Sunrise Homes & Renovations, Inc.

How to Run a Quick Financial Health Check Before You Apply for a Mortgage

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How to Run a Quick Financial Health Check Before You Apply for a MortgageAre you planning on using a mortgage to help cover the cost of a new home? If so, you will want to prepare your finances and figure out how you will manage all those wallet-draining monthly expenses. Let’s take a look at how to run a quick financial health check to ensure you are ready to apply for a mortgage.

Update (Or Start) Your Monthly Budget

First, it is essential to get the basics out of the way. If you haven’t already, it’s time to start a monthly budget to keep track of your income and expenses. Once you have a mortgage, it will be important to prioritize your monthly payments so that you don’t end up falling behind.

Starting a budget is easy and can be done with mobile apps, software, a spreadsheet or a pen and paper. List all sources of income so that you know exactly how much cash you are working with. Then, list out every one of your expenses. It can be tough to remember them all, so consider using debit and credit card statements from the past few months as a reminder.

Get A Copy Of Your Credit Report

Next, you will want to get a copy of your credit report so you can see what potential mortgage lenders will see when assessing your financial history. This is a free service that you can request once per year, so be sure to take advantage. Note that you will want to use government-approved websites for requesting your credit report. Be wary of scams.

Do You Have A Down Payment?

A down payment is not required for every home purchase, but having one saved up can make the buying process easier. The amount you will want to have saved up will depend on the cost of your home, whether you plan on carrying private mortgage insurance and a variety of other factors. If possible, try to save up an amount close to (or more than) twenty percent of the home’s purchase price.

Ready? Chat With A Professional

Now that you have run a quick financial health check, it is time to meet with a mortgage professional to discuss your options. 

Why You Receive So Much Junk Mail After Closing On Your Home

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Why You Receive So Much Junk Mail After Closing On Your Home

Congratulations! You have finally closed on your home loan, and you are excited to get moved in. Or, you may have just refinanced your home. Regardless, all of a sudden, you start to get a bunch of junk mail in your mailbox. It can be frustrating to sort through everything, and how did they get your information in the first place? 

Where Junk Mailers Get Your Personal Information

First, there are a few locations where junk mailers may have gotten your personal information. Once your property deed is recorded, it goes into the public record. Anyone who goes into the public record can find your name, the name of your lender, your loan amount, and your address. This is what they use to send you junk mail, and it is why you get flooded with a bunch of mail as soon as you close on a home loan.

Always Check Your Mail Before Shredding It

Even though you are going to receive a lot of junk, some of it is going to have your personal information listed on it. You should always check to see if your personal information is printed on the mail, and if it is, go ahead and shred it. On the other hand, you must make sure you do not throw out anything important. For example, there might be a note about property taxes, or there might be information related to changes in your loan. Always screen your mail before you shred it.

Can You Stop The Junk Mail?

It is unlikely that you will be able to stop the junk mail completely. On the other hand, there are a few locations where you might be able to opt out of some of this junk mail. If you put yourself on the do not mail registry, you may be able to reduce the amount of junk mail you receive.

Talk To A Professional To Learn More

You need to understand exactly what is happening with your home loan before you close, and that is why you should reach out to an expert who can help you. They might even be able to provide you with some advice regarding how you can stop the junk mail from coming in.

What’s Ahead For Mortgage Rates This Week – January 30, 2023

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What's Ahead For Mortgage Rates This Week - January 30, 2023Last week’s economic reporting included readings on new and pending home sales, inflation, and consumer sentiment. Weekly readings on mortgage rates and jobless claims were also released.

New home sales increase in December

The Commerce Department reported new home sales rose to a seasonally-adjusted annual pace of 616,000 sales in December as compared to the expected pace of 615,000  new homes sales and November’s revised reading of 602,000 annual sales. December was the third consecutive month that the pace of new home sales rose, but new home sales remained well below the 1.04 million sales peak reported in August 2020.

Pending home sales rose by 2.5 percent in December, which outpaced expectations of a one percent decrease in pending sales and November’s seasonally-adjusted annual decrease of  -2.6 percent in pending home sales. New home sales are 26.6 percent lower than they were one year ago.

Month-to-month inflation slows in December

The Commerce Department reported that month-to-month inflation rose by 0.1 percent in  December, which matched November’s month-to-month reading. Core inflation rose by 0.1 percent in December to 0.3 percent and matched analyst expectations. Core inflation readings exclude volatile food and fuel sectors that comprise major expenses for many U.S. households.

Year-over-year inflation rose by 5.0 percent in December as compared to November’s pace of 5.5 percent. Core inflation rose  4.4 percent in December, which matched analyst expectations, but fell short of November’s year-over-year reading of 4.7 percent for core inflation.

Mortgage rates, initial jobless claims fall

Freddie Mac reported lower average mortgage rates last week as the rate for 30-year fixed-rate mortgages fell by two basis points to 6.13 percent. The average rate for 15-year fixed-rate mortgages fell by 11 basis points to 5.17 percent.

First-time jobless claims fell to 186,000 filings as compared to the expected reading of 205,000 initial jobless claims and the previous week’s reading of 192,000 new jobless claims filed. Continuing jobless claims rose to 1.68 million ongoing claims as compared to the previous week’s reading of 1.66 million continuing jobless claims filed.

Consumer sentiment strengthens in January

The University of Michigan’s Consumer Sentiment Index rose to an index reading of 64.9 in January, which surpassed the expected reading of 64.6 and December’s final index reading of 64.6. Readings over 50 indicate that a majority of consumers surveyed have a positive outlook on the economy. Falling gasoline prices contributed to an improved consumer outlook, but grocery prices remained high.

