Your Homeowners Insurance

Your Homeowners InsuranceHomeowners insurance is required on all mortgage loans. We suggest you shop around to find the policy that suits your needs. Most people purchase a policy with the same insurance company as their auto insurance. After you set up a policy with the company of your choice, wait to begin your coverage until you close on your home. The cash due at closing will include 12 months of your homeowners insurance which will be sent directly to your provider, and an additional two months (for reserve) of the premium which will be sent to an escrow account that we will set up for you.

Your monthly mortgage payment will include your principal payment, interest payment, property taxes and homeowners insurance. The bank will send your tax and insurance payments to the escrow account each month. The escrow account will pay your taxes two times a year and your homeowners insurance once a year. This will allow the bank to ensure the home insurance and property taxes are up to date.

47 Skills for Tackling Household Emergencies

Whether you are considering buying your first home or have been a homeowner for decades, This Old House Magazine‘s list of 47 Skills You Need to Survive Homeownership will come in handy. It covers everything from fixing a leaky faucet to knowing which breaker to turn off to picking up a big paint spill on carpet. Check out the full gallery at ThisOldHouse.com.

Surviving Homeownership

Source: This Old House.com

Get Prequalified: The Homebuyer’s Edge

houseIn some areas, homes jump on and off the market in a matter of days. When you’re shopping for a home, you’ll want to have an extra edge over other buyers. That competitive edge is a prequalification letter from your lender. Having a prequalification letter will show buyers that you are serious. It will give your agent an advantage when negotiating on your behalf, and it will help you get the ball rolling quickly when you’ve found your dream home. Here are a few recent articles that highlight the importance of getting prequalified:

 

CNN MoneyHomebuyers: To get the house, get there first

Shopping in a popular spot? You’ll have to go beyond the usual sellers’ market tactics, such as getting prequalified for a mortgage. These strategies will help you find homes first, stopping a bidding war before it starts.

Keeping Current MattersHome Loans: Shopping for a Low Interest Rate

Move Quickly.  As they say, time is money… look into getting prequalified for a loan. This process is rather simple and can put you in a much better place to buy, as well as give you a great idea as to what you can expect to borrow.

Market Wired – Why It Pays to Get Prequalified for a Mortgage

“Many borrowers essentially sail through the application process. Because they do their homework and plan ahead, they get prequalified,” said Ray Brousseau, Executive Vice President with Carrington Mortgage Services, a lender active in more than 40 states. “Not only is the application process easier, but a qualified borrower is more attractive to home sellers, meaning that borrowers can get a marketplace advantage by going through the prequalification process.”

If you are currently shopping for a home, my team and I would love to help you with the prequalification process. Give us a call today!