Sunrise Homes & Renovations, Inc.

Down Payment Assistance Programs May Make Homeownership More Affordable

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Down Payment Assistance Programs May Make Homeownership More AffordableThere are many people who are currently looking to purchase a home while interest rates are relatively low; however, there are many homeowners who feel like they do not have a strong level of financial understanding when it comes to the process of purchasing a home.

If homeowners don’t have the financial knowledge base to effectively evaluate their options, they might have trouble figuring out what they can truly afford. For example, how much money do homeowners need to save for a down payment? There are a lot of down payment assistance programs available at local, state, and regional levels.

Resources Are Available For First Time Homebuyers

There are many down payment assistance programs that have been made available specifically for first-time homebuyers. Many people who are buying a home for the first time might not be able to put 20 percent down when lenders ask for it. That is why down payment assistance programs might be able to help homebuyers bridge the gap between what they have and what they need. At the same time, there are other programs available as well.

There Are Programs Available for Non-First Time Homebuyers As Well

There are also down payment assistance programs that are open to people who aren’t first-time homebuyers as well. For example, many people are thinking about relocating because they work from home. They might want to stretch their money farther and purchase more space. Some rural areas have USDA loans that do not require a down payment. USDA loans might even be available in the suburbs. These loans might be easier for homebuyers who might not have a large chunk of money saved up for a down payment. Reaching out to these down payment assistance programs could be a smart move.

Understand All Options Available For Down Payment Assistance

Ultimately, there are a lot of down payment assistance programs that could make it easier for potential homebuyers to purchase a home. With many homeowners looking to purchase a home now before interest rates rise, it is important to explore all options available. This includes looking at down payment assistance programs that might make it easier for homeowners to afford a home.

Taking A Closer Look At Affordability: Renting And Buying

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Taking A Closer Look At Affordability: Renting And BuyingThere are many people who are looking at the housing market wondering if now is the time to make the jump from renting to owning. At the same time, is it more affordable to rent a home? Or, is it a smarter move to buy a home? Even though many people like the comfort of renting because it is someone else’s problem if something goes wrong, waiting too long to purchase a home could be costly. Here are a few of the most important points you need to keep in mind when it comes to renting versus buying a home.

Renters Spend A Higher Percentage Of Their Income On Housing

First, renters usually put a higher percentage of their income toward housing than homeowners. When looking at the numbers, people may believe that the percentage is higher for renters purely because people who own homes make more money; however, this is not necessarily the case. People who rent still spend a greater percentage of their monthly income on housing than people who own a home.

Renters Often Have Trouble Investing In Other Assets

One of the major advantages of owning a home is that it is going to appreciate over time. Not only is a house an investment, but because homeowners spend less of their money on housing, they have money to invest in other assets. For example, someone who spends a lot of money on rent might not be able to invest in retirement accounts, such as a 401k. Homeowners are not only building equity in their homes but also investing money elsewhere.

Rent Goes Up While Mortgages Stay The Same

A lot of homeowners decide to take out a 30-year fixed mortgage, which means that their mortgage payments are going to stay the same throughout the life of the loan. Renters are more vulnerable to cost increases. Whenever someone renews a lease, rent payments usually go up. Therefore, this projects vastly different economic futures for homeowners versus renters. With a home loan, the only expenses that might go up are taxes and insurance. In contrast, renters are subject to the supply and demand laws of the rental market.

Now might be the time to make the jump to homeownership.

Is Now The Time To Move Into A Retirement Home?

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Is Now The Time To Move Into A Retirement Home?There are thousands of people who turn 65 every day, which is the typical retirement age. Before the development of the pandemic, most people had to wait to retire before they could move to their retirement homes. Due to the pandemic, a lot of people are working remotely, giving them a chance to move to their retirement homes before they actually retire. Is it a smart idea to move before retiring? If the next phase of life is calling, now might be a time to make the move to a retirement home, whether this is a home on the beach or a sprawling property located in the countryside.

Workers Can Be Just As Productive Working From Home

While the pandemic was unexpected, workers have been gradually becoming more remote during the past few years. The pandemic simply accelerated this trend, showing that employees can be just as effective working from home. Therefore, you may see more people buying retirement homes before they actually retire. A lot of people who retire have paid off their current homes, allowing them to make a significant profit if they decide to sell now and relocate to their retirement home using the equity they already have. If they are able to work remotely from there, it might be possible for people to move to a retirement home before they actually retire.

Many Homeowners Are Moving To Their Retirement Homes Now

Due to the health crisis that just happened, many people have become acutely aware of the importance of spending time with family members and friends. Many have not seen their family members and friends since the pandemic started, and moving closer to them is one of the biggest reasons why people relocate. In addition, making the move to a retirement home now can reduce expenses, start a new phase of life, and provide access to better weather.

