Sunrise Homes & Renovations, Inc.

Is A VA Loan The Best Option For Your Needs?

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Is a VA Loan the Best OptionIf you plan on buying a house in the near future, there are a few mortgage options available. One potential option is called a VA loan. This is a loan that has been backed by the Department of Veterans Affairs, and it could provide you with some added flexibility that you can use to purchase a house. Is a VA loan right for you? There are a few points to keep in mind.

Who Qualifies For A VA Loan?

First, not everyone is able to access a VA loan. This is a loan that is generally only available to active members of the US military, veterans of the US military, and surviving spouses of service members. There are different service requirements that you need to meet before you can qualify for a VA loan, so if you have questions about your service record, consider reaching out to an expert who can clarify whether you meet the requirements.

What Are The Top Benefits Of A VA Loan?

There are a few reasons why you might want to take advantage of a VA loan. First, you don’t need to put any money down. You can take out a home loan for 0 percent down, making it easier to purchase the house of your dreams. Second, even though don’t put any money down, you don’t need to pay for mortgage insurance, helping you save money. While you can still put money down if you would like, there is no requirement for you to do so.

Overall, the closing costs tied to a VA loan are significantly lower, so you don’t have to worry about exorbitant fees at the closing table. Finally, if you decide to pay off the loan early, you should not have to worry about incurring a prepayment penalty. 

Consider Applying For a VA Loan

There are a lot of unique requirements that you need to meet if you want to qualify for a VA loan, but it could help you buy a home without having to put anything down at all. You should partner with an expert who has experience navigating this situation. That way, you can find the best loan option to meet your needs.

3 Critical Tips for Buying a Home in a Short Sale

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3 Critical Tips for Buying a Home in a Short SaleYou just found your perfect home, and you feel like everything is right including the price. But, what could be wrong with your ideal home? Maybe, it is being sold as a short sale, and that could present a major challenge if you want to become be the eventual homeowner.

Short sales are different from other conventional real estate transactions since the property in question is usually listed at a price that is much lower than the amount of the outstanding mortgage debt.

Unlike a regular sale, the homeowner must obtain permission from the lender before proceeding with the transaction. Whether you are a veteran property buyer or a first-time home buyer, closing a deal on a short sale can be a challenging and stressful experience. We compiled the top three tips for buying a home in a short sale.

Consult a Short Sale Expert

First, you should consider getting help from a short sale expert who will help you identify homes that are being offered as short sales, help you determine a reasonable purchase price and also advise you on what to include in your offer to make it attractive to the seller.

Before you go for a particular short sale expert, ask them how many buyers they have helped purchase homes on short sales and how long they have been in business.

Good Deals Take Patience

Secondly, remember to be patient when engaging in a short sale deal. There is a high likelihood that most buyers will get impatient after several weeks of waiting and walk away from the deal leaving you in a strong position to negotiate.

If you understand that the initial offer on any short sale can take a long time before the lender accepts or rejects it, you will be in a better position to get a good deal since there will be no stiff competition. However, you should keep in mind that the lender might reject your offer.

Get a Full Loan Approval Early

Lastly, make sure that you get approved for a loan and not just pre-approved. Go through the trouble of getting approved if you want to stand a good chance of landing your dream home through a short sale.

Keep in mind that there will be multiple bids on the property and most of the prospective buyers will be pre-approved. Since you want to get the home at the best possible price below the market prices, being fully approved will make your offer stand out with the lender since you no longer face the risk of your financing falling apart at the last minute.

Entering into a short sale transaction will require patience and diligence. One of your best partners will be your trusted real estate professional. 

A Reverse Mortgage And A Home Equity Conversion: What To Know

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A Reverse Mortgage And A Home Equity Conversion: What To Know If you are getting ready to retire, you need to make sure you have income to support yourself during your golden years. One popular option is a reverse mortgage, and you can use it to supplement the benefits you receive through Social Security. On the other hand, you may have also heard about a home equity conversion mortgage. What are the differences between them, and which one is right for you?

A Reverse Mortgage

A reverse mortgage is a popular option because you can tap into the equity you have in your home to receive funds from a specific lender. In some cases, they will provide you with a single lump sum, but in other cases, they may provide you with monthly installments. You are not required to make any monthly mortgage payments, and you simply have to pay the money back when you sell your home. Your name will remain on the title of your home even as you tap into the equity to support your retirement. There are multiple types of reverse mortgages, and a home equity conversion mortgage is one popular option.

A Home Equity Conversion Mortgage

A home equity conversion mortgage is one specific type of reverse mortgage that is insured by the Federal Housing Administration. It provides you and your heirs with certain protection, and it is only available to borrowers who are 62 years of age or older. If you take out this type of reverse mortgage, you must use the funds to pay off any remaining balance you have on the original mortgage. Then, any funds that are left over will be provided to the homeowner. There are a number of factors that will dictate the amount of money you can receive. They include the age of the youngest borrower, the expected interest rate, and the national lending limit insured by the FHA.

Is This Option Right For You?

If you own your home outright, a reverse mortgage could be a great way for you to support yourself during retirement while also protecting any inheritance you passed down to your heirs. Consider reaching out to a professional who can help you decide if this is the right option to meet your needs.

What’s Ahead For Mortgage Rates This Week – March 27, 2023

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What's Ahead For Mortgage Rates This Week - March 27, 2023Last week’s financial and economic reporting included readings on sales of new and previously-owned homes, along with weekly data on mortgage rates and jobless claims.

