Sunrise Homes & Renovations, Inc.

Why An Emergency Fund Is Important

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Why An Emergency Fund Is Important

There’s almost a guarantee that at some point in the future you’re going to face an emergency. Like most things in life, that emergency is going to require money to solve. You can’t assume that you’ll have the funds to face the emergency when it happens. You can’t even assume that you’ll have enough on your credit cards to pay for it. The only safe way to plan is to have an emergency fund.

What Is An Emergency Fund?

An emergency fund is a reserve of cash set aside for emergencies only. It’s not a savings account, because you’re not saving up for anything in particular like a new sofa or a dining set. It’s strictly money on hand to be used in an emergency.

What Constitutes An Emergency

As a homeowner, you could face any number of emergencies regarding your property. An emergency is something unexpected and urgent. In other words, you couldn’t foresee it happening, yet it needs to be taken care of right away. Examples of homeownership emergencies are:

  • Basement floods and needs to be drained and contents cleaned
  • Tree falls on roof, and you can’t wait for insurance check
  • Furnace dies in the middle of winter
  • Central air system dies and there’s a high deductible on your insurance policy
  • Water tank gives out a week before your big family holiday

How To Manage an Emergency Fund

The key thing about an emergency fund is that it needs to be instantly accessible. Instantly accessible means you should only have to use your debit card or write a check to use it. You shouldn’t have to sell stock or transfer money out of your retirement IRA. It should also be kept separate from other funds, so it doesn’t get confused with the Christmas gift fund or the college fund.

Why Have An Emergency Fund?

Emergencies shouldn’t cause catastrophic damage to your finances. With consistent, small saving habits, you can build up an emergency fund so you can easily and readily take care of maintaining and repairing your home. This is part of good homeownership. When you have an emergency fund, you know that you can always keep your home in tip-top shape.

3 Reasons to Avoid Giving Wrong Information on Your Mortgage Application

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3 Reasons to Avoid Giving Wrong Information on Your Mortgage ApplicationA mortgage application is typically several pages in length, and it requires you to provide a considerable amount of information about your personal, professional and financial life. Some mortgage applicants may not have access to all of the information when completing the application, and others may simply skim over the form and provide incomplete answers. These are only a few of the reasons why information on the mortgage application may not be accurate, but there are several key reasons why applicants should avoid giving inaccurate information.

Loan Approval is Based on It

The initial loan application will usualy serve as a basis for the pre-qualification of the mortgage request. The applicant may make a decision to move forward with an offer to purchase a home based on this pre-qualification, but the pre-qualification is based on the accuracy of the information that is initially provided to the lender in the loan application. If the information is incorrect then an applicant may not be able to qualify for the loan and the deal could fall through. 

Information Will Be Verified

The majority of the information that is provided by the applicant in the loan application will be verified at various points throughout the loan process. For example, a credit report may be pulled very early on in the loan process, and it may be used to document the accuracy of the debts and monthly payments that the applicant wrote on the loan application. Tax returns, pay stubs and other related documentation may also be required. Essentially, the lender will eventually have access the accurate data, so there is little benefit to provide inaccurate information up-front on the loan application.

It Is Against the Law

A final reason why it is not advisable to provide inaccurate information on the application is because this is illegal. There is a disclaimer on the standard mortgage application that goes into detail about the law regarding providing false information on a loan application. There are also disclosures that are signed before and during closing that relate to this.

Completing a loan application is among the first steps mortgage applicants take when applying for a loan, and it is easy to overlook the importance of providing accurate and detailed information at this stage in the process. It is best to take time complete the loan application as thoroughly and accurately as possible since it is a legal requirement and because of many other negative consequences. Those who have questions about how a loan application works or who would like to begin the loan application process can reach out to their trusted mortgage professional for assistance.

What’s Ahead For Mortgage Rates This Week – July 5, 2021

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What's Ahead For Mortgage Rates This Week - July 5, 2021Last week’s economic reports included readings from S&P Case-Shiller Home Price Indices and data on pending home sales. Readings on job growth and und unemployment were also released along with weekly reports on mortgage rates and jobless claims.

