Sunrise Homes & Renovations, Inc.

7 Tips To Plan A Spring Yard ‘Tune-Up’ Before Listing A Home For Sale

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7 Tips to Plan a Spring Backyard Tune UpThe oft-repeated maxim that there is never a second chance to make a great first impression is especially true when it comes to real estate. Street appeal may focus on a dramatic approach to the front door, but prospective buyers will be especially “wowed” by an appealing back yard.

Early spring is the perfect time to add some new plants, set out pots of blooming flowers and focus on one memorable feature. A little work now will pay big dividends later, in terms of buyer interest, increased showings, quick offers, and even a higher price.

Here are 7 ideas that are cost-effective weekend projects:

  1. Create a focal point: Find an antique garden trellis and plant some vines to create an arbor. Add a piece of sculpture or statuary either in the center of the yard or in a secluded garden spot. Install a “gate to nowhere” and add bright flowers on one side. Paint giant sunflowers on a privacy fence or on the side of a storage shed. 
  2. Build a partial wall or shade trellis: There is little that’s more appealing that an an “outdoor living room.” Accent and define your patio space in an interesting way — use a sisal rug or paint a graphic design on the concrete — and fill the room with appropriate furniture. Add a small fountain or a charcoal fire pit to create a real gathering spot.
  3. Install a simple drip irrigation system: Minimize landscape upkeep by planning DIY drip irrigation that will keep planting areas looking their best. All that’s really needed is some tubing and a few fittings; the system itself can be attached to an outside hose bibb and operated by a simple timer. It’s not necessary to extend the system to the entire lawn; that would be a more costly and time-consuming project perhaps best left to a professional.
  4. Create a dry creek bed: If parts of the yard or garden are plagued by standing water following heavy rain, give drainage an assist by making a dry creek bed. It’s not too difficult and will add function and beauty to the back yard. Add some large boulders or a “Zen bench” to boost the appeal.
  5. Plant or hang solar lights: Define a pathway, highlight planting areas or just add night-time interest to the yard with solar lighting. Buy inexpensive versions at a home store, or order artistic lights from a catalog. They’re fun, functional and portable.
  6. Plant a specialty garden: Attract butterflies and hummingbirds with a patch of wildflowers. Build a small raised garden plot to grow kitchen herbs, or plant seasonal vegetables and edible flowers. Carrots. kale and rainbow chard are especially pretty and don’t take much space. Melons, squash and pumpkins have beautiful flowers and yield great fruit, but they do spread! 
  7. Clean up, trim, weed and mow: Finally, don’t neglect the routine maintenance that is required in every yard, both front and back. Nothing else is as important to prospective buyers as an attractive, well-kept home exterior. 

 

What Are The Benefits And Drawbacks Of Putting 20 Percent Down On A Home Purchase?

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Should You Put 20 Percent Down On Your Home Purchase?Several generations ago, lenders required home buyers to have a 20 percent down payment in order to get a mortgage. While there were a few options out there for people who couldn’t save this substantial amount, the reality was that for the majority of people, the 20 percent down was a requirement.

It was the way to show that you were financially responsible enough for homeownership. And it was a strong way that the banks felt secure in making a home loan.

Today, however, homebuyers have many options available to them as they shop for a new home, and those mortgage options mean that the 20 percent down payment is no longer as much of a requirement. For most buyers, especially those who do not have the equity of an existing home to help with their purchase, the 20 percent down payment is not even a possibility.

Yet for those who can do so, putting 20 percent down carries some benefits worth considering. Here is a closer look at when the large down payment makes sense, and what the potential drawbacks are that buyers should consider.

How The 20 Percent Down Payment Helps

When it is possible for the buyer to save enough, the 20 percent down payment does have some benefits that are worth considering. First, when you are able to save 20 percent, you can get a mortgage that has no private mortgage insurance or similar fees. Because lenders consider a borrower with less than 20 percent for the down payment to be higher risk, they charge additional fees to serve as insurance on these loans.

Putting 20 percent down also means you are borrowing less. Because every dollar you borrow will be charged interest, the less you borrow the lower your repayment costs should be over the life of the loan. If you have the ability to save 20 percent, this is a benefit worth considering.

