Homeowners Insurance When Buying a Home in Farmington Hills MI

Homeowners Insurance When Buying a Home in Farmington Hills MI

Homeowners Insurance When Buying a Home in Farmington Hills MI –  Buying a home is exciting whether you are a first-time homebuyer or an experienced homeowner. However, often overlooked in the long list of things to do between price negotiations, home inspection, and mortgage terms is getting homeowners insurance, which is an important step in the home buying process and one that should be a priority. 

Of course, If you plan on paying off your home in cash, then technically you don’t need home insurance before closing. There’s no law that requires home insurance, but most mortgage lenders will require you to get home insurance coverage before they will agree to finance your home purchase. 

Home insurance protects the mortgage lender’s investment by providing the money to repair or rebuild the home if it is damaged or destroyed by a fire, a lightning storm, a tornado, or some other covered event. By securing the coverage you need before you even move into your new home, you safeguard your purchase from disaster.

What does homeowners insurance cover?

Most homeowners insurance policies cover flooding from a burst pipe or other water leak in your home, but they usually don’t cover flooding as a result of a natural disaster. Depending on the location of your home, your lender may require you to buy insurance that covers earthquakes or floods. 

Basic homeowners policies will usually include liability coverage to protect you against legal action if someone is hurt on your property. 

If you have valuable items that exceed the special dollar limits of your policy, such as a fine art collection, sports memorabilia, or expensive jewelry, you may want to purchase extra coverage, known as a Personal Articles Floater (PAF).

Shopping for homeowners insurance

It’s a good idea to start shopping for homeowners insurance as soon as you sign a contract to buy a Farmington Hills MI home. This allows you to get your policy in place before closing on the purchase. It’s important to research various policy options as they may offer different levels of coverage. 

Once you have decided on an insurance policy that fits your needs, make sure you check that it also meets the requirements of your lender. 

The cost of home insurance

The cost of homeowners insurance depends on a number of factors, including the coverages you select, features of your home, and the value of your personal belongings. There may also be extra costs for additional coverage or increased coverage limits.

Once you’ve determined that your desired policy meets your mortgage lender’s requirements, you can purchase the insurance, which should be done sometime before you go to the meeting to officially close on your home. 

The insurance company will typically pre-approve the policy and then wait for your escrow/title company to send a request for Proof of Insurance when the final closing date is near. The insurance company will then email or fax the confirmation of coverage before the closing date. 

Paying for your home insurance

Paying for your home insurance is usually made simple with an escrow account, which is a separate bank account that you maintain with your mortgage lender. An escrow account can help you set aside money each month for bills that relate to your property and usually come due as a lump sum.

Typically, your escrow payment covers part of your property taxes, mortgage insurance, and homeowners insurance. When you have an escrow account, you make a single payment, usually monthly, which includes both your loan payment and your escrow payment.  

The takeaway

When buying a home in Farmington Hills MI, your lender will probably require at least a basic homeowners insurance policy and may also require additional coverage for natural disasters such as floods or earthquakes. Make sure that you give yourself plenty of time to get your policy in place before closing on your new home.

Partner with Top-rated Farmington Hills MI REALTOR® – Tom Gilliam

Whether you are interested in Farmington Hills MI homes for sale or it’s time to list your current property, experience matters most in a changing market. Top-rated Farmington Hills REALTOR® – Tom Gilliam offers over 20 years of local experience, in-depth market knowledge, and access to the most up-to-date listings for Farmington Hill MI homes for sale and the surrounding area.

Known for his professionalism and care for every detail, Tom is an expert at uncovering the perfect home for his clients’ lifestyle needs in the right neighborhood or community.

2020 Best of Farmington Hills REALTOR - Tom GilliamIf you are ready to sell your home, Tom will create a comprehensive marketing plan that exposes your home to the public as well as to other real estate agents through the Multiple Listing Service (MLS), other cooperative marketing networks, open houses for agents, etc.

Your listing will appear on all the most popular real estate sites where buyers spend hours a day looking at homes such as Realtor.com, Zillow, Trulia, REMAX, Redfin, and dozens of others. 