What’s ahead

This week’s scheduled economic reporting includes readings on U.S. home prices, The Federal Reserve’s Federal Open Market Committee meeting, and Fed Chair Jerome Powell’s scheduled press conference. Labor-sector reports on job growth and the national unemployment rate will also be released.

VA Loans: Are They Assumable?

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VA Loans: Are They Assumable?Members of the military, their family members, and veterans have access to a unique mortgage option called a VA loan. This can be a strong option because it provides borrowers with an opportunity to purchase a house for less than 20 percent down. While not everyone is eligible for a VA loan, there are a lot of people who are wondering, are VA loans assumable? There are a few key points to keep in mind.

What Is An Assumable Loan?

An assumable loan means that the buyer is essentially going to take over the mortgage held by the seller. Essentially, this means that the buyer is going to take over the remaining balance of the loan as well as the interest rate attached to that loan. The buyer will have to compensate the seller for any equity the seller has already accumulated. This means either providing the seller with cash for his or her equity or taking out a second mortgage to cover the difference. The biggest advantage of assuming a loan is that you may be able to secure a lower interest rate than you would in the current market. 

Who Can Assume A VA Loan?

The great news is that a VA mortgage loan is assumable. Even though a VA loan is only available to retired service members, active service members, and members of their immediate families, anyone the lender qualifies to take over the loan can assume it. In general, this means that the buyer needs to have a credit score of at least 580 and a debt-to-income ratio of 45 percent. The buyer and seller must also have at least 12 months without any missed payments. Finally, the person assuming the loan must also occupy the property and the buyer must be willing to take over the terms of the original loan.

Should I Assume A VA Loan?

Assuming a VA loan could be right for you because you can access a lower interest rate and potentially save thousands of dollars on closing costs and expenses if you do not have to take out a second mortgage. On the other hand, this also means that you might need to put more money down to compensate the seller for his or her equity. 

 

The Cost Of Building A House

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The Cost Of Building A HouseAre you in the market for a new house? If so, you might be thinking about building your own house. It can be exciting to go through the process of building a house, as you will be in control of just about everything. On the other hand, how much is it going to cost you to build a house? You need to make sure you have an estimate before you decide to move forward with your project. 

What Is The Actual Cost Of Building A House?

First, it is important to go through the actual itemized list line by line. You will need to purchase land if you are interested in building a house. Then, you need to lay the foundation. The price of all of these options is going to vary depending on your location and the square footage of your foundation overall. 

You will also have to go through the process of framing your house, and you will need to put a roof on your house. Then, you will need to purchase appliances, utilities, and various finishes and fixtures along the way. Remember that you will also have to apply for permits from the city.

What About Financing A New Build?

If you are building your house, you still have the option to take out a mortgage; however, you need to specify when the interest rate on your construction loan is locked in. It will be a process to finish the house, and interest rates could change during the course of the construction. The mortgage company will want to start earning interest as soon as possible, so you will need to negotiate both with the lender and the construction company to ensure you understand the terms.

You will also have to go through the same vetting process as you would for any other mortgage. You need to make sure you have favorable credit, enough income to cover your housing payments, a low debt-to-income ratio, and a sizable down payment. If you are interested in building your house, you will probably be required to put 20 percent down, but if you are willing to put more money down, you may be able to qualify for a lower interest rate. 

Curious About Homeowners’ Association (HOA) Fees? Here’s What You Need to Know

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Curious About Homeowners' Association (HOA) Fees? Here's What You Need to KnowIf you are thinking of buying a condominium or a home that is part of a planned community, you have likely come across the term “homeowners’ association” or HOA. In short, the HOA is a coalition of local homeowners who have banded together to manage the needs of the local community. Let’s explore the concept of the homeowners’ association, why they charge fees and what you can expect from your HOA if you buy a home that is part of one.

HOA Fees Are Meant To Make Things Easier

HOA fees are meant to make your life easier. Common sense dictates that all homeowners won’t be able to commit to investing some of their time in community upkeep. So the HOA charges a monthly fee to everyone to cover the costs of keeping everything in order. Of course, some HOAs can make mistakes or foolish investments that don’t benefit all equally. But most are well-intended and do positive work.

What Do HOA Fees Cover?

Your HOA fees will be used to pay for needs that benefit all homeowners’ in the community. If you live in a building, this will be everything from elevator maintenance to keeping the doors in good order. If you live in a townhouse complex or planned community, this includes landscaping, gardening, road maintenance and more. As long as your HOA leaders are doing their job, they will use fees to maintain and improve the community for everyone.

Some Pros And Cons Of HOA Fees

The main benefit of paying HOA fees is that you are offloading your share of the responsibility for building or community upkeep. In essence, you are trading a monthly payment so that you don’t have to vacuum the common areas, change the light bulbs or worry about repairing the gate when it breaks. The main downside to paying HOA fees is that you only have a single vote as to how they are spent and you may disagree with other homeowners about the HOA’s priorities.

All things considered, whether or not you have a favorable view of your HOA generally comes down to you. If you are the type that likes to share their opinion and is willing to commit the time to improve your local community, you may want to join your HOA. However, if you are less interested in having someone spend your money, you might disagree with their approach. Whatever the case, when you are ready to buy or sell your next home, contact a professional to help you find the right home – HOA or not and mortgage.