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Cars are large and powerful, and driving has risks. So some degree of auto insurance coverage is legally required. In most states, at least, basic liability insurance is required. If you drive without insurance, you can face expensive fines or have your license revoked even if you drive very well and don't have an accident. If you are involved in an accident, auto insurance can save you thousands in repair or replacement costs for your car and potentially another car or property. It's even more expensive to address human repairs. Medical costs from accidents can reach major sums. Many auto insurance policies include options for medical. Auto insurance is just a required aspect of owning a car. It's legally required and it provides financial and physical security when you drive.
Don't wait for a hundred year storm to learn about flood insurance. Here are some key facts. One, there's generally a 30 day delay before new flood insurance coverage is in force two. It's not just riverfront homes, one in five flood insurance claims are made from low risk areas. Three. Standard homeowners insurance will not cover floods. Fortunately there are solutions. Flood insurance is quite affordable. The Federal Emergency Management Agency says that annual flood insurance premiums can be as low as $112. You can purchase flood insurance from any insurance company that participates in the National Flood Insurance Program. You can supplement N F I P coverage with private insurance for additional coverage. Not having flood insurance is costly. Damage from that rising water could cost you thousands, even an additional loan on top of an existing mortgage. Visit flood smart.gov and talk to your agent to understand your options.
With collision coverage when your car hits an object like a tree, or another car your insurance company will pay for repairs to YOUR car. If you have a “deductible”, you’ve agreed to pay that much in repairs yourself first. Then your insurance pays up to the limits of your coverage which should equal the value of your car. Collision doesn’t cover: medical bills, theft, or car damage NOT caused by a collision.
Books and songs have titles; so do homes! The word "title" has a specific meaning in relation to property; it essentially means valid, provable ownership. If you "hold title" on a home, you own it. Its not as automatic and clear-cut as you might expect, so its worth watching this short video to get the basic idea. If youve ever played a board game where you own properties, houses and hotels...thats a great way to get keep "title" in mind. Imagine what would happen if the game table fell over, and all the pieces and cards were scrambled. Being absolutely sure who owns what, and where the pieces should go, suddenly gets complicated. Fortunately, in the world of real property, government entities act like a neutral party keeping records. In the long run, your home may become one of your biggest assets. You can insure your ownership of the asset with title insurance. Meet Stickman; hell explain title insurance with that board game.
Intimidated by mortgage loan terms and the list of fees? This short explainer video will help you get a handle on all of it. While a mortgage involves borrowing money for a home, there can be quite a few items and fees in the stack of papers. "Loan origination" -- the process of documenting and evaluating your loan application -- is not free. The "loan application fee" is one of the key components to understand. This fee generally covers: The lenders costs to verify, evaluate and underwrite the loan. This fee also pays for appraisal of the property — a professional valuation for the lender (not for the buyer.) Fees to "pull" your credit history. Other surcharges; ask the lender for a detailed list. Loan application fees are generally non-refundable.
The month-to-month home mortgage payment primarily pays off principal and interest. Many loan providers likewise consist of regional real estate taxes, homeowners insurance coverage, and home mortgage insurance coverage, if appropriate. If you are re-financing compare what is and isnt consisted of in your funding alternatives. View this video and it should make sense.
A "home warranty" is frequently available at the time of purchase, and may even be a tool in negotiating terms. These warranties provide protection for a short period of time — like 1 year — against unexpected costs in home systems and appliances. A failed heater or oven, for example, might be covered by a home warranty. This financial protection in the period immediately after home purchase can be helpful, especially if down payment and closing have drained cash reserves. Home warranty may not be an option after purchase, so consider the benefits and costs prior to finalizing your deal.
Homeowners insurance — or the paid receipt for it — is required at closing. Shopping for insurance coverage, and comparing plans early in the home-purchase cycle can pay off. Insurance agents and representatives can be a terrific resource for information. They may help you understand how insurance costs differ between properties. They might also have ideas on reducing coverage with additions like home-security systems. Regardless, proof of insurance will be required to consummate the purchase.
Youre ready to buy a house; how do you "Make an offer"? There is a formal process, and the real estate agent(s) will assist you. The offer will involve: Price: how much are you offering? Under what conditions? Time: when do you want to close? Move in? Financial Terms: How much are you offering in down payment? What financing details might affect the offer? Contingencies. Does the offer depend on any other events, such as the sale of your existing home? Earnest Money: what amount are you committing to show that you are in earnest about the purchase? Deadlines: how long is the offer valid? An offer will include the complete legal description of the property, and a few other formal details. Keep in mind, it is "an offer, not a deal." Buyers will frequently provide a counter-offer that changes some of the terms to meet their desired outcome.
Buying a home is so complex that getting started may be intimidating. Ask yourself some basic questions before getting deeply involved. Are you prepared financially and emotionally to make the long-term investment and commitments involved? Are you clear on your budget, both up-front costs and monthly costs? Have you discussed the things youre looking for in the house — space, rooms, features and the rest — in advance? Have you narrowed down the places that you think will fit your life? You will find it easier to get started after being clear on these key factors; writing them down may even help you stay objective through the many decisions to come.