Your property will also be featured on Tom’s own highly-trafficked website Homes2moveyou.com. You can be assured that your home will get sold quickly and for the best price.

Search Farmington Hill MI Homes for Sale

Tom works very hard for his clients. He will protect your interests, advocate for you, negotiate on your behalf, and go the extra mile to ensure the best possible results. If you or someone you know is interested in buying or selling Farmington Hills MI real estate, please give top-rated Farmington Hills MI REALTOR® – Tom Gilliam a call today at (248) 790-5594 or you can get in touch here.

Tom Gilliam, REALTOR®
RE/MAX Classic
29630 Orchard Lake Rd.
Farmington Hills 48334
Direct: 248-790-5594
Office: 248-737-6800
Email: Tom @ Homes2MoveYou.com
License #314578  

Buying A Home in Farmington Hills MI? Guide To Homeowner’s Insurance  

Buying A Home in Farmington Hills MI? Guide To Homeowner’s Insurance  

Buying A Home in Farmington Hills MI? Guide To Homeowners Insurance – If you are planning on buying a home in Farmington Hills MI, and taking out a mortgage to pay for that home, homeowners insurance is a necessity. Although homeowner’s insurance coverage isn’t required by law, homebuyers looking to finance their purchase will quickly learn that your bank or mortgage company will most likely require you to get homeowner’s insurance coverage. 

Lenders need to protect their investment 

Lenders need to protect their investment in the unfortunate event that your house burns down or is badly damaged by a hurricane, tornado, or another disaster. Typical homeowners insurance policies offer coverage for damage caused by fires, lightning strikes, windstorms, and hail. 

It’s important to note that not all natural disasters are covered by homeowner’s insurance. For example, damage caused by earthquakes and floods is not typically covered by home insurance. If you live in an area that is likely to flood, the bank or mortgage company may require you to purchase additional flood insurance.  

Home insurance safeguards the lender and you against financial loss 

Homeowner’s insurance provides financial relief if a covered event damages your home, property, or personal belongings. It can also cover personal liability if you are held legally responsible for damage or injury to someone else.

Most mortgage companies will require you to have insurance coverage for the full or fair value of a property (usually the purchase price) and won’t finance a residential real estate transaction without proof of insurance. 

Home insurance policies typically include six types of coverage: 

Coverage type What it does Typical amount
Dwelling Covers damage to the home and attached structures, such as a porch. Enough to rebuild your home.
Other structures Covers stand-alone structures on your property, such as a fence or shed. 10% of dwelling coverage.
Personal property Pays to repair or replace belongings that are stolen or damaged in a covered event. 50% to 70% of dwelling coverage.
Additional living expenses Helps pay temporary living expenses while your home is being repaired. 20% of dwelling coverage.
Liability Pays if you injure someone or cause property damage unintentionally or through neglect. $100,000 to $500,000.
Medical payments Pays to treat someone injured on your property, regardless of who’s at fault. Also pays if you, a family member, or a pet injures someone elsewhere. $1,000 to $5,000.

Policy rates are largely determined by the insurer’s risk that you will file a claim 

They assess this risk based on past claim history associated with the home, the neighborhood, and the home’s condition. Insurers typically consider the following items to determine your home insurance price:

  • What it would cost to rebuild your home 
  • Your home’s age, condition, and other characteristics 
  • Distance from your home to the nearest fire hydrant 
  • Your city’s fire protection rating 
  • Your claims history and the claims history of others in your neighborhood 
  • Your coverages, limits, and deductible 
  • Items that pose, major injury risks, such as pools or trampolines 

Coverage is subject to a limit and deductibles 

Keep in mind that each coverage in a homeowners insurance policy is subject to a limit – or the maximum amount your policy would pay toward a covered loss. In most cases, you will have to pay your deductible before your insurance benefits kick in to help cover a loss. You can typically adjust your coverage limits and deductibles to fit your needs.

