Sunrise Homes & Renovations, Inc.

What is Cash to Close?

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What is Cash To Close“Cash to Close” refers to the total amount of money that a homebuyer needs to bring to the closing table to complete the purchase of a property. It includes the down payment, closing costs, and other fees associated with the home purchase.

How is it Calculated?

The cash to close amount is calculated by subtracting any applicable credits, such as earnest money or seller contributions, from the total amount of funds needed to complete the transaction. The resulting figure represents the final amount of cash that the buyer needs to bring to the closing.

It’s important for homebuyers to carefully review their “Cash to Close” statement before closing to ensure that they have enough funds available to cover the required amount. The statement will typically be provided by the lender or title company several days before the closing date.

The Difference Between Cash to Close and Closing Costs

Cash to close and closing costs are both important concepts in the home buying process, but they refer to different things.

Cash to close refers to the total amount of cash that a homebuyer needs to bring to the closing table to complete the purchase of a property. This includes the down payment, closing costs, prepaid expenses (such as property taxes and homeowners insurance), and any other fees associated with the home purchase.

Closing costs are the fees and expenses associated with obtaining a mortgage loan and closing the real estate transaction. They can include loan origination fees, appraisal fees, title search and insurance fees, attorney fees, and other charges. Closing costs are typically paid at the closing table, but they can sometimes be included in the mortgage loan amount.

Do I Need Actual Cash to Close?

While the term “Cash to Close” may suggest that you need to bring actual physical cash to the closing table, in reality, you typically do not need to bring cash. Most real estate transactions are settled using wire transfers, certified or cashier’s checks, or electronic transfers, rather than physical cash.

When you receive the “Cash to Close” statement, it will provide you with the total amount of funds needed to complete the transaction. You will then typically work with your lender and/or closing agent to arrange for the transfer of these funds to the appropriate parties.

It’s important to note that the exact payment methods and requirements may vary depending on the specific transaction and location. You should work closely with your lender and/or closing agent to ensure that you understand the payment process and have the necessary funds available in the appropriate form.

Running A Quick Financial Health Check Before You Apply For A Mortgage

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Running A Quick Financial Health Check Before You Apply For A Mortgage Getting a mortgage is a significant financial decision, and it is crucial to ensure that you are financially prepared before applying for one. Conducting a quick financial health check before applying for a mortgage can help you determine your financial standing and your ability to afford a mortgage payment.

Here are some reasons why you should consider conducting a quick financial health check before applying for a mortgage:

  1. Check your credit score: Your credit score is an important factor that lenders consider when deciding whether to approve your mortgage application. Check your credit score to see where you stand and take steps to improve it if necessary.
  2. Review your debt-to-income ratio: Lenders will also look at your debt-to-income ratio, which is the amount of debt you have compared to your income. If your debt-to-income ratio is too high, you may not be able to qualify for a mortgage. Try to pay down debt and increase your income to improve your debt-to-income ratio.
  3. Calculate your down payment: Most lenders require a down payment of at least 20% of the purchase price of the home. Calculate how much you’ll need for a down payment and make sure you have enough savings.
  4. Determine your monthly housing costs: Take a look at your monthly income and expenses to determine how much you can afford to spend on your mortgage payment, including property taxes and insurance. Make sure you’re comfortable with the monthly cost before applying for a mortgage.
  5. Get pre-approved for a mortgage: Once you’ve completed these steps, it’s a good idea to get pre-approved for a mortgage. This will give you an idea of how much you can borrow and the interest rate you’ll receive.

Conducting a quick financial health check before applying for a mortgage is a smart move. It can help you identify any financial issues, improve your mortgage eligibility, and ensure that you are prepared to take on the financial responsibilities of homeownership.

By following these steps, you’ll be able to quickly assess your financial health to increase your chances of being approved for the loan and determine whether you’re ready to apply for a mortgage.

Pet-Friendly Homes: Some Selling Do’s and Dont’s

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Pet-Friendly Homes: Some Selling Do's and Dont'sNearly 70 million American households include at least one pet, but most prospective buyers won’t want to see evidence of pets in a home on the market.

Here are some tips about how to sell a pet-friendly home.

