Is it Time to Review Your Homeowners’ Insurance Policy?

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Your home may be your biggest investment. Don’t let an unexpected surprise take it away. If there is one thing we have learned over time it is this. No matter where you live, you can expect the unexpected. Fires, floods, earthquakes, storms — we can’t stop them, but we can protect ourselves from financial devastation should the unthinkable happen.

Review your homeowner’s policy to make sure you know what is covered and what you may want to add to the policy in addition to what is already covered.

Things to consider:

Flood insurance and earthquake insurance typically need to be purchased separately from the homeowner’s policy or as additional endorsements.

Your policy may cover hail damage, but what if your roof is destroyed in a hail storm? Will you be able to get a new roof? Does your insurance cover full replacement value of your roof?

Your insurance may cover fire damage, but how do you ensure that all of the contents of your home are protected?

Do you need to consider an umbrella policy, just in case?

There may be ways you can save money and insure your home and its contents even better. An insurance professional will help you review your insurance coverage and make sure you and your family have the coverage you need.

Learn more with this Homeowner’s Guide to Natural Disasters from the Federal Alliance for Safe Homes, Inc., and the The Actuarial Foundation, or contact your insurance agent today.

This year, don’t just renew your homeowner’s insurance policy — review and revise before you renew.

Two Tips for Agents Working with Sellers with Homes that Need Renovation

Home renovation concept. Shape of a house from construction tools.

Not every buyer will want to put hours of labor into their home before placing it on the market. This can be a challenge for the real estate professionals who are tasked with selling it as their seller wants to gain top dollar, but without making the necessary changes that buyers expect.

Work with what you have. Keep in mind, you are not attempting to hide or make the imperfections look perfect to the buyer. Instead, positioning it as an easy DIY project can attract the homeowners that do not mind a project in return for a little hard work. Depending on the amount of work that is required, it may also be a great property to market to flippers.

Manage the easy tasks. You can take some of the burden off of the buyer by managing the easier tasks. Cleaning up debris and leaves on the outside of the house and hiring someone to put a fresh coat of paint on the walls can make the task seem less daunting. Consider the resale value of each project and what it is worth to the overall cost of the house.

Just a couple of tips. If you have others, we’d love to hear them. 

Considering Purchasing in HOA?

Aerial view of a Cookie Cutter Neighborhood

The Colorado Department of Regulatory Agencies (DORA) offers some tips on things to consider if you’re purchasing in an HOA (home owners association). Some people love being part of an HOA neighborhood; others do not. Here are a few tips to consider before making your move.

Considering purchasing in an HOA?
Make sure you have the necessary documentation: HOAs have bylaws, covenants, rules and regulations, so obtain copies of these documents to know the HOA’s responsibilities as well as your rights as a new member. You will also want to get copies of the Colorado Common Interest Ownership Act (CCIOA) and the Colorado Nonprofit Act which are the state laws governing HOAs.

Be aware of your HOA’s enforcement powers: HOAs are able to enforce their covenants, rules, regulations and bylaws through various methods such as fining, placing a lien on an owner’s property, sending an owner’s account to collections or filing a civil lawsuit in court. Knowing under what circumstances and what the processes are to take these enforcement actions are important.

Get involved: The best way to become part of the community and make a difference in your HOA is to get involved. All HOA meetings are open to homeowners except for executive sessions. Make sure to attend HOA meetings, stay up to date on what’s happening in your community, share your ideas and voice your concerns.

Resources are available: The HOA Information and Resource Center at DORA has invaluable information and resources to answer your questions, educate you on HOAs and assist you with difficult and sensitive situations. K

The Division encourages everyone to visit the Division’s website at www.dora.colorado.gov/dre to ensure that their real estate broker is properly licensed.

Q&A about VA Loans

Military Father and Son

VA loans are $0 down payment mortgage options available to veterans, service members and select military spouses. VA loans are issued by private lenders and guaranteed by the U.S. Department of Veterans Affairs (VA).

Since its inception in 1944, more than 22 million VA loans have helped veterans, active duty military personnel and their families purchase homes or refinance mortgages.

How does a VA loan compare to a traditional/conventional home mortgage? Read on.

What is the down payment?

  • VA loans: 0% down.
  • Conventional loans: Up to 20% down.

Do I have to pay mortgage insurance?

  • VA loans: VA loans do have a form of mortgage insurance, the VA Funding Fee. It is usually 3.3% and financed into the loan up front. If the borrower separated from the military with a qualifying disability, the funding fee is waived to 0%.
  • Conventional loans: If buyers do put down less than a 20% down payment, they must pay for private mortgage insurance.

Are the interest rates for VA loans competitive?

  • VA loans: The VA backing gives lenders a greater degree of safety, which means the interest rates can be more competitive than non-VA loans.
  • Conventional loans: Without government backing, banks take on more risk with conventional loans, which can result in less-competitive interest rates.

How easy is it to qualify for a VA loan?

  • VA loans: Because the loan is backed by the government, banks assume less risk and have less stringent qualification standards for VA loans, making them easier to obtain.
  • Conventional loans: Conventional loans require stricter qualification procedures that can put homeownership out of reach for some homebuyers.

Can I do a cash out refinance? 

  • VA loans: Borrowers can do a cash out refinance up to 100% of their home’s value.
  • Conventional loans: Borrowers with conventional loans must leave some equity in their home when doing a cash out refinance.

What else should I know about VA loans? 

  • VA eligibility is re-usable. A lot of people think they are only eligible for a VA loan one  time, but they are able to get VA loans more than one time.
  • You can have more than one VA loan at a time. It’s a myth that you can only have one at a time.
  • VA loans are assumable.

 You or someone you know may be the perfect fit for a VA loan. Contact a loan officer today to learn more about VA loans and other types of home loans that may be a good fit for you.

Do you want more information about VA loans or grants? Find it here or call us today.  

 

Make More Room in Your Kitchen

Family Life in the Kitchen

There are some ways to make even the smallest kitchen seem bigger and gain some awesome storage space you weren’t expecting. Try these tips as you start thinking about ways to make the kitchen you have the dream kitchen you want.

Before doing anything else….PURGE!

Grab a garbage bag and start throwing things away. Clean out your pantry, cabinets, freezer and refrigerator. Anything outdated including cereals, spices, canned goods and more can go. Old sponges, storage containers with no lids, expired meats, freezer burned soups and vegetables, and old leftovers all can be discarded. You’ll feel good about starting from scratch, and you will know what you have and what you need when you go to the store.

When you do go to the store, only buy what you need. If you’re a bulk shopper, store extra items in the garage or basement, but keep them out of the kitchen.

Hide your chairs. If you have an island or counter seating in your kitchen, buy a couple of low stools that you can push underneath and out of the way.

Put small appliances away. Toasters, mixers and other kitchen appliances are tools, not decorations. Put them in one of the larger cabinets until they are used again for meal prep.

Buy some cabinet shelving and dividers. You can purchase some inexpensive cabinet shelving for stackable pots and pans, serving dishes, vases and pitchers. It’s an easy fix to get some quick storage space back.

Get a smaller table. If you have a small dining nook, then you need a small table. You may even find one with folding parts so you can make it larger and smaller as needed.

Attach a sanitation rack to cabinet below the sink. These are inexpensive and easy to affix to the wall of the cabinet. Put your dish soap, sponges, and other frequently used cleaning products in it. They are easy to get to and off the sink.

Hang your plants. Get your houseplants off the counter by hanging them up or putting them on upper shelves.

A lot of families spend more time in their kitchens than any other rooms in their home. Make it a room you want to be in!