15 Confusing Mortgage Terms Explained

1. Adjustable-Rate Mortgage
2. Amortization
3. Annual Percentage Rate
4. Attainable Housing
5. Buydown
6. Closing Costs
7. Default
8. Discount Points
9. Due Diligence
10. Easement
11. Eminent Domain
12. Escrow
13. First-Time Homebuyer Programs
14. Lien
15. Loan Estimate

Understanding the terms you’ll see on your home loan documents is key to getting more out of your mortgage.

The post Top 15 Confusing Mortgage Terms, Explained appeared first on Cardinal Financial.

Top 10 Fall Decorating Ideas 2024

• Jewel tones
• Copper metallics
• Warm neutrals
• Textured touches
• Dried floral arrangements
• Fairy lights
• Front porch displays
• Personalized pumpkins
• Foraged accents
• Rustic elements

Jewel Tones

When we think of fall decor, shades of red, yellow, and orange tend to dominate. You don’t have to limit your palette if you don’t want to, though. Jewel tones of any color—particularly purples and blues—can balance those warmer shades and add a touch of elegance to your fall vibe.

Copper Metallics

Silver and gold are classic holiday metallics, but don’t overlook copper when it comes to your fall decor inspo. Vases, candle holders, and even copper garlands are great ways to add some shine to your 2024 fall decor. Your table settings are another easy way to incorporate this 2024 fall decorating idea. Start with copper napkin rings and serving dishes, and see where it takes you.

Warm Neutrals

You can never go wrong with neutrals. This fall, try infusing some extra warmth into your space with tans, off-whites, and chocolatey browns to balance out your more colorful accents. Neutral throw blankets, pillows, and table runners are easy ways to create a calming, inviting atmosphere in your home.

Pro Tip: If you’re putting your home on the market during the holidays, keeping your seasonal decor neutral is key. Potential buyers should be able to easily see themselves in the space.

Textured Touches

Texture isn’t just about a physical feeling—it also adds visual dimension to your decor. We often associate furs, velvet, and satin with the winter holidays. So, which textures will help your home reflect the harvest season? When in doubt, take a rustic approach. Woven textiles, natural wood, and leather are a great place to start. And of course, don’t forget the cozy flannels.

Dried Floral Arrangements

If there’s one downside to fall, it’s that most fresh flowers are not in season. But that doesn’t mean your home has to be devoid of blooms. Dried floral arrangements not only add a rustic, seasonal touch to your decor, but they also have one important advantage over fresh flowers: There’s no maintenance required.

Fairy Lights

There was a time when we associated fairy/string lights with freshman dorm room decor, but in 2024, they’re making a major comeback in our (sort of) grownup homes. Whether you’re stringing them in a canopy over your porch, using them to fill mason jars, or adding a glowing touch to your Thanksgiving centerpiece, neutral string lights have endless applications. Plus, you can reuse them for your winter holiday decor.

Front Porch Displays

Whether you’re hosting for the fall holidays or just want to warm up your neighborhood, your front porch is a great place to flex your fall decorating ideas. Decorative hay bales, seasonal produce, and a festive fall wreath on your front door can create a cozy, welcoming feel to your home from the outside in. You can even give your front door a fresh paint job in a seasonal color of your choice.

Personalized Pumpkins

Halloween might have the rights to classic pumpkin carving, but this iconic autumn vegetable (or fruit, if you want to get technical) has plenty of post-October potential. The possibilities are endless, but here are a few ideas to get your gourd going:

• Apply decals of your house number to a large pumpkin and display it on your porch
• Fill vases and bowls with miniature pumpkins or place them along your table runner
• Get the kids involved with handprint turkeys, using a pumpkin as a canvas
• Use your favorite fall leaves to create stamps that can be applied to pumpkins
• Stack your pumpkins for a festive fall topiary display

Foraged Accents

It’s easy to get wrapped up in all the purchases the holiday season entails, but you can actually find plenty of fall accents outside for no cost at all. This is also a great outdoor activity to enjoy with your children. On your next walk or hike, keep a lookout for colorful leaves, pinecones, acorns, non-toxic berries, and even fallen branches that can be incorporated into your home decor. 

Rustic Elements

Rustic elements can make any space feel warm and cozy, which is exactly what you want for your fall decorating in 2024. Even if farmhouse chic isn’t your style, there are plenty of subtle ways to incorporate rustic elements into your home. Try burlap bows around your vases or candles, simple wood branches in your botanical arrangements, and classic patterns like plaid and gingham throughout your space.

Bonus Fall Decorating Ideas for 2024

One of the biggest perks of owning your own home is that you can decorate it however you want. So, don’t feel limited by traditional seasonal decor themes. If you’re looking for some alternative fall decorating ideas for 2024, here are a few concepts to get you started. Have fun!

• Barbiecore Fall: Go all out with pinks, purples, and sparkles. Paint your pumpkins in bright colors, or glam them up with rhinestone adhesives. You can even turn your pumpkin into a fall disco ball with mirror tiles, or mix in mini disco balls with your mini pumpkin vase fillers.
• Gothic Fall: If you wish Halloween lasted longer, this one’s for you. A classic black-and-white theme can be incorporated in endless ways, from black-and-white plaid throws to black serveware placed on a white table runner. And of course, you’ll need lots of candles.
• Beach House Fall: Missing warmer weather? Try incorporating beachy elements in your autumn decor. From conch shells as cornucopias to sea glass in your pumpkin-filled vases, fall doesn’t have to feel far from the beach.

One of the biggest perks of owning your own home is that you can decorate it however you want. So, don’t feel limited by traditional seasonal decor themes.

The post Our Favorite Fall Decorating Ideas for 2024 and Beyond appeared first on Cardinal Financial.

Home Disaster Recovery for Hurricanes Helene and Milton

On September 26 and October 9, 2024, Hurricanes Helene and Milton made landfall in the southeastern United States. Before we dive into our general disaster recovery information, you can find timely resources for ongoing hurricane recovery efforts below.

