Title insurance is a type of liability insurance most commonly found in the United States and Canada. It protects against economic damage caused by a defect in title to your real estate and the invalidism or nonbinding of mortgage loans. As a homeowner, title insurance protects your property ownership. On the other hand, home insurance is a type of property insurance that protects you from financial loss due to natural disasters, theft, or different types of covered disasters. Most home loan lenders will require proof of home insurance that covers the total value or fair price of the home before financing anything.
Title insurance has three policies: owner’s policy, lender’s policy, and construction loan policy. They all cover different liabilities for the various participants in a real estate transaction. It is sometimes called a loan policy because it is only issued to home loan lenders.
An owner’s policy covers:
A lender’s policy works to protect the lender from possible losses if the seller cannot legally transfer title rights. The lender is protected up to the amount of the loan.
Many states have separate policies for construction loans. Acquiring title insurance for construction loans involves a "Date Down" endorsement, which acknowledges that the property's insurance cover has increased due to construction funds invested in the real estate.
There are several types of homeowners' insurance in the United States that have become industry standards. They are designated HO-1 through HO-8 and offer varying levels of protection depending on the homeowner's needs and the type of property receiving the cover. There are three types of coverage; actual cash value, replacement cost, and extended placement cost. The policy covers four kinds of incidents: interior damage, exterior costs, damage to personal belongings, and injuries experienced while on the property.
It covers the costs of damages due to any unfortunate event. Home insurance can be claimed for damage due to the following causes:
When purchasing title insurance, a closing agent initiates the process upon completion of the home purchase agreement. It is a one-time fee that covers two components: a premium charge and service fees. The premium is paid once at the end of the sale. The cost of an owner’s policy is based on the purchase price of the home, while that of the lender is based on the loan amount. The premium on an owner’s policy ranges between $500 and $3,500, depending on your state and insurer.
Several factors influence the cost of a homeowner’s policy, such as your state; the age and method of construction of your home; the average distance from the nearest fire station; your credit score; the insurance provider, etc. In the US, the average cost is $1,312 to $250,000 per year. However, the amount of premiums that you have to pay might be higher or lower than the listed average costs due to the variables mentioned above.
A homeowner policy helps you cover the financial cost of repairing damage to your home. Other benefits include the following:
Owner's title insurance is optional, but the lender's title insurance is required. If a claim arises after purchase, an owner's policy can protect you from losing your equity and your right to live in the residence. Even if you purchase a new home, defects may exist due to previous owners and the building contractor failing to pay all of its contract workers.
Title insurance protects the homeowner for the duration of their property ownership. If unpaid property taxes, outstanding liens, or fines for code violations appear after the property has been purchased, the uninsured homeowner will bear the entire financial burden. However, if you cannot cover these unexpected costs, you may be held liable for far more than you bargained for.
Now comes the million-dollar question. For liability reasons, the answer is yes. These insurance policies protect you differently and equally for investments made in your real estate. A title policy will only require one premium and offer a cover protecting your property ownership. A home insurance policy has annual premiums and protects you from damages such as theft, vandalism, and natural calamities.
Before you settle on an insurance policy from the service provider, do your due diligence and get quotes from different companies. At first, it might sound like a lot of expenses go into insuring yourself, but later on, you’ll be glad you did it. Protecting yourself and your investments from future unforeseeable and expensive costs relies on having insurance cover. Getting both a title and home insurance cover is a smart way of covering both your flanks. Contact us so we can help you narrow down your choices.
Home improvement can be a costly endeavor, but it gives a huge return at resale.
If you're buying a home or already living in one, you must choose home renovation projects that will have the most significant impact on your home's value. To maximize what you've invested in your family, it's worth considering spending money and time on these five home renovation projects:
There's nothing like the feel of grass between your toes on a warm summer night. If you're considering putting in a garden in your backyard or even just installing a fresh coat of grass, consider putting down sod.
Add a back deck or front porch to your home by taking advantage of the three-season benefits of a patio. Put these two together, and you have the potential to increase your home's value by 50% or more. It is an excellent investment for rental properties or once you've moved out and are ready to sell. Place a fire pit or sit down with a chessboard and enjoy watching the sunset together!
Also, garden and lighting projects make for a good housewarming gift for new neighbors to your home. Allow them to enjoy the benefits of a healthy, beautiful garden in their backyards, and you'll be adding value as well.