Prior To Listing

Point out special pet features to your real estate agent — a cat door, feeding station or a pet shower, even a fenced back yard or a dog run can be a bonus to many buyers. It’s important to remember that buyers want to imagine their pets in the home, not yours! Minimize your pet’s presence by decluttering pet supplies as well as your personal items.

While it is best to downplay non-human residents in a home for sale, some pets are more difficult to camoflage or move out of the way. If you have a bird, an aquarium, or large exotic pets, use your best judgment while keeping the “less is more” philosophy in mind.

If there is any pet damage, it should be repaired before you show the home. If necessary, repaint walls, refinish floors, or replace carpeting. Ask a friend or relative (one without a pet) to give your house a sniff test. If there are any odors, do whatever is necessary to eliminate them. It is not likely enough to try to mask the odors with air freshners in order to make the best impression on potential buyers.

Dealing With Showings

Always arrange for animals to be out of the house when a showing is scheduled. If you can’t be there to pick up a pet, trust a neighbor to take the dog for a walk or herd the cat into a carrier and keep it for a few hours. A barking dog in the back yard is annoying, and even the cutest puppy can intimidate a buyer. Cats, too, are notoriously independent, and not all humans are cat-lovers.

Buyers expect even a house with pets to be kept scrupulously clean. Sweep and vacuum up pet hair as often as necessary. Pick up feeding bowls and toys, and remove cat litter boxes prior to a showing. Polish nose prints off glass and put away the scratching pole. Think of pets and pet items the same as you would personal photographs and other memorbillia that clutters your home. Removing those items helps the buyer see themselves in your home and can increase the likelihood of a sale.

It’s also wise to double check with your insurance company to determine your liability in the event that your pet bites or otherwise injures anyone at your property. 

Before And During Moving

Remember that moving is stressful, not only for you, but for your best friend as well. Speak to your veterinarian in advance about possible symptoms of anxiety such as increased accidents, changes in appetite, aggressive behavior or other personality changes that may occur. If you notice any significant signs of anxiety, seek treatment.

If at all possible, take your pet to see your new home prior to your move. If not, continue to look for signs that your pet is feeling disoriented or anxious. Finding a reliable and trustworthy veternarian near your new home beforehand is a good idea in case your pet is struggling. Take extra care that your pet doesn’t try to “escape” back to the familiar and get lost. 

Selling your home and moving into a new home can be exciting, complicated and stressful events. The same can be true for your pets. With a little bit of extra planning, things can go a lot smoother for your entire family. Contact your real estate professional for even more tips for a successful home selling, home buying and relocating experience.

 

Critical Tips To Consider When Hiring A Home Contractor

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Critical Tips To Consider When Hiring A Home ContractorHiring a home contractor can be a daunting task, as the success of your home renovation or construction project depends largely on the competence of the contractor you choose. Here are some critical tips to consider when hiring a home contractor:

Research: Do thorough research on potential contractors before hiring them. Check their credentials, licenses, certifications, and experience. Also, look for reviews and testimonials from past clients to get an idea of their work quality.

Get multiple quotes: Request quotes from multiple contractors and compare them. This will give you an idea of the average cost of the project and help you choose the contractor that offers the best value for your money.

Check for insurance: Ensure that the contractor has liability and worker’s compensation insurance. This will protect you from liability in case of accidents or injuries on the job site.

Define the scope of work: Clearly define the scope of work and project specifications in writing. This will help avoid misunderstandings or disagreements later on.

Set a timeline: Establish a realistic timeline for the project and make sure the contractor agrees to it. This will ensure that the project is completed on time and within budget.

Communication: Effective communication is crucial when working with a contractor. Make sure that the contractor is responsive and easy to communicate with, and that you are comfortable asking questions and expressing concerns.

Contract: Sign a contract that outlines all the terms and conditions of the project, including payment schedules, warranties, and dispute resolution procedures.

By following these critical tips, you can hire a reliable and competent home contractor who can deliver quality work on time and within budget. When contacting previous clients, be sure to ask specific questions about their experience, such as whether they completed the project on time, if they stayed within budget, and if they were responsive to any concerns or issues that arose during the project. This information can help you make an informed decision when choosing a contractor and give you peace of mind knowing that you have hired a competent and reliable professional. 

