costs and not much room for negotiation on purchase prices or closing costs.
  • There can also be extra costs you hadn’t budgeted for, either when choosing to upgrade certain aspects to your home, or paying for unexpected issues that weren’t budgeted for.
  • If you’re building on an untouched lot, there can be extra time and money required for the lot itself, either to landscape the bare lot when the home is finished, or to shape the lot / remove trees to fit the new house.
  • Lastly, there are impact fees to consider when building a new home, which is a tax usually imposed on new builders to cover the “impact” made on schools, roads, fire departments, etc.

 

When choosing an existing home or building a new one yourself, there are many pros and cons to both sides. In the end, it comes down to time, money, and what you’re looking for in your dream home.

 

Summer Safety in Arizona

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The high temperatures of Arizona summers can be debilitating and highly dangerous, especially in the city where temperatures are in the triple digits on a regular basis. Here in Payson, Arizona, and the surrounding areas, temperatures are usually much cooler. However, the cool mountain temperatures can be deceiving, and heat exhaustion can still occur.

 Here are a few tips to ensure you stay cool and avoid heat exhaustion:

 • Make it a point to stay inside during the high heat of the afternoon. Doing your yard work or exercise in the mornings or evenings will help ensure that you stay cool.

 • If you have to be outside during the hotter hours of the day, make sure that you drink plenty of water. Remind yourself to drink steadily throughout the day, and not just when you’re thirsty. Drinking lots of water a full day before your outdoor activity will help, too.

 • Also keep in mind that Payson, Arizona, is a much higher elevation than Phoenix and the other cities in the Valley, meaning that while the air is cooler, it’s much thinner, and can have an effect on your body, especially if you’re not used it.

 There are so many great ways to enjoy summer in Arizona, especially here in Payson, so make sure you and your family stay safe!

 

The Wild Life

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Photo courtesy of Joe Klein

Living in a rural mountain community like Payson, AZ comes with tons of small town charm and a relaxing lifestyle (as mentioned in our previous article). In addition, there are endless adventures with the local wildlife, enhancing the experience in a wonderful way.

Green Valley Park creates a playground for local elk, eagles, fish, turtles, and more… right inside of town limits for everyone to enjoy… backdropped by breathtaking sunsets over the 3 beautiful lakes. Payson is also home to many neighborhoods, both gated and not, that provide a view of deer and elk grazing and resting on a daily basis.

Our neighborly bald eagles are found fishing in town many months of the year. Most notably is Ernie the Eagle that has become a regular in our community and is often photographed and marveled at by those walking around the lakes. Over the past couple of years, 3 bull elk have become very comfortable within the community and are seen at all times of the day exploring our streets and local businesses. Payson residents are excited every year when they come back around for a few months to join the fun.

A times it feels surreal to live in a location that provides the beauty, community, and wildlife interaction that Payson, AZ and neighboring communities provides. I am proud to live here and feel so thankful each time I help someone find their little slice of heaven in this wonderful place.

5 Tips for Purchasing Investment Properties

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A lot of people are looking into real estate, investing with one eye on the practicalities of it and another on the potential fortunes to be made. Although it is possible for you to get-rich-quick through real estate investments, the reality is most investments are long-term projects. The good news is they can bring significant returns for those who can exercise a little patience.

Like most real estate topics, there is a lot to learn. Don’t feel overwhelmed! Today, we’ll highlight some important aspects when making real estate purchases.

1% Rule

Because it is not common to have the capital to buy a property outright, renting out an investment property is an attractive option. The 1% rule is your gauge to determine the viability of renting a house out. Simply put, you want to ensure that you make 1% per month in rent of the total price of the property.

For example, if you are purchasing a property at $200,000 you would want to rent it for $2,000 a month to be worth your while. 1% per month will generally cover possible expenses the house could cause you within a year’s time. Of course, nothing is perfect. There are always the chances of unforeseen costs, but employing the 1% rule is usually a safe bet.

Know Your Locations

As with all aspects of real estate, location is crucial. It is one of the most obvious things that affects property and house prices, but not the only one. Some properties in higher-priced areas can be more affordable due to the age or condition of the house, and therefore are also great, potential investments. With a little fixing up, you can save some money and increase the value of your investment.

Set Real Goals

The term “real” here doesn’t mean you have to lower your standards, it just infers that you need to understand your own expectations. What is your reason for buying an investment property? What do you hope to get from it? What kind of ROI are you aiming for?

A clear understanding of your goals will better prepare you for every part of purchasing an investment property. Answer the above questions now and save

yourself time and money later.

Fixer Uppers

While it can be risky to buy a property that you know needs repairs, if you are handy you can save a lot of money on your initial purchase and increase its future value if you do a lot of your own repairs.