S&P Case-Shiller: April Home Price Gains Reach Record Highs

Craig Lazzara, managing director and global head of investment strategy for S&P Dow Jones Indices, said that April’s year-over-year national home price growth rate of 14.60 percent was “ truly extraordinary.” All cities included in the 20-City Home Price Index posted higher home prices;  five cities including Charlotte, North Carolina, Cleveland, Ohio, and Dallas, Texas posted their highest home price gains ever along with Denver, Colorado, and Seattle, Washington.  

Phoenix, Arizona, San Diego, California, and Seattle, Washington continued to hold the top three positions for annual home price growth in the 20-City Home Price Index.

Realtors Report Increase in Pending Home Sales

Pending home sales rose by eight percent in May as compared to April. Analysts expected a one percent decrease in pending sales. Lawrence Yun, the chief economist at the National Association of Realtors®, said “May’s strong increase in transactions, as well as a sudden erosion in home affordability, was indeed a surprise. The housing market is attracting buyers b due to the decline in mortgage rates and an uptick in listings.”

Mortgage Rates, Jobless Claims Show Mixed Results

Freddie Mac reported lower average rates for fixed-rate mortgages. Rates for 30-year fixed-rate mortgages fell by four basis points to 2.98 percent; rates for 15-year fixed-rate mortgages fell by eight basis points to 2.26 percent. The average rate for 5/1 adjustable rate mortgages rose by one basis point to 2.54 percent. Discount points averaged 0.60 percent for 30-year fixed-rate mortgages and 0.70 percent for 15-yar fixed-rate mortgages. Discount points for 5/1 adjustable rate mortgages averaged0.30 percent.

First-time jobless claims fell to 364,000 initial claims filed from the prior week’s reading of 415,000 new claims filed. Continuing jobless claims increased with 3.47 million ongoing claims filed. ADP reported 692,000 private-sector jobs added in June; The federal Non-Farm payrolls report posted 850,000 public and private-sector jobs added as compared to 583,000 jobs added in May. The national unemployment rate ticked up to 5.90 percent in June from May’s reading of 5.80 percent unemployed.  

What’s Ahead

This week’s scheduled economic reports include the minutes from the most recent meeting of the Fed’s Federal Open Market Committee and the Labor Department’s report on job openings. Weekly readings on mortgage rates and jobless claims will also be released.

Preparing for a House Fire – What to Do if One Breaks Out

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Safety Tips: 5 Ways to Prepare for a House Fire - and What to Do if One Breaks Out House fires can break out for a wide range of reasons, and these include everything from grease fires while cooking in the kitchen to lightning striking the home. They can cause a significant amount of property damage as well as personal injury or even loss of life, so preventing them and knowing how to properly respond if a fire does break out are important. Whether buying a new home or residing in an existing home, everyone can benefit from learning more about fire safety rules.

Have An Exit Strategy

Fires can break out whether residents are awake in the living room or kitchen, taking a bath or sleeping in the bedrooms. It is important to have a fire exit strategy for every floor of the home and every room of the home. In addition, it is equally important that all residents in the home understand the strategies and know how to get out.

Invest In Fire Safety Ladders

Fire safety ladders are designed to give residents a safe escape route from second story windows, and they should be placed in a convenient location in every second floor room in the home. Residents should know how to attach them securely to the window as well as how to get down the ladder safely.

Purchase A Fire Extinguisher

Generally, it is safer for residents to get out of the home in the event of a fire rather than to attempt to put the fire out, and personal safety should also come before thoughts about saving the property. However, in the event a very small fire has broken out, a fire extinguisher can provide a homeowner with a safe way to put the fire out. It is best to keep a fire extinguisher in a convenient location on each floor of the home.

Place Fire Detectors In Strategic Locations

There are codes regarding the placement of fire detectors in a home, and your trusted real estate agent can provideyou with more information about this. In many cases, homeowners may benefit from having additional fire detectors placed in strategic locations throughout the home in addition to the locations required by code.

Check Fire Safety Equipment Regularly

Fire safety and prevention equipment is only useful if it works, so it is important to test the equipment and supplies regularly. For example, a homeowner may test the batteries in a fire detector monthly and may take extinguishers to the local fire department for testing annually. These steps will help to ensure that residents have access to functional safety equipment regularly.

