Things To Remember When Buying A Home
Where are you in your life? Are you single, married, married with children, engaged to be married…? Wherever you are in your life, there comes a time where you decide it is time to look for a home. This is a very exciting time with a coffer of emotions. It can also be a stressful time. There are so many things to consider, including but not limited to, buying the proper home-owners insurance. With all these emotions taking residence in your mind, at this very important time for you, Integrated Insruance Agency would like to offer a few tips which will help make this endeavor less nerve wracking.
When is the best time of the year to buy a home? The best time is when you will find the best price, then again sometimes price does not matter, it just may be the home you want and Spring is the most popular time to find that dream home because the market is flooded with sellers and, therefore, buyers. I think there is something to be said about ‘Spring Fever’ in the real-estate market.
During this time of Spring Fever, offers come into real-estate offices like never before, compared to other times of the year, whether by faxes, phones or emails. It seems like many want a fresh start in the Spring, and, therefore, they wants to sell, so the marketplace is overflowing with inventory.
With more people in the position to buy and more proposals coming in, the seller can up the price for his home, so Spring time is usually a seller's market. If you are worried that you may have missed out on the opportunity of capturing that perfect nesting place because Spring Fever has passed you buy, no worries, hold off until fall, for the best deals can be had during autumn and winter.
Are you wondering why the best deals are found in the fall? A homeowner is more likely to be more serious about selling during the fall and winter... oftentimes just wanting to sell. Since the inventory has fallen, so have many buyers, and a seller may be more likely to take an offer because of the declining activity.
Besides knowing when to buy a house, here is a checklist so you do not forget the other important matters which can save you time and money.
How much can I borrow?
So you’re not sure how much you can really afford for your new home? "How much can I borrow?" is not the same as "How much I ought to borrow?" The mortgage that you meet the requirements for may not automatically be the amount you can actually afford.
Use a mortgage calculator to get an indication of what amount you may qualify for.
How much should you borrow?
Your week’s pay should be enough to pay your mortgage payment for that month.
Only spend from 18 to 28 percent of your income on a mortgage.
Make an itemization of all you’re spending to get an idea of what you can afford including taxes, maintenance, utilities, etc.
How much money is left at the end of the month?
What type of lifestyle outside of the home do you want, e.g., traveling, dining out, going to sporting events and concerts.
Other costs to consider
Closing costs
Home inspection costs
Appraisals
Moving costs
Possible loan origination fees
Here is Integrated's Checklist when purchasing a home
Get pre-approved for a mortgage.
You'll know the price range for a house you can afford to buy.
Some realtors require pre-approval to bid on a house.
Pre-approval has more power than being pre-qualified.
Keep emotions in check.
Looking for a home is time consuming, but let it be a labor of love. Don't rush into anything and make hasty decisions, that will cost you in the end. It is easy for your judgment to be clouded when you let your emotions get the better of you over a piece of real-estate.
If you decide after you have moved in, you will not particularly want to move again right away. Moving is laborious.
Have a home inspection. Without a home inspection, you could be purchasing a money pit unawares. Home inspections give you insight into potential problems.
Even though a home inspection can run between $265 to $525, it could possibly save you in the long run from purchasing a home that might have needed $25,000 in unexpected repair costs. The cost of the inspection could keep you from biting off more than you can chew.
Have a decent down payment.
Put at least 20 percent of the cost of the closing down, otherwise PMI (private mortgage insurance) will have to be paid leaving you with more fees.
Home-owner's insurance is critical.
Homeowners' insurance isn't a luxury, it's expected. Did you know, most mortgage companies will not even give you a loan or finance a home unless the buyer provides proof of insurance coverage for the value of the estate or purchase price. Homeowners' insurance can be quite costly. Those in high-risk areas are often forced to pay annual premiums sometimes in the hundreds to thousands of dollars. Matter of fact, near where I live, residents are required to have flood insurance.
The good news is, although home insurance is a necessity and you cannot avoid not having coverage, an Integrated Insurance associate will do all he/she can to minimize the expense.
Here are eight ways to make sure you get the right coverage and compensation for your home:
Talk to an Integrated Insurance associate.
Having and maintaining a home security system monitored by the alarm company or the police station can save you around 5 percent or more. Of course, proof that you have one and it is being monitored is needed.
Having and maintaining smoke alarms. Though they are required in modern homes, home owners of older houses can save around 10 percent or greater for annual premiums, most importantly, they can save the life of you and your family/loved ones.
Look into a higher decutible. Similar to health or auto insurance, the higher the deductible the homeowner chooses, the lower the annual premiums. Nevertheless, the problem with choosing a high deductible is that smaller claims/problems such as minimal damage from a faulty sump pump, which may only cost a few hundred dollars to fix, will most likely be less than the deductible.
Look for Multiple Policy Discounts. Many insurance companies give a discount of 10 percent or more to their customers that maintain other insurance contracts with them (such as auto or health insurance), so consider getting quotes for other types of insurance from the same company that provides your homeowners' insurance. You just might save on preimiums for both annual policies.
Work at paying off your mortgage. Obviously, this is easier said than done, but homeowners that do pay off their mortgage obligation, will most likely see their premiums lowered. The reason for this is that the insurance company figures that, if you don't owe any debt on the home, you'll take better care of it.
Make Regular Policy Reviews and Comparisons by contacting an Integrated Insurance Associate. At least once per year, Integrated will compare the costs of other insurance policies to yours. Furthermore, Integrated Insurance will review your existing policy. If any changes have taken place, it could result in lower premiums, such as installing a home sprinkler system.
Since homeowners' insurance is a necessity, let Integrated Insurance Agency be your peace of mind. Contact us today at 888-823-1342. We do not want buying a home to leave you in over your head financially and emotionally.
REMINDER – Integrated Insurance Agency associates are always striving to provide the best service at the lowest rate. If you are not using Integrated Insurance, you’re paying too much for insurance!
We look forward to helping you wherever you live. We are continuing to expand, through the years, with offices in:
· Brighton, Michigan
· Novi, Michigan
· St. Clair Shores, Michigan
· Port Huron, Michigan
We are also growing in other states, such as, Nevada, Texas, Kentucky, Ohio and Indiana. with even more locations to come.
