Sunrise Homes & Renovations, Inc.

How Large Of A Down Payment Do You Truly Need?

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If you are interested in purchasing a home, how much money should you put down? This is a difficult question that all potential homeowners need to answer, as it will dictate the size and location of the house you can afford. There are a number of factors to consider, so what do you need to know?If you are interested in purchasing a home, how much money should you put down? This is a difficult question that all potential homeowners need to answer, as it will dictate the size and location of the house you can afford. There are a number of factors to consider, so what do you need to know?

Generally, Putting More Down Is Better

There is a solid chance that a home loan is going to be the largest loan you will ever take out in your life. Therefore, there is some risk involved, and you must make sure you can pay it back. You can reduce the risk you take on by putting more money down. That way, you don’t necessarily have to take out such a large loan, and your lender may provide you with a lower interest rate. This could save you thousands of dollars over the life of the loan.

First-Time Homebuyer Options Are Available

The downside of saving up such a large down payment is that it could take a long time for you to save up so much money. Fortunately, there are programs available for first-time home buyers. For example, if you qualify for an FHA-backed loan for first-time homebuyers, you might be able to qualify for a home loan with as little as 3.5 percent down. This might make it easier for you to afford a house.

Is Your Money Better Served In The Market?

Putting more money down for a house may provide you with a lower interest rate while also reducing your monthly mortgage payments; however, you need to think about where your money will work the hardest for you. You may qualify for a lower interest rate if you put more money down, but will your money generate a higher return if you invested in your retirement? You should answer this question when you decide whether to put more money towards your house or more money in an investment portfolio.

Consider Working With An Expert

How much money should you put down for your house? This is a question that has a different answer for everyone, which is why you should consider working with a professional who can help you. 

Escrow And Your Mortgage: The Most Important Points To Know

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Escrow And Your Mortgage: The Most Important Points To KnowThere are many complicated terms thrown around regarding your mortgage, and one of them is an escrow account. You will probably hear that your lender will collect some additional money every month for escrow payments. If you take a look at your mortgage statement, you will see your interest, your principal, and your escrow. What does this mean, and why do you have to pay additional money that isn’t going toward the balance of your loan?

The Definition Of An Escrow Account

An escrow account is an extra account that your lender opens on your behalf to make sure certain expenses are covered. Because your mortgage investor has a lien against the property, the mortgage company has an interest in making sure your property does not fall into foreclosure. That means that you need to stay on top of all of your expenses, including those beyond your mortgage. 

What Escrow Accounts Will Cover

Generally, your mortgage company will open an escrow account that is used to cover your home insurance premium and your real estate taxes. Generally, real estate taxes and home insurance premiums are only billed once per year. If you get a large bill for several thousand dollars, you might not be able to cover it. If you don’t pay your real estate taxes, the government could foreclose on your house. Instead of asking you to pay thousands of dollars at once, your mortgage company will open an escrow account for you, collecting small amounts of money every month to make sure you stay up to date on your home insurance taxes and premiums.

How The Balance In Your Escrow Account Is Determined

If your mortgage company is collecting additional money every month, that means there is less money for you to spend. Therefore, your mortgage company is careful only to collect as much money as required. Your escrow account balance is determined by your property taxes and insurance premiums. During an annual escrow review, your mortgage company will see if the account has a surplus balance. If it does, you will get a refund for the surplus balance. Keep in mind that if your real estate taxes or insurance premiums go up, your mortgage company may collect more money in the future. 

The Right (And Wrong) Reasons To Buy A House

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The Right (And Wrong) Reasons To Buy A HouseThere are many people who dream of owning a home, but you need to purchase your home for the right reasons. Simply purchasing a house because other people are doing so is not a strong reason to make such an expensive purchase. What are some of the reasons why you should purchase a house? What are some examples of bad reasons to buy a home?

The Right Reasons To Buy A Home

There are several strong reasons why you should consider purchasing property. If you have children, you may want them to attend a specific school. Therefore, you might be interested in purchasing a house in that school district. If you plan on being in a house for several years, you may be able to financially justify this purchase.

You may also want to purchase a house because you have relatives who want to move in with you. For example, many people like to take care of their parents as they get older. If you believe you can keep your parents out of an assisted living center by allowing them to move in with you, purchasing a house might be a smart move.

The Wrong Reasons To Buy A Home

On the other hand, there are wrong reasons to purchase a house as well. For example, if you believe you should purchase a house because the value of a home is always going to go up, that is not necessarily the case. Just like other financial markets, the real estate market can rise and fall, and there is no guarantee that your house is going to go up in value.

You should also try to avoid purchasing a house just because you feel guilty about renting. If you feel like you are approaching the home purchase process with some misgivings, you need to pause and think twice. Just because you are tired of renting doesn’t mean you should purchase a house.

Think Carefully Before Making A Decision

Purchasing a house is a big decision, and you need to review the benefits and drawbacks carefully before you decide to move forward. Do not hesitate to reach out to an expert who can help you figure out if purchasing a house is right for you. 

 

How Can You Increase The Safety And Functionality Of Your Home?