Single-Family Home Sales Rise in February

Year-over-year sales of previously owned homes rose 14.5 percent to a seasonally-adjusted pace of 4.58 million sales. Analysts expected 4.20 million sales of pre-owned homes as compared to January’s year-over-year reading of 4.0 million sales. February’s increased sales halted 12 months of falling sales of previously-owned homes. February’s reading marked the highest pace of sales since July 2020, when sales of pre-owned homes rose by 22.40 percent.

The National Association of Realtors® said that February’s reading represented the largest increase in existing home sales since the inception of reporting sales of previously-owned homes in 1999. The median sale price of existing homes was $363,000 in February. There was a 2.6-month supply of homes available in February.

February sales of new single-family homes rose to 640,000 sales from January’s reading of 633,000 sales. While analysts said that a brief lull in climbing mortgage rates contributed to increased home sales, new home sales remained 22.60 percent lower than in February 2021.

FOMC Statement: Fed Strives to Hold Inflation in Check, Mortgage Rates Fall

The Federal Reserve’s Federal Open Market Committee released the minutes of its March meeting; the Committee voted to raise its key interest rate range to 4.75 to 5.00 percent; the Committee reaffirmed its goal of returning inflationary growth to two percent. Fed Chair Jerome Powell said that the Fed was planning to continue rate hikes before the failure of Silicon Valley Bank. Chairman Powell said the bank’s failure forced Fed policymakers to consider a halt to interest rate hikes.

Freddie Mac reported lower average mortgage rates as the rate for 30-year fixed-rate mortgages fell by 18 basis points to 6.42 percent. The average rate for 15-year fixed-rate mortgages fell by 22 basis points to 5.68 percent. Initial jobless claims fell slightly to 191,000 claims as compared to the previous week’s reading of 192,000 first-time claims filed. Continuing jobless claims rose to 1.69 million claims filed from the prior week’s reading of 1.68 million ongoing claims filed.

What’s Ahead

This week’s scheduled economic reports include readings on home prices, inflation, and consumer sentiment. Weekly reports on mortgage rates and jobless claims will also be released.

Six Key Reasons You’ll Want to Work With a Real Estate Agent When Pricing Your Home

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Six Key Reasons You'll Want to Work With a Real Estate Agent When Pricing Your HomeWhether you know a little bit about the market or you’ve sold a home before, you may be considering pricing your own home to avoid the assistance of a real estate agent. However, there are a number of benefits associated with consulting an agent when selling your home. Before making a final decision, consider the following tips.

They Know The Neighborhood

It’s great if you have familiarity with market prices, but knowing a neighborhood is key when it comes to determining price. The right agent will be able to help you arrive at a price that is good for your home and practical for the area you’re selling in.

Is The Market Hot?

The price may be right, but if the market has cooled off, you may have to make a compromise in order to sell it. Instead of trying to arrive at this on your own, an agent will be able to provide insights into the best strategy.

They’ve Sold In The Area

A local agent may have sold properties in your area recently and may be well aware of the price potential. With this added expertise, they can walk the line between your ideal price and what you can get.

Preparing A Plan B

An agent may agree to go with a higher selling pricing if you’re committed to it, but they will also help you make another plan if the price doesn’t work out. It’s disappointing to not get what you’re asking for, but it’s better to have a plan just in case.

Saving On Stress

It’s one thing to decide on the price of your home, but it’s quite another to deal with all the stress if it lingers on the market without an offer. If an agent assists you in determining your price, they’ll also be there to shoulder some of the stress.

When It Comes To Negotiating

The negotiation following a home offer is make-or-break for selling your home, so having an agent is a great benefit. While they won’t be able to make the decision for you, they can serve as a helpful guide in determining an appropriate counter offer.

Many homeowners want to embark on selling their home on their own, but a real estate agent can be very helpful in determining a purchase price and assisting with the negotiations. If you’re currently getting prepared to sell your home, contact one of our real estate professionals for more information.

White Lies That Could Make It Harder To Buy A Home

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White Lies That Could Make It Harder To Buy A HomeRight now, the real estate market is very competitive, and you might be tempted to use a few white lies to make your offer seem more competitive. No matter how much you want to purchase a home, you need to make sure you are completely honest and open when you go through the process from start to finish. What or a few examples of common white lies that people tell that could jeopardize your application or your mortgage as a whole?

Lying About Your Primary Residence

If you plan on living in the house full-time, make sure you say so. You might get a lower interest rate if you tell the lender you are going to use the house as your primary residence. On the other hand, if you plan on renting out the house, you need to be honest on the application. If you lie about living in the house, it could be considered mortgage fraud, which is a crime.

Not Disclosing The Source Of Your Assets

Lenders have a legal duty to make sure money laundering is not taking place. If the source of your down payment is coming from someone else, such as a parent, there is certainly nothing wrong with that. On the other hand, you need to be honest about where the money came from. If you look like you are hiding the source of your money, it will only make the application process more complicated. 

Omitting Sources Of Debt

No matter how small you might think your debt might be, you need to disclose every single source. A few examples include student loans, car loans, and credit card debt. There is a detailed underwriting process that has to take place, and if your mortgage lender finds out that you lied on your application, they could deny your application outright, no matter how competitive you might be. 

Be Honest When You Apply For A Mortgage

Lenders have a legal duty to review each application in full. Every question has a purpose, and you need to be honest when you answer them. If you need help applying for a mortgage, you should reach out to an expert who can help you put your application in the best position possible to be successful.