What’s Ahead For Mortgage Rates This Week – May 15, 2023

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What's Ahead For Mortgage Rates This Week - May 15, 2023Last week’s scheduled economic reporting included readings on inflation, consumer sentiment, and weekly readings on mortgage rates and jobless claims.

Inflation Rate Rises in April, Slower Pace Expected in Coming Months

The  U.S. Labor Department reported the month-to-month pace of inflation rose by 0.40 percent in April and matched analysts’ expectations. April’s reading surpassed the March reading of 0.10 percent month-to-month inflationary growth. Inflation rose by 4.90 percent year-over-year in April. Analysts expect inflationary growth to continue, but at a slower pace through 2023.

Core inflation, which excludes volatile food and fuel sectors, rose at a month-to-month pace of 0.40 percent in April, which matched expectations and the March reading. Year-over-year core inflation rose by 4.90 percent in April as compared to the expected reading of 5.00 percent and the March reading of 5.00 percent.

Mortgage Rates Fall as Jobless Claims Rise

Freddie Mac reported lower average mortgage rates last week as rates for 30-year fixed-rate mortgages fell by four basis points to 6.35 percent. Rates for 15-year fixed-rate mortgages averaged one basis point lower at 5.75 percent. First-time jobless claims rose with 264,000 claims filed as compared to the expected reading of 245,000 claims and the prior week’s reading of 242,000 initial jobless claims filed.

As inflation slows, rapidly rising rental rates and home prices are also expected to increase at a slower pace. As homeownership becomes more affordable, fewer families will rely on rental homes. Less demand for rentals should help with easing very high rental rates seen in many metro areas. In general, more affordable housing choices could help ease housing challenges in areas with few affordable housing options.

The preliminary consumer sentiment survey for May reflects less consumer enthusiasm for current economic conditions. The initial index reading for May is 57.7, which fell short of the expected reading of 63.0 and April’s index reading of 63.5. May’s reading was the lowest since November 2022.

What’s Ahead

This week’s scheduled economic reporting includes readings on sales of previously-owned homes, housing market conditions, housing starts, and building permits issued. Weekly readings on mortgage rates and jobless claims will also be released.

DIY Improvements Do Not Have To Be Expensive: A Few Examples

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DIY Improvements Do Not Have To Be Expensive: A Few ExamplesThere are many do-it-yourself (DIY) home improvement projects that can be completed on a budget and still have a significant impact. Enhancing the appearance and functionality of your home doesn’t have to be costly or time-consuming. 

New Light Fixtures

One simple and affordable way to update your home is by replacing old or outdated light fixtures. New light fixtures can give your home a fresh, modern look and can also help to improve the overall lighting in your living spaces. There is a wide variety of styles and price points to choose from, so you can find a light fixture that suits your tastes and budget. Keep in mind that working with electricity can be dangerous, so be sure to turn off the power before attempting any DIY electrical work.

New Cabinet Handles

Upgrading the hardware on your kitchen and bathroom cabinets can make a surprising difference in the overall appearance of these spaces. Replacing old, worn-out handles with new ones can give your cabinets a fresh, updated look. Cabinet handles come in a range of styles, materials, and prices, so you can easily find options that complement your home’s decor and fit within your budget.

New Faucets for Tubs and Showers

Another affordable DIY home improvement project is updating the faucets on your tubs and showers. Over time, faucets can become corroded or develop leaks, which can lead to wasted water and higher utility bills. Installing new faucets can improve the functionality of your plumbing fixtures and give your bathroom a more polished appearance. Be sure to research the proper installation techniques and gather the necessary tools before attempting this project.

A Fresh Coat of Paint

One of the most cost-effective ways to transform the look of your home is by applying a fresh coat of paint. A new paint color can completely change the atmosphere of a room and can help to cover up any scuffs, scratches, or stains on your walls. Painting a room is a relatively simple DIY project that requires only a few basic tools and supplies, such as paint, brushes, rollers, and painter’s tape.

Wrapping Up Your DIY Home Improvements

As you can see, there are several affordable DIY home improvements that can have a significant impact on the appearance and functionality of your living spaces. By tackling projects like installing new light fixtures, updating cabinet handles, replacing faucets, and applying a fresh coat of paint, you can refresh your home without spending a fortune. With a little creativity and effort, you can transform your home on a budget and enjoy the satisfaction of completing these projects yourself.