For those in need of assistance:

• Florida FEMA assistance
• North Carolina FEMA assistance
• South Carolina FEMA assistance
• Georgia FEMA assistance
• Tennessee FEMA assistance
• Virginia FEMA assistance
• Hillsborough County FL available resources
• Disaster unemployment benefits

For those looking to provide assistance:

• Donate supplies, blood, and more through ongoing drives
• Become an American Red Cross Disaster Volunteer
• Explore Asheville, NC volunteer opportunities
• Start training to become a certified Disaster Rebuild Team member through Habitat for Humanity

If you’ve been impacted by the latest hurricanes, we hope you’re staying safe and finding the aid you need to get back on your feet.

Homeowners Insurance

Your homeowner’s insurance is one of the most important tools you have when it comes to home disaster recovery. Contact your insurance provider as soon as possible to report the damage. Before making the call, take some time to review your insurance policy to understand what’s covered and any deductible you may need to pay.

When you’re ready to file a claim, give your insurance company all the necessary documentation, including photos and videos. Be as detailed as possible when explaining the damage. If your home is uninhabitable, your insurance may cover temporary housing. Ask about this when you contact your provider.

FEMA (Federal Emergency Management Agency)

If the disaster is declared a federal emergency, you may be eligible for FEMA aid. This can include grants for temporary housing, home repairs, and other expenses. On FEMA’s website, you can apply for assistance, find Red Cross shelters and FEMA Disaster Recovery Centers (DRCs) near you, and check to see if the disaster that impacted you has been declared a federal emergency. Keep in mind that you can only apply for FEMA assistance if your home was damaged during an officially declared federal emergency, and given the time it takes to apply, they are unable to provide immediate emergency services.

Local Non-Profits

If you don’t qualify for FEMA assistance or you need immediate aid while you wait for your FEMA application to process, your local non-profit organizations are a valuable resource. The exact services available to you will depend on your location, but most residential areas will have organizations of all kinds that are acutely aware of the area’s needs. If you’re not sure where to begin, you can search for non-profits in your area via GuideStar.

Local non-profits are all about helping the community, so even if the service they provide is not directly applicable to disaster relief, there’s a good chance that in the wake of a disaster, they’ll be organizing efforts to assist in whatever way they can. From cleaning supplies to temporary shelter, you may be able to find many of the things you need throughout the recovery process right in your community.

Speaking of community, much of the aid after a disaster comes not from any particular organization, but from your neighbors and your personal network. Don’t be afraid to ask people you know for help, and how you can help them in return. It takes a village.

Natural Disaster Cleanup Resources

Once you’ve contacted your insurance and received the go-ahead, you can begin cleaning up. Before you start, make sure you wear protective clothing like gloves and masks. In addition to safety gear, the following is a list of common supplies you’ll need to tackle clean-up. Many of these can be sourced through local non-profits or by starting a supply drive on social media. Amazon wish lists are also a great way to let people know exactly what you need and have it sent directly to you.

Home Disaster Recovery Cleanup Supplies

• Heavy-duty storage totes and buckets
• Wet vacuum 
• Tarps
• Generators and fuel
• Wire brushes
• Shovels
• Brooms and mops
• Crowbars
• Bleach
• Vinegar
• Flashlights and batteries

Rebuilding Resources

When it’s time to start rebuilding or repairing, it’s important to consider ways to make your home more resilient to future disasters. Talk to your contractor about using disaster-resistant materials like impact-resistant windows, reinforced roofing, or fire-resistant siding, depending on the type of disasters common in your area. If you’ve experienced flooding, consider raising electrical outlets, using water-resistant materials for walls and flooring, and installing sump pumps. Organizations like All Hands and Hearts specialize in rebuilding efforts post-disaster, and may be able to help you with repairs.

You may also qualify for an FHA 203(h) loan. This disaster relief home loan helps victims of major disasters recover by making it easier for them to obtain a mortgage or re-establish themselves as homeowners.

Natural Disaster Prep for the Future

After the dust has settled on your home disaster recovery, it’s important to start planning for the future. Disasters can happen at any time, so taking proactive steps now can save you time, money, and stress later. If you haven’t already, this is the perfect time to review your homeowner’s insurance policy. Make sure it covers the types of natural disasters that are common in your area, from floods to fires to earthquakes.

An updated home inventory is also essential for faster and more accurate insurance claims. Go room by room and document everything you own that could be covered by insurance. This can be done through photos or videos, but be sure to save the inventory somewhere that can be recovered if your personal devices or physical files are damaged, like cloud storage.

No matter where you live, having an emergency kit on hand can make all the difference during a disaster. Stock it with essentials like:

• Water (one gallon per person per day for at least three days)
• Non-perishable food
• First aid kit
• Flashlight and extra batteries
• Medications
• Important documents (stored in waterproof containers)

Home Disaster Recovery: Key Takeaways

Recovering from a natural disaster is never easy, but with the right steps and support, you can get back on your feet and rebuild stronger. As a homeowner, taking precautionary steps now can make future disasters less devastating. Take time to prepare your home, review your insurance, and create an emergency plan for your family. And when the worst happens, don’t hesitate to ask for help from all the people, organizations, and community networks at your disposal. Stay safe!

As a homeowner, taking precautionary steps now can make home disaster recovery easier in the future.

The post Your Home Disaster Recovery and Prep Guide appeared first on Cardinal Financial.

1. Keep it clean

A clean home will always be more enticing to buyers than a messy one. So, when you’re selling your home, it’s important to declutter and remove any excess furniture, family photos, and other personal items so that prospective buyers can envision their own family in your house. You want your home to look as big and as new as possible. It may also be a good idea to hire a cleaning service.

2. Stay available

You never know when a buyer may want to view your home. Ideally, you’ll have enough advance notice to prepare, but being able to accommodate a last-minute viewing could go a long way toward building goodwill with the buyer. Don’t leave dishes in the sink, keep your bathrooms clean, and make sure everything is dusted and well swept.