Residents should also know what to do if a fire breaks out in a home, and in most cases, the answer is to get out of the home quickly and to call the fire department. Attempts to save personal belongings should not be made, and all residents should know where the family will meet outside of the home in the event of a fire. Those who want to learn more about safety features in a home or about the required placement of smoke detectors can contact your trusted real estate professional for further assistance.

Let’s Talk Hardwood: Why Converting Your Home to Hardwood Flooring Will Boost Its Value

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Let's Talk Hardwood: Why Converting Your Home to Hardwood Flooring Will Boost Its ValueWhen a homeowner makes the decision to upgrade flooring in one area of the home or throughout the entire space, there are numerous materials that may be considered. While each material option has its unique benefits and advantages, many are drawn to hardwood flooring as an option. This is a material that has the potential to boost home value, and a closer look at its benefits will reveal why this is the case.

A Durable, Long-Lasting Material

With many flooring options, homeowners understand that the material will need to be replaced or upgraded over the years. With hardwood flooring, the timeless appeal and incredible durability of the material means that the floor may be an investment to enjoy for many long decades. In fact, with periodic maintenance and regular care of hardwood floors, some hardwood floors may provide the homeowner with 50 years or more of beautiful use in the home.

Numerous Stylish Options

More than that, there are numerous style options for homeowners to consider, and this provides the ability to easily select a material that is ideal for the look of the home. In addition, hardwood floor generally has universal appeal that many desire, and this increases the desirability of the home to future home buyers. This is especially true when a more classic tone of wood is selected rather than a modern or trendy tone.

Improved Indoor Air Quality

Some flooring materials, such as carpet, may have a detrimental impact on indoor air quality, but this is not the case with hardwood flooring. The material is easy to clean, and this means that dust, dander and other allergens can easily be removed from the floor. This will have a direct and beneficial impact on indoor air quality that current owners as well as future home buyers can enjoy.

While hardwood flooring can be desirable and beneficial for current property owners, the appeal of the material will extend to future home buyers. When hardwood flooring is well-maintained by the owner, it is a true investment that will add true value to the home and that may help the owner to sell the property more quickly when the time comes. Those who want to learn more about how hardwood flooring may impact their own home value and the ability to sell their property in the future can request a consultation with a real estate professional.

How to Market Your Home as the Perfect Rental or Investment Property

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Niche Marketing: How to Market Your Home as the Perfect Rental or Investment Property When a homeowner is preparing to sell a home, it can be beneficial to determine the target audience that is most likely to be interested in the property as an important initial step. In some cases, it is advantageous for a homeowner to position a home as a great rental property or investment property, but this requires the right strategy. By adopting a few niche marketing steps, homeowners can work with their trusted real estate agent to market a property appropriately.

Create A Cash Flow Sheet

Buyers who are searching for a rental or investment property are looking for a return on their investment in most cases, and they also may want to see how large of a down payment is needed in order for the property to realistically turn a profit. A real estate agent can work with a property owner to create a cash flow sheet that details all of this information for a buyer.

Show Comparable Rental Properties

A real estate agent can also research comparable rental data to help a property owner determine what a realistic rental rate may be. Property buyers want to know that the information provided to them in the cash flow sheet is realistic, and comparable rental data can give buyers the details they are looking for. More than that, this information may also show the average number of days similar properties stay on the market for rent and how many similar properties are available for rent in the vicinity.

Appeal To Agents Specializing In Real Estate Investments

Some real estate agents specialize in assisting investor clients, and some have standing clients that they actively seek great properties for. A skilled real estate agent may announce the listing to these agents so that they can bring the property to the attention of their clients. This focused marketing effort can yield considerable returns, but the real estate agent generally must take the initiative to contact these agents.

Some properties may be marketed as family homes or vacation homes, but others are well-suited for being rental or investment properties. Homeowners who are preparing to sell their home can work with a real estate agent to learn more about who their target audience is and how to market specifically for them. Those who are interested in learning more about how to sell their home quickly can set up a consultation with their trusted real estate professional.