Once you pay off your mortgage  

No one will force you to buy homeowner’s insurance one your mortgage is paid off. However,  since your home may be your largest asset, home insurance is almost always a smart purchase –  giving you both property and liability coverage.  

Partner With the Best Farmington Hills MI REALTOR® – Tom Gilliam

2020 Best of Farmington Hills REALTOR - Tom GilliamWhether you are interested in buying a home in Farmington Hills, MI, or its time to list your current property, experience matters most in a changing market.

With over 20 years of local experience, Farmington Hills REALTOR® – Tom Gilliam is very familiar with the Farmington Hils market with access to the most up-to-date listings. Known for his professionalism and care for every detail, Tom is an expert at uncovering the perfect home for his clients’ lifestyle needs. 

Search Farmington Hill MI homes for sale

For sellers, Tom will create a marketing strategy that exposes your home to the public as well as to other real estate agents through the Multiple Listing Service (MLS), other cooperative marketing networks, open houses for agents, and so on.

Your listing will appear on all the most popular real estate sites where buyers spend hours a day looking at homes such as Realtor.com, Zillow, Trulia, REMAX, Redfin, and dozens of others. Your home will also be featured on Tom’s own highly-trafficked website Homes2moveyou.com.

You can be assured that Tom is fully committed to getting your home sold quickly for the best price. Tom works extremely hard for his clients and provides the kind of personalized service you need when buying or selling a home.

As your personal agent, Tom will protect your interests, advocate for you, and be your trusted guide and advisor throughout the home buying or selling process. If you or someone you know is interested in real estate in Farmington Hills MI, please give Tom Gilliam a call at (248) 790-5594 or you can reach him here.

Tom Gilliam, REALTOR®
RE/MAX Classic 
29630 Orchard Lake Rd.
Farmington Hills 48334
Direct: 248-790-5594
Office: 248-737-6800
Email: Tom @ Homes2MoveYou.com
License #314578

Oakland County Zombie Foreclosures Following You

Oakland County Zombie Foreclosures Following You

Oakland County Zombie Foreclosures Following You

Look around your Oakland County neighborhood. There may be zombies out there.

We’re not talking Night of the Living Dead zombies. We’re talking zombie foreclosures that are in Oakland County. And they can be scarier than anything George Romero ever dreamt up: Zombies aren’t real; zombie foreclosures are. And, they Oakland County Zombie Foreclosures Following Youcan cause big problems for homeowners.

Zombie foreclosures are homes that have been abandoned by their owners but not yet taken over by banks. The owners have stopped making their monthly mortgage payments. They may be long gone. But the banks, because they are so far behind on their foreclosure work, may not take ownership of the abandoned home for months in Oakland County.

Scary numbers: According to early summer 2014 numbers from RealtyTrac, as many as 141,406 zombie foreclosures lurked in neighborhoods across the country. The good news? That’s down 16% from one year earlier. The bad news? There are still too many of these homes out there.

And while these zombie properties are nuisances to other homeowners—often no one is taking care of these homes—they can be especially dangerous to their former owners. Why? Walking away from a home doesn’t absolve owners of certain responsibilities. Too many homeowners don’t understand this.

Haunted by zombies: What if your home is one of these zombie foreclosures? Was it smart to move out of the home immediately after you received a foreclosure notice? Can you just wash your hands of the Oakland County property once you vacate the premises?

The short answer to these questions? No.

A zombie foreclosure can haunt you for years. A traditional foreclosure does this anyway, remaining on your credit report for up to seven years. Your three-digit FICO credit score can immediately drop by 100 points or more after a foreclosure. This makes applying for future credit—an auto loan, personal loan, credit card or, of course, another home loan—difficult. Most lenders won’t risk lending to you until you’ve rebuilt your credit score.

It gets worse.

Zombies don’t die: In the typical foreclosure process, you’ll receive a foreclosure letter (“notice of default”) from your lender. The bank is then supposed to take ownership of your home if you can’t pay back the mortgage dollars that you owe. When banks are backlogged, though, this process doesn’t always run smoothly. You might move out quickly after receiving a foreclosure notice. But the bank might not get around to taking over your home for months or, in extreme cases, years.