3. Don’t delay repairs

Anything that could deter a potential buyer from making an offer should be fixed before you start showing your home. Some repairs may seem minor, but these seemingly insignificant issues can really add up in the mind of a buyer, and in some cases, they may not see your home as worth the trouble of fixing all those little things. Don’t give them a reason not to make an offer. You can also leverage these repairs in the purchase price of your home! Making repairs builds equity, so you may be able to sell for a higher price that takes into account the value of the repairs.

Pro Tip: If you really don’t want to play handyman, you may be able to negotiate with the buyer to sell your home for a lower price, provided they take responsibility for any needed repairs.

4. Maintain a comfortable temperature

Now isn’t the time to worry about your energy bills. Make sure potential buyers are comfortable when they’re touring your home. If it’s cold outside, leave the heat on. If it’s hot, some refreshing AC will put them in a good mood as soon they walk in.

5. Keep it light (literally)

Not only do poorly-lit homes feel less inviting, but from a practical standpoint, they also make it harder for buyers to see what they’ll be paying for. Make sure you’ve got all your lights on and your blinds open to show your home at its best.

6. Keep your pets out of the way

Even if your buyers have pets, they don’t have your pets. In the spirit of making the home feel like a fresh start for buyers, keep your pets out of the way during showings if possible. For outside pets, an enclosed outside area should be fine. If your pets are strictly indoors, consider closing off an area of the home for them or leaving them with someone you trust for the day. And of course, make sure pet hair and waste are cleaned up before showing your home.

7. Be realistic about your price

Hear us out: Consider underpricing your home. Why? If you underprice your home, you’ll likely receive more offers from multiple buyers with multiple bids, even in the toughest markets. When you start fielding multiple offers, it could result in bidding up the price to well over what it’s worth. Plus, with rates being what they are in the current market, if you price your home too high you may get very few offers as most potential buyers are on a tight budget.

Bonus home-selling tip

The best home-selling tip we can give you is to stay flexible. You are, after all, selling your home to people, and people’s lives can get unpredictable. They may need to reschedule showings, negotiate on the price, or finalize the purchase later (or sooner) than you feel is ideal. Remember that you may be selling your home, but the buyer is the one who’ll be living in it for years to come. It’s normal for them to obsess over the details. And when it’s your turn to buy, we’re here to help with all of those details, too.

The best home-selling tip we can give you? Stay flexible.

The post 7 Simple Home-Selling Tips for Any Market appeared first on Cardinal Financial.

Home improvements for tax deductions to consider

Home improvements that qualify for tax deductions typically fall into one of these four categories:

• Renovations for medical conditions
• Eco-friendly home upgrades
• Home office additions
• Improvements made to sell your home

However, as with all things taxes, it’s not that simple. Which home improvements are tax deductible depends on the scale of the project, how you use the renovated space, and more detailed criteria. Plus, some states may have different tax requirements than others. With that in mind, let’s get into what you can generally expect to qualify.

Renovations for medical conditions

Accessible home modifications are often eligible for tax deductions. These include medically necessary home improvements intended to make the home livable for a person with a disability who resides in the home.

Common deductible home improvements for accessibility

• Widening doorways
• Installing stair lifts and ramps
• Installing voice-activated control systems
• Installing handrails and grab bars throughout the home
• Converting standing showers and tubs to include accessible seating

Eco-friendly home upgrades

In case helping out the planet (and lowering your utility bill) wasn’t incentive enough to go green, many home improvements for energy efficiency can help you qualify for more tax deductions. Barring very few exceptions, these deductions can only apply to your existing home, not a new home you’re constructing from the ground up. 

Common deductible home improvements for energy efficiency

• Installing ENERGY STAR-rated doors and windows
• Installing ENERGY STAR-rated appliances
• Installing solar panels
• Replacing insulation materials

Pro Tip: What does an ENERGY STAR rating actually mean? ENERGY STAR-rated products meet strict energy efficiency standards set by the US Environmental Protection Agency. Learn more here.

Home office additions

If you run a business from home, you may be able to deduct that space from your taxes. In general, your home office needs to be an exclusive part of your home that you use only for conducting business on a regular basis. Your home office should also be your principal place of business. If you spend 9-to-5 at a storefront and use your home office to catch up on overtime tasks, that home office space likely won’t qualify. 

Common deductible home improvements for your home office

• Installing new equipment needed for work (such as a new printer)
• Renovations made to your entire home that impact the office (such as new floors throughout)
• Repairs made to the office exclusively

Pro Tip: Most home office tax deductions are based on the percentage of your home’s square footage that the office occupies. So, first things first, bust out that measuring tape.

Improvements made to sell your home

If you sell your home for more than you paid for it, that’s called capital gain. And in tax world, capital gain is, you guessed it, taxable. Luckily, it’s possible to reduce the amount you’re taxed for that capital gain based on how much money you invested in the home. Even if those renovations weren’t necessarily made with a sale in mind at the time, you could still qualify. 

Common deductible home improvements for home sales

• Structural additions, like a new garage
• Landscaping installations, like a swimming pool or firepit
• Plumbing or HVAC upgrades
• New flooring

As a general rule of thumb, upgrades required to maintain the livability of your home do not qualify. For example, the cost of repairing a leak in the ceiling won’t be eligible for a deduction.

Other potential home improvements for tax deductions

If you own a rental property, home improvements generally are not deductible. However, you may be able to deduct the cost of necessary repairs to the property. Whether or not a home improvement project on a rental property is considered deductible essentially comes down to whether that repair was necessary to make the home livable (deductible) or whether it was simply enhancing the space (not deductible). Additionally, you should look into specific state or local tax deductions for home improvement projects. Depending on where you live, you may have more options than you think.

Bottom line? Homeownership can offer so much more than just a place to live. Tax deductions for home improvements are just one way to make the most of your investment.

This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before making the decision to buy or refinance a home.

Not only can renovations boost your home’s value, but some projects could qualify you for more tax deductions.