Improve curb appeal. Planting a couple of trees can add to the value of your home by up to 50%. If you're renovating an older home, adding some unique and interesting landscaping could be the key to a higher sale price.
Be sure to upgrade your kitchen sink. Replacing the faucet and vanity with new countertop and backsplash options can make a difference. Add in some unique countertops, such as marble or soapstone, and watch the value increase.
Add or extend the kitchen island for added storage and counter space. Add a mini-oven, microwave, or even an induction cooktop if you're looking to ramp up your kitchen's functionality.
Also, add drawers and cabinets under the kitchen sink to increase storage. If you are considering a home remodel in the future, you might want to take advantage of the potential for a walk-in pantry that offers an array of additional storage space. Such a pantry gives an added sense of value, as it allows buyers to see the potential for a room that has been thoroughly designed and planned.
Innovative home technology may include an outdoor and indoor security system that helps you control your home from anywhere in the world. In addition to monitoring your home's security, these systems can teach you how to use electronics with software applications and device specifications.
Hands-free faucets and lighting control are great examples of home automation, and they work on the same principles as a programmable thermostat. The faucet and lighting control equipment sensors can be triggered to turn on or off using a phone, tablet, or PC to request certain temperatures and lighting settings.
Smart home appliances such as programmable thermostats allow you to change the temperature settings in your home while allowing energy efficiency experts to program temperature settings based on what they assume is ideal for the average homeowner.
The basement can serve as an entertainment area or a kids’ playroom. Renovate or add-on to make it extra functional and attractive. A home theater system that includes a high-tech projector, surround sound, and other high-tech components will improve the value of your home.
The basement can also be used as the family's playroom, in which a few new pieces of furniture such as a table and sofa chairs will give it an instant facelift and make it look like a room with purpose. You can install a home gym in the basement, add a bar, or even a space for your wine collection. It adds a sense of sophistication and class to the room.
Level up your home theater experience with audio equipment and a surround sound system professionally installed by a home theater installer. Such equipment can also enhance streaming content on your TV, such as Netflix in the basement.
The bathroom is the perfect place to add some of the latest and most popular home gadgets. Since this is a room used by everyone in your family, you can make it more functional with a few smart home advancements.
A smart mirror can display information from your computer or an online service like YouTube in real-time. A digital scale that interacts with an app on your phone could let you know when there's something wrong, such as when you've gained weight or if something is going on with your blood pressure.
A bathtub with a built-in heater can give your family more comfort while taking a relaxing bath or warm shower. The lights can be set up to turn on automatically when the room is in use. The tub can be set up on a lift system to make it easy to install and remove when needed.
Improve the tiling and flooring in the bathroom. Replace old tile with new styles, giving it a more sophisticated look. A countertop option for the shower or tub can provide a classy appearance, such as Italian marble, when added to an otherwise plain white bathroom.
If your home doesn't have room to park your car, you can add a garage to the house. A garage is useful for storing things your household needs, such as the washing machine or bikes. You can also add storage space for your outdoor garden rake and pallets for outdoor storage.
A designated laundry area allows you to have the functionality of an indoor washing machine and dryer and install a wall with shelves to keep your detergents and other cleaning supplies. A laundry area is a perfect space for folding clothes too.
If you are thinking of selling your house in the future, home remodeling can be a great way to make it more valuable. Think about the home upgrades you want to do and choose the ones that will have the most impact during resale while keeping in mind your overall budget. Need professional help? Get in touch.
Many factors influence which type of mortgage is best for you, such as your current financial situation, expected borrowing expenses, and qualifications. However, it's also important to consider your plans as well. Some types might be more suitable for a homeowner who wants to move into a new home soon or purchase another one after a few years. In short: many different combinations will suit other purposes, but it is important to understand all of them before making an informed decision.
The Conventional mortgage loan has been the most commonly chosen type of mortgage option in the past few years and is one of the most popular loans.
One major benefit of this type of loan is using different collateral. For example, as a homeowner, you have more opportunities to access a conventional mortgage than someone who isn't a homeowner.
The downside to this type is stricter qualifying requirements, such as having more borrower equity up-front or needing more income. Since this type also typically features higher rates and costs, it might not be your best choice if you're looking for affordability.