But after you’ve moved out, you’re still responsible for paying your homeowners insurance and property taxes. If you don’t pay these bills because you think the bank has already taken over ownership of your home, you might be in for a surprise when your county sends you a hefty bill for back taxes.

Protecting yourself: The best move after receiving a foreclosure notice in Oakland County? Stay in your home until the bank takes ownership of the property. Continue to mow your lawn and maintain your property. Pay as many bills as you can afford to, including, if possible, your tax and insurance payments. Don’t move until you are absolutely certain that your bank has taken ownership.

Once this finally happens, you can move on to the next stage of your financial life, and repair your credit following foreclosure.

The good news is you can steadily rebuild your credit score after losing a home to foreclosure. You’ll need to start a new financial history of paying your bills on time and eliminating as much of your credit-card debt as possible. After doing this for several years, your credit score will begin to improve. And then your dream of a second chance at owning in Oakland County a home can become a reality.

Top Real Estate News Of The Week

Top Real Estate News Of The Week

Top Real Estate News Of The Week                                                                             Top Real Estate News Of The Week


Pending Home Sales Up
And we have some positive numbers to report today – Pending Home Sales in July rose 3.3% on a month over month basis according to the latest data from THE NATIONAL ASSOCIATION OF REALTORS®. The P-H-S numbers, a leading indicator of the health of the housing market, are at their highest level since August 2013. We talked to Jed Smith, the Director of Quantitative Research for THE NATIONAL ASSOCIATION OF REALTORS®, who gave us some insight into how and why we are seeing these strong gains.

Housing Forecast Looks Sunny
The forecast for the national real estate market is in. And what do we see? – A lot of blue skies and sunshine.

And that’s according to Freddie Mac, which is out with a new report. It shows there’s been a dramatic shift in the overall economy, and THAT should lead to a strong housing market well into next year and beyond. Economists say housing starts should be around 1,300,000 in 2015. That would be an increase of 28% over this year’s pace.

The main reason for this is rapid growth in the labor market. Employers have, on average, added more than 200,000 jobs for the first 7 months of this year.

Continued improvement in this area is expected to fuel homebuilding activity, and lead to a housing market that’s driven by solid fundamentals.

Credit Impacts Homeowners Insurance
Every homeowner with a mortgage understands how important their credit history is. If we don’t have a good record, we have a tough time finding a good deal on a home loan. As it turns out, a poor or even a so-so credit score can also make homeowners insurance rates MUCH higher.

A new survey from the online insurance brokerageInsuranceQuotes.com shows homeowners with bad credit pay 91% more for the insurance on their home than homeowners with excellent credit. Real Estate Today asked Laura Adams, senior analyst withInsuranceQuotes.com, why this disparity exists.

Three states, California, Massachusetts, and Maryland prohibit Insurance Companies from factoring credit scores into their rate analysis.

Where to Find the Largest Homes 
Having a large home can be luxurious…and we all think of large homes as being incredibly expensive. But? Think again.

Believe it or not, there are places you can go to find a big house WITHOUT getting slammed by big sticker shock.

Builder Magazine, which provides information on housing, just released a study looking at the top five cities for buying a large home that’s relatively inexpensive. Researchers looked at the major markets – those with a population of more than 500,000. They also took into account things like average living space and price per square foot.

In the top five are Nashville – Tennessee, Las Vegas – Nevada, Jacksonville – Florida, Dallas – Texas.

And number one was Oklahoma City. It has the lowest average cost per square foot at $203. And the largest average lot size, at more than 18,000 square feet.

Home Builder Confidence is Up
Most of the companies that build homes in the U.S. are happy about where the housing market is heading. According to a new report from the National Association of Home Builders, confidence among these companies was up AGAIN in August.

That’s the third consecutive monthly gain for that reading.

The confidence index is now at 55. Anything above 50 is considered good – it means the majority of builders have a positive view of where the market currently is and where it’ll be in the near future.