The post Top Home Improvements for Tax Deductions appeared first on Cardinal Financial.

Should I refinance my FHA loan?

Refinancing (of any kind) is essentially just paying off one loan by getting another loan. The rule of thumb is that if you can benefit from a refinance, either by getting better loan terms or a lower interest rate, you should consider doing it. There are plenty of great reasons for homeowners to refinance their mortgage, including:

• Lowering their monthly payment
• Paying off their loan sooner
• Switching from an adjustable-rate loan to a fixed-rate loan
• Tapping into home equity to take cash out

If you’re looking to take advantage of a lower interest rate, better loan terms, or get cash out, you should consider a refinance.

What are my FHA refinance options?

If you want to refinance your FHA loan, there are two basic options: Refinance to a different loan type, or refinance to another FHA loan with new terms.

Refinance to a different loan type

You can replace your FHA loan with another one, such as a Conventional loan, which isn’t backed by the government. While it may be harder to qualify for, there are plenty of benefits that come with a Conventional mortgage. For starters, you could avoid mortgage insurance entirely by replacing your FHA loan. As long as you’ve reached 20% equity in your home, you won’t have to pay any mortgage insurance on a Conventional loan.

Pro Tip: Simplify your budgeting and see what rates you can expect with our refinance calculator.

Refinance to another FHA loan

If you decide to stick with an FHA loan, you’ve got a few options for your refinance.

FHA rate-and-term refinance

Most homeowners opt for a rate-and-term refinance to either take advantage of a better rate or switch from an adjustable-rate mortgage to a fixed-rate mortgage. Lenders will require you to go through a credit qualification process and a new appraisal when you apply for the loan. However, it’s possible you could get a better interest rate if you’ve built up equity in your home.

FHA Streamline refinance

Like the name suggests, this loan is more streamlined than a rate-and-term refi because it allows you to refinance with less paperwork and fewer steps. Not only can you lower your interest rate, reduce your monthly payment, or shorten your loan term, you can get it done without having to go through a home appraisal, provide bank statements and your credit report, or verify your income. The lender will just use the information gathered from your initial FHA loan. The Streamline is a better option when your home hasn’t risen much in value, or you’re planning to sell your home soon, because it helps you avoid adding closing costs to your principal balance.

FHA cash-out refinance

If you need cash to make home improvements, consolidate debt, or anything else, the FHA cash-out refinance* is for you. A cash-out refi allows you to take out a loan that’s bigger than your current mortgage, pay off the original loan, and pocket the difference. You can use the cash for whatever you need. You must have at least 20% equity in your home to qualify.

*Using your home equity to pay off debts or make other purchases does not eliminate the debt or the cost of the purchases, but rather increases the loan amount of your mortgage to be paid according to your new mortgage terms.

FHA 203(k) refinance

Planning home renovations? Consider refinancing to an FHA 203(k) loan. This loan is specifically designed to roll your project costs and mortgage into one convenient loan. Why is that a good idea? If you take out a separate loan or pay for renovations with a credit card, you could have to pay more closing costs and higher interest rates. Plus, you’ll take more than one hit to your credit.

More questions to ask to determine if you can refinance your FHA loan.

Is it the right time to refinance my FHA loan?

If you already have an FHA home loan, and you’ve made at least six months of on-time payments, you should be good to go refi. For FHA cash-out refis, you should provide 12 full months of on-time payments.

Are there closing costs?

Like any loan, there are closing costs, but with a Streamline refi, you won’t have to pay for a credit report or appraisal like you might with other loans.

Will I still need to pay mortgage insurance?

If you refinance your FHA loan to another FHA product, you’ll still need to pay mortgage insurance premiums (both upfront at closing and in monthly payments) on your new refi.

What documents will I need to refinance my FHA loan?

For most FHA refinances, you’ll need to provide your credit report, full income and employment verification, and undergo a home appraisal. You should also check with your lender to find out any specific documentation you may need to provide for your refinance.

Can I refinance an FHA loan: Final takeaways.

To answer your initial question, you absolutely can refinance your FHA loan. Whether or not you should, and which type of refinance is right for you, depends on your financial goals, your homeownership plans, and current market conditions. If you’re not sure where to start, our team is here to help.

If you want to refinance your FHA loan, there are two basic options: Refinance to a different loan type, or refinance to another FHA loan with new terms.

The post Can I Refinance an FHA Loan? What You Need to Know appeared first on Cardinal Financial.

7 Tips for Buying a House in Fall

• Understand your credit score
• Prepare for your down payment
• Get your paperwork in order
• Budget for renovations
• Hold off on the holiday shopping
• Stay flexible
• Get a head start on tax season

1. Understand your credit score

These days, there are more loan options than ever that offer flexible credit requirements. A higher credit score typically means lower rates, though. So while a perfect score isn’t necessary, it’s important to understand what you can do to keep your credit healthy and lower your homeownership costs.

The best way to get the full picture of your credit score is to pull a copy of your credit report from one of the three major reporting agencies (Equifax, Experian, or TransUnion). You can do this by visiting AnnualCreditReport.com. Each reporting agency calculates your score differently, and not all creditors report to all three bureaus. While they may vary slightly, they all consider factors like account age, payment history, balances, and number of accounts.

Pro Tip: Try these tips to get your credit where you want it.

2. Prepare for your down payment

Did you hear the one about putting 20% down? It’s a myth. Realistically, the average home buyer just doesn’t have 20% of their home’s purchase price readily available. Some loan types have down payment requirements as low as 3%. Some, like VA and USDA loans, require no down payment at all. Still, there’s no denying that putting down more upfront can help you qualify for better loan terms. As you get ready to buy a house in fall, crunch the numbers to determine how much down payment is realistic for you. Try to aim for at least 10% down if your credit score is below 580.

Pro Tip: Get the full explainer on down payments with our free guide.

3. Get your paperwork in order

Buying a house in any season means paperwork. Most lenders will ask for documentation covering your income, taxes, and more when you apply for financing. Getting all that information together before starting the application process will save you a lot of time and stress. 

