Sunrise Homes & Renovations, Inc.

Investor Thoughts: What Home-buyers Can Learn from a Real Estate Investor’s Stand-point

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Investor Thoughts: What Home-buyers Can Learn from a Real Estate Investor's Stand-pointThere are plenty of things to consider when purchasing a home, from the size of place that you’re looking for to the amount of home you’re able to afford. While it’s certainly worth knowing what you want going in, here are a few factors that investors often think about when it comes to making or breaking the appeal of a real estate purchase.

Will The Location Last?

‘Location, location, location’ is a popular expression for a reason, and it’s among the first things that any person purchasing a property will consider when they think about long term-investment potential. It can be easy to think that a currently trendy community or beachfront property will always be a great investment, but trendy places go out of style and sea levels can rise. An investor will want a location that’s ideal, but they’ll also consider what the area’s future might hold.

Are You In A Bubble?

If you’ve found the perfect home to live in and are considering an offer, you may not be too worried about it’s selling potential a few years on. However, if you’re buying in a bubble, your price may be inflated, and this can cause problems if you want to make a profit in five years’ time. Real estate is on the up and up all over the world, so a true investor will consider if the market value will continue to rise or if it’s readied for a considerable economic setback.

Will It Survive The Trends?

The market for condos is certainly booming right now with the rising price of real estate, but many people are also choosing to move away from urban centers to buy a little bigger and start a family. Whether it’s an open concept or a sizeable townhouse, it can be tempting to buy the type of home that is hot right now, but these trends may not be so popular in the coming years. Instead of going for flash, consider what will always be in style or can at least be easily renovated.

The most important thing when purchasing a home is buying a place that you can feel good about, but real estate investors know that there are a number of important factors to consider. If you’re currently on the market for a new home and are weighing your options, contact your trusted local real estate professional for more information.

5 Documents First-time Home-buyers Need for a Smoother Purchasing Process

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5 Documents First-time Home-buyers Need for a Smoother Purchasing ProcessWith all the work that goes into finding the kind of home you’ll want to put an offer on, it can be easy to forget about all the little things that happen after the deal has been made. While the paperwork involved in purchasing may seem like a long way off, here’s a quick review of some of the documents you’ll need when the time comes to seal the deal.

Your Credit Report

It’s important to review your credit before putting an offer in, so ensure that you request your credit report in advance and review it for any errors that may be present. If there are any discrepancies negatively impacting your credit score, you’ll be able to have them corrected before they can cause an issue with your real estate purchase.

Pay Stub Proof

In order to ascertain your ability to pay your monthly mortgage, you will need to provide pay stubs from your current place of employment. You won’t want to give away your originals, but a photocopy of your paychecks usually serves as adequate verification.

Recent Bank Statements

The number of bank statements required to prove your credit history may change depending on the lender you’re dealing with, but you’ll probably need photocopies from the last two to three months. This will be a means of proving your financial health as well as your ability to pay your monthly mortgage.

Tax Return Copies

Your federal tax returns will provide further proof of your employment and financial standing, so the last two years of these – complete with your signature – will need to be submitted. Keep in mind that any schedules you’ve filled out to complete your yearly returns should also be included.

Additional Asset Statements

In addition to recent bank statements, if you have any stocks and bonds, mutual funds, RRSPs or other investments, you should also provide statements of proof for these. While these accounts will only require your most recent statements, they will be beneficial in providing a more comprehensive picture of your finances.

There are many aspects of purchasing a home that can be time consuming, but having the documents you need beforehand can save a lot of stress when crunch time comes. If you’re planning on purchasing a home soon, contact your trusted local real estate professional for more information.

How the Truth in Lending Act Protects You When You Take Out a Mortgage

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How the Truth in Lending Act Protects You When You Take Out a MortgageIf you’re planning to get a mortgage, it’s critical that you know your rights under the law. The Truth in Lending Act (TILA) is a piece of federal legislation that governs how mortgage lenders can and cannot operate their businesses.

So how does the Truth in Lending Act protect you, and what are your rights under this legislation? Here’s what you need to know.

Your Lender Must Give You A Timely Loan Estimate

A Loan Estimate (previously known as a Good Faith Estimate) is a document your lender provides you that details information about what kind of a mortgage you’ve applied for. Your Loan Estimate includes terms such as your estimated monthly payment, your estimated interest rate, and whether or not your mortgage balance is able to rise even if you make payments.

Under the Truth in Lending Act, your lender is obligated to give you a good-faith Loan Estimate within three days of when you apply for your mortgage. If your lender fails to provide your Loan Estimate within three days or fails to fix reported errors within 60 days, you can sue for damages and report the lender to the federal government.

Your Lender Must Notify You Of Rate Changes

The Truth in Lending Act states that your mortgage lender is required to give you an annual percentage rate estimate within 1/8 of one percent of government guidelines. Your lender must use the government-approved mathematical formula to provide your rate estimate.

If your estimated rate may be subject to change, your lender is obligated to disclose the first possible change you’ll see to your interest rate, and the maximum degree to which it may change. Your lender is also required to disclose the maximum possible changes for subsequent rate adjustments.

There Are Strict Rules About How And When Lenders Can Charge Late Fees

If your lender typically administers fees for late payments, TILA will specify that your lender must notify you – in advance – the date on which a late fee will be imposed and how much the late fee will be. TILA states that no late fee can exceed 4 percent of the amount past due, and a payment is only considered late if it is 15 or more days past due (or 30 or more days past due if you prepaid your interest). Your lender also cannot charge you a late fee on top of a late fee.

TILA is a powerful consumer protection law that gives would-be homeowners a great deal of power. By knowing your rights under TILA, you’ll be able to confidently negotiate with lenders and avoid any unnecessary problems. Contact your real estate professional to learn more.

