Cheap Home Insurance  

Most every homeowner agrees that a reliable home insurance policy is a priority.  We present a few ways on how to obtain sufficient homeowner's insurance without spending a fortune.  

1. It always pays to spend some time shopping around. The easiest way is to access the Internet and check different rates of homeowner's insurance companies.  For best results, you should compare the insurance quotes of at least three different insurance companies.  

2. Some companies offer a discount of 30-45 % if you purchase a policy online.  

3. One can benefit from discounts if he/she purchases a house and contents insurance policy. Insuring a house and a car by the same insurer may substantially lower your insurance rate.  

4. A homebuyer should be aware of the replacement values of the home. It is advisable to obtain replacement value coverage.  

5. Keep in mind the inflation rate when the time comes to renew your insurance policy.  Many insurance companies automatically adjust your coverage to allow for inflation.  Check with your insurance policy to be sure.  

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How Much House Can You Afford?

There is a rule of thumb that says that if you have the capacity to repay the mortgage, you can afford a single-family house that costs up to two and one-half times your annual gross income. (Annual gross income is the amount you make before taxes are deducted.) Like other rules of thumb, this one is handy and can give you a general idea of how large a mortgage you can afford.  But, because it is so simple, it doesn't take into account all the information that will help you feel comfortable with your mortgage payments.

If you are buying a house with someone else (spouse, parent, adult child, partner/companion, brother or sister or other relative), you should consider your co-purchaser's earnings and existing debts as well. Remember, if you apply for a loan with somebody else, you and your co-borrower are both legally responsible for repayment of the mortgage.

Your buying power depends on how much you have available for the down payment and how much a financial institution will agree to lend you.

Exclusive Buyer Agency  

An exclusive buyer agent, or buyer broker, represents the home buyer and negotiates with the seller and the seller's agent to obtain the best price and terms for the buyer.    

An exclusive buyer agent is loyal only to the buyer.

An exclusive buyer's agent represents buyers only.

An exclusive buyer's agent never represents sellers.

Exclusive buyer's agents do not accept listings.

Exclusive buyers agents will keep the buyer's information confidential.

Exclusive buyers agents will fully disclose to the buyer all information about the home.  

What Does It Cost To Use An Exclusive Buyer's Agent?  

Selling costs are usually built into the selling cost of a home, so typically, the seller pays all brokerage fees and sales commissions. This cost aspect will be discussed with you at your first meeting. You have a choice as a buyer. You can either work with someone who represents the seller. Or, you can work with someone who represents you, and your interests.

Why would you have an agent who represents sellers?

Employ an exclusive buyer agent. Contact us for more information…  

Home Price Slump Helps to Spur Sales

Sales of existing homes posted the biggest jump in nearly three years in February, though sellers got the gains the way Detroit automakers spur sales - by cutting prices.

The National Association of Realtors said recently that home sales rose 3.9 percent last month to an annual rate of 6.7 million from a revised 6.4 million pace in January. It was the biggest percentage increase since March 2004.

Economists surveyed by Briefing.com had looked for a slowdown to a 6.3 million pace.  But even though sales rose from January, the pace was still down 3.6 percent from February 2006.

The report also showed the median price of a home sold in February fell 1.3 percent to $212,800 from a year earlier.  That was the seventh straight month that prices fell from a year earlier.  While home prices can swing widely from month to month, a drop in prices from a year earlier is relatively rare - and is sign of how weak the housing market has become.

There were 3.7 million homes for sale last month, up nearly 6 percent from the 3.5 million in January, and up by a quarter from a year earlier.  Many home buyers have an opportunity now that was only a dream a few years ago when the markets were all white hot.

Are you a potential home buyer wondering if now is the time to make your move?  Contact us, or leave us a comment below.

Net Cost of a Home

The net cost of purchasing a home includes the actual purchase price, of course, but also, long term, includes the cost of financing the acquisition. The cost of the financing portion of the purchase is variable and dependent on market conditions, which are out of the control of the individual, but a good portion of the cost of financing is driven straight off of your credit score and that variable is controllable by you, the individual.

It is very important to get your credit score over 720. If yours is not that high, I highly suggest you connect with a VERY good lender, who can walk you through the steps you will need to take to accomplish a good score like this. My score is a little over 800 and maintaining that level is always in my game plan. If you need a good lender, just let us know!

If you have a comment or question about this article, please let us hear from you.