Another type of loan that is quite popular is the Conforming Mortgage Loan. These mortgages have the same requirements as a conventional mortgage with added benefits such as lower interest rates and more flexible terms that can help you make choices about your plans.
One downside to this type of loan is that, in some instances, it might not be able to help you qualify for a particular loan amount and can only be used for homes valued at around $417,000 or less. Aside from this, conforming loans typically have lower down payments and higher interest rates.
The other type of mortgage loan is the Nonconforming Mortgage Loan. These loans are similar to conforming but offer more flexibility and more substantial options. Some examples include allowing you to have less down payment relative to the property's value or allowing you to have a lower credit score.
However, these opportunities come with an added cost, and additional closing costs and fees can add up quickly. In addition, non-conforming loans also typically come with higher interest rates, so it's worth researching before deciding whether this is the best option for your current financial situation.
The federal housing administration (FHA) is a program through the United States Department of Housing and Urban Development that insures mortgages. With this type of mortgage loan, you'll have to pay a small upfront mortgage insurance premium but can benefit from lower closing costs and less stringent credit requirements.
Even if you have a low-down payment, these loans are available for people with a wide range of credit scores. So, if you're interested in affordability, these loans could be the answer to your home-buying woes. They also provide an additional life insurance policy allowing you to cancel your monthly payments without worrying about losing anything out of pocket.
The Veterans Affairs (VA) program is a United States federal agency that offers mortgages to service members, veterans, and certain people related to them. The primary benefit of this mortgage loan is that you could have no down payment and lower interest rates than the average mortgage loan.
On the flip side, VA loans come with strict qualifying requirements, such as having a lower debt-to-income ratio and higher credit scores. They require you to put in more money up-front but don't offer a life insurance policy as the FHA loans do.
A USDA loan is a guarantee by the U.S. Department of Agriculture to help you receive an affordable home loan to purchase a house in rural areas or designated underserved areas. It is available to any qualified homebuyer, regardless of income and credit history, and allows you to make lower down payments.
However, there are some limitations, such as being only able to borrow up to 97% of the home's value and having higher closing costs. You'll also get a lower interest rate on these loans, but make sure that your options are best for your situation and your plans.
No matter which mortgage loan you choose, it's important to know your options before deciding. The best way to do this is to consider your current financial situation, future borrowing or spending plans, the loan's credit score and down payment requirements, and any possible restrictions on the property that you're looking at.
If you have a low credit score or are overwhelmed by other financial obligations, then a more affordable option might be best. However, if you're getting close to retirement age or have a higher income, having fewer property value constraints might be best for your specific situation. The bottom line is that every mortgage option has its benefits, and it's worth doing your homework to see which one will work best for you.
If you're unsure which option to choose, contact us at Rose Group to answer your questions and concerns during the home-buying process.
Homeownership is one of the best ways to build long-term wealth. Whether you're about to become a homeowner for the first time or you've purchased real estate many times before, you'll want your move to go smoothly. These moving tips are part of any home-buying advice to keep in mind as you prepare to relocate.
Prepare a checklist as you plan your move. This should include specifics such as home essentials, which pieces of furniture to keep and which ones to sell or put in storage, where each item goes, and what to buy for the new house. Set the date and time of your move. Calculate how much time you'll need to pack and move everything. Trying to cram everything into the moving truck at the last minute may be stressful, and you run the risk of forgetting anything vital.
A major relocation needs professional movers. Expert movers know how to make sure your items are transported easily, safely, and arrive at your intended destination intact. Get quotes from several movers and choose the one you like best. Speak with them about the schedule of your move, if you need a truck or trailer, and the list of items to be transported. Remember that it might be harder to book movers during certain times, such as the summer months. Allow more time if you're going to move during this time.
As a home buyer, chances are you've spent time thinking about the new community you’ll be living in. Now is the time to research it even further. Look for amenities close to your area, such as a library, hospital, coffee place, gym, pet shop, and shopping and community centers. If you have some time, walk the streets in the area before you arrive. Do a test run for your new commute to find out the best way to get to work.
It's imperative to have a walk-through of the entire house no more than a day or two before you're going to move. Make sure all is in order before you move in. It would be best if you also had your utilities set up and running on the day you move in. Find out what utilities serve your new community. Look for any problems with the house. Document any such issues and make sure they are fully corrected before your planned move.