Analysts say the employment picture is getting brighter and builders are continuing to see a noticeable increase in the number of serious home buyers entering the market. Other factors contributing to the improvement include low mortgage rates and affordable home prices.

Broad Impact of Foreclosure Drop
We keep seeing foreclosure activity drop lower every month.

Here’s where we stand right now – delinquency and foreclosure rates are at their lowest levels in more than 6 years. Foreclosure starts haven’t been this low since 2006. And, in states that were hit hard during the housing crisis, foreclosures and delinquencies are back to pre-recession levels.

That’s a good thing for the real estate market in as a whole. And individual homeowners will see the benefits of all this progress, according to the Mortgage Bankers Association – which represents the real estate finance industry.

Experts say homeowners can expect to see various improvements. Their property values should continue to increase…since fewer distressed properties are pulling down nprices in the neighborhood. And it’s welcome news for first-time homebuyers, who can expect banks and mortgage companies to lend with more confidence.

Pending Home Sales Up
Expect more home sales over the next few months. THE NATIONAL ASSOCIATION OF REALTORS® has released its Pending Home Sales report and contract signings increased 3.3% on a month to month basis. W

We talked with Jed Smith, the Director of Quantitative Research for THE NATIONAL ASSOCIATION OF REALTORS®.

The price of homes is also expected to show gains this year. NAR projects the median existing home sales price nationwide will grow between 5% and 6% in 2014 on a year over year basis.

Home Demand is Alive and Well
In order to have a robust home buying environment, the United States needs to be filled with plenty of demand for – you guessed it – housing.

So, do we really have enough current demand to drive the market forward?

Sig Anderman is the CEO of Ellie Mae – which provides services for the mortgage industry. He tells Fox Business, demand for homes is growing all the time.

Anderman notes that mortgage interest rates are still at unusually low levels, historically speaking. He believes THAT is also motivating potential buyers.

Down Payments on Homes are Rising
We all know how it works. To get a home loan – we usually have to hand over a down payment. But what you might not know is down payments have been rising.

Bloomberg reports, this is happening for homes of all size, but it’s been dramatic in the least expensive 25% of properties. In that area, the median down payment last year was 7.5% of the sales price.

That’s up from a low of 3.1% back in 2006. The average from 2001 through 2007 was only 4.2%. Those figures were put together by the real estate brokerage Redfin.

Why are bigger down payments becoming more prevalent? Bloomberg reports that fewer home-buyers—especially first-time home buyers—are choosing F-H-A backed loans. So, the number of mortgage products that require larger down payments has been on the rise. It could be that the higher costs of Mortgage Insurance required by the Federal Housing Administration is deterring some home buyers from selecting F-H-A backed mortgages.

Singles Seek Home Ownership
It appears that the traditional approach to buying a home – saving, saving and more saving – is still alive and well.

REALTY BIZ NEWS reports on a brand new study from Century 21 Real Estate – that shows that even among single buyers, owning a home is worth sacrifices. The study shows the majority of single homeowners gave up dining out, entertainment, and vacations in order to make their home ownership dreams come true. Why make these lifestyle changes in order to buy a home? The Survey found single folks regarded home ownership as an important financial investment. In fact, the report states 75% of single people, age 25 to 50, say home ownership is important to them.

Rising Rents Hit Middle America
Here’s something that makes homeownership seem like a much better deal. From coast to coast – it’s becoming more expensive to rent.

According to the industry website HousingWire.com, rents have been rising and they show no sign of slowing down. And it’s getting tougher for people who decided to rent – so they could save up enough money to eventually buy a home. As you can imagine, that’s not easy when so much of your cash is going towards your rent.

The Wall Street Journal reports, not only are rents going up in the big cities like New York and San Francisco – it’s been a nagging problem in the South and Midwest, too.

The top 10 regions for the MOST rent growth in the second quarter of this year include cities in Tennessee, North Carolina, Kentucky, Ohio and Missouri.

courtesy of The National Association of Realtors

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