This needs to be taken

with a word of caution, however. Don’t get yourself into damage that is beyond your ability to fix. If all repairs cannot be completed alone and with minimal time, you could end up spending a lot more for repairs without ending up with a property that has a value worth the investment.

Market

 

In addition to being an investor, it helps to exercise some marketing muscle when investing in property. There are several marketing techniques and strategies that you can utilize to woo potential real estate buyers and sellers.

Social media is always an effective means to market anything, and real estate is no exception. If you are trying to sell or rent out a property, let everyone know about it on Facebook and other social media sites you use.

If you don’t like marketing yourself, there are plenty of places to hire marketers to give your property the exposure it needs. And if you want to save some cash and market yourself, here are a few points to remember:

  • Take or get professional-looking photos of the property and house
  • Write an attractive description of the property and post it online with the essential details
  • Encourage communication and include your contact details

Happy Investing…

The final word of advice here is to team up with a real estate agent you trust. They can guide many of the points listed above and offer helpful advice to maximize your real estate investing journey.

 

 

From Start to Furnish…

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Ways to furnish your new home on a budget

 

You say you just moved into a new house? Congratulations! But before you let us bring the champagne you explain that there’s no furniture in your new home yet. Maybe you moved across the country or just flushed out your old stuff since you were moving anyway. Either way, you need some help furnishing your house and adding your own decorative touch.  Have no fear! We’re here to offer ways to fill up your home without emptying your wallet.

 

Blank Slate

Realize that an empty house is a blessing. It gives you the rare opportunity to actually fill up rooms with only the things you want in them without the guilt of donating some ancient family relic in order to free up space.

Take this moment to look at your blank canvas and think about how you want to furnish it. Go through each room and make a list of what you will use it for. From there consider the style or theme you would like to emerge and if a consistent look throughout the house is important to you or not.

Craigslist

By far one of the most economical ways to furnish your home is through the online classified site, Craigslist. With tens of millions of new postings each month, this online venue can provide literally every last thing you need for your new house.

Of course, with used items of any kind, prudence needs to be exercised. The advantage with buying used furniture is that generally the original owners know they are over a barrel when selling. Used furniture depreciates in value very quickly and is difficult to move, adding (or should we say “subtracting” for your cost) to the challenge of selling it on.

In one instance, a friend bought a queen size mattress off of Craigslist for $100, pitched in an extra $20 to have the owner drive it over in his pickup, and that friend enjoyed years of exceptionally comfortable nights. No joke, the mattress he got was probably originally ten times what he paid for it. No stains, rips, or unpleasant bed bug surprises. It was used gently for a year as the owner had claimed.

Obviously, not every transaction story can be as smooth as the one my friend experienced, but with a combination of caution and research you can score amazing deals on your perfect furnishings. Lots of furniture has to be donated and even then, some volunteer organizations don’t have enough room for all of the donations to even accept them. This leaves owners with the option of paying a fee to trash it or offer good deals locally. Leverage this situation with online stores such as Craigslist.

 

Get Thrifty

The other efficient option is to surf your local thrift stores and used furniture places. Thrift shops are often inundated with donations. Usually with reasonable prices, thrifts are great venues to check out furniture in person. Check closely for faded stains or disintegrating edges.

Filing cabinets, book shelves, and desks abound! Furnish your home office with all the accessories you need to be organized and productive. I know several people who have found incredible office chairs at thrift shops for the equivalent of the price of tax on the same chair in a new office supply store. In addition to some savvy searching, let friends and co-workers know you are in the market for furniture. Just be warned that you might get a lot of junk offers. Don’t accept everything even when it is a generous offer because if it isn’t what you really want, then you will be struggling to pass it on.

 

MUST-DO MAINTENANCE:

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The quickest fix is to not have the problem in the first place. Here’s a checklist of items every homeowner should get to regularly.

1. Test your garage door opener monthly to ensure that it reverses when it hits an obstruction or when its sensor beam is interrupted.

2. Vacuum the clothes dryer’s exhaust duct at least once a year. If the duct is plastic, replace it (it’s a fire hazard). Rigid sheet-metal ducting is best.

3. Replace furnace filters quarterly, or as recommended by the furnace manufacturer.

4. Test all GFCI (ground fault circuit interrupter) outlets monthly. Press the test button and use a voltage tester to make sure the power goes off.

5. Clean leaves and debris from the condenser of a central air conditioner seasonally.

6. Once a year, vacuum the refrigerator coils underneath the appliance.

7. Have the fireplace chimney inspected and cleaned annually.

8. Inspect window and door caulking and weather stripping yearly.

9. Replace the batteries in smoke detectors yearly. And remember, even recent hard-wired smoke detectors have backup batteries that must be replaced. If you have never checked yours, do so.