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How Can You Increase The Safety And Functionality Of Your Home?What do you need to do if you want to improve the safety and functionality of your home? You may not think that your home has a lot of safety hazards, but you might be surprised at how many people get hurt at home every year. Particularly if you have older people in your home, or if you have people in your house with disabilities, you need to pay close attention to your safety and functionality. What are a few tips you should keep in mind? 

Target The Lights In Your Home

If you have an older home, it may have incandescent light bulbs in it. Pay attention to the lights in your home, and make sure they maximize the light in every room. If the bulbs are too dim, it may be a challenge for you to see where you are going, particularly when the sun goes down. Consider swapping out the lights for LED light bulbs. You can not only make it easier to see but also reduce your electricity bills.

Remove Trip Hazards

You should also try to remove trip hazards from your home. Falls are one of the most common reasons why people get hurt, so try to remove objects that you might trip over. For example, if you have area rugs, you may want to tuck the tassels underneath. That way, you have a much lower chance of tripping on them.

Install Grab Bars In The Bathroom

You may also want to consider installing some grab bars in the bathroom. Bathroom floors can get wet, making it easier for people to slip and fall. This is particularly true in the shower and bathroom. By installing some grab bars, you have an extra way to stabilize yourself when you are bathing. This can reduce your chances of falling and striking your head, shoulder, or hip.

Make Your Home Safer And More Functional With These Tips

From time to time, you should do a comprehensive evaluation of your home to see how you can improve your house’s safety and functionality. This can make a significant difference in the value of your home while also reducing the chances of someone falling and getting hurt. 

 

The Top Ways To Keep Pests And Infestations Out of Your Home

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The Top Ways tp Keep Pests Out Of Your HomeThere are a lot of pests that may try to make their way into your home, and they can cause significant health and safety issues in addition to detracting from your property values. It can be very difficult to remove infestations once they have infiltrated your home, so it is always better to prevent them from happening. What are a few tips you should keep in mind? 

Seal The Doors And Windows

One of the easiest ways for pests to get into your home is to crawl through open doors and windows. Therefore, you should start by sealing your doors and windows from time to time. You may want to reach out to an expert who can evaluate your doors and windows for possible cracks and crevices. By eliminating them, you make it significantly harder for pests to infiltrate your house.

Properly Dispose Of Trash And Recycling

You should also properly dispose of all garbage and recycling. As long as it is safe for you to do so, try to put food down the garbage disposal. Then, don’t forget to clean your garbage disposal from time to time. Furthermore, try not to wait until your trash is overflowing to take it out. Also, be sure you rinse all of your recycling before you put it in the recycling bin. That way, it becomes less attractive to pests.

Clean Your Drains Regularly

Remember that you should also clean your drains regularly. Your drains can collect a lot of mold, mildew, strange odors, and food waste that become attractive to pests. While you might once the drains after you put food down them, that is not enough. You should try to deep clean your drains regularly to prevent pests from taking advantage of them.

Keep Pests Out Of Your Home

Ultimately, these are a few of the most important tips you should keep in mind if you want to keep pests out of your home. A pest infestation can become a serious health risk while also making your home less attractive to a potential buyer. If you believe you have a pest infestation, reach out to a professional who can help you. 

Taking Out a Mortgage for the First Time? Learn Why a Condo Might Be a Great First Home

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Taking Out a Mortgage for the First Time? Learn Why a Condo Might Be a Great First HomeAre you starting to tire of paying your monthly rent to someone and never building any equity? Renting forever can be a significant pain, especially as you’re contributing to someone else’s financial well-being. The good news is that there are affordable real estate options out there for those investing in their first home. Below we will share a few excellent reasons why an apartment or condo might be the best choice for a first-time home buyer.

A Manageable Monthly Payment

In most markets across the country, condos and apartments are available at a significantly lower cost than a full-sized house. Buying a less-expensive home means that your monthly mortgage payments will, in turn, be lower. If you are single or a young professional trying to start a family, that extra money can be a massive boost to your monthly budget.

Note that while your monthly mortgage payment may be lower, you are still responsible for other maintenance and upkeep fees. The most common is known as a homeowners’ association fee, to which all condo owners in the same development contribute. These funds are used to upkeep the building or property as well as things like landscaping, a pool or gym, and other amenities.

A Smaller Down Payment

In the same vein, buying a less-expensive home also means that you can put a smaller down payment on it when you close the sale. In many cases you are required to place a certain percentage – typically 20 percent – down to avoid having to purchase private mortgage insurance. Having to commit less in your down payment leaves more money in the bank for other purposes.

An Excellent Future Investment Property

Don’t forget that when you are ready to upgrade and move into a larger house, you can keep a condo as a rental or investment property. Once your mortgage is paid off, you are only responsible for the monthly maintenance fees and taxes. So if you can rent the condo out to a tenant, you will have an excellent source of cash flow that can help to pay for your new home or fund other activities.

The above are just a few of the many reasons why a condo can be a great starter home for first-time buyers. To learn more about your mortgage options, contact us today. We are happy to help.