Frequently Asked Real Estate Questions-Ep. 2

Should I purchase a home warranty?

Most home warranty programs cover Heating and A/C, Appliances, Electrical and Plumbing. Home warranty companies work like this, they will come out and repair these items for a trip fee and if they are not able to repair them, they will replace them. For a 1 year home warranty it is about $400 depending on what company you use. Most will give a discount per year if you sign up for more than one year at a time. It is important to note, this does not replace home owners insurance or a whole home inspection as both of these have different coverage for your home.

As a buyer you can request the seller pay for this on your behalf or you can purchase it at closing, or anytime after. If you have a whole home inspection done on the house you are purchasing, most home inspection companies will give you a 90 day free home warranty.

As an agent I always advise my buyers to review what the home warranty gives you and decide if this is something you feel you will need or will help you in the first year of owning a home. If the appliances or heating and A/C are older units it may make more sense to have a warranty plan, versus if the home is only 2 years old and those items typically covered are fairly new.

For sellers, at times it makes sense for you to automatically include a home warranty for the buyers. If your home comes with a 1 year home warranty, it will take away the buyers concern of a costly out of pocket repair. This may help your home sell faster than a comparable home without a home warranty included for the buyer.

Should I purchase a home warranty? My answer is, highly consider it, with regard to the condition of the items it will cover in the home you are purchasing.

Frequently Asked Real Estate Questions-Ep. 1

Should I get pre-approved before looking for a home? YES!

This is an extremely important part of the process and is most definitely the first step. You want to find out exactly how much you are approved for and make sure you get an estimated payment amount. You want to know that before so you can look at homes in the price range you are comfortable with. Also, you need an estimate of what the down payment amount will be required. This way you will know if you need to save additional funds or this may could change the price range you shop in as well. Here is what I recommend.

1. Ask around for referrals of Mortgage Loan Specialist. Ask your friends, family, co-workers and real estate agent. I am sure someone you know has had a good experience with one and will recommend them to you. I know some of the best in Omaha, you can always ask me for a referral.

2. Meet with at least two of them. Make sure you are a good fit. Have them explain the process to you. The more you know up front the easier it will be.

3. Get your income and asset information together.

4. Go through the actual pre-approval process with the Mortgage Loan Specialist you picked. You should get a letter stating you are pre-approved and an estimated cost sheet showing estimated payment and down payment. As well as interest rate and closing costs.

5. Call me! Or your agent. It is time to start shopping for your new home! Make sure you pick the right agent too. Someone who knows the market and will work hard for you.

Now you are prepared and know exactly what price range you can afford and are comfortable with. The process of purchasing a new home does not have to be overwhelming, you just need to know the right steps and work with an agent that can guide along the way.