Sedona Real Estate Market Statistics October 2011

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Of the 458 active listings on the market September 30, 2011, 44 were distressed properties, accounting for 9.6% of active listings; up from 8.8% in August .

Tips To Present a Stronger Mortgage Application" and more
As underwriting guidelines for lenders become more stringent, we need to re-examine what a good
mortgage application looks like. As home buyers begin their search for a

Search the entire Sedona MLS, or go directly to a particular price range below: Sedona Luxury Homes $1,000,000 and up Sedona Fine Homes $700,000 to $1,000,000 Sedona Homes $600,000 to $700,000 Sedona Homes $400,000 to $600,000 Sedona Homes below $400,000 Sedona Land Sedona Foreclosures Sedona Short Sales Sedona Condos and Townhomes Sedona Homes Sold September 2011

home, there are a few items they
should be aware of that they can do to help get their loans approved (with the best possible terms), and, at
the same time, lessen some of the stress that goes along with the mortgage process.

1. Income documents
Most lenders want to see a full month of paystubs and two years' complete Federal Tax Returns.
Assembling them ahead of time and holding on to every paystub you get is a good idea even before you
find a home and/or submit your mortgage application because it will save you time later. Moreover,
looking at those documents and being prepared to explain any deductions that show up is crucial. Child
support, alimony, garnishments, and Unreimbursed Employee Expenses are often crippling factors that, if
explained and dealt with upfront, can make your loan approval smoother.
 
2. Asset documents
Most lenders will scour your bank accounts for the two months prior to going to contract. They are
looking for large deposits because large deposits can signal a new loan that wouldn't show up on your
credit report yet. What's a "large deposit"? Typically, any deposit that would represent more than your
income can support. If you make $5000 a month, after taxes you likely net $3800 (or $1900 a bi-weekly
pay period). Therefore, deposits in excess of that will need to be explained and documented. Sold a
motorcycle? Have a paid receipt and motor vehicle documents in place. Received a gift? You will need a
Gift Affidavit, proof of the donor's ability and transfer of the funds. Any and all questions should be
discussed with your loan officer.

3. Credit Score Optimization
Do your best to curtail your use of credit as it relates to your available credit lines. Target a cap of 30% of
usage of available lines to get the best scores. Do NOT cancel credit cards. That will lower your amount of
available credit, thereby raising your percentage of usage. That will damage your score. Do NOT shop for a
car, explore life insurance, apply for a new credit card or increase the limits on your current cards because
the running of your credit by people in other industries will also lower your credit score. Most
importantly, don't do anything that will require having your credit run without first discussing it with a
mortgage professional who knows the impact it could have.

4. Appraisal Concerns
It's unlikely you will make an offer to purchase without checking out comparable home sales. It's also
likely you received that type of data from the real estate agent you are working with. Make sure your agent
prepares the same information for the appraiser. Data about similar sales, similar homes currently on the
market and maybe even cost estimates for any repairs or improvements anticipated can preempt future
problems with appraised values and conditions.
Overall, it is recommended that you hold onto copies of everything financial, think before allowing your
credit to be run and work with an agent and loan officer who can use their experience to put your loan
application in its best possible light...as soon as you start thinking about buying a home.

From: Linda Rogers [lrogers@primeres.com]