Sunrise Homes & Renovations, Inc.

5, 10, 20 Percent or More? How to Determine How Big of a Down Payment You Need

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5, 10, 20 Percent or More? How to Determine How Big of a Down Payment You NeedWhether or not you’re new to real estate, there’s little doubt that you’ve heard the term down payment as it relates to purchasing a home. There’s a lot of different information out there in regards to how much this figure should be and it can be hard to determine exactly what the importance of this payment is. If you’re trying to determine the ideal amount to put down, here are some things to consider.

Explaining Down Payments And Why They’re Important

The down payment is probably one of the largest single payments you’ll make for anything, and this is why so many people save for years. When you buy a home, the down payment is the amount of money that goes into the initial home investment, and this is taken off of the cost of the house. In essence, while this money qualifies as an asset, it is tied up in paying off the total cost of your home.

The Differing Amounts For Down Payments

It’s often the case that many figures are thrown around in regards to the ideal down payment percentage, and they generally vary from 3-20% of the home’s cost. If you are paying a percentage on the low side of the scale, this can unfortunately mean that you will have fewer mortgage options and will be stuck with an increased interest rate. The amount you should pay depends on your financial health and purchasing commitment, but the larger the down payment is, the more minimal your monthly payments will be.

Deciding The Perfect Percentage

Saving up 20% of a home’s total price may seem like a lot of time and effort, but this can be the ideal amount to put down. In addition to lowered monthly payments and a better interest rate, you’ll also be able to avoid Private Mortgage Insurance (PMI), which is required if you put down less than 20%. There is no right answer to the question of how much to put towards a down payment, but you may end up spending less in the long run if you can invest more in the beginning.

There are many figures thrown around when it comes to real estate, but the amount of a down payment should be economically feasible for you and enable you to make your monthly payments consistently. If you’re planning on purchasing soon and are looking for home options, you may want to contact one of our local real estate professionals for more information.

3 ‘Must Know’ Pieces of Advice for First-time Home Buyers

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3 'Must Know' Pieces of Advice for First-time Home BuyersWhen delving into the realities of home ownership, there can be many factors involved that make it difficult to determine what you need to know and what can wait until later. If you happen to be a first-time buyer who’s looking for the best tips for purchasing a home, look no further than the following three pointers to set you on the right path.

Get Familiar With Your Credit Score

If you haven’t looked at your credit report for a long time, it can be a daunting task to request this information. Fortunately, your credit report is free from AnnualCreditReport.com and it will prepare you for what lenders are going to see. By taking this important step, you will be able to determine any delinquent accounts or balances owing that have gone to collections, and hopefully have these cleaned up before they can become a problem for your mortgage.

Determine The Price You Can Pay

While you may have a price in mind for what you’re willing to pay for a home, it’s important to determine your debt-to-income ratio before putting in an offer. Your DTI ratio can be determined by taking your total monthly costs, adding it to what you would be paying for a home and dividing it by your monthly gross income. If it’s a housing price that will work for you, this amount should equate to less than 43%.

Organize Your Housing History

If you have a good history as a tenant, the next step will probably be the easiest of all, but it’s very important in order to prove you’re a responsible candidate for home ownership. Once you’ve acquired a Verification of Rent from any applicable landlord in the previous year, you’ll want to ensure that you have money in the bank. While RRSP’s can make a good impression, make sure you have liquid assets available so you can convince the lender your home investment is manageable.

There are a lot of things to know when it comes to buying a home, but if you’re a first time buyer the most important thing is to ensure that your finances are organized and that you’re not diving into more house than you can afford. By taking the time to determine your debt-to-income ratio and looking into your credit, you can ensure a positive first-time buying experience. If you’re wondering about homes for sale in your area, you may want to contact your trusted real estate professionals for more information.

Dealing with an Empty Nest? 5 Great Reasons to Downsize into a New Condo

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Dealing with an Empty Nest? 5 Great Reasons to Downsize into a New CondoThere’s a good chance if your children have recently moved out that your home is feeling a lot larger than it used to, and perhaps you’re re-considering the extra space. If downsizing to a condo is on your mind and you’re weighing the benefits of this kind of move, here are some that might make it worth the switch in size.

A Little Extra Money

With the additional money you should be making off the sale of your home, there’s a good chance that downsizing may provide you with extra assets to sock away for retirement, travel or whatever your heart fancies. If you don’t need the money, it might not matter, but in the retirement years a little extra can be of benefit for many.

Minimize Your Costs

Usually, there are many utility and heating costs that go along with home ownership, but by moving into a condo you can alleviate many monthly payments instantly. Instead of paying for every utility, condo living can help to simplify and minimize the amount you owe each month.

Free Up Your Retirement

Often times it may seem like home ownership is the dream, but many people approaching retirement would rather have the flexibility of renting. Because there are limited responsibilities with a rental, it means you can spend the winter months in Mexico without having to worry about who will take care of your home.

A Condominium Community

The great thing about many condo buildings is that they are built close to amenities like grocery stores, drycleaners and restaurants, so you don’t have to worry about venturing far out. It might not seem important if you’re used to driving to the store to make your purchases, but being able to walk might make you a convert to a different way of life.

Forget About The Maintenance

If you’ve gotten used to all of the maintenance that goes into a home, downsizing can be a great relief in terms of the time you’ll be saving. Instead of a lawn to cut or a multi-level home you’re responsible for, you’ll be able to rely on the building manager to do this for you.

It can be comforting to have a home you’ve bought and paid for that belongs to you, but by downsizing you may be able to save on time and significantly lower your living costs. If you’re considering purchasing a condo and would like to learn more about your options, you may want to contact one of our local real estate agents for more information.

