Sunrise Homes & Renovations, Inc.

What’s Ahead For Mortgage Rates This Week – January 28th, 2019

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What’s Ahead For Mortgage Rates This Week – January 28th, 2019Last week’s economic news included readings on sales of previously owned homes and weekly readings on average mortgage rates and new jobless claims. A scheduled report on sales of new homes was not available due to the government shutdown.

National Association of Realtors®: Sales of Pre-Owned Homes Lowest in 3 Years

Sales of previously owned homes fell in December and failed to meet expectations. 4.99 million pre-owned homes were sold on a seasonally-adjusted annual basis; analysts predicted 5.10 million sales based on 5.33 million sales in November 2018. December’s reading showed the lowest number of sales since November of 2015.

Sales of previously-owned homes fell 6.40 percent month-to-month and were 10.30 percent lower year-over-year. Inventories of previously-owned homes also slipped in December with a 3.70 months supply of homes as compared to 3.90 months supply of available homes in November. Real estate pros consider six months supply of homes for sale as an average inventor.

Real estate pros said that lower buyer traffic in all regions of the U.S. could indicate less interest from buyers, but on a positive note, fewer buyers also remove the high rates of competition seen in the recent past.

Lower mortgage rates are well-timed for the upcoming spring sales season. Real estate pros were hopeful that lower mortgage rates will hold and entice more buyers into the market.

Mortgage Rates Mixed, New Jobless Claims

Freddie Mac reported no change in average interest rates for fixed rate mortgages. The average rate for 30-year fixed rate mortgages held at 4.45 percent; the average rate for a 15-year fixed rate mortgage was also unchanged at 3.88 percent. Rates for 5/1 adjustable rate mortgages averaged three basis points higher at 3.90 percent. Discount points averaged 0.40 percent for fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

First-time jobless claims fell to 199,000 new claims filed. Analysts expected 218,000 new claims to be filed based on the prior week’s reading of 212,000 new claims filed. Last week’s reading represented the first time since 1969 that new jobless claims fell below 200,000, but analysts were wary of potential impact of the government shutdown on new jobless claims. The shutdown ended on Friday until February 15, but politicians seemed unenthusiastic about future shutdowns.

What‘s Ahead

This week’s scheduled economic reports include Case-Shiller Home Price Indices and readings on pending home sales, construction spending and the post-meeting statement from the Federal Reserve’s Federal Open Market Committee.

Labor sector readings on private and public employment and the national unemployment rate will also be released. Weekly readings on mortgage rates and new jobless claims will be released on schedule.

Buy Or Build Your Home? 5 Factors To Consider

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Buy Or Build Your Home? 5 Factors To ConsiderA home is one of the biggest investments you can make, and the American Dream for many. Most people spend significant time finding or designing their “dream home.” The first decision is whether to buy or build. 

As of September 2018, the average sales price of a new home was $377,200, according to joint data collected from the U.S. Census Bureau and the Department of Housing and Urban Development. Existing homes sales price was approximately $258,100, according to the National Association of Realtors. 

New homes attract bigger prices than existing ones, meaning building costs are also high. So, how do you decide what is best for you?

Here are five factors to consider. 

Time 

Building a home takes time since you must complete several phases. You must buy land, find an architect to design, get building permits, find a contractor and start building. It can take between six months and a year before you move into your new home. 

Buying an existing home shortens that time. For a new house, you can move in once the escrow closes. Older homes may require renovations, but it won’t take long. 

Home Design 

Building your home gives you the benefit of customization. Working with your architect, you can design your dream home to reflect your taste and preference. Buying an existing home, means you may have to compromise on a few aspects. 

Energy Efficiency 

Rising energy costs is a concern to potential homeowners. Designing your own home means you can incorporate measures to be energy efficient. Buying an old home may require more resources to upgrade. That might end up hitting your wallet harder. 

Fortunately, most homebuilders are responding to market demands for energy efficient homes. Most new homes meet these standards. 

Budget 

Budget is an important consideration when buying or building your home. A buying price on an existing home reflects the value of the house.  

Building, on the other hand, means you have to juggle a budget constantly throughout the construction period. It is not uncommon to spend more than you budgeted for initially. 

Even if you decide to find a perfect existing home, you may finally opt to build. Conversely, you may strategize to build and later choose to buy an existing home. In both cases, working with qualified professionals such as a trusted mortgage lender, real estate agent or a builder can make the process seamless.

