Sunrise Homes & Renovations, Inc.

Navigating A Market With Higher Interest Rate

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Navigating A Market With Higher Interest RateEven though interest rates have gone up significantly during the past few months, there are still opportunities for you to find a home at a great price. The high interest rate can be discouraging for some people, but as long as you know how to navigate the market, you can still put yourself in a position to be successful.

Put More Money Down

The easiest way to combat a high interest rate is to reduce the amount of money you borrow. That means that you might need to put more money down. Of course, this means that you might need longer to save up a down payment, but there are other benefits you might notice as well. For example, if you are willing to put 20 percent down or more, you no longer have to purchase private mortgage insurance, which can help you save some additional money.

Increase Your Credit Score

You may be able to secure a lower interest rate if your credit score is higher. Remember that the lender will give you a lower interest rate if you are of less risk to them. If you increase your credit score, you improve your financial health, which means that the lender may offer you a lower interest rate. You can increase your credit score by correcting mistakes on your credit report, paying down your existing debt, and reducing your credit utilization ratio.

Consider an Adjustable-Rate Mortgage

You may even want to consider going with an adjustable-rate mortgage, usually shortened to ARM. This means that the interest rate on your loan will change with the market. If you feel like the interest rates are going to go down, this may be a way to save money; however, keep in mind that you may end up owing more money if the interest rates go up.

Refinance Your Home Loan Down The Road

If you are not willing to take the risk with an ARM, keep in mind that you can refinance your home loan later if interest rates go down. You might need to pay closing expenses again, but it could save you tens of thousands of dollars over the life of the loan if you decide to refinance. 

 

Understand Your Options When You Refinance A Home Loan

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Understand Your Options When You Refinance A Home LoanAre you interested in refinancing your mortgage? There are a variety of reasons why you might want to refinance your home loan. For example, you might want to secure a lower interest rate, or you may want to reduce your monthly payment. You might even want to tap into the equity you have in your home for some quick cash. There are different loan options available, so you need to think carefully about which one is best for your needs. 

The Conventional Mortgage Refinance

One of the first options you will consider is a conventional mortgage refinance. This could be the best option for you because it provides you with the greatest degree of flexibility. For example, you can shorten the term of your mortgage, pull cash out of your home’s equity value, and even reduce your monthly payment. Typically, your credit requirements will be a bit higher than the other options, so you should work with an expert if you are considering this option. 

FHA Streamline

Another option you might want to consider is the FHA streamline. Many people like this program because it is a shorter, less expensive program. The credit requirements are also a bit lower, and you might not need to get your house appraised. On the other hand, you cannot choose this option if you want to pull cash out of your home’s equity value. 

Jumbo Loan Refinance

If you have a loan that is greater than the conventional loan limits, then you may be required to perform a jumbo loan refinance. Because the loan is so large, the lender takes on a significant amount of added risk, and that is why the credit requirements are typically higher as well. You may also need to verify not only your income but also your cash reserves.

Find the Best Refinance Program To Meet Your Needs

These are just a few of the many options available if you are interested in refinancing your home loan. The right option for one person is not necessarily going to be the right option for someone else, so make sure you reach out to an expert who can help you find the right loan refinancing option to meet your needs. 

 

The Do’s And Dont’s Of Making Your Offer More Competitive

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The Do's And Dont's Of Making Your Offer More CompetitiveToday, the housing market is more competitive than it has ever been in the past. You may have your eyes on your dream home, but how can you make it stand out from the crowd? There are a few tips that you should keep in mind. What are a few things you should do, and what are a few things you should avoid?

Do Get A Pre-Approval Letter

Because the housing market is so competitive, the seller is probably going to have many offers. The seller wants to make sure that the buyer they choose already has financing lined up. That way, they do not have to worry about the offer falling through. You can prove to the seller that you are making a competitive offer by getting a pre-approval letter. This letter will guarantee that your offer will be accepted, but a lack of a pre-approval letter can get your offer thrown out immediately.

Do Not Put All Your Eggs In One Basket

While you might have your heart set on a single home, do not put all of your eggs in one basket. Even if you do everything right, there is a chance that your offer will not be selected. Therefore, do not forget to take a look at other houses in the area, and be ready to put in an offer on another house if your first offer is rejected.

Do Offer To Rent Back

Keep in mind that it can take some time for someone to find a new home, so your offer could be more competitive if you allow the homeowners to rent back after they sell you the house. Essentially, this will give them an opportunity to stay in the house, even after you have purchased it, until they can find a new place to live. 

Make Your Offer As Competitive As Possible

These are just a few of the most important tips you need to follow if you are interested in purchasing your dream home. You need to do everything you can to make your offer stand out from the crowd, and that means you need to partner with a professional who can help you find the right house to meet your needs. 

 

Should You Improve Your Home Before Selling Or Not?

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To Improve or Not to ImproveSelling your home is one of the most stressful things you’ll ever go through and one of the most important decisions you’ll ever make. However, there’s a lot more to selling your home than just sticking a sign out in the front yard. Most likely, your home will need a little work before it is perfect.

