Buying your first home is exciting, but it can be equally terrifying, too. Your home is one of the largest investments you will ever make, and ensuring that both your property and your family are protected when accidents happen is important.
There are several variables that will affect your decision to purchase your first home.
Perhaps the inventory of available homes is down, mortgage rates are rising, or property taxes for a specific county are too high. Common misperceptions, such as “you have to put 10% down” can also sway a first-time home buyer from finally buying their starter or dream home.
3 Things Every First Time Home Buyer Should Know
Though there is plenty to consider and evaluate, buying a home for the first time can be a monumental step that should be a time worth celebrating.
Here is what every first-time home buyer should know.
#1 Strengthen Your Credit
Credit scores are often used to determine how risky loaning an individual money may be, which is why it is no surprise that lenders factor it into their equation. Strengthening your credit score affects the interest rate offered and helps determine if you qualify for a mortgage. Needless to say, the better the score, the better the options and rates you can have.
#2 Don’t Forget About Closing costs
First time home buyers tend to focus on how much their down payment be when purchasing their home. However, there are a few other costs to consider, like closing costs. These costs can be anywhere from two to five percent of the loan amount. Closing costs may include title insurance, attorney fees, appraisals, taxes and more, and they will have to be paid to finalize your home purchase.
#3 Choose the Best Homeowners Insurance
Nearly all mortgage companies and lenders require you to purchase homeowners insurance, which helps protect your finances, property, and family.
Homeowners insurance coverage can include:
- Dwelling – Covers damage or destruction to your house in the case of any untimely events, including hail, wind, fire, and theft.
- Personal Property – Covers the contents of your house that are damaged, stolen, or destroyed, including furniture, clothing, technology, and appliances.
- Liability – Covers you against financial loss if you are sued and found legally responsible for someone else’s injury or property damage.
- Medical Expenses – Covers necessary medical expenses incurred in the event there is an accident at your home that caused bodily injury to someone else.
- Loss of Use – Covers additional living expenses if your home is uninhabitable due to a covered loss. Most insurance policies pay 10% to 20% of the amount of your dwelling coverage.
- Other Structures – Covers damages or destruction to other structures on your property, such as your garage, patio, fence, gazebo, small shed or barn.
However, not every home insurance company provides the same quality and quantity of coverage. And each homeowner and lender may have different needs or requirements, which makes finding the best home insurance policy for your new home challenging and time consuming.
At GreatFlorida Insurance, we help simplify the process and help you choose the best policy. Contact us today to find the home insurance options that work for you.