Moving to a new location is a chance to start a brand-new life. That's particularly true for children who need special care during the transition and a chance to explore their new home with you. Make sure to value their input and consider their special needs to help them adjust to their new lifestyle. One way to do this is to involve them at every stage of the move, including planning, packing, and unpacking their belongings. Using a game-like organizational system like Moving Game Plans™ gives kids a fun way to tackle “grown-up” tasks and potentially “beat” other family members at key tasks along the way. Streamlining tasks and making the move fun are the keys to having the whole family smiling all the way through the move.
Security is crucial no matter where you live. Once you've moved, it's time to get those locks changed. Make sure the front door and all other doors, such as the door in the backyard, have brand new locks once you're residing there. Ensure the porch lights are working to protect your home during the evening hours. It’s necessary to install a security system around your property.
When you move, you're going to change your address. You want to let everyone know about it. Inform your family and friends about your new mailing address. You will also need to let all the companies you do business with know that you have a new address for your regular correspondence and bills. The same is true of your employer. Find out how to make any changes to your paycheck. Be extra careful with whom you are sharing your contact information.
Meeting new people is one of the greatest joys of moving. Knock on your neighbor's doors and let them know you're about to be part of their community. Introduce yourself and all your family members to everyone in the immediate area. Consider bringing a small gift with you as you speak with the neighbors. Baked goods or a bottle of wine are good choices. Your neighbors are pleased to answer any questions you might have about the area. They're also delighted to let you know about their favorite places to eat and fun things you can do on your leisure time.
Take a deep breath and think about your daily activities now that you’re in the new place. Make a to-do list. Routines help you get things done, such as food and grocery shopping every Thursday, workout session, kids’ sport activities, and even dinner dates. If you like to spend your Sunday mornings with a cup of coffee and a pastry, take a stroll in your new community and see what's on tap.
While moving can be quite stressful in many ways, it will also lead to really good things in your life. You have the chance to begin a new chapter in your life. Focus on all the positive things going on as the transition continues. You finally have the opportunity to create the kind of spaces you've always wanted in a home of your own. Think about the many wonderful things you're going to have once you settle in. It's all waiting for you in this bright new, inviting house.
Homeownership is a dream for most people, with good reason as it comes with many benefits. Most potential homebuyers consider how such a purchase will affect their finances, and there are many financial as well as non-financial benefits to owning a house. For one, when you own your own home, your assets grow larger than someone who rents. If you are considering buying a home, here are some more benefits you should know about.
When tax time comes every year, homeowners search for tax breaks. Luckily there are plenty of tax deductions that can add up to several thousand dollars. The biggest deduction to itemize is mortgage interest. You can deduct the interest up to a limit depending on when you take out your mortgage. Home equity loans interest is also deductible if you use the funds to substantially improve your home. You can claim home office deductions if you use part of your home exclusively for official purposes. You can get breaks on property taxes, but it's limited. Add up all the tax deductions you qualify for and itemize. You should take full advantage of the tax benefits to save some money every year.
An investment or financial portfolio stores all your assets; it's more of a concept than physical space. A solid portfolio can help you achieve long-term financial dreams. You might even repay your mortgage early or consider other investments. You can have some control over your financial future. Whether you realize it or not, purchasing a home will be great for your portfolio. You will have a higher risk tolerance, allowing you to embrace most opportunities that come your way. A house is a major asset whatever way you look at it; it will diversify your portfolio and let you dive deeper into investing. You can start thinking about the financial steps you want to take for the future.
Most creditors see a mortgage as good debt since it’s secured by the value of your home. Your ability to maintain mortgage payments is seen as debt responsibility and financial stability. Debt is seen by most as the greatest threat to financial independence, but mortgage debt is the only one that defies all the rules. Credit score agencies usually add points if you can manage different debts. Your mortgage might help you improve your credit score. It's also one of the few safe loans with low interest because your property is a guarantee that the loaned funds can quickly be recovered if a problem arises. The interest is also tax-deductible, which potentially makes the loan even less expensive.
Your home equity is the difference between what you owe and how much you can sell the house for. The more you pay your mortgage, the more your equity grows. If you have a reliable source of income and know you can repay, a home equity loan may be an option as you can use your home equity as collateral and acquire some funds. You can do plenty of things with such loans to improve your home or invest in other things. Home equity loans are typically called second mortgages, and you can use them for large expenditures.