3 Things You Need to Consider Before Buying That Fixer-Upper Home

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3 Things You Need to Consider Before Buying That Fixer-upper Home

What Will It Cost?

If you’re going into a home expecting a few renovations costs, a minor detail here or there may not add up to much. However, if you’re not interested in spending the big bucks on making changes, you’ll want to estimate an approximate amount of how much the renovations you don’t want to live without will amount to. By including all the necessary labor and materials, you’ll be able to determine if the price-point of your offer will be worth it. Keep in mind that if there are any serious issues with the house, it may not be worth your while to consider the purchase at all.

Will Renovations Increase The Value?

In the event that you’re buying a home for its investment value, it’s going to be particularly important to consider if the renovations required will actually increase its market value. While adding another bedroom or upgrading a bathroom may not add significantly to a home’s overall price, certain more inexpensive improvements like painting, refinishing and new siding can actually add a lot to the look (and worth) of your home.

How Much Are You Willing To Take On?

It’s easy to think that you’re prepared to do the dirty work when faced with a fixer-upper, but getting down to brass tacks may not be so simple when the time comes. Before taking on a home that needs a lot of renovation, consider how much you’re willing to do so that you can determine if fixing it up will even be an economic boon after all the labor that may go into it. If you’re not a DIY kind of person, you may want to avoid a house that has a long list of repairs.

A fixer-upper can be tempting for those who want to invest or save on a home purchase, but you’ll want to carefully consider if it will be a good choice when it comes to selling time. If you’re currently perusing the market for a home, you may want to contact one of our real estate professionals for more information.

Worried about Your FICO Score? 4 Easy Strategies to Fix It Up

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Worried about Your FICO Score? 4 Easy Strategies to Fix It UpIf you’re worried about your bad credit, you’ll want to do everything in your power to improve your rating as quickly as possible – especially if you have a major purchase coming up. Improving your credit rating can give you access to better interest rates on mortgages or even help you to get that job you’re after.

IMPORTANT! If you are currently involved in a home loan transaction, speak with your trusted real estate advisor before taking any action regarding your credit!

So how can you boost your FICO score quickly and easily? Here’s what you need to know.

Get Your Credit Report And Dispute Any Errors

Credit reporting agencies don’t always keep 100% perfect records, and there’s a good chance that your credit report contains at least one error. One recent FTC study found that 25% of consumers have an error on their credit report, and that in 5% of cases, the errors were actually severe enough to impact the loan terms that borrowers were able to negotiate.

You can get your annual credit report from all three credit reporting agencies for free. Carefully read over it. If you see any errors – if your name is misspelled, if they have the wrong address on file, or if there are late or unpaid charges that you didn’t make – you can dispute the items in question.

Still Overdue? Negotiate Payment Terms With Your Creditors

If you’re overdue on a payment, it will weigh heavily on your credit score. As your payment history makes up a full 35% of your FICO score, this is one area where you’ll want to invest a great deal of time and effort.

Contact any creditors you owe money to and ask if you can negotiate your bill. The ideal outcome for you is to have the creditor report your debt as paid in full, so see if you can secure that promise in writing in exchange for an accelerated payment schedule.

Try Maintaining A Lower Utilization Ratio

Your utilization ratio refers to the amount of credit you use at any given time. If this number goes beyond 30 percent, you’ll start to see your credit score drop. Ideally, you should aim for a utilization ratio below 10 percent – this will prove to your lender that you can responsibly pay for the credit you use.

Have Recurring Bills? Automate Your Payments

Automating your monthly payments can be a great way to boost your credit score. Whether it’s your mortgage, your credit card, or your student loan, a pre-authorized monthly payment will ensure that everything gets paid on time and give you a great credit history.

Your FICO score is a number that will determine your eligibility for mortgages and other loans. These are general tips to help with your credit score and improve the overall reporting of your credit.

4 Websites to Help You Evaluate the Safety of Your Future Neighborhood

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4 Websites to Help You Evaluate the Safety of Your Future NeighborhoodWhen you’re just moving into a neighborhood, it can be hard to know exactly what you’re getting into. Certainly, you can see the sights for yourself and read about your new community online, but there are still things that may not be readily available. If you’re looking for the cold, hard facts on the safety of your neighborhood, look no further than the following websites for the things you’ll want to know.

Situation Alerts on SpotCrime

By simply typing your street address in at SpotCrime, you will get an instant report of all the criminal goings-on in your community from arson to assault. While SpotCrime is free and enables you to register so you can be alerted to situations in your community, you also have the ability to anonymously offer up information that will help others.

Crime Rates On Neighborhood Scout

A website that will give you information regarding the crime rate in a certain community, Neighborhood Scout offers much of its information free of charge to users to scope out future communities for their own interest. In addition to the per capita crime rate, you can also get a host of information about other communities around the country with similar crime profiles to your own.

Registered Offenders on Family Watchdog

The tranquility of a neighborhood is something that can be easily taken for granted, but Family Watchdog enables you to be aware of what might be going on under the surface. Committed to determining the location of registered sex offenders, this website will easily inform you if there are any offenders in or near your community so you can evaluate the safety of you and your family accordingly.

Situation Updates on CrimeReports

Along with SpotCrime, CrimeReports is another website that enables you to type in your address to instantly pull up a host of information regarding recent crime that’s occurred in your next neighborhood. Much like SpotCrime, it provides you with an easy to read map of crimes that have occurred and you have the option of signing up for alerts that will inform you of recent situations in your community.

There may be a lot of information about your neighborhood online, but the websites listed above can help you with the details on things that may not be commonly reported. If you’re in the market for a home and are wondering about ideal communities, contact your trusted real estate professional for more information.