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.

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.

Keeping Kids Entertained at Open Houses

Family Opening Door And Walking In Empty Lounge Of New Home

If you’ve ever had children tag along with open house visitors, you know it can sometimes be difficult to keep them entertained while touring a house. Here are a few ways to conquer kid-size boredom, keep the parents’ attention, and extend time to engage with the family.

Give kids something to do. Scope out a low-traffic station for snacks, coloring or play dough. Hold a contest for the best drawing of the home and offer a prize that winners can pick up at your office. This gets kids involved in the spirit of house hunting and creates additional contacts with prospects.

Give kids something to take home. Inexpensive coloring books and a pack of crayons, a pick-a-prize toy box, or a small goody bag handed off at the end of the visit can add a little extra patience to kids’ reserves. Your level of understanding in the situation will also translate well with parents.

Create a digital playground with a few iPads or a dedicated “kids only” laptop loaded with simple and fun-to-play games, like “My PlayHome” or “Make a House.” Gearing media toward real estate reinforces interest in the parents’ activity and helps them explain the process to little ones.

Ask kids’ opinions. While older kids may not be as finicky, they can distract parents and push to speed things up. Be ready with clipboards and opinion checklists that ask to list their top three likes and dislikes about the home. Send a branded house hunting checklist home with parents.

Kids can be an opportunity to develop a relationship with real-estate-minded parents. Don’t miss out!

Source: Inman

What Can I Expect from My Home Inspection?

Home inspector examines architectural, asphalt shingled roof.

Home inspections are a standard practice when buying a home. No one wants to make the biggest purchase of their lives, only to discover a weak foundation, shoddy electricity and plumbing that will cost $10,000 to repair. A good home inspection can protect buyers from major expenses when buying their homes.

What does a typical home inspection include?
Generally, a home inspector will look at:

The Foundation: Is there evidence of settlement and/or seepage in the basement or lowest level of the home? Is the settlement uneven or are there cracks? What is the structural integrity of the home? What is supporting the home?

Heating and Air Conditioning: What is the insulation like in the home? Is there enough heating and air for the home? How do the systems operate and are they operating properly? What can the inspector see in the way of potential problems in these systems?

Electrical: What does your electric system look like? Is it safe? Are there potential hazards? Is everything properly grounded and bonded? Are all the outlets working?

Roof: What’s happening on top of the house? Are there any general maintenance issues you should know about? What type of roof is it? Are there skylights that need repair? Are there places that are leaking?

Your home inspector should also check out your:

  • Lot and landscaping
  • Plumbing
  • Hot water supply
  • Chimney and fireplace(s)
  • Termite damage/wood damage
  • Attic
  • Exterior
  • Garage

There is a lot of ground for your home inspector to cover, so you want to hire one who will take his time and do a thorough job on your behalf. How do you pick a home inspector? Here are some tips:

1. Don’t trust an inspector simply because the inspector has a state license.

2. Look for an inspector who is associated with a professional inspection organization such as the National Institute of Building Inspectors, the National Association of Home Inspectors or the American Association of Home Inspectors.

3. Don’t only take your agent’s recommendation; ask for three recommendations and then really grill the inspectors.

A home inspection is one of the most important things you can do to make your home purchase a good one. Don’t skip this step!

What is a Mortgage Rate Lock?

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The mortgage lending world is full of terms that may not be familiar to you but are important to understand if you are considering buying a home or refinancing. One of those terms is mortgage rate lock. 

A mortgage rate lock is an arrangement between a lender and a borrower in which a mortgage’s interest rate is locked for a certain period of time. Typically, the locked-in rate will be the current market interest rate.

Some lenders choose to charge borrowers a lock fee if they choose to lock in the interest rate. Also, it’s common for lenders to start at a higher rate in case the homebuyers do not exercise their options to lock in a rate.

When a borrower and lender agree to a mortgage rate lock, it is important that both parties are bound by the agreement. This agreement would mean, for example, that the borrower could not unlock the rate because the market interest rate had lowered. Interest rates will usually be locked from the moment that the mortgage is offered until it is closed.

Unless a change occurs to the loan application, the interest rate will stay the same and will not be affected by market changes. Changes to the mortgage application, such as an increased loan amount or an updated credit score for the borrower, can result in the interest rate changing. Interest rates can also change if the home is appraised at a higher or lower amount than expected, or the borrower changes the type of mortgage for which they are applying.

Mortgage rate locks have some drawbacks from the borrower’s standpoint. For example, if the market rate falls during the term of the mortgage, a borrower would not be able to take advantage of these lower rates. The same would be true for lenders if the market rate rises.

A lock deposit can be a good way to make sure that both the borrower and the lender hold to the terms of the mortgage lock agreement. This deposit shows that both parties are committed to upholding the agreement. A loan estimate and a rate lock can be issued at the same time, and the period of the mortgage rate lock can be between 10 and 60 days. A longer rate lock period typically means that the borrower and lender have agreed to a higher interest rate.

Questions about mortgage rate locks or anything related to home mortgages? Please contact us today. 

Your Offer Can Beat a Cash Offer!

couple in front of new house

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!

Why Winter May Be the Right Time to Buy Your New Home

Daughter and Father near the Fireplace

It may be turning cold outside but fall and winter just may be the best time for you to get a hot deal on a new home. Don’t let the blues of shorter days keep you from house hunting in the fall winter. There are some good reasons that now may be the best time to buy your new home.

Fewer buyers are house hunting.
Most home buyers shop in the spring and summer, when homes pop up for sale like tulips. Because there are so many fewer buyers, winter home buyers are more likely to get a good deal on the house they want.

Lower prices.
With fewer buyers in the market, home sellers often lower prices to attract the buyers who are out there.

Sellers are motivated.
Motivated sellers may be a great thing for home buyers, as they are more willing to negotiate. When you find the house you are looking for, you may be able to negotiate on price, closing costs, repairs, and even items such as appliances or other items you want included in the sale.

Inspections may turn up more or different items in the different seasons.
You will have the opportunity to see the house at work in the winter. Gutters, windows, heating systems, etc. get put to test during the colder months. You may miss some of the curb appeal of the manicured lawn when shopping in the winter, but you’ll know if the plumbing is working at full capacity and able to handle extremes.

Don’t miss out on buying your dream home because it’s cold outside. Seize the opportunity to put the season to work for you.