The highest level of privacy you can attain is being able to decide who does and does not enter your home. You can use a modern security system to keep your belongings and loved ones safe; you are free to add as many security features as you want to your house. When you are renting, you won't have exclusive rights to the property, which means less privacy and security.
Having enough room to play outside becomes a higher priority when you have a family with children. You want your children to have the best upbringing possible and having a home will be part of it. You can hold family gatherings, cookouts, and many other family-exclusive activities because you have the space. Apartments can restrict you from having pets. But when you finally have your own house, you can get the pet you have always dreamed of. A home gives you and your family endless possibilities, especially when you have a private outdoor space. Having a garden might also be possible; you can turn the home into your private paradise. You can also pick a location with the best school district.
You are probably tired of making an apartment feel like home when you don’t have any freedom to customize it however you like. Home buying can change that. You have the freedom to create the home you want, starting with the house design, decorations, and paint. Pick the colors and the style you want to make your dream home a reality. Renovate the space when you see fit, hang pictures and art for a more personal feel. Customize the home to make your pets and family members (not to mention your guests) feel comfortable.
Homeownership has a liberating feeling you will never take for granted. If you have been a long-term renter, purchasing a home is indeed a level up. It gives you happiness and a sense of stability. It’s a haven for you and your kids if you have always dreamed of having a family. Maintaining a stable environment like a home is emotionally satisfying. Putting down roots allows you to form friendships that last a lifetime. Your neighbors become part of your community which reinforces the sense of stability.
There is no doubt that home buying is a worthwhile investment because of these benefits. If it's your goal to be a homeowner someday, start working towards that. Once you own a property, you can do so many things that aren't possible as a renter. Homeownership comes with a sense of pride and feeling settled in your community can improve your quality of life.
Ready to invest in the real estate market? Get in touch.
The process of buying or selling a home can be very complicated, so you need to be ready for what comes next after your offer is accepted.
Home buying can be an exciting and stressful time. The process of searching for homes, making an offer, and closing on a home can take anywhere from three weeks to several months. Furthermore, getting approved for a mortgage, having inspections performed on the house, and completing all other steps can quickly feel overwhelming. Real estate transactions are complex, so it's essential to be prepared for what comes next after your offer is accepted. Once your offer is accepted, the next steps in the home buying process include:
After an offer is accepted, the first thing to do is open an escrow account. The buyer and seller sign the necessary paperwork to transfer funds to ensure that inspections, appraisals, and other items outlined in the contract are completed. While the homeowner oftentimes covers the cost of the home inspection, there may be additional fees that come with the buying process. In addition, the buyer's lender will require an appraisal to ensure that the home is worth the purchase price. The buyer should also review the title and homeowner's insurance policy at this time to make sure there are no surprises down the road. This is also a good time to review the title and home insurance policy. Be sure to ask any questions you may have about either document. Furthermore, it is important to know what the escrow company is and what they will be doing on behalf of the buyer and seller.
The lender will need a few things in order to finalize the mortgage; among them are copies of the signed purchase agreement, title report, proof of funds, and your loan application. Be sure to have everything ready to go so that the process can move along smoothly. In addition, it's important to be aware of your credit score and what you can do to improve it if needed. Most lenders require a credit score of at least 620 to qualify for a mortgage. The sooner you can provide these documents to the lender, the sooner they can process everything and avoid any delays. This is particularly important for borrowers who are self-employed or have a less-than-perfect credit history. Moreover, many buyers choose to lock in their interest rate at this time, so the sooner you submit your loan application, the more likely you are to get the rate you want.
Home inspection and an appraisal are two of the most critical steps in the purchase process. The home inspector will check for any major repairs that need to be made before closing, and the appraiser will ensure that the home is worth the price you agreed to pay. If there are any major repairs that need to be made, this is the time to negotiate who will pay for them. Furthermore, you don't want to buy a home that has been significantly damaged. The appraiser will point out any major repairs or other issues with the house, and it is best if you know about them before going through with the sale. A home loan is based on the value of the property, so a low appraisal could lead to your offer being rejected. This is the most challenging part of the home buying process for many buyers. In some cases, a buyer can come to an agreement with the seller that covers items such as closing costs or repairs.
