Minimize the Confusion: Part 1

Starting out this New Year I thought I would focus on some of the important issues new home buyers face in the sometimes overwhelming process of buying a home. It is not always as simple as some of our favorite real estate focused television programs make it out be. A lot needs to happen between look at three, choose one and move in your furniture.

Some of these choices and hurdles include choosing a lender, hiring an attorney, finding a home inspector, setting up insurance and making that move.

I recently met with Jen Kiner from The Howland and Sargent Group to address some of the important issues to consider when choosing a good home owners policy. These are her suggestions:

• Leave enough time for an agent to search for quotes for you, don’t wait until a week before the closing, there may be information to be gathered that could take time to get since they don’t currently own the home
• Consider quoting the auto insurance at the same time, I know it's hectic enough buying a home but if you quote both at once you save time and money
• Some insurance companies perform their own inspection separate from the home inspection that the prospective owner has done; this is normal
• When purchasing home insurance, its usually paid in full for the first year if you are paying through your mortgage company. Then the monthly mortgage bills will include a portion for insurance and the insurance company will bill the mortgage company in the future.
• Check to see if you are required to carry flood insurance and keep those costs in mind

As far as shopping for home insurance in general:

• The coverage amount is not based on the market value of the home or the appraisal amount, it’s based on replacement of building materials and construction costs, so these numbers vary from one another.
• A replacement cost calculator should be done to ensure proper insurance to value ratios; most companies require 100% insurance to value (you must carry the full value of the home coverage)
• Make sure to review your policy and check for what isn’t covered over what is covered, companies differ from one to another
• Always consider an umbrella policy to protect your liability exposure over your home and auto insurance $1million of coverage is more affordable than it sounds! 

Time is Key, to save yourself headaches and ensure proper quotes and prices, leave enough time.

Remember starting your process with a good, experienced realtor will ensure your transaction be a smooth as possible. Always be prepared for bumps in the road, they are always there; but working with a professional to guide you on the right path will help minimize the size of the bumps you encounter. We have included some recommeded professionals on our web site for the various aspects of your real estate transaction. As always if you have questions about your market or the real estate process in general feel free to contact me....I am happy to serve as a resource.