Getting started with The Home Buying Process With Chubb Realty
When it comes to selling a home in the Boston area, you need to find a home that will meet your needs.
While buying a home is stressful it is important to work with a REALTOR that makes the process as smooth as possible for you and your family.
Ask Yourself A Few Questions
- Where Do You Want to Live?
- What Kind of Home Do You Need?
- How Much Space Do You Need, or Which features?
- What is Your Determined Price Range?
Why Buy With Chubb Realty Group?
With Chubb Realty Group in Quincy, you'll find a realty dream team that has years of experience selling homes and serving both home buyers and sellers...
Everything You Need To Know About Homeowner’s Insurance
So you’re either looking at buying a home, or you have just purchased one. If you’re going through a mortgage company, it’s almost guaranteed that you’re going to be required to get homeowner’s insurance coverage for the full value of your home in order to be approved for the mortgage.
What Does Homeowners Insurance Cover?
So what exactly is it? Homeowner’s insurance protects you in the instance of damage to the interior and exterior of your home, as well as the loss or damage of your personal possessions. Homeowner’s insurance can also cover personal liability for damage or injuries caused by your or your household.
Types of Homeowners Coverage
In the United States, there are eight standard types of homeowner’s insurance, from HO-1 to HO-8. These types of insurance offer different levels of protections, and homeowner’s choose which based on the type of home and what they need.
Insurance typically covers three levels:
- Actual cash value
- Replacement cost
- Extended replacement cost
Actual cash value is the standard, it covers the value of the house and your belongings after depreciation. Replacement cost is the next level up—you get actual cash value without deducting the depreciation. Extended replacement cost is comprehensive, which covers the entire cost of repairing or rebuilding up to a maximum (usually 20% over your policy limit).
Are you looking for your dream home?
If you are debating purchasing a home right now, you are probably getting a lot of advice. Though your friends and family will have your best interest at heart, they may not be fully aware of your needs and what is currently happening in the real estate market.
Ask yourself the following 3 questions to help determine if now is actually a good time for you to buy in today’s market.
1. Why am I buying a home in the first place?
This truly is the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with money.
For example, a recent survey by Braun showed that over 75% of parents say “their child’s education is an important part of the search for a new home.”
This survey supports a study by the Joint Center for Housing Studies at Harvard University which revealed that the four major reasons people buy a home have nothing to do with money. They are:
- A good place to raise children and for them to get a good education
- A place where you and your family feel safe
- More space for you and your family
- Control of that space
What does owning a home mean to you? What non-financial benefits will you and your family gain from owning a home? The answer to that question should be the biggest reason you decide to purchase or not.
2. Where are home values headed?
According to the latest Home Price Index from CoreLogic, home values are projected to increase by 5.3% over the next...
Home Mortgages, Are They Still Difficult to Aquire?
There is no doubt that mortgage credit availability is expanding, meaning it is easier to finance a home today than it was last year. However, the mortgage market is still much tighter than it was prior to the housing boom and bust experienced between 2003 - 2006.
The Housing Financing Policy Center at the Urban Institute just released data revealing two reasons for the current exceptionally high credit standards:
- Additional restrictions lenders put on borrowing because of concerns that they will be forced to repurchase failed loans from the government-sponsored enterprises or Federal Housing Administration (FHA).
- The concern about potential litigation for imperfect loans.
What has been the result of these concerns?
6.3 Million Less Mortgages
The Policy Center report went on to say:
“It was so hard to get a mortgage in 2015 that lenders failed to make about 1.1 million mortgages that they would have made if reasonable lending standards had been in place. From 2009 to 2014, lenders failed to make about 5.2 million mortgages thanks to overly tight credit. In total, lenders would have issued 6.3 million additional mortgages between 2009 and 2015 if lending standards had been more reasonable.”
In an interview with DSNews, Laurie Goodman and Alanna McCargo of the Policy Center further explained:
“Our Housing Credit Availability...
How Much is "Enough"?
There are many potential homebuyers, and even sellers, who believe that they need at least a 20% down payment in order to buy a home or move on to their next home. Time after time, we have dispelled this myth by showing that many loan programs allow you to put down as little as 3% (or 0% with a VA loan).
If you have saved up your down payment and are ready to start your home search, one other piece of the puzzle is to make sure that you have saved enough for your closing costs.
Freddie Mac defines closing costs as:
“Closing costs, also called settlement fees, will need to be paid when you obtain a mortgage. These are fees charged by people representing your purchase, including your lender, real estate agent, and other third parties involved in the transaction. Closing costs are typically between 2 and 5% of your purchase price.”
We’ve recently heard from many first-time homebuyers that they wished that someone had let them know that closing costs could be so high. If you think about it, with a low down payment program, your closing costs could equal the amount that you saved for your down payment.
Here is a list of just some of the fees/costs that may be included in your closing costs, depending on where the home you wish to purchase is located:
- Government recording costs
- Appraisal fees
- Credit report fees
- Lender origination fees
- Title services (insurance, search fees)
- Tax service fees
- Survey fees
- Attorney fees