After your offer is accepted, the next thing to do is to contact all of the utility companies and transfer services. Bills can still be sent to previous owners for a couple of days, but it's important that new homeowners take control of their utilities as soon as possible. This will reduce the chances of a power outage or any damage to appliances and fixtures during the moving process. Furthermore, if the previous owners are staying past closing, they will need to vacate by the time of possession or negotiate an extension with your realtor or lawyer. In some cases, new homeowners may have final bills from the seller's portion of the home, which may need to be negotiated in the contract. Home selling and buying is a complex process that can be overwhelming for first-time buyers. By knowing what to do next, you can ensure a smooth transaction. For more information, please consult with your realtor or lawyer.
Now is also a good time to ask for a final home evaluation. The inspector will come back and make sure there were no additional problems, and the lender will go over closing costs and how they will be paid. These can include points, real estate commissions, loan origination fees, transfer taxes, recording fees – all things that you should be prepared for. Homebuyers should also take the time to review their closing statement. A final home evaluation ensures that everything is in order before you close on the property, and it's one of the last things you can do before becoming a new homeowner.
Purchasing a home is a huge investment, contact a licensed realtor to walk you through the process and to make sure that everything is done correctly. By following these tips, you can ensure a smooth home buying process. These are just a few of the things you need to do after your offer has been accepted. With a little bit of preparation, you'll be ready to close on your new home and start moving in.
The process of home selling can be overwhelming. There are many things to do, and it’s important to make sure you get everything in order before contacting a real estate agent. Let us help you prioritize the most important tasks when you are selling your home.
The first step to selling your house is deciding on a reasonable asking price. There are many ways you can find out, this includes checking the most recent home prices in your neighborhood, checking online listings and looking at recently sold properties or houses for sale.
As a home seller, you should also include how much money it will cost to fix up any problems with the property so that real estate agents have an accurate idea of what houses similar to yours are going for when they bring in potential buyers.
If you want some help determining whether or not your asking price is reasonable, talk with a real estate agent about getting an appraisal done before putting up any "for sale" signs.
One of the most important things to do before you put your house up for sale is get a pre-sale home inspection done. This will help you and any potential home buyer determine if there are major issues with the property that may be costly or difficult to fix, such as termite damage or leaks in your roof.
You can either hire an inspector yourself or ask a real estate agent to request one on your behalf; agents tend to have access discounts for this type of service. Once they’ve completed their evaluation, make sure it's available when prospective buyers visit, so they know everything about the condition of your home ahead of time.
One of the most effective ways to sell a house is by staging it. Rather than leaving your real estate agents and potential buyers with their imagination, you can hire professional home stagers who will prepare the property for showing in a way that highlights its best features while downplaying any flaws.
Staging is usually done through subtle adjustments like repositioning furniture or replacing old accessories; it is also important to prioritize repairs and renovations; and repaint walls and fix cracks. Also, a renovation will give buyers a better idea of how much money they may have to put into the house after purchasing it.
The goal isn't to fix everything yourself because realtors often have access to good deals on rental equipment, but rather give them an idea of what you plan on doing before anyone moves in so that your place looks sharp without too many extra costs incurred. You should also do some basic cleaning before listing your home as well.
Cleaning can go a long way beyond just leaving your home sparkling clean; this simple act can let visitors know how much pride you take in maintaining the property, which will work towards their comfort level with buying from you
If you're not sure how to go about doing this, real estate agents and stagers often work together, so talk with yours if you want some ideas.
Before you sell your home, there are some documents that you'll need to gather. Collect any paperwork related to the property's title and ownership of it, including deeds, titles, or tax records.
You will also need mortgage information if someone is refinancing the loan on your home; This includes documentation like copies of statements for all loans associated with the property as well as final payoff figures, so you know exactly what money (if any) needs to be collected before closing.
Make sure every single document is accurate because errors may cause delays in selling or even prevent a deal from going through altogether. If anything seems out-of-place here, consult with an attorney who knows how real estate transactions work because they should be able to advise on the best way to resolve it.
Review and negotiate offers are necessary to secure the sale of your house. Put the documents in their respective sections, so they don't get lost amidst everything else you need to organize. It is best not to worry about them until after reaching an agreement with someone interested in buying.
When moving out, you should set a date with your realtor so they can set up a showing for prospective buyers. If you have pets, find a new home that will accept them or start planning how to re-home them before moving out because many rental properties won't allow animals.
