July 20, 2021
Home Insurance Awareness: What Coverage Do You Need When Buying a Home?
Being aware of home insurance is fundamental when it comes to buying a house. Home Insurance goes hand in hand with your mortgage, but how do you know what you need? There are several kinds of insurance, so let’s take a closer look at what you need to consider.
Probably the most essential insurance coverage you can get when you buy a home is homeowners’ insurance. It protects your home from damage or theft, and it’s required by almost all mortgage lenders to qualify for a loan. You can learn more about homeowners’ insurance here.
Hazard or Fire Insurance
While homeowners insurance covers many aspects of damage to the property, it doesn’t cover everything. That’s why many home buyers are choosing additional coverage such as hazard or fire insurance. If a weather event is covered in the policy, damage from nature will be covered. Also, consider that homes in flood plains may require flood insurance as well.
Private Mortgage Insurance, also called PMI, is often required if you have a conventional home loan. PMI is generally arranged by your lender and will protect them if you cannot pay for your mortgage. There are several options, and PMI isn’t always required, so always talk to your lender about what you need.
Another type of insurance often required when you purchase a home is title insurance. When you receive the deed, legal ownership, or the “title,” transfers to you. It protects you if anyone indicates they have a claim against the home and sues before the purchase is complete. Common claims can include situations where the previous owner failed to pay taxes or contractors for work done on the house.
Here’s one you may not think about but could come in handy in the future. Legal insurance is sometimes called Pre-Paid Legal Services. It’s often lumped into the insurance category, but it’s a discount plan for future legal services. However, it can be helpful because you never know what kind of legal challenges you may face in the future. Some employers offer these types of plans, so you may want to check with your company.
We know Insurance Awareness isn’t the most exciting topic, but we hope we’ve given you some information you can use to help you when you’re buying a home.
GoPrime is not licensed to sell insurance. Please consult a licensed insurance agent. Do you want to know more? Call GoPrime Mortgage in West Asheville today.
Do you want to understand the mortgage process better and get preapproved for your next home purchase? Call the team at GoPrime Mortgage today. GoPrime Mortgage in West Asheville is here to help. Call us today at 828-348-1907 –Zachery Adam at GoPrime Mortgage in West Asheville.
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Explore Your Options
As a first-time homebuyer, you may believe that you have to get your loan through a bank or credit union. But that’s not the case. An independent mortgage lender often provides more options than a bank can. Shop around. See who gives you the best deal on a mortgage loan that’s right for your circumstances. You may be surprised.
Getting pre-qualified for a mortgage loan is the best first step to take when you want to buy your first home.
To get a quick, down-and-dirty — and completely unofficial and nonbinding — idea of what your monthly mortgage payment would be based on the cost of a house.
Get good, professional advice for what to do and what not to do when you’re seeking to buy your first home.
When applying for a mortgage loan, you may need reams of financial records. Or not. It’s different for everyone. Here is a complete list to give you an idea.
Everyone has questions when it comes to buying a house and applying for a mortgage loan. This page answers the most common questions people have.
Law requires that you be provided with this monstrous document when you apply for a loan. Here is a helpful summary of its contents.
As you explore down the rabbit hole of mortgage loans, you inevitably will find terms and acronyms that you don’t understand. Look here for help.
GoPrime Mortgage, Inc. offers a wide range of mortgage loan types. To understand the differences, read this page and then talk to Zachery Adam and his Team.
Branch Manager, Loan Officer
"What we do is so far more important than lending and buying houses. We are in the business of facilitating dreams and honoring the start of a new home.”
"I enjoy working with clients new to the homebuying process. Remembering what it was like for my family, I will take my knowledge of the mortgage process and make it easier.”
"“I wake up every morning with incredible appreciation. I love what I do.” ”
Loan Officer Assistant
"My eventual goal is to become a loan officer. I love working within the community and being a part of the GoPrime Mortgage team.”