Plus, you can use that documentation to get pre-approved and make a stronger offer on your home.

4. Budget for renovations

In today’s market, you’re unlikely to find a home in your budget that meets all of your expectations perfectly. Renovations are almost a given for most people who buy a house in fall. And with colder weather already rolling in, you may not be able to delay home projects like HVAC repairs, new windows, or updated plumbing. So, if you plan to buy a house in the colder months, make sure your budget allows for renovations that need to be addressed immediately.

5. Hold off on the holiday shopping

Good news: You officially have an excuse to put off holiday shopping until the last minute. Why? Big purchases can impact your credit score and debt-to-income ratio (DTI).* Those numbers help determine your loan terms. So, if you apply for home financing and then make a big purchase before closing, your lender will likely need to update your application with your updated finances.

*DTI is the percentage of your gross monthly income spent on debt payments. Mortgage lenders add current debts to projected mortgage payments to help determine loan qualification and usually like to see the debt percentage below 40%. 

6. Stay flexible

Fall weather can be unpredictable. From showings to moving day, your plans may have to change on short notice. As with any home purchase, it’s important to stay flexible and keep your eye on the prize: A place to call home for the holidays.

7. Get a head start on tax season

One of the biggest perks of homeownership is the tax deductions* you may qualify for. To make sure you don’t miss out on any write-offs, get everything you’ll need in order as you’re finalizing your home purchase and moving in. With your mortgage fresh on your mind, you’re a lot less likely to miss important details or lose track of necessary documentation. Plus, if you have any questions about filing taxes as a homeowner, your real estate agent and lender might have tips.

*This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before making the decision to buy or refinance a home.

If you buy a house in fall, make sure you understand your credit score, budget for renovations, and avoid big holiday purchases until after closing.

The post Buying a House in Fall: 7 Tips to Keep it Simple appeared first on Cardinal Financial.

What young home buyers want: 7 must-have home features

• Outdoor space
• Smart home features
• Home offices
• Stylish bathrooms
• Convenient storage
• Closed floor plans
• Eco-friendly design

1. Outdoor space

Raise your hand if you were living in an apartment during the 2020 Covid lockdowns. Anyone who experienced that knows having access to your own outdoor space is no longer something to risk going without. That doesn’t mean you need to spend thousands of dollars turning your backyard into a botanical garden, though. A fence around the yard for privacy or even a home location that offers easy access to local parks and trails is enough to fit what most young home buyers want.

2. Smart home features

Like it or not, technology is here to stay. Gen Z especially has grown up with technology as an essential part of life, so it’s only natural that their homes should reflect that. Some of the more popular smart home features for young buyers include thermostats, doorbells, and security systems.

3. Home offices

If there’s one thing Gen Z is going to do, it’s disrupt tradition—and the workplace is no exception. The old model of sitting in an office from 9 to 5 has lost its appeal for most young home buyers. With more and more Gen Z employees earning their income from home, a designated space to take care of business is a must if you’re selling to this generation.

4. Stylish bathrooms

Nobody wants to film a get-ready-with-me video in a boring bathroom. And on a more serious note, an outdated bathroom means a lot of money spent on renovations. While Gen Z actually tends to prefer more retro, classic home styles than the modern trends Millennials embraced, that doesn’t extend to the plumbing.

5. Storage space

Sorry, storage unit industry, but you’d be hard-pressed to find a young home buyer who considers remote storage a viable option. For one thing, why pay for storage that isn’t easily accessible? Your home is where your life is, so your stuff should be there, too. If there’s not enough storage space, Gen Z is likely to ditch belongings for the move. For a generation who typically makes more intentional purchases, that’s a big turn-off in a potential home.

6. Closed floor plans

Good news! There’s no need to knock down walls before you sell your home. Open floor plans had their moment, but what young home buyers want now are more traditional layouts. Whether it’s with friends, partners, or roommates, in the current housing market Gen Z isn’t likely to buy a home by themselves. With multiple occupants, the privacy and personalization that closed floor plans offer are a must.

7. Eco-friendly design

Gen Z cares deeply about the environment, so it’s no surprise that homes with eco-friendly features are a priority for them. While some factors (like your city’s recycling program) may be out of your control, there are still a few ways you can make your home greener—solar panels, LED lights, and water-conserving appliances to name a few.

The simplest way to make sure your home is energy efficient, though, is to keep up with repairs and maintenance. Proper insulation, clean HVAC systems, and correctly-fitted windows and doors all help minimize energy consumption and utility bills.

What young home buyers want: Bonus tips

Before you take this list of home features and run with it, it’s important to understand not just what Gen Z looks for in a home, but how they look for it. If you want to sell to Gen Z, you need to meet them where they are: Online. We’re not saying you have to become an influencer, but your home’s digital presence matters. Your listing should be verified on trusted sites, have high-quality photos, and provide enough detail that potential buyers don’t have to call you for more information. It’s also a good idea to work with a real estate agent who knows how to market your home on social media.

At the end of the day, don’t overthink what young home buyers want. They’re a different generation, not a different species. If you can provide a safe space to call home, you’re well on your way to a successful home sale with any buyer.

If you want to sell to Gen Z home buyers, you need to meet them where they are: Online.

The post What Young Home Buyers Want: 7 Must-Have Home Features appeared first on Cardinal Financial.

The Essential 7-Step Home Closing Checklist

• Set a date
• Confirm what you need to bring to closing 
• Review your closing documents
• Complete your final walkthrough
• Get your closing funds ready
• Attend your closing appointment
• Make your move

1. Set a date

The first step in your home closing checklist is pretty self-explanatory. Once you’re approved for financing, your lender will reach out to schedule a closing date. Who needs to be at closing? It varies, but you may want to have your real estate agent, your closing agent, your lender, the seller, and any other borrowers on your loan present at closing. Oh, and you. That’s a big one.