 

3 Tips To Save For A Down Payment

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3 Tips To Save For A Down PaymentSaving up for a down payment can feel overwhelming. Most people have never saved up the kind of money it takes for a down payment. It can be done, though. The goal is to put 20% down on a house. This is what it takes if you don’t want to have to pay private mortgage insurance every month.

However, you don’t have to absolutely put 20% down. Some mortgage programs, such as VA and FHA loans, let borrowers put down as little as zero down or about 3.5% down. There are extra requirements with any kind of mortgage you get, so be sure to discuss those with your lender.

Whichever kind of mortgage you decide to try for, here are some tips for saving for a down payment.

Get A Head Start

The sooner you start saving for a down payment, the easier it will be. Even if you currently can’t see having any extra money for savings, tuck as much as you can into a savings account. Every single dollar will help later on. 

Invest Safely To Earn Interest On Your Down Payment

If your home purchase goal is two or more years away, consider investing your savings so it earns interest. Since you’re counting on that money to use for a life goal, invest in things with low or no risk. Also, invest in things that allow you to cash out with no penalties when you think you’ll be ready to buy.

Ideas include a bank CD, money market, tax lien certificate, or municipal bonds. You won’t earn massive amounts of interest with any of these vehicles, but in return you’ll have flexibility and security.

Request An Inheritance Advance

If you know that your parents have you in their will, you can request to get part of your inheritance early. Your parents may be able to give you up to a certain amount for your mortgage down payment with no penalty.

Be sure to check with your potential lender. Some mortgage programs have caps on how much of the down payment can be sourced from a third party.

Once you decide what kind of home you might like, and which mortgage programs you might qualify for, you can decide how much you’ll need to save for a down payment. Use these three tips to save up. Before long, you’ll be ready to start shopping for the home of your dreams.

An essential partner is your trusted home mortgage professional. You can count on them to guide you every step of the way through your home loan process.

Remember, it’s never too early to contact your real estate professional. Looking at properties you like can be a helpful motivation to keep saving!

 

 

How The Title Search Works

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How The Title Search WorksA title search is an early warning system for buyers and lenders. It reveals flaws the owner must resolve prior to a closing or refinance request. This allows the owner to clear any issues on the title so that the process can move forward. Also, it protects the buyer or lender from assuming an obligation they aren’t responsible for. 

Title Search

A chain of title exists in the public records. It shows the history of property title transfer from each previous owner to the next. Unfortunately, these searches are labor intensive and require a specialist called a title examiner.

The search may take the title examiner back to a time when property laws were much different. Technically, only 40-60 previous years are required, but this may omit important information on older properties. Therefore, title examiners typically go back to the original owner.

Tax Search

The second step involves a search of tax records to ensure there are no unpaid taxes that could result in a tax lien on the property. The local municipality could hold buyers responsible if the taxes aren’t paid prior to the closing.

Inspection

If the title insurance is for a refinance loan, the lender often orders an inspection. The inspector examines the property to investigate whether there are any encroachments or other defects that affect the title. They also verify the lot size, note unrecorded easements and then mark the location of improvements.

Judgments

Judgment decrees, liens and unpaid federal taxes entail a claim on the property that supersedes a lender’s or buyer’s rights. Therefore, if discovered judgments create a cloud on the title, the current owner must resolve them before the transfer of title to the buyer.

Closing

The lender or buyer and seller can proceed with the closing after all defects have been cleared. However, the title company won’t issue a commitment to insure the property if clouds remain on the title. 

Understanding how the title process works can make the closing process easier and might make buyers a little more patient while waiting for the title commitment to arrive. 

Your trusted real estate agent and home mortgage professional will be there to guide you through the process and help you communicate effectively with your lender. These partnerships can be a key element in your successful transaction.

What’s Ahead For Mortgage Rates This Week – January 22nd, 2019

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What’s Ahead For Mortgage Rates This Week – January 22nd, 2019Last week’s economic reports included National Association of Home Builders’ Housing Market Index, the Federal Reserve’s Beige Book report and the University of Michigan’s Consumer Sentiment Index. Weekly readings on mortgage rates and first-time jobless claims were also released.

Commerce Department readings on housing starts and building permits issued were delayed due to the federal government shutdown, which continued and became the longest government shutdown on record.

