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.

Buying a Home this Spring? Make Sure You Get the Details Right.

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Spring marks the beginning of the selling season and is often considered the busiest and best time to purchase a home. As more people look to purchase a home in the coming months, it’s important to understand the buying process. Here are some tips from DORA (Department of Regulatory Agencies) and the Division of Real Estate.

Talk to your lender early in the process. Meet with your lender before contacting a real estate agent to simplify the home buying process. Getting prequalified for a mortgage gives you a solid price range for homes to consider.

Determine your working relationship with your broker. Many homebuyers don’t know that Colorado has two options when it comes to your relationship with your broker – a Single Agency broker (an agent for the buyer OR seller) or a Transaction Broker (for the buyer or seller OR both). A single agency broker will advocate for and work solely on a single client’s behalf. A transaction broker facilitates the sale by fully informing the parties, presenting all offers and assisting the parties with any contracts, including the closing of the transaction without being an agent or advocate for any of the parties.

Understand the real estate contract. An offer for the purchase of real estate must be in writing to be valid. The Colorado Real Estate Commission requires every real estate broker licensee use a contract form approved by the Real Estate Commission, unless the contract is drawn by either the seller or buyer or the attorney for the buyer or seller.

Recognize contingencies in the contract. The contract approved by the Real Estate Commission allows for the buyer and their licensed broker to make the contract contingent on certain items. Contingencies can be items such as the property appraising for the purchase price, approval of financing, a satisfactory home inspection, or the sale of their current residence. It is critical for a buyer to include those contingency items in the contract to eliminate misunderstandings about what circumstances will allow for a successful execution of the transaction.

Meet all deadlines and put down your earnest money. Once your offer has been accepted by the seller, you will put down a good faith deposit, often called earnest money. Both the buyer and seller will need to meet specific deadlines before you close on your home. As a buyer, if you miss a deadline, you might not be able to cancel or withdraw your offer unless you are willing to forfeit your earnest money. Your offer allows you to make decisions regarding when to close on your new property, when you can take possession of that property, and what remedies are available if the contract dates are not met.

This is a lot of information. If you’re ready to get started on the homebuying process, contact us to start with step one and get you pre-qualified today.

Things You Should Do Immediately When You Move into a New Home

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You have a new home. Here are some great tips for things to do when you first move in to start saving money. Once the boxes are unpacked, tackle these tasks next.

Check the insulation in your attic. You should have about six inches of insulation throughout the attic. If you need more, get more! Click here for a guide from the Department of Energy on proper attic insulation.

Make sure the vents in all rooms are clear of dust and obstructions. Covering vents with anything makes your heating and cooling system work harder. And a quick dusting will help you remove dust and dust bunnies to keep these cleaner. If you need to, have a professional come out and clean all of your duct work.

Mark cracks in the basement with masking tape. It’s not unusual for basements to settle and for the floor to crack. But if you do have a problem with settling and cracking, you’ll want to take care of that sooner rather than later. Cover up the ends of cracks with masking tape. In a few months, if the cracks have grown outside of the original tape, call a professional for some repair work before the problem grows.

Plant some shade trees near your home. Get a natural cooling system working for you. Plant some trees near your house to add shade. Lowering the external temperature of your home can save you from running the air conditioning hard and all the time, when the sun is shining in the summer heat. The sooner you plant them, the sooner they can grow and help cool your home.

If you have to buy new appliances, buy energy efficient. You’ll likely pay more up front for these, but you’ll save money in the end. For example, a refrigerator that uses little energy and lasts 20 years is much less costly over time.

Check your toilets and under-sink plumbing. You don’t want these pipes leaking or discover you have a toilet that is constantly running. A dripping pipe may seem harmless enough, but the cost adds up in water and you may end up creating a mold problem.

Create a home maintenance checklist and run through it for the first time. And then run through it every month. Include things you want to check monthly or quarterly. Check plumbing, vents, outlets, paint, windows, etc. And while you’re at it, include a checklist for changing batteries in smoke detectors, something you should do at least once a year.

These are just a handful of tips to save money. Want more?
Read 18 Things a New Homeowner Should Do Immediately to Save Money.

Your Offer Can Beat a Cash Offer!

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The word on the street is that the sellers’ market is slowing down. But that doesn’t mean cash offers are a thing of the past. For a seller, cash offers may mean a faster closing, but they also may mean a lower offer and extra demands in the deal. Here are some ways you can still “win the deal,” even if you’re not paying cash.

1. Prove you are ready to buy: Get a Performance Guarantee with Universal Lending. Our Performance Guarantee is a conditional loan commitment that guarantees your earnest money up to $10,000. Essentially, you’re putting in an offer that has already gone through underwriting. Other homebuyers may offer a pre-approval letter, but a Performance Guarantee is even better.

2. If you don’t have a Performance Guarantee, get a pre-approval letter. Your pre-approval letter says that you are qualified to buy a home. Other buyers will have this letter, so if you don’t, you are at a disadvantage.

3. Choose a lender that can get deals done quickly. Universal Lending is known as a quick-closing lender and our loan officers would like to help your offer beat a cash offer.

4. Make a higher offer. Even if your buyers are eager to sell, more money may sweeten the deal. Cash buyers often offer less for the home, in exchange for the fast closing, but at the end of the day, they are still hoping to get as much money as they can. You may be surprised that you don’t have to offer thousands of dollars to beat the cash offer; a higher offer of just $1,000 may be enough of an incentive.

5. Offer a bigger down payment or more earnest money. The more you put down, the more serious you seem about your offer.

6. Make your best offer your first offer. Assume that there will be little or no negotiation on your offer and make your best offer right off the bat.

7. Learn what the seller’s terms are. A good real estate agent will find out what the seller is looking for. Does the seller need to stay in the home until they find a place to move? Are they looking to sell quickly and move out right away? Knowing this information ahead of time will help you make an offer that has a better chance of getting accepted.

8. Be flexible. Can you be accommodating on a closing date? Can you ask for fewer repairs? A little flexibility may go a long way.

9. Get another vote of confidence from your lender. An updated pre-approval letter is a great start. A phone call or video email from your loan officer is even better. One final push saying how strong of a buyer you are may be the key that helps you close the deal. A confident lender will instill confidence in the sellers.

When you’ve found your dream home, you want your dream home! Make sure you give it your best shot when you make your offer. Happy homeownership!

FHA Loans – Great Options for First-Time Home Buyers

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If you’re a first-time homebuyer, an FHA loan may be the right loan for you. 

An FHA loan is insured by the Federal Housing Administration and protects lenders from financial risk. Lenders have to meet certain criteria for their loans to be termed “FHA-approved,” after which the FHA backs the loans the lender issues in case a borrower defaults on the mortgage. Borrowers must also meet requirements to qualify for one of these loans.

Why are FHA loans good options for first-time homebuyers? Because other home loan programs generally have higher credit score and down payment requirements, FHA loans are a great option for first-time homebuyers who have not had as much time to save for a large down payment or meet the credit score requirements.

Of course, are some other considerations to make before jumping in. 

Additional fees as well as private mortgage insurance add to the cost of the mortgage, and you may have a higher interest rate.

If you are ready to consider an FHA loan to help you make your first move, contact Universal Lending today to get started down the path of homeownership. We’ll discuss all of your home loan options with you so you find the right loan for you.