2. Confirm what you need to bring to closing

Once you’ve set your closing date, get in touch with your real estate agent or mortgage lender to confirm everything you’ll need to bring to closing. Some common items include:

• A form of government-issued ID
• Payment for your closing costs
• Proof of homeowners insurance

Typically, your finalized closing documents will be provided for you to sign at closing. More on closing documents next.

3. Review your closing documents

Your lender is legally required to send you your closing documents at least three business days before your closing date. Don’t wait until the last minute to review them, though! Take as much time as you can to comb them thoroughly for any spelling errors, math mistakes, or unexpected fees. If you find errors in your closing documents, make sure to let your lender know as soon as possible so they can correct the mistakes. And if you have any questions about closing or the documents involved, now is the time to ask.

4. Complete your final walkthrough

About 24 hours before your closing date, you and your real estate agent will have the opportunity to walk through the home and make sure everything is aligned with what you’ve agreed to purchase. This could include a lot of easy-to-forget details, so we recommend bringing a final walkthrough checklist along to ensure you don’t miss anything that matters to you.

• Check locks on windows, doors, and gates
• Make sure windows, doors, and gates open and close properly
• Confirm appliances are functional
• Check for mold (especially in damp areas like under sinks)
• Test all electrical outlets
• Test the thermostat and HVAC system
• Check floors, walls, and ceilings for damage
• Look for signs of pests, like mice and ants
• Make sure the irrigation system is functional
• Make sure all agreed-upon repairs have been completed

5. Get your closing funds ready

Whether you’re paying by cashier’s check or wire transfer, make sure you have your payment ready to go before closing. If you’re transferring funds from a different account, don’t forget to leave enough time for the transaction to process before your closing date.

6. Attend your closing appointment

Today’s the day! Gather up your documents and meet at the closing table. Plan for the appointment to take up to two hours. During the appointment, you’ll sign your closing documents, pay your closing costs, and get your keys. Feels good, doesn’t it?

7. Make your move

The house is yours, and now it’s time to move in. Whether you’re moving across the country or across the street, it’s always best to have a game plan for moving day. Are you hiring movers or calling in a favor with friends? Where will your pets be while your belongings are being moved? When does your mail need to be redirected to your new address? The more questions you have answered before moving day, the less stressful your move will be.

Pro Tip: Nail your move with this handy checklist.

Understanding the closing timeline

With all these steps involved, you’re probably wondering just how long it takes to close on a home. A lot of factors determine the closing timeline, including how complex your loan is, how many loans your lender is processing in addition to yours, and the seller’s move-out schedule. In general though, it takes 30-45 days to close. If you’re anxious to get through it, there are a few strategies you can try to move the process along faster:

• Get pre-approved before making an offer
• Agree to buy the house as-is
• Avoid making any big purchases until after closing

Remember, buying a home is a big commitment. Don’t rush the process and miss out on potential savings and peace of mind along the way. Between your home closing checklist, your final walkthrough checklist, and your moving checklist, you’re more than prepared to close on a home, the right way. Ready to get started?

Getting pre-approved, buying your home as-is, and waiting until after closing to make big purchases are all good ways to get through your home closing checklist faster.

The post The Essential Home Closing Checklist appeared first on Cardinal Financial.

If you’re a first-time home buyer, you’ve probably heard about the negotiations, or “bidding wars,” that happen at the beginning of the purchase process. Fewer people, however, are aware of the negotiations that follow the signed purchase contract.

Although home inspections have become less popular over the last few years, they’re still commonplace in the real estate industry. When those inspections uncover one or more problems with the home, buyers and sellers have to agree on who will cover the costs. Here are four tips to help you come out on top when negotiating repairs after home inspection.

Ask for a credit.

Let’s be real, the sellers are on their way out both physically and mentally. If it’s looking like you’re going to complete the purchase and close, they’re probably more focused on packing than they are fixing.

If sellers aren’t amenable to making home inspection repairs—or if those repairs weren’t made to your satisfaction—you could go through the hassle of negotiating a lower purchase price, or you could ask for a closing credit. A closing credit is a way to decrease your upfront, out-of-pocket expenses. That credit reduces your costs, meaning you’ll have more cash on hand to make those repairs yourself. 

A closing credit is a way to decrease your upfront, out-of-pocket expenses.

Think “big picture.” 

Picture this. You’ve toured the home, you’ve agreed on a purchase price, and you’re putting together plans for your future remodel—but the home inspection report found signs of water damage under the sink. And on top of that, the rotted wood extends well beyond the cabinet under the sink. If you could negotiate those repairs now, why wouldn’t you?

When you’re working through home inspection negotiations, think about the future of your new home and remember that a seller credit toward those repairs could offset not only your closing costs, but your eventual renovation costs as well.

Don’t show your hand.

If you’ve got a home inspection coming up, find out if the seller’s agent will be walking the property with you, your agent, and the home inspector. If so, you might want to hide your true excitement about the house. Showing satisfaction with the current state of the home in front of the seller’s agent could hurt your chances of negotiating home inspection repairs later on.

On the other side of things, if the seller’s agent senses disapproval from you during the inspection, they might mention that to the sellers—helping build your case to get any repairs completed to make sure the sale goes through.

Be ready for anything. 

There’s a saying when it comes to buying a home: “It’s not over ‘till it’s over.” That means, until you sign the closing documents and have the keys in hand, anything could happen. The initial contract is just that—initial. With all the people involved, the unknown variables, and the state of the market, there’s a non-zero chance that your dream home could disappear entirely.

Consider this: If your home inspection results are favorable, there’s nothing to negotiate, so don’t try to fight for a lower price or closing credits. If the home inspection results turn up something negative, you may be better off negotiating credits or repairs instead of a lower purchase price—especially if the appraisal came back with a fair value.

Pre-purchase negotiations are tough, and home inspection negotiations can be even tougher. Keep these tips in mind or ask your team—lender and real estate professional—for more advice to make sure you’re prepared for the purchase process.

Although home inspections have become less popular over the last few years, they’re still commonplace in the real estate industry.

The post How to Negotiate Post-Home Inspection Repairs Like a Pro appeared first on Cardinal Financial.

