Mortgage Lending Library
Why New Home Buyers May Want To Think About a Home Warranty
Most home buyers get their home insurance, their new home loan, and move right in. Most home buyers don't even think about home warranties, but this type of insurance can save them a lot of hassle and additional costs down the road. The truth is, when buying a home (especially a used one) a homebuyer never knows what sort of mechanical problems might occur. Plumbing, electrical, and other systems may fail, costing thousands of dollars in repairs. This can be especially damaging during the first year of owning a new home. At this stage, the homeowner may be just getting used to their new home loan and insurance costs. They may not have budgeted for additional expenses and may face real problems when paying for the additional costs. A home warranty is an additional type of insurance that takes care of these costs. Usually, a home warranty lasts for about a year or two and covers things such as wiring, electrical and plumbing systems, the furnace, water heater, range, siding, and roof. Warranties vary, so some may include additional items or fewer items than listed here. If one of the items covered by the warranty fails during the first year after a homeowner closes on the property, the warranty company will send out a repair person to correct the damage. The homeowner will only need to pay a small deductible and the home warranty company will take care of the rest of the cost. A home warranty essentially covers what home insurance does not, and provides a little extra peace of mind for homeowners. For those homeowners who did not get home warranty coverage, problems with the roof, siding, plumbing, electrical systems can be bad news. If you are a homeowner having trouble paying for repairs, Lowest Mortgage Rates can help you find a home equity loan or online home improvement loan. Simply call 1-866-747-0627 or fill out a free online application in order to get low quotes for a home improvement loan or home equity loan to help you repair your property. If you do not have a home warranty, this solution may be the most affordable way to make repairs.