While most people are bemoaning their fate regarding the state of the economy, there is one group of people who have an advantage. Those people are new homebuyers. It’s a buyers market right now – home prices have dropped dramatically and mortgage rates are very low as well. Renters are finding out that they may be able to secure a monthly mortgage payment that is the same or less than they are now paying for their monthly rent. So now’s the time – if you’ve got decent credit and the money to spend, go buy a house!

Don’t forget to factor in the cost of the Sacramento home insurance that you might be paying for the first time. You need to shop around for a policy that fits your budget and offers you the coverage you need.

Home Insurance Tips for First-Time Homebuyers

There are so many things to be concerned about when buying your first home. Inspections, complex contracts, negotiations, closing costs, down payments – it can be really overwhelming.

The tips below will give you information you will need to find the type of policy you need for the right price.

• Your mortgage company requires that you have a homeowner’s policy before your closing date. So you need to be ready. If this is something that needs to happen fast, consider shopping online, where you can get quick Sacramento quotes from reputable agencies, and as a bonus, you can shop in the middle of the night!
• Get several quotes from one central website. You can save time by filling out a form with your basic information and then receive several different quotes at one time for your comparison. You’ll have the peace of mind that you’ve put the time in to find an affordable policy with the coverage you need.
• Find an insurance provider who will give you a discount for purchasing two or more policies from their company. For example, if you buy your homeowners and you automobile insurance from one company, you may be eligible for what is called a “multi-policy discount.”
• Are you purchasing a condominium or a townhouse? You will need a homeowner’s hazard insurance policy which will cover the principal on your mortgage. This hazard insurance is generally included in your homeowner’s association (HOA) monthly payment. However, the hazard insurance only covers damage done to the condo or townhouse itself – not your personal property within, and it also does not cover you for any liability that you might personally incur. You’ll need to consult with your insurance agent to make sure you are covered for all your personal property and you’ll also need to discuss liability insurance.
• Are you getting a loan from the Federal Housing Administration? Many people do this to have the opportunity to put down a low down payment (typically 3.5 percent to 5 percent instead of the usual 20 percent required for traditional bank loans). If you do go with an FHA loan, you will need to buy mortgage insurance or PMI (Private Mortgage Insurance) on top of your home insurance policy. This is required so that lenders can protect themselves against loss from those who default on their mortgage.
• In what area do you reside? If you live in an area of the country that is prone to natural disasters such as earthquakes, floods, hurricanes, ice storms, or wildfires, you will probably need additional coverage written in to your Sacramento homeowner’s policy. Talk to you agent about the protection you need based on where you live.
• Concluding Information. The premiums for your home insurance are paid at closing in advance by an escrow fund that is put together by your lender. This cost is then included in the payments that you make monthly for your mortgage.
• After you have decided on your insurance carrier and your policy, your agent should provide your title company and your lender with the documents that prove that you have indeed purchased adequate insurance.

Most of the information above applies not only to first-time homebuyers, but to anyone who is upgrading their home, moving into a smaller place, or purchasing a second dwelling to provide extra income through rental. It also applies to those who are refinancing their home. If you need to buy home insurance for the first time or you need to upgrade your coverage or buy an additional policy, take the time to do a little comparison shopping. It’s worth it.

Find out what you can save on Sacramento home insurance. SacramentoHomeInsuranceQuotes.org can give you no-cost quotes in minutes.