If you’re in the market for a new policy, we’ve got a few tips to help you find the right provider.

To start, let’s talk about what “homeowners insurance” really is. There are a lot of ways to cover your home purchase, including homeowners insurance, mortgage insurance, and a home warranty. They’re all different things. Mortgage insurance protects the lender in case you default on your loan, and a home warranty is a separate piece of coverage that protects your home’s internal systems (HVAC, plumbing, appliances, etc.).

Homeowners insurance, however, is a policy that pays for damage to or the destruction of your actual property, the things inside your home, and the people around it. Generally speaking, lenders will require proof that you have homeowners insurance before you reach the closing table. 

Homeowners insurance is a policy that pays for damage to or the destruction of your actual property, the things inside your home, and the people around it.

That said, homeowners insurance policies aren’t magic “cover-all” options. While they do cover many things, there are several things they won’t cover. We’re here to help you figure out how to choose the right homeowners insurance policy, and we’ll even throw in a few tips on how to save some cash along the way.

“What should my policy cover?”

At the very least, your homeowners insurance policy should cover the “full or fair value” of the home, or the purchase price. Some providers choose one amount, others opt for the latter. Either way, that’s what we call your “dwelling coverage,” or the part of your policy that covers the repairs to or reconstruction of a home that’s been physically damaged by a covered event. Note: “hazard” and “peril” are two other terms you’ll see through your search, but they both mean similar things.

Homeowners insurance policies cover damage or destruction to a home’s interior and exterior, but they also cover theft, personal liability (in case someone gets hurt on your property or worse), and personal property. We recommend getting dwelling coverage that covers the cost to rebuild your home, including labor and materials at their current rates—not just the purchase price or previous assessed value.

Just so you know, there are some things a homeowners insurance policy will not cover. Natural disasters, or “acts of God,” typically aren’t covered by your standard policy. Lightning strikes your home, for example, and zaps your dated breaker panel without additional coverage, and you may have to pay for that fix out of pocket. In some cases, for people living in areas prone to floods, earthquakes, and tornadoes, policies may be expanded at an additional cost.

“How is my rate determined?”

There are many things that go into your rate calculation, much of which is done behind the scenes. Usually, policy rates are determined by your “assessed risk,” which considers your personal claim history, your credit record, the home’s previous claims (if there are any), the home itself (construction, materials, security, etc.), and the surrounding neighborhood (including crime rates). 

“How can I lower my rate?”

Some of the factors that go into your rate calculation are admittedly out of your control. For example, you found your dream home, but it’s in a flood zone. In that case, there’s not much you can do about that other than pay for flood coverage. 

However, there are several other ways you can lower your insurance premium.

Shop around

At the very least, as with anything, you should look at three different policy quotes from three different providers. Some sources say you should gather as many as five quotes, but if you’re seeing similar numbers for equal coverage across the board, go with your gut. Remember: don’t just choose the least-expensive option. Consider other things like company reviews, technology capabilities (can you file a claim from your phone?), and whether or not you’re already a customer with that provider.

Pro-tip: Depending on how many quotes you get, try to call one or two local providers. Sometimes smaller providers can provide better pricing.

Bundle up

Speaking of already being a customer…did you know that many providers offer discounts for bundling your coverage? If you have auto insurance with one company, you may be eligible for a multi-policy discount if you get homeowners insurance with them as well.

Security systems

Investing in a home security system can also help lower your premium, because it tells providers that your home has an added layer of protection beyond locked doors and windows. Security goes beyond cameras, too—upgrading your smoke detectors could bring benefits as well.

Home improvements

Some companies may offer additional discounts for upgrades to your home, like metal construction instead of wood (due to flammability), modern or eco-friendly HVAC and electrical upgrades, and an impact-resistant roof to help protect against Mother Nature.

Increased deductible

While less popular, another way to lower your premium is to increase your deductible. Unfortunately, that means you’d pay more out of pocket if and when you file a claim. It removes risk on the provider’s part, forcing you to carry the expense instead. Note: some lenders may have a maximum to the deductible they allow, such as 5% of the insurance coverage. 

How do I choose a provider?

That’s the easy part: research! You’ve already started the journey by reading this blog, so take everything you’ve learned here with you when you start calling around to different providers. When you’re ready to apply for a mortgage, we’ll be waiting for you.

Homeowners insurance isn’t just a “nice-to-have.” In fact, for most lenders, it’s a required investment.

The post How to Choose Homeowners Insurance (And Lower Your Rate) appeared first on Cardinal Financial.

When it comes to home remodeling, the line between what you can do and what you shouldn’t do becomes a little blurry. If you’re thinking about maximizing your home’s square footage or tweaking a few things to optimize usage, you’re going to want to pay attention to the following home renovation tips. They’ll help you stay (mostly) sane during some of the more hectic periods of your upcoming project. 

1. Rushing into remodeling

First things first: Take it easy. Unless you’re a house flipper who just closed on an “as-is” home, and you need to start renovations ASAP, take some time to truly live in your home and get a better understanding of the flow. What you want and what the home needs may not line up exactly, and the last thing you want to do is start a remodeling project before realizing that maybe the original floor plans worked better before you blew out that wall. 

Beyond that, planning is key to project success. Unless you’re flush with cash, you’re probably not going to hire a contractor and start demolition in a short time span. Measurements need to be made, contractors need to be interviewed, plans need to be created, and things like paint, tile, and fixtures need to be picked out. Even a single room can take weeks or months of preparation.

2. Skipping research

Speaking of preparation, research is vital to your home improvement project. On one hand, that means measuring twice (or thrice), sketching out ideas, and perusing color palettes. There’s fun research—like looking at different fixture styles, and not-so-fun research—like crawling under cabinets to see if your pipes are PVC or cast iron. All of this will inform your remodeling project.