Start packing as soon as possible and get rid of everything you don't need anymore. Sell what is valuable but try not to spend too much money buying anything else during this process since it could be difficult if time runs short.
You'll also want to make sure all bills are paid in full before leaving the property behind by contacting each service provider about switching accounts over. It can be hard to move out of a house since you are emotionally attached to it, but you can make the process easier by staying organized about everything that needs to be done.
Selling your house can be a nerve-wracking experience. When you’re in the process of listing and preparing for sale, it is important to consider the above home seller guide.
The most successful sellers follow these five simple steps when they go into their new chapter as homeowners: set a reasonable selling price, schedule pre-sale home inspection, stage your house properly so potential buyers are impressed by how well cared for it is, collect necessary paperwork from past homeowner or mortgage lender and prepare yourself mentally with an emotional detachment plan because this could be one of the largest life decisions you make.
We at Rose Group are ready to Sell Certified! We can help you get your home prepped for sale without the hassle or any out-of-pocket costs.
As a first-time homebuyer, you may be wondering how to save money on your mortgage. The best and smartest way to go is by getting pre-approved for a mortgage before you start looking at homes. If you get approved beforehand, it can save time because when selecting homes for purchase, the potential buyer will only need to see houses within their price range or loan limit. Below is more information about pre-approval and its advantages.
When you are first getting started with the loan application process, two steps need to be completed. The first step is pre-qualification. Pre-qualification is a rough estimation of how much money a lender is willing to give you based only on the data they have at hand. This includes your income, credit score, and debts or liabilities.
However, this information may not be complete or up to date. You can continue with the second step which is pre-approval. Pre-approval means that your lender has more access to your financial data and is willing to give you a final number on how much money they will lend you for the house purchase. This is based on the information you provide to the lender.
If you were already pre-qualified with a lender and had been looking at homes from a real estate agent, it is best to request a pre-approval. It can definitely help when you're purchasing a home.
Almost all lenders offer this service today, but it can vary depending on which company you choose. You also have the option of applying with a broker who may find a lender who offers pre-approval with lower interest rates and fees.
The very first step you need to take is to check your credit score. This can be done on a free website. If your credit score falls below the minimum threshold set by the lender, you will have to improve it before applying for a pre-approval.
If you are already meeting the floor price set by the lender, you may proceed to apply. Fill out all required paperwork honestly and completely if you want to improve your chances of being approved.
If you want to get pre-approval for a loan, you need to have decent credit. Many lenders will require a FICO score of 640 or higher before they can approve your request.
Also, to be considered for pre-approval, you'll need to prove that you can repay the loan that you apply for. This can include having a steady income or access to funds through another source. The lender may also ask about what your total debt is compared to how much you make monthly.
Pre-approval for a home loan can help you get the best rates, but it also requires more effort than simply applying for prequalification. You will have to prove that you are serious about purchasing by showing steady income and access to funds. This can be difficult for some people to prove, but your chances of being pre-approved increase dramatically if you do it right.
If you are looking forward to getting a loan preapproval or prequalification so that you can buy a home, reach out to us. We are a team of experienced realtors and we will give you professional advice from preapproval to moving into your new home.
Homeownership has many advantages. It's key to building wealth. That's why for most people, their home is their most valuable asset and represents the majority of their net worth. But owning a home comes with some maintenance costs.
Not only does a home cost a great deal to acquire, but it also costs quite a bit to maintain. Some estimates place the ongoing yearly costs of owning a home at around 5% of its value. For the average home in the US, that works out to over $13,000 per year. There is plenty of uncertainty built into that number. For example, having a major appliance break could add thousands of dollars to that total. And there's no way to know when an unexpected expense will overwhelm your budget.
That's where home warranties come into play.
Home warranties are a popular way for homeowners to try to contain the costs of homeownership and eliminate unexpected expenses. Here's an overview of what they are, how they work, and when they're worth investing in. Let's dive in.
Unlike insurance, it's a service contract designed to cover the cost of the repair or replacement of major household items. In most cases, they cover things like large kitchen appliances and the home's major systems. But home warranties aren't insurance. They only cover costs associated with the normal wear and tear of covered items. So, if, for example, your refrigerator got damaged due to flood – it wouldn't pay to replace it.