NAHB: Builder Confidence Rises Amid Headwinds

Home builder confidence rose two points in January according to the National Association of Home Builders. Builder concerns over rising construction costs and tariffs on building materials were balanced by falling mortgage rates.

Builders felt pressure to create more affordable homes and to offer incentives to buyers that could create more sales. Building new homes is the only solution to the long-entrenched shortage of homes; the Home builder index is closely watched by housing and mortgage industry pros as an indicator of future home inventories and mortgages.

Federal Reserve Beige Book Shows Concern Over Current Economic Conditions

The Federal Reserve’s Beige Book report, which recounts Federal Reserve business contacts’ views of the economy included information from eight of twelve Federal Reserve districts. Business leaders cited higher costs including rising tariffs and costs for supplies. Business growth was slower during December and early January.

Additional concerns cited by the Fed’s business contacts included the government shutdown and conflicts over trade and political policies. Fed contacts reported mixed results with passing on higher costs to consumers. This suggests that consumers are “tapped out,” or are reining in spending among worries over the shutdown and rising costs.

Mortgage Rates Mixed, New Jobless Claims

Freddie Mac reported mixed activity on mortgage rates last week as the average rate for 330-year fixed rate mortgages was unchanged at 4,45 percent. The average rate for a 15-year fixed rate mortgage ticked down one basis point to 3.88 percent. The average rate for 5/1 adjustable rate mortgage rose four basis points to 3.37 percent. Discount points averaged 0.40 percent for fixed rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

Fewer first-time jobless claims were filed last week with 213,000 new claims filed as compared to expectations of 220,000 new claims filed and 216,000 first-time claims filed in the prior week.

The University of Michigan released its consumer confidence index for January; consumer uncertainty about economic conditions and the government shutdown caused January’s reading to fall nearly eight points to 90.70. from December’s reading of 98.30 Analysts expected a reading of 97.50, but this may have been based in hopes that the government shutdown would end.

What‘s Ahead

This week’s economic reports are limited by Monday’s holiday and the ongoing government shutdown. Expected readings include sales of new and pre-owned homes along with weekly readings on mortgage rates and new jobless claims.

5 Home-Buying Pitfalls To Avoid

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5 Home-Buying Pitfalls To AvoidBuying your home can be nerve-racking, especially if it’s the first time. The buying process is exciting and often complex. The chances of making a mistake are relatively high. 

In today’s real estate market where demand surpasses supply, you can’t afford to make mistakes. And this is just the tip of the iceberg.

If you are in the market to buy a house, here are five pitfalls avoid. 

Not Doing Your Homework Well 

Fortune favors the prepared in real estate. And preparedness begins with understanding your finances. A wise buyer examines assets, analyzes debts and gets finances pre-approved before jumping into the house hunt. 

Know the neighborhood well, since you’re also buying a location. It’s paramount to research about the quality of schools, upcoming zoning issues and crime level. Not all suburb spots are ideal to live in.

Picking The Wrong Mortgage 

Getting your loan preapproved puts you in a better position to negotiate. Find out how much property you can afford. Don’t rely on your bank’s internet site only. Instead, use calculators and consult with your trusted mortgage professional to find out how much you can borrow. 

It’s worth noting that what banks show they can lend can differ from what they will lend. As such, it’s imperative to choose your mortgage carefully. Compare offers from various banks or consult an independent finance broker. 

Going With The Market Flow 

Resist the temptation to flow with the market rather than your needs. The real estate market goes in cycles. There are times suitable for buyers, and times suitable for sellers. 

However, don’t gamble with your future by sitting and waiting for the right time. Once you know your budget, get your finances organized, think about your needs now and in future. Then use short term market conditions to make long-term lifestyle choices. 

Exceeding Your Budget 

Most homebuyers fall for the trap of picking more appealing properties that cost more than their budgets. Falling into this pitfall can derail your future finances. 

Although it’s human nature to yearn for more than we can afford, resist the desire. Surpassing your budget exposes you to potential financial shocks with bigger payments, property taxes and more.

Falling In Love 

If you find the perfect house, keep it to yourself. Don’t let the sellers read your emotions. If they do, they may use them against you while negotiating. 

Wise buyers know there are several homes out there, and there is one that’s right for them. If you can’t afford one or your offer isn’t accepted, keep looking and move on. 

Buying a home is rejuvenating. However, if you’re not careful, you can make mistakes you may regret later. Be sure to consult with your trusted real estate expert and trusted mortgage professional to get the best advice for your situation.