Home Warranties Save Lives

Seriously, having a home warranty can do wonders.  

First off, what is a home warranty? Simply put, a home warranty is something that will cover most, if not all of the cost when a major system in your house breaks.  Some of these major systems include your HVAC (short for heating, ventilation, and air conditioning), hot water heater, kitchen appliances, washer and dryer, and more.  Coverage varies depending on which company you buy from and at what level.

A Home Warranty may sound like an extra add on and more money to spend.  But, let me tell you the $500 (general estimate) you spend for one year’s service is most certainly NOT a waste.  If I wasn’t selling homes, I think I would excel in selling home warranties because I am such a believer!

Here is why…

A little over a year ago I purchased a new home.  I had a home inspection done prior to purchasing and nothing was alarming.  After just 3 months of owning I walked inside my house to find that it felt the same 90 degrees inside as it did outside.

What did I do?? Called my Home Warranty company!!! They sent a serviceman out to address the issue and come to find out I needed my entire HVAC unit replaced.  I paid a small fee of $375 (plus $75 for anytime you call for someone to take a look at the problem) compared to the SIX THOUSAND DOLLARS it would have cost and they installed a BRAND NEW SYSTEM! It is a big deal to have a new HVAC so that was a steal!  Since then I have relied heavily on my Home Warranty company. I’m even getting service today on my hot water heater as I write this.

Without my home warranty I would have been struggling to get my HVAC fixed.  Luckily, I didn’t have to worry about it. If you are purchasing a home or even if you already own a home, consider buying a home warranty if the home is past the 10 to 15 year mark.  If you are currently in the process of buying a home, see if you can negotiate it in with your offer to have the seller pay for it. If you are a seller, consider offering a home warranty if you know there may be issues to come.

A Home Warranty may not save your life, but can save you from a serious headache and a lot of money!

How I Bought My First Home

I bought my first home my senior year of college at the age of 22.  While most people may wonder how I was able to do that and come up with the money on my own, it was really quite simple.  More important than money, I had knowledge.  Knowledge of real estate, how it works, and what it takes to make such a purchase. 

One of the most important things to consider when buying a home or any property is how you are going to pay for it -- in my case, a loan.  We had bankers and mortgage lenders frequent our office so I somewhat knew what to expect.  With a loan comes a down payment and after that, monthly payments aka your “mortgage”.  Every now and then these banks or lenders will explain different programs they are offering to make financing easier.  I looked into these programs a bit more myself and found the MHDC program, otherwise known as a low-down payment option for first-time home buyers.  With this, I was only required to put 3.5% down of the sales price. Since I was also still in school at the time of purchase and have student loans, I had a co-signer on the loan to better ensure I could make my payments. 

Along with special lending programs, there is a wonderful line in a contract about “Seller Concessions”.  This means that when submitting an offer on a house you can request that the seller pays for part of YOUR closing costs!! Closing costs can get pricey when you add up your title fees, lender fees, inspections, etc. so it is pretty common to ask for seller concessions.

When closing day came around, I was only required to bring a check of less than $5,000 to BUY A HOUSE. On top of that, I didn’t have to make my first mortgage payment till almost two months after closing! After my purchase, I rented out two of the rooms to friends - so with their monthly rent my mortgage payment is about covered! 

Luckily, I was a licensed real estate agent and knew the process, but lucky for everyone else, if you are not a real estate agent you can easily find one to give you that same knowledge!  Even if you are unsure if you can afford such a purchase, I highly suggest talking to a lender to make sure you are on track financially.  Tell them where you are at and get creative! ;)