Let’s Talk Basements: How to Finish Your Basement so It Adds Value to Your Home

Let's Talk Basements: How to Finish Your Basement so It Adds Value to Your HomeAre you on the hunt for home renovations that will boost usability and value? Look no further than that unfinished basement. In this article, we’ll show you how to turn that dusty cave into an amazing new living space.

Note: finishing a basement isn’t the easiest job. For most basements, it’s a lot more than a weekend do-it-yourself project. If you’re not comfortable with construction be sure to enlist the help of a professional.

Step 1: Plan Everything Out

The first step is to plan out how you’re going to use the space. Are you going to make an office? A full suite? Is there any plumbing or wiring involved? Will you need to create full walls? Map out how you plan to use the available space so you have an idea of what you’ll need.

Step 2: Measure And Deal With The Floor

Once you figure out how you’ll use the space, you’ll need to measure everything out. Height can be an issue — especially in basements not designed as a living space. You can solve height problems by digging out the concrete slab. Once you get down deep enough, you pour a new slab.

Step 3: Frame Everything In

Is the basement at a good height? Next you’ll need to start framing everything in. Depending on how you have your walls mapped out, this might take a while. You may also need permits or to enlist licensed tradespeople, such as an electrician. If you’re just framing in a single room to add walls, it will be easier.

Step 4: Insulate And Install The Walls

After the framing process, you’ll insulate everything before installing the walls. Adding insulation can drive energy and heating costs down by a lot. So much so that in colder areas of the country, new homes must have insulated basements. After the insulation is in place, you’ll install the drywall and ready the walls for painting.

Step 5: Paint, Carpet And Finish Up

The final step is to get everything painted and finished. If you chose to go with a carpeted floor, you’ll want to save this for last. Once the painting is complete, install the carpets, baseboard and trim. Touch up any final areas and you’re all set.

Finishing your basement into a usable space is an excellent way to add value to your home. To learn more about building your home’s equity, give us a call.

Did You Know?: 4 Factors That Can Delay Your Mortgage Approval (and How to Avoid Them!)

Did You Know?: 4 Factors That Can Delay Your Mortgage Approval (and How to Avoid Them!)If you’re currently buying a home and are stressing about the kind of home to choose and which lender to go with, it can help to clear up some of the confusion surrounding the mortgage process. While mortgage applications are assessed on a case-by-case basis, here are some factors you’ll want to avoid so the timeline of your approval isn’t negatively impacted.

Your Employment Status

It goes without saying that the amount you bring in each month is a huge factor towards how much house you can afford, so having a part-time job, being self employed or even being unemployed can adversely impact your application. Instead of leaving this factor up to chance, make sure you have a job that will more than cover your monthly payment or at least the savings in the bank to take the pressure off.

The Debt You Carry

The amount of your debt has an impact on the house you can afford, but debts whether from auto loans or credit cards; can still adversely impact the lender’s perception of your finances. Before buying a home, you may want to pay down some of your debt or hash out a monthly budget so you’ll have more certainty when it comes to application time.

Your Credit Report

There are few things that will have a more marked impact on your mortgage approval than your credit history, so whether or not you have good credit will play into your application approval. While many people shy away from their credit report, ensure you look it over before submitting your application so you know what you’re dealing with and can correct any mistakes.

The Down Payment Amount

You’ve probably heard that 20 is the magic percentage to put down, and while this number isn’t needed to buy a home, it can be the right number if you have high debt or a negative credit history. While you may want to buy right away, waiting and saving up may actually improve your odds of approval and save you money in the long run.

There are many factors involved in the mortgage process and many of these things have the ability to slow down your application. But, by being aware of your credit and having a 20 percent down payment saved up, you may be able to speed up the process. If you’re close to submitting your mortgage application, contact your trusted mortgage professionals for more information.

Refinancing Your Mortgage? Know These Key Terms Before You Sign Your Paperwork

Refinancing Your Mortgage? Know These Key Terms Before You Sign Your PaperworkWhen it comes to your mortgage, there are a lot of key terms that are important for every homebuyer to know, and this is no less true than when it comes to refinancing your most important investment. Instead of leaving what’s unknown up to chance, it’s important to be aware of exactly what you’re looking at so you can get the best mortgage product available. If you’re currently considering refinancing and don’t want to get snared by unknown terminology, here are some terms you’ll need to watch out for.

Cash-Out Refinance

This type of refinance is a transaction where the home’s mortgage amount is higher than the existing mortgage amount, and cash-out refers to the extraction of equity from the homeowner’s home. While this type of refinancing can be a means of tapping into extra cash to help you with monthly expenses, it also means that the cash you take out of your equity will be added to the balance you already owe on your home.

Rate-and-Term Refinance

This type of mortgage transaction involves the refinancing of an existing mortgage so that you can take advantage of a different interest rate. While this type of change will not alter the amount of your home loan, it will adjust the interest which means that your monthly payments may be lowered and your may have a shorter amortization period due to overall reduced costs. These types of loans can often come with lower interest rates than cash-out refinances.

Streamline Refinancing

This type of refinancing is offered by the Federal Housing Administration (FHA) and the Department of Veterans Affairs, and it is also offered by certain financial institutions. While this type of refinancing has its own set of stipulations, it is directed at those who want to take advantage of low interest rates or get out of an adjustable rate mortgage (ARM). While you may need to have a financial appraisal done in order to qualify for this option, it’s also possible that this will not be required to qualify.

There are a lot of key terms that go along with having a mortgage and refinancing it, but if you’re considering your options it’s very important to know what all of them mean so you can be sure you’re making the best decision. If you’re currently considering refinancing your home and need helpful advice, contact your trusted mortgage professional for more information.