On the other hand, it means meeting with more than one contractor, gathering multiple bids, and setting your priorities straight. Here are some tips in that regard:

• Look for local builders who have been in business for several years, have in-house designers, and have plenty of reviews.
• Before scheduling contractor consultations, take some time to read their reviews (including the bad ones, because bad reviews don’t always mean bad contractors).
• Take note of everything, including how the contractor speaks to you during your consultation, whether or not they pay attention to your plans and ideas, and whether or not they show up on time.

3. Not documenting things

Have you ever refreshed TikTok accidentally, or heard a catchy song without remembering to write down the lyrics so you can look it up later? It’s a gut punch of a feeling, right? Knowing that something you liked is now lost to the void, and all you can do is hope that it turns up again someday.

Imagine that feeling with an expensive remodeling project. Don’t be afraid to keep a spreadsheet of products, prices, and contacts. If you come across tile you love, screenshot it. If a contractor scratches your floors, snap a photo.

Documentation can keep you organized, and organization can save your behind and your budget.

4. Choosing the lowest quote

A common rule of thumb is to collect three quotes from different contractors for any kind of project. New windows? Three quotes. New concrete slab? Three quotes. New floors? Three quotes. 

A common rule of thumb is to collect three quotes from different contractors for any kind of project.

Three should be your minimum, and you’ll likely have a high bid, a low bid, and a bid that falls somewhere in the middle. Don’t just choose the cheapest contractor—compare those quotes and consider what they may or may not include. Does the high bid include better quality fixtures? Does the low bid leave out something important? Does one contractor offer a multi-project discount?

While choosing the lowest bid might save you a few thousand dollars now, it could end up costing even more money down the line. Know this: According to the National Association of Home Builders, “more than 30% of all jobs home remodelers perform come from failed DIY projects”

5. Forgetting to budget

Remodeling is expensive. Even simple DIY projects can add up to hundreds of dollars, and more complex work can quickly balloon out of your control.

One of the best things you can do is to know your budget inside and out, and work with a contractor who will work with your budget. That isn’t to say you can’t interview contractors to get “ballpark” estimates, but they’ll be able to give you a better estimate if you come prepared with a number beforehand. 

Different resources (and opinions) exist on the matter, but consider this table before committing to the following project types:

Note: This table uses rough estimates from various resources, including HomeGuide and OpenDoor. We are not affiliated with these resources, and homeowners should perform due diligence on their project estimates before agreeing to anything. 

6. Working without permits

Depending on the scope of your project, and depending on your city’s requirements, permits may be required for your remodel. Those permits may be pricey, and they may even be a hassle to obtain, but they are a must if you want things documented (remember that part?) and done right. 

Electrical work, plumbing, and wall removals will often require permits, largely because any of those three things could have disastrous consequences if done incorrectly. Permits are supposed to help ensure the safety and compliance of your projects, in accordance with local zoning ordinances. 

Consequences of working without a permit include, but aren’t limited to:

• Future buyers backing out of a sale
  • Permits are recorded and tied to your home’s deed. If the projects you complete aren’t recorded, buyers may be wary of what lurks behind the walls of your unpermitted projects.
• Having to tear out and restart the work
  • Building authorities may force you or your contractor to start from square one if they discover unpermitted electrical and plumbing work, which could set your budget back by thousands of dollars.
• Homeowner’s insurance not covering damages
  • Picture this: You want an open floor plan, so you hire someone to remove a wall between your kitchen and your living room. Lo and behold, the ceiling caves in because the wall was load-bearing. Because the work was completed without a permit, your homeowner’s insurance may not cover the substantial damages—leaving you with a hefty mess and an even heftier repair bill. 

7. Chasing trends and clashing styles

Just because it’s pretty, doesn’t mean it belongs in your home. Homes come in many architectural styles—including Victorian, Colonial, Mid-Century Modern, Contemporary, and more. Different styles come with their own defining characteristics, and today’s trends may not always fit your home’s established style. 

For example, a modern door may not match a Colonial home. Likewise, Art Deco design may not jive with a Tudor home. And all-black everything could diminish the charm of your newly purchased Cape Cod cottage. 

Instead of chasing trends, consider design elements that enhance the existing beauty of your home. After all, trends change frequently—the last thing you want is to lose resale value because 2023 was the year of plaster. 

Instead of chasing trends, consider design elements that enhance the existing beauty of your home.

8. Changing plans (too often)

Hey, we get it—sometimes that tile you really loved doesn’t quite fit the space the way you imagined. Short of minor changes to superficial things like paint and tile, it’s best to stick to the plans your designer and contractor drew up. After all, it’s what you’re paying them for, and major deviations to those plans—meaning structural changes and heavy design alterations—could increase your costs and frustrate your contractor. 

A good contractor will walk through the plans with you multiple times before work starts, giving you ample time to adjust before materials are ordered. They may even bring you in for a look before installing something, just to get a gut check. These are your opportunities to make changes, not after tile has already been grouted into place. 

9. Sidestepping safety

Permits, which we talked about earlier, are one element of creating a safe work environment. Here are some other ways you can protect yourself and others when remodeling your home:

• Wearing PPE (gloves, safety glasses, masks/respirators, hardhats, etc.)
• Using fans to help evacuate chemical fumes
• Hanging or laying down plastic sheeting to capture dust and debris
• Disabling electricity at the breaker before beginning demolition
• Testing for asbestos and lead paint (important for older homes)
• Keep your hands clear of sharp objects

Following these home reno tips can help everyone working in your home safe. If the contractor you hired isn’t following these safety precautions, bring it up. There’s no such thing as “too safe” when it comes to protecting yourself, your family, and your investment. 

10. Ignoring your gut

If you ever feel like the numbers aren’t adding up, don’t like the way something is being handled, or think something isn’t quite right, don’t be afraid to listen to your gut and voice your concerns. A good contractor will either listen to your concerns, or explain why alterations had to be made. Ultimately your home’s renovation is just that: your home’s renovation, not anyone else’s. Your gut instincts may protect your investment. 

The post Top 10 Home Remodeling Mistakes to Avoid appeared first on Cardinal Financial.