The Drawbacks Of 20 Percent Down

While saving 20 percent does have some benefits, it also has drawbacks that you must also consider. First, 20 percent of a home loan is a significant amount of money. On a modestly priced $100,000 house, that means you have to save $20,000. For the average home buyer, this represents years of saving. And you could be giving up years of price appreciation on the home that you could have purchased earlier by using one of the other financing options.

Also, if you are putting all of that money down as your down payment, you may find yourself cash strapped for other home buying costs, like new furniture or closing costs on your mortgage. The Consumer Financial Protection Bureau warns that this can be a significant downside, especially for first-time buyers who have a lot of expenses as they make the move into their first homes.

Many people find themselves digging into their other investments, like their 401(k), to come up with the money for the down payment. When mortgage interest rates are low, this can be an unwise move. Paying a bit more in interest over the life of a mortgage is often better than creating a serious financial bind for your future needs. Digging into your retirement also means you are not getting that vital compounding interest.

Finally, saving 20 percent often means you can’t buy a home quite as quickly. Since home prices historically tend to rise, not fall, the longer you wait, the more you may spend on your home. If home prices rise by 5 percent a year, which is fairly standard, waiting two years to purchase the home means $10,000 in extra costs for a $100,000 home. The higher purchase price counters any savings you may have when you put down 20 percent.

Can You Buy With Less Than 20 Percent Down?

So can you buy a home with less than 20 percent down? The answer to that question is yes, and often it makes more financial sense to do so. In fact, according to Freddie Mac, 40 percent of homebuyers in today’s markets are making down payments of less than 10 percent. So if you are going to buy a home without saving the 20 percent, what are your options?

If you have strong credit, many lenders are still offering piggyback loans. These loans allow you to take out a smaller loan for part of your down payment, then a traditional loan for the rest of the purchase price. You may still need about 5 percent of your own money to put down on the purchase. Then you can work with your lender to borrow 15 percent with a smaller, and many times shorter-term loan, and the remainder with a conventional mortgage.

Down payment assistance is another option to consider. These programs, which are available through non-profit organizations or government-run programs, give homeowners a hand in coming up with the down payment they need to purchase the home.

Finally, consider the low down payment options that are out there. USDA loans, VA loans, FHA loans and similar loan products are designed for those with just a little bit to put down on the home. The FHA loan, for example, is a government-backed loan that requires just 3.5 percent down on the home.

Forbes indicates it is even possible to get a conventional loan with as little as 3 percent down. In some instances, like the USDA home loan program, you can even buy a home with no down payment.

While these home loans do have additional costs, like the funding fee for the VA loan or private mortgage insurance for conventional low down payment loans, they give you the ability to buy now without 20 percent down so you can start enjoying the benefits of homeownership sooner.

When buying a home, getting sound financial advice is always wise. Whether you choose to put down a large amount on your home or take advantage of these different loan options to buy with a smaller amount down, make sure you weigh your options before making your choice.

What’s Ahead For Mortgage Rates This Week – March 19th, 2018

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What’s Ahead For Mortgage Rates This Week – March 19th, 2018Last week’s economic news included readings From National Association of Home Builders, Commerce Department reports on housing starts and building permits issued Weekly readings on mortgage rates and new jobless claims were also released.

NAHB Posts 3rd Consecutive Decline in Builder Confidence

According to the National Association of Home Builders, builder confidence in housing market conditions dropped by one point in March to an index reading of 70. Three sub-categories of builder sentiment used to calculate the overall reading were either unchanged or lower than February readings. 

Confidence in current market conditions were unchanged at 72, Builder confidence in market conditions for the next six months fell two points to an index reading of 78. The index for buyer traffic in new housing developments dipped three points to 51. Any reading over 50 indicates positive builder sentiment.

Builders cited increased demand for homes as a positive influence on builder confidence, but recent decisions to impose tariffs on some building materials concerned builders, but pronounced shortages of new and pre-owned homes contributed to positive builder sentiment.

Mortgage applications for new homes were 4.60 percent higher year-over-year in February according to the Mortgage Bankers Association.

