When purchasing a new home, it’s important to do in-depth research on all facets of the homebuying process. One thing you’ll need to understand is how to best protect yourself and your investment if anything were to go wrong. Check out the information on home insurance and/or homeowners insurance versus home warranty below to educate yourself on your options.

Home Insurance
If you ask “does homeowners insurance cover mold”, here is the answer. Homeowners insurance pays for any accidental damages and loss that are caused by fire, lightning strikes, windstorms, and hail. However, damage from earthquakes and floods is typically not covered. It also covers the replacement of personal property in case of theft or damage and liability if a person were to get injured in your home or on your property.

According to American Home Shield, the average annual cost of a homeowner’s insurance policy ranges between $300 and $1,000. The bank usually asks you to obtain a policy before the mortgage is issued. Make sure to keep in mind that each type of coverage in the policy is subject to a limit. In most cases, you will have to pay a deductible.

Home Warranty
America’s preferred home warranty is designed to cover the cost of repairs and replacements of larger appliances. It also covers crucial systems in your home that may fail or break due to age and wear and tear. This includes but isn’t limited to HVAC, electrical, or plumbing components, kitchen appliances, and your washer and dryer. With a home warranty, you are required to pay premiums year-round even if you do not use it. It won’t cover damages if appliances were not maintained properly or if the damage is from a fire or other disaster.

Diversify credit! Your credit mix is an important factor a lender/underwriter is reviewing when trying to qualify you to buy a home.

Although this pandemic has had an extremely negative effect on our lives, from a real estate perspective, it has created a great opportunity for those who are interested in buying a property. If you are in the market to buy now, very soon, or sometime in the future, it is wise to start looking at your credit. Just having the right credit score will not guarantee approval, your credit mix is just as important.  The term ‘credit mix’ encompasses the items that make up your credit as well as the age of your credit report.  

What’s a good credit mix?

Your credit lines (or tradelines) are very important; generally speaking, a good mix is 2 – 3 unsecured tradelines lines, i.e. credit cards, lines of credit, etc. 1 – 2 installment loan(s), i.e. a car loan and/or fixed-rate loan with the occasional student loan mixed in for a good number of us!  For your credit lines, you should try and keep your balances at 10% – 30% of the line amounts.  An example of this is if you have a credit card with a limit of $2,000, you want to keep the balance at no more than $200 – $600 while you are shopping for a home. 

The age of your report is also important, you may have a great score and all the tradelines lines needed, but if your credit is only 1-year old, additional questions may be asked and you may not qualify because you haven’t established your credit.  To verify your credit’s age, confirm how old your oldest tradeline is, which will determine the age of your credit.

Lastly, but most importantly, Do Not Use Your Credit While Homebuying! I can’t stress this enough to my clients who are buying.  One inquiry could make the difference in you being in contract to purchase your new home, the lender pulls your credit again at closing, and your score dropped because of that inquiry and you do not qualify anymore.  This is a sure-fire deal killer and I have seen it happen.  Don’t let it happen to you!

If you want to know more about diversify credit and homebuying, visit Bascomb website https://bascombrealestate.com and talk to us!

When you move to a new area, particularly for a new job, one of the many decisions that may be considered is whether you should rent or buy a home in your new city.  Either way, real estate agents in Seattle Washington will be a huge help in deciding which is which. Also, there are additional questions one would consider:

1. How long will I be here?
2. Does it make sense from a financial perspective?
3. Where would I live if I am not familiar with the area?

The list of questions goes on, but for transplants to the Pacific Northwest the answer is pretty simple, YES! Buying property in either King, Pierce, or Snohomish Counties is a practical move given our booming economy and market.  If you stay 1 year or 10 years, the property you purchase will more than likely cost you less than renting while you reside in the area. Given the increase in rents, if you leave the area you can convert your property to an investment vehicle or sell it and use the equity for your next move.  Finding the right area and checking real estate agents in Seattle Washington is just a click or call away. Let us help you answer those burning questions around buying!

As a real estate broker, my relationship with my clients doesn’t end at the closing of their transactions. I provide support with whatever my clients need. There are questions about rates as they are ready to refinance; home renovation; new purchases and the list go on.

Recently one of my clients contacted me, she had purchased her home the previous year and had some concerns regarding her transaction. She was a first-time homebuyer and had purchased a condo and after a year she confessed she wasn’t happy with her transaction. We got together for tea, so I could find out what exactly her concerns were and help her resolve them. What she disclosed to me was one of the many things I discuss with my clients but may not always get; full disclosure.

What the problem was

She acknowledged that, although I talked with her about providing me and her lender full disclosure regarding her purchase, she did not provide it. There was pertinent information that needed to be shared with us as her homebuying partners, but she omitted these crucial pieces. Now she finds herself in a situation she isn’t necessarily happy with because she did not provide me with all the critical information I needed to help her make the right decisions when it came to her purchase. She is very happy she bought a home, but not necessarily the circumstances by which it was purchased. This is the first time I’ve had a client admit this to me. I was so glad she did. We were able to discuss a plan of action and next steps and we are on the way to her turning this situation around for the better!

What can you do as a first time homebuyer

As a buyer or seller, it is imperative you work with someone who you can trust. You need to trust in their ability to execute your real estate transaction properly. Trust their capacity to counsel you through the process, and your comfort in sharing all the information that must be shared. Even if you have bought and sold before and are not a first-time homebuyer. Every transaction is different and requires a professional to ensure your needs are met and you end up with the best-case scenario for you! Study after study and survey after survey reflects the need for a real estate professional and consumers’ wantonness to work with one. What is not shared is the need to provide your real estate agents in Seattle Washington with the adequate tools she/he needs to support you and your family!

The holidays are coming, on a rocket, I might add; I know buying or selling a home is the last thing on your Christmas to-do list.  But the Seattle real estate market is prime for just that this time of year!

Our local real estate market has come off the fever pitch of summer to a very healthy pace, and the numbers from October certainly support this assertion.  For South Puget Sound, there are still numerous homes for sale at many price points.  Providing a great opportunity for buyers, with the ability to negotiate a strong contract; and sellers who can be confident that the market is supporting listings that are priced right!

Make Christmas 2018 one to remember and contact us to buy and/or sell today!