With mortgage rates still very low, this could be a great time for workers nearing the retirement age to move into their dream homes. Then, they can continue to work virtually from there during the next few years, getting a head start on the next phase of life.

What Are The Top Ways To Win A Bidding War?

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What Are The Top Ways To Win A Bidding War?Right now, there are not a lot of houses for sale, as inventory and new home construction continue to lag behind buyer demand. In addition, low mortgage rates are accelerating demand, meaning that in many situations the sellers are receiving multiple offers. Therefore, it is important for potential buyers to do everything they can to win a bidding war. What are a few ways buyers can give themselves an advantage?

Get Pre-Approved For A Home Loan

The first thing interested buyers need to do is to get pre-approved for a home loan. Because many sellers have options, they might be more willing to take a cash offer because they know the money is going to be there. In order for potential buyers to compete with cash offers, they need to get pre-approved for a home loan, which tells the seller that the buyer has already been approved for a home loan by the lender. Getting pre-approved can make buyers more competitive.

Present The Best Offer First

Because many properties are receiving multiple offers, buyers need to be ready with their best offer at the outset. If they can convince the seller to forgo listening to other offers, they have a better chance of securing the home. Therefore, buyers have to work with experienced professionals who can help them figure out what their budget is, what comparable homes are selling for, and how they can make a competitive offer that could convince the seller to say yes quickly.

Act As Quickly As Possible

Finally, buyers have to be ready to act fast. Properties are not staying on the market as long as they once did. For example, one site says that homes are spending 20 days fewer on the market now than they did one year ago. Therefore, buyers do not have time to wait. If they have trouble getting their work schedules set, traveling to the area, or lining up a showing, the home could be off the market by the time this is done. Buyers must act as quickly as possible.

Get Ready To Win A Bidding War

These are just a few of the most important steps buyers need to take in order to win a bidding war. While the market is hot, it is possible to find a home at a fair price.

There Are Major Incentives For Homeowners To Sell Their Homes Now

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there-are-major-incentives-for-homeowners-to-sell-their-homes-nowNow is a great time to take out a new home loan because mortgage rates continue to hover near historic lows. As a result, many homeowners are refinancing to a lower rate. This is also the perfect time to move because homeowners can take out a new home loan with a lower interest rate. Mortgage rates will not remain at historic lows forever and have already begun to rise slowly this year. Homeowners should sell now and take out a new home loan before they rise too much.

Homeowners Can Take Advantage Of A Bidding War

Because the real estate market is so competitive right now, homeowners might be able to take advantage of a bidding war. With surveys showing that homeowners are getting more offers on their homes than ever before, this is an opportunity for homeowners to drive up the sale price.

Homeowners Can Speed Through The Closing Process

While many homeowners get frustrated about the time it takes to close a sale, home sales are closing faster than they ever have in the past. The number of all-cash sales is going up as well, which is also an opportunity for homeowners to close quickly. Anyone who is looking for a quick closing process should consider selling in the current market.

Homeowners Can Sell Without Updating The Home

Finally, this is also a great time for homeowners to sell because they might be able to sell their homes without updating anything. Instead of having to worry about home upgrades and cosmetic changes, homeowners might be able to get great value for the home as-is. This opportunity might not come along again for decades, so now is a great time to sell.

In The Current Housing Market, Prospective Buyers Must Remain Patient

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In The Current Housing Market, Prospective Buyers Must Remain PatientThe housing market has been through many ups and downs during the past 12 months. Now, buyers are facing a unique challenge as they try to find the right house in the perfect seller’s market. Right now, real estate is extremely competitive, as low inventory has continued for several months.

As mortgage rates remain low, more people are looking for homes, increasing the competition. Some people are reluctant to sell because they know they will face the same challenges of trying to find a new home themselves. As a result, the housing market has record-low inventory making it difficult for buyers to find the right house in their budget.

Builders Have Not Constructed As Many New Homes

While a reluctance to sell is one reason why the housing market has become competitive, it is not the only one. There has also been a lack of new homes built during the past decade. From 2000 to 2010, builders constructed more than 12.6 million new homes, creating more inventory for those looking to buy. From 2010 to 2020, only 6.5 million new homes were constructed.

This number is significantly lower than the rate of new household formation, which has continued to go up. The result is an extremely competitive market for anyone looking to purchase a house in the current market. While builders are working hard to keep up with demand, it will take some time for them to catch up.

Buyers Must Remain Patient During This Challenge Time

Because the housing market is so competitive, many buyers find themselves facing bidding wars, where multiple buyers make offers on the same home. This drives up the sale price of the house, increasing property values in the surrounding area. This simply makes it more competitive for those still looking to buy.

Therefore, buyers need to remain patient. Low inventory will not remain at a low forever, and builders continue to construct new homes. It takes between four and eight months to build new homes, and more houses will come on the market as families consider moving in the wake of the pandemic. Patience is the key to finding the right home in the current market.