Three Things You Can Expect when Buying a Home This Winter

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Three Things You Can Expect when Buying a Home This WinterWhen you’re looking into purchasing a home, there are plenty of things to watch out for at any time of the year, but there are a few things that you can expect during the winter months that may be a little different than other seasons. If you happen to be on the market for a home and are thinking of buying, here are three things you may want to consider for the winter buying months.

A Little Bit Off The Top

While there is significant home buying that goes on throughout the fall, it’s often the case that things slow down in winter with the often unruly weather and the busyness of the season. As a result, if you’re planning on making an offer during these months, you may be able to swing the home seller a couple thousand dollars in your direction to garner a bit of a discount. Though there are no assurances, it’s quite likely that the home seller will want to get their house off the market before springtime comes around.

A Speedier Approval Process

With the amount of properties being bought and sold in the winter months slightly lower than the rest of the year, you may be able to take advantage of a speedier approval process for your mortgage. Since there will be fewer client approvals to sort out, you may be in the clear shortly after you’ve decided on the home of your choice. This means more ease in the winter months for you, and a home you’ll soon be able to call your own.

An Effective Heating System

There may be certain upgrades you’ll want to make shortly after arriving in your new home, but if you decide to buy in the winter months, overhauling the heating system is not going to be one of the things you’ll want to worry about. If the furnace in good working order and is maintained on a consistent basis, you should be good to go; however, if any upgrades will need to be made you’ll want to clarify this with the seller before signing on the dotted line.

There are many factors in winter that can lend to a slow season for the real estate market, but there are a few things you can expect that may make buying a home in the winter months a worthwhile venture. If you’re looking for more information on purchasing a home in the near future, you may want to contact your local real estate professional for more information.

Real Estate Investing: 3 Secrets of Successful Home Buyers That You Can Use Today

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Real Estate Investing: 3 Secrets of Successful Home Buyers That You Can Use TodayWhile making a real estate purchase can be a matter rife with many questions, buying to invest in a long-term property can be even more confusing. If you’re looking into investing in real estate and wondering what variables to consider, here are a few tips that you’ll want to keep in mind before deciding on a fruitful investment property.

Be Aware Of The Market You’re Buying Into

Since you’ll need to be aware of what other people are looking for in a property if you’re diving into real estate to invest, you’ll want to carefully consider the neighborhood and city that you’re buying in and think about what the future holds. While becoming knowledgeable about home prices in the area you’re thinking of buying is a must, you’ll also want to think about market projections, trendy new neighborhoods and what the appeal will be to renters or buyers of the home you’re contemplating.

Consider A Diamond In The Rough

It might seem like a home that is a little rough around the edges is going to be a high-maintenance endeavor that doesn’t balance out in the end, but a fixer upper of a place may be end up being the best option. While you may need to renovate a little here and there to unearth some of its natural features, improvements to a home with a good structure in a good neighborhood can be more economical than spending more on a home that instantly appeals. It can also provide a better return on your investment in the long-term.

Stay Within Your Spending Means

When considering an investment property, it can be quite easy to get derailed and think about what you’ll be making instead of the expenditure of the initial investment. However, it’s important to determine beforehand that what you’re choosing to afford is going to be manageable in case you have to swing it on your own. By determining whether or not it’s an affordable expense, you can have a successful investment that will balance out in your favor at the end of the day without having to worry about sinking beneath the cost.

There are many questions that can come along with choosing to invest in real estate, but by carefully considering the market and keeping your purchase at a reasonable price point, you may have a long-term moneymaker on your hands. If you’re interested in other tips for real estate purchasing success, you may want to contact your local real estate expert for more information.

Moving to a New Home? Use These Websites and Apps to Research Potential Neighborhoods

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Moving to a New Home? Use These Websites and Apps to Research Potential NeighborhoodsRelocating to a new city? Thinking about moving to a new neighborhood? While word of mouth from friends and family is valuable, sometimes it’s necessary to get a different perspective.

With the advancement of technology, it’s now possible to research new neighborhoods without getting up off the couch. Here are some websites and apps that have proven invaluable with researching new areas:

Use The Forums On City-Data For Exact Answers

While city-data.com is a valuable resource for people who are looking into relocating to a different city, one of the best uses of the site is the active forums. Here, locals will answer questions about different cities to help narrow down the selection.

Track Specific Neighborhoods With Street Advisor

Once the city is narrowed down, a quick visit to Streetadvisor.com will give a better overview of the different areas. The website is designed to provide visitors the opportunity to review entire communities instead of single businesses. All neighborhoods in a city are ranked based on how well the users have rated them.

Take A Look At The Numbers At Neighborhood Scout

Now that reviews have been read and questions have been answered, people can take a trip to neighborhoodscout.com to get a look at the numbers that define communities. Some details require a subscription, but anybody interested in the crime rate, sex offender registry or appreciation rate of property should join the site.

Get A Unique Perspective With Ratings Apps

There are plenty of apps for phones and tablets that are used to rate restaurants and businesses. Popular choices like Yelp and Foursquare can give a different perspective of what locals think about the businesses in their neighborhoods. Do the local diners get high marks or are people driving across the city for brunch? How are the parks in the area received? These questions can be answered with these apps.

While you can do a lot of preliminary research on your own, sometimes the best person to contact about new neighborhoods is a real estate professional. They will be able to tell you which areas are heating up and which areas should be avoided and help narrow down choices if you’re undecided. Contact one who operates out of the neighborhood you’re thinking about buying in so that you can work with a local who has experience in the area.