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Buying Vs. Renting

by The Russo Team

Buying Vs. Renting

Despite rising rental rates, buying a home still cost less than renting. Here’s why:   

Rental rates have been rising for the last few years and are continuing to increase across the country. These sharply rising rates are steadily making renting a more expensive option than buying a home. That’s why you’ll notice that monthly rental payment costs are trumping monthly mortgage costs.

Owning a home give buyers an advantage of cost saving tax breaks that renters do not have access to.  Home owners can deduct mortgage interest, property taxes, a percentage of energy efficient upgrades, and more.

According to the Rent vs. Buy Report from Trulia, buying costs less than renting in all 100 large U.S. metros. In fact, homeownership is thirty-eight percent cheaper than renting nationally according to Trulia Chief Economist, Jed Kolko. Low mortgage rates have made homeownership more affordable.

If you’re ready stop renting and buy a home in Phoenix, please contact The Russo Team today. We’ll help make your home buying experience the best it can be!

Frank Russo

Russo Team

RE/MAX Professionals

www.RussoTeam.com
602-864-1200

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What to Consider Before You Buy a Home this Spring

by The Russo Team

What to Consider Before You Buy a Home this Spring

When it comes to buying a phoenix home, there are many experiences even the most seasoned home buyer wished they had known or that they could do over again; from having a more thorough home inspection to investing more time in better understanding the extensive paperwork and contracts associated with the home buying process. Because this is predicted to be a competitive home buying season, here’s what to consider before you buy a home this spring.

Save Smart: Next, you want to be sure you build up your savings, because lenders want to see that you're not living paycheck to paycheck. If you have three to five months' worth of mortgage payments set aside, that makes you a much better mortgage loan candidate. A hefty savings can also help you save for a down payment that could help lower mortgage payments.

Shop Smart: As a first time homebuyer, finding out that you are qualified for a $650,000 mortgage can be an exciting thing. But as a general rule, it’s smart to take twenty percent less than what the bank will lend you and to be sure to have an idea what your mortgage, taxes, and maintenance costs could run you before buying your Arizona home. Before you home shop, calculate the mortgage payment for the home in your intended price range, along with the increased expenses (such as taxes, insurance and utilities). Then bank the difference between that and what you're paying now.

Plan Smart: Home buying costs can include loan application fees, closing costs, appraisal fees, buyer broker fees, and more. After you sign all the paperwork and receive the keys to your new home, there are also homeowners insurance, property taxes, and possibly Homeowners Association fees. A cash cushion will also help cover maintenance and repair issues that come up when you own a home. Don’t think a perfect walkthrough means you won’t get hit with an unexpected big ticket repair later.

If you’d like more home buying tips or if you’re looking to buy a home in Phoenix this spring, please contact The Russo Team today. Whether you are looking for your first home, your last, or something in between, our five-star team will help you ever step of the way!

Frank Russo

Russo Team

RE/MAX Professionals

www.RussoTeam.com
602-864-1200

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3 Little White Lies that Can Hurt Your Home Buying Chances

by The Russo Team

3 Little White Lies that Can Hurt Your Home Buying Chances

At some point in our lives, we’ve probably had to tell a little white lie. (That haircut looks great on you, by the way!) And while most of us feel a little fib here and there won’t hurt anything, when it comes to buying a home, honesty is always the best policy. And because obtaining home financing and an affordable mortgage can be a tough process for homebuyers, it’s understandable that some would chose to stretch the truth to work in their favor. What’s a little white lie going to hurt? Turns out, those small untruths can come back to hurt you and backfire in a major way in your home buying process. Here are 3 little white lies that can hurt your home buying chances.

White Life #1: Primary Residence

Who will occupy the house is the most common white lie when it comes to home buying. A home buyer may tell a lender they are purchasing the home as a primary residence but are in fact planning to rent it out as an investment property. Buyers do this to obtain a lower interest rate and lower down payment as lenders charge a higher interest rates and down payments on investment properties as opposed to primary residences. Lenders consider this stealing money from them by making them take on more risk than they agreed to and if caught, you could lose your home financing.

White Lie #2: Your Income

Obviously how much income you make has a huge impact on qualifying for a home loan. But being dishonest about the amount of money you make can hurt you more than you think. Your lender is going to verify all of the financial information you provide on your application, so if your tax returns, bank statements, W-2 forms, and supporting documents don’t support your income claims, you likely won’t get the loan. It’s best to just be honest and not doctor your statements or fudge the numbers to obtain financing.

White Lie #3: Hiding Your Debt

One of the most important factors to getting approved for a home mortgage is your debt-to-income ratio, which is how much of your income you have to pay out each month to cover all your debts. So some borrowers will fib and hide certain debts on their mortgage application to try to make it look like they owe less than they do. The reason this could blow up in your face is that established creditors report your debt and payment history to the credit reporting agencies which are pulled by your lender. So they will definitely find discrepancies on what you owe versus what you say you owe. Also, when you sign off on a mortgage, one of the things you sign is a statement that the information you’ve provided is accurate to the best of your knowledge. So if the information on your application is not accurate, then that’s mortgage fraud. Penalties for mortgage fraud range as high as thirty years in prison and a $1 million fine.

Little white lies have no place in the home buying process, because altering the facts in any way that affects your cost or ability to get a home loan is likely to hurt your home buying chances. Believe it or not, even the busiest of lenders stringently verify your application information so small untruths have a way of resurfacing. Need help with the home buying process? Contact the Russo Team today and we’ll help you find the right home. And that’s no lie! - Frank

www.RussoTeam.com
602-864-1200

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The Russo Team
RE/MAX Professionals
7111 West Bell Rd. Ste 101
Glendale AZ 85308
602-864-1200
602-739-2727
Fax: 623-643-1008

RE/MAX Professionals. Each office independently owned and operated.