Therefore, you’ll have to decide whether you need to take care of home improvement issues yourself or, to sell with the expectation that the buyer will be the one to do so. We put together a few pros and cons to doing it each way to make your decision a little easier.

Do The Improvements Yourself

Choosing to complete needed improvements yourself means that you will likely get a higher sales price for your home. In addition, with less work to do, it opens up your home to more buyers than one that is a fixer-upper does. Selling will usually be faster and closing more likely to go smoothly.

On the other hand, chances are good that you will not get the full value you put into those improvements at the closing table. In addition, when you are moving, money may be tight making this an even more difficult proposition.

Sell It As A Fixer Upper

The main benefit of selling your home as a fixer-upper is that you will not have to put that money in up front. If you are in a difficult financial situation or selling your home at a loss, this may be necessary. Additionally, you aren’t the one that has to deal with the contractors and calling around to get quotes on all of the work.

One of the downfalls to selling your home as a fixer-upper is that you’ll likely get a lower price and some buyers won’t even come out and check out your house if they think there is too much work that needs to be done. Plus, depending on the type of work that needs to be done, you may wind up in a pickle during the inspection process. Certain problems can prevent lenders from closing on the deal. You often find the closing process is slower and fraught with more concerns.

The reality is, it really depends on whether doing the improvement yourself or selling it as a fixer-upper is the right choice. Discuss your concerns and speak honestly about your financial picture with your trusted real estate professional and perhaps you will have a better idea of which of these options is the smart choice for your situation.

What To Know About The 2-1 Buydown Program

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What To Know About The 2-1 Buydown Program You are probably excited to close on your home, but you may have also seen that your interest rate might be a bit higher. If you are looking for a way to save money, particularly if you have a lot of work to do on the home, you might be looking for a way to reduce your interest rate during the first couple of years. One option is to perform a 2-1 buydown. What do you need to know about this option, and how do you know if it is right for you?

How A 2-1 Buydown Works

This is a special type of program that can help you slightly alter the financing on your home loan. Specifically, it has been designed to reduce the interest rate during the first two years of your mortgage. During the first year of your mortgage, your interest rate is reduced by 2 percent. Then, it is reduced by 1 percent during the second year. By the third year, the interest rate goes back to normal.

The Benefits And Drawbacks Of 2 – 1 Buydowns

Like any financing option, there are some benefits and drawbacks to consider. The biggest benefit is that you can save money during the first two years of your mortgage. This can provide you with extra money to complete renovation projects and home repairs. On the other hand, the drawback is that your monthly payments will go up during the first few years. If you don’t have the income to match your monthly payments during the third year, you might find yourself in some financial difficulty.

Should You Do a 2 – 1 Buydown?

You may also be interested in this type of financing option if you plan on selling the house in the near future. For example, if you think you won’t be there for very long, you may not care what the interest rate is going to do in the future. On the other hand, if you really plan on selling the house quickly, you may want to talk to a professional about other financing options that could be even better for your specific situation. That way, you don’t end up paying more money than you have to.

How To Successfully Use Your Down Payment to Achieve Your Home Buying Goals

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How To Successfully Use Your Down Payment to Achieve Your Home Buying GoalsWhen you are considering purchasing a home , understanding the lending guidelines regarding a down payment is important. 

Here are a few key tips to consider:

Gifting of a Down Payment

There are some programs that will allow you to use a gift for your home down payment. However, before you assume this, make sure you talk to your loan officer. Generally speaking, the lender will require the person making the gift to provide a letter stating the money was a gift and does not require repayment.

Windfalls as a Down Payment

When people hit the lottery or come into money through an inheritance, one of the first things they may consider is buying a new home. However, it is important ot keep in mind that lenders will typically want to know exactly how you came up with your down payment.

Borrowers still need to show a “paper trail” of how they came into money. If your down payment amount has not been “seasoned” the lender may not accept your loan.

What is a Seasoned Down Payment?

Generally speaking, your loan officer will want a “paper trail” to document your down payment. Most lenders require down payment funds to be at a minimum 60 days old. For example, let’s assume a borrower did win the lottery: If they deposit the funds into their checking account and leave it there for 2 months or more, the funds would be considered seasoned.

However not all lending guidelines are the same. Some lenders require even more seasoning to consider the money in your account truly yours. So it’s a good idea to plan well ahead of your purchase date to get your down payment funds in your account if you plan on getting money from another source.

Lender restrictions on down payment funds are fairly common. If you are uncertain if your funds meet the lender’s criteria, talk to your loan officer. In most cases, a lender will require at least one-half your down payment fall into the category of seasoned funds.

The One Place You Can Borrow For Your Down Payment

Some borrowers may use their retirement account or other savings to make their home down payment.  And most lenders are perfectly fine with you borrowing against your own savings in a 401(k) or IRA account. Of course you will likely want to discuss the tax implications with your accountant or financial advisor before making these withdrawals.

Don’t wait until the last minute to discuss your down payment with your real estate agent because you may wind up disappointed. Keep in mind, your real estate professional is available to help guide you through the whole process of buying your new home.