Housing Starts Lower in February

The Commerce Department reported an annual rate of 1.236 million housing starts in February; this was seven percent lower than January’s reading of 1.329 million starts. Analysts expected a reading of 1.25 million starts. Housing starts were higher in the Northeast regions, but the Midwest, South and Western regions reported fewer starts in February than for January.

Permits for building new homes slipped by 5.70 percent in February, but ups and downs in construction activity during winter months can cause volatility in readings for permits and housing construction.

Mortgage Rates Mixed, New Jobless Claims Dip

Freddie Mac reported lower fixed mortgage rates for the first time in 2018; the average rate for a 30-year fixed rate mortgage was two basis points lower at 4.44 percent, Rates for 15-year fixed rate mortgages averaged 3.90 percent, which was four basis points lower than for the prior week. Mortgage rates for a 5/1 adjustable rate mortgage averaged 3.67 percent, an increase of four basis points on average.

First time jobless claims dipped last week to 226,000 new claims. Analysts expected new claims to drop to 228,000 new claims based on the prior week’s reading of 230,000 new jobless claims. The week ended on a positive note with consumer sentiment rising from an index reading of 99.7 to 102 in March. The Consumer Sentiment Index is produced by the University of Michigan.

What‘s Ahead

This week’s scheduled economic reports include readings on sales of new and previously-owned homes; the Federal Open Market Committee of the Federal Reserve will issue its customary post-meeting statement, and Fed Chair Jerome Powell will give a press conference after the FOMC statement. Weekly readings on mortgage rates and new jobless claims will also be released.

Can I Have A Co-Signer For My Mortgage Loan?

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Can I Have A Co-Signer For My Mortgage LoanLike credit cards or car loans, some mortgages allow borrowers to have co-signers on the loan with them, enhancing their application. However, a co-signer on a mortgage loan doesn’t have the same impact that it might on another loan. Furthermore, it poses serious drawbacks for the co-signer.

Mortgage Co-Signers

A mortgage co-signer is a person that isn’t an owner or occupant of the house. However, the co-signer is on the hook for the loan. Typically, a co-signer is a family member or close friend that wants to help the main borrower qualify for a mortgage. To that end, he signs the loan documents along with the main borrower, taking full responsibility for them.

When a co-signer applies for a mortgage, the lender considers the co-signer’s income and savings along with the borrower’s. For instance, if a borrower only has $3,000 per month in income but wants to have a mortgage that, when added up with his other payments, works out to a total debt load of $1,800 per month, a lender might not be willing to make the loan.

If the borrower adds a co-signer with $3,000 per month in income and no debt, the lender looks at the $1,800 in payments against the combined income of $6,000, and may be much more likely to approve it.

Co-Signer Limitations

Co-signers can add income, but they can’t mitigate credit problems. Typically, the lender will look at the least qualified borrower’s credit score when deciding whether or not to make the loan. This means that a co-signer might not be able to help a borrower who has adequate income but doesn’t have adequate credit.

Risks of Co-Signing

Co-signing arrangements carry risks for both the borrower and the co-signer. The co-signer gets all of the downsides of debt without the benefits. He doesn’t get to use or own the house, but he’s responsible for it if the mortgage goes unpaid.

The co-signer’s credit could be ruined and he could be sued (in some states) if the borrower doesn’t pay and he doesn’t step in. For the borrower, having a co-signer adds an additional level of pressure to make payments since defaulting on the loan will hurt him and his co-signer.

As always, it’s a good idea to speak with your trusted real estate professional for advice in your specific situation.

The Benefits of Using a Veterans (VA) Loan To Purchase Your Home

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The Benefits of Using a Veterans (VA) Loan To Purchase Your HomeU.S. military veterans have opportunities to enjoy some richly-deserved benefits in other aspects of their lives, including some special options for financing their homes. VA loans may give active military personnel, retired veterans, and sometimes surviving family members of veterans the ability to purchase homes that might not prove available to them through more conventional mortgage loans.

But the mere fact that you can do a thing doesn’t necessarily mean that you should. In some circumstances, military home seekers may find other types of loan options more amenable to their specific needs.

If you’ve decided to pursue a mortgage loan during or following your military career, you may want to examine these considerations before leaping into a VA loan application.