That is, in fact, the primary difference between home warranties and a homeowner's insurance policy. The former covers the costs associated with routine maintenance and care for a home's major systems, while a homeowner's insurance policy pays for unexpected damage to property in the home. It protects against losses connected to things like fires, floods, and theft. Together, the two provide comprehensive protection for both the routine and extraordinary costs associated with owning a home.
Although different providers offer warranty plans that cover various items in a home, there are some covered items most of them share. These include:
• Heating / Ductwork
• Hot water systems
• Central or split-unit air conditioning systems
• Ovens, ranges, and cooktops
• Garbage disposal units
• Garage door openers
Depending on the provider, it's often possible to add warranty coverage for other household items like:
• Well pumps
• Septic tanks
• Pool and spa equipment
In most cases, home warranties don't cover the structural components of a home. That means they don't cover things like walls, windows, foundations, and doors. They also won't cover solar panels because they're considered a structural item.
And home warranties also won't cover commercial appliances. That means they don't cover many high-end kitchen items from major brands like Sub-Zero and Thermador. And they also don't cover duplicate items by default. That means homes with a second kitchen would need to purchase additional coverage for all of the items in it – even if they're the same items in their primary kitchen.
But even covered items are subject to certain restrictions, such as a home warranty won't cover pre-existing damage to a covered item. Every item must go through a visual and operational examination before it's eligible for coverage. At that time, a representative of the warranty provider will check for obvious damage to each item and conduct a basic test to see that it's functioning normally.
Even then, most home warranties feature a 30-day waiting period before they go into effect. That way, the company can rule out most undetectable pre-existing problems with covered items. It is designed to prevent a homeowner from purchasing a policy to cover an appliance they know is about to fail.
There are also limits to what home warranties will pay to repair or to replace covered items. Some impose limits on a per-item basis. For example, a policy might specify a maximum of $1,000 for microwave or $3,000 for an HVAC system. Others set a maximum limit that applies to all covered items, which usually represents the maximum replacement cost of the most expensive covered item.
In most cases, home warranties are worth purchasing for anyone buying a secondhand home. This is because it's often impossible to know the true condition of a home's major systems or if they've been put through excessive wear and tear. And because purchasing a home is a significant investment, the last thing a new homeowner would want is a string of unexpected expenses right after they move in.
For the same reason, people selling their homes might purchase coverage to convince would-be buyers that everything in the house is in reasonable working order. Doing so serves as a guarantee to the home's new owners that they're not going to end up paying for the damage done by its previous owners. In that way, homeowners' warranties make an attractive addition to a home that's listed for sale.
The costs of a home warranty are reasonable enough that either party would be well-served by purchasing a policy. The average cost comes in at between $25 and $50 per month, which works out to between $300 and $600 per year. After that, the only other cost is a reasonable service call fee between $75 and $125 when something breaks. So, the first time that a major covered appliance needs replacing, the policy will more than pay for itself.
Buyers of newly-built homes typically don't need home warranty coverage. This is because most homebuilders offer similar coverage for at least a year after a home's completion, and it comes standard with the purchase of the home. Plus, new major appliances come with their own warranties that cover major problems for a year or more after purchase. It wouldn't make sense to purchase coverage until several years into the home's existence in those cases.
Any way you look at it, home warranties are a smart way to manage some of the ongoing costs of homeownership. But they're not for everyone, and anyone buying a policy should do their homework and read all of the fine print before buying coverage. Like insurance, a home warranty can seem costly when you don't end up using it – but it can be a lifesaver when bad luck strikes and multiple appliances break in quick succession.
Get in touch with us for professional help on your real estate investment journey, call 650 550 8646.
Speaking of getting your home on the market, home staging plays a key part to impress your potential buyers. It involves decluttering, rearranging, and remodeling your home. Keep in mind that homebuyers come from various walks of life, thus when staging your property ensure that it is eye-catching to everyone.
There are professional home stagers that you can hire and even experienced real estate agents can do some staging themselves. However, you can also choose to be hands-on and do it yourself. The infographic below will guide you through the home staging process:
The bottom line is that staging can increase your home's purchase offers, but you don't need to stage every room of the house. Focus your efforts on the most usable spaces of the home. Get professional advice from an established real estate group to discuss the best strategy for selling your home and prepare it for a successful open house. Call 650-550-8646 or send an e-mail to email@example.com.