Loan Qualifications and Limits

A VA loan can open the door to home ownership for cash-strapped or credit-challenged military personnel who might otherwise struggle to get a conventional mortgage loan. This type of loan offers tremendous flexibility in qualifying factors such as credit scores and debt-to-income ratios; in fact, VA loans may come with no maximum debt ratio at all.

Potential For Zero Down Payment

Additionally, VA loans do not require the down payment typically needed for a more conventional or FHA loan. (The only other loan with no down payment requirement, the USDA loan, applies to rural areas and comes with some prohibitive income restrictions.)

The elimination of a mandatory down payment, coupled with the relaxed financial qualifications, can make a VA loan the most sensible choice for individuals who suffer from limited resources, “upside-down” credit and short credit histories.

Additional Qualifications To Consider

That said, VA loans usually impose some qualifications of their own — qualifications which may not appeal to some buyers. For one thing, a VA loan can only go toward the primary place of residence, not a summer cottage or second home. Military personnel who already own a home may therefore find this restriction a deal-breaker for their specific needs.

VA Loan Limits

VA loan amounts may also impose varying guaranty limits depending on where you live. The guaranty limit refers to your VA entitlement, the portion of your loan that escapes the down payment requirement.

In most counties, that limit currently levels off at 435,100, although in several major metropolitan markets it can range as high as 679,650. If you want to buy a more expensive home, you may end up making a down payment — potentially making your VA loan competitive against other loan options.

As always, your best move is to call your trusted real estate professional to discuss the VA home purchase process and find out if it’s the best option for you.

6 Top Trending Green Features To Consider When Remodeling

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6 Top Trending Green FeaturesSustainable materials, energy savings and smart home technology are high on the list of buyer wants in a home. But there are some other architectural and design trends that will change the way Americans live this year and beyond.

When planning a remodel, it pays to pay attention to green features, as well as to improved floor plans that will make a home more comfortable, more appealing and more functional. 

Here’s a list of what’s hot right now:

Natural and Sustainable Materials

Eco-consciousness and concerns about individual health and wellness prompted a return to natural woods and stone, as well as organic forms and living greenery. All are prominently featured in today’s show houses and and on design shows. For both residential and commercial design, there is renewed emphasis on the importance of natural light, views, air quality and open space as elements that affect not only mood and function but also health and well being.

Reclaimed and Recycled Products

No matter what the design or decor, there is a way to incorporate previously used materials. Recycled plastic is commonly used for roofing tiles, carpet, insulation, composite lumber and decking material, decorative trim and landscaping rocks. Reclaimed beams, distressed wood flooring, stunning countertops fabricated from recycled glass, wood chips and even cardboard, are only a few trendy possibilities. For a planned remodel, be sure to investigate what’s available, including “repurposing” used building materials like old windows, vintage gates or antique furniture.

LEED Certified Construction

Resource conservation and energy-savings are a way of life and worthy of attention. In some ways, Europe and Asia lead the U.S. in terms of conservation, but one way to assure that new homes are built to a certain standard is to insist on LEED certification, which stands for Leadership in Energy and Environmental Design. It’s a compliance and rating system for both residential and commercial construction that is recognized internationally.

Energy-Star Rated Appliances, Systems, Fixtures and Fittings

It would be difficult today to buy a new appliance or furnace that is not energy-efficient. But in an older home, even if existing appliances, faucets and fixtures, heating and cooling systems are still operational, it might be wise to consider replacing them. Sometimes the savings on monthly water and electricity alone makes financial sense. And new replacements always add to a home’s appraised value.

Rooftop Solar Panels

There is ample evidence that buyers will pay a premium for solar homes. Although the initial investment is relatively high, an owner will benefit from an immediate reduction in energy cost, and the added property value might make such an investment worthwhile.  

Smart Home Technology and Home Automation

Buyers today almost universally want a wireless security system and some form of programmable temperature control. Additional smart home features high on the list of consumer wants include lighting controls, wireless hubs that integrate entertainment and convenience features, and trendy apps that allow control of home functions via smart phone, whether from across the block or across the globe. 

Owners who are motivated to sell will look to these buyer wants in order to be competitive in today’s hot real estate market.