8 Steps to Buying and Insuring a Home

Whether you’re purchasing your first home or adding to years of experience as a homeowner, securing the right homeowner’s insurance is essential to protecting your investment. Understanding the steps in the homebuying process can make the journey smoother—especially for first-time buyers. Here’s a quick guide to help you stay informed and prepared.

Begin the home shopping process online using a multitude of websites so you can compare and contrast listings that interest you. This is the perfect time to start creating a list of things real estate agents call “must-haves vs wants”—features that you are and are not willing to compromise on. It’s also the perfect time to decide what towns/neighborhoods you want to shop in, and get a sense of your budget.

Working with a real estate agent can be a huge advantage during the homebuying process. An agent may know about homes that aren’t yet active on the market or can point you toward properties that you may have missed in your search.

Getting pre-approved for a mortgage can help make your offer more appealing to a seller since pre-approval implies you’re a qualified buyer. The mortgage pre-approval process also helps you understand how much you can comfortably afford. Remember, some mortgage lenders include taxes and insurance in the mortgage payments. Either way, you will need to show proof of adequate homeowners insurance coverage when you finalize the mortgage process.

Selecting a home is often a process of elimination. As you attend open houses and in-person showings, you’ll see plenty that aren’t quite right for you. Compromising on features isn’t uncommon, but be sure to select a home that meets your needs now and in the foreseeable future. The location and individual features of the home you choose may impact the amount and type of insurance coverage you need.

Once you’ve found a home that’s right for you, it’s time to submit an offer. Your real estate agent will walk you through the process and can negotiate on your behalf. The seller can accept or reject your offer, and can even make a counteroffer.

Once your offier is accepted by the seller, it’s time for a home inspection. A licensed home inspector will check the property for needed repairs and structural soundness. It’s wise to attend the inspection in person. Depending on the age and location of the home, you may also want specialized inspections, such as a termite inspection, radon testing, or an oil tank inspection.

If the home inspection goes well, you’ll need insurance for your new home before the closing. A Great Lakes Auto Home agent can walk you through the process of obtaining a homeowners policy, explaining key coverages designed to help protect your home and belongings. Don’t forget to ask about discounts for bundling your car and auto insurance.

The closing involves signing a lot of documents, but it’s the last step in the homebuying process. You may have thought house hunting was fun, but turning the key in the front door of your new home after closing is the best part.

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Photo by Kam Idris on Unsplash

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To learn more about Great Lakes Auto Home’s homeowners’ insurance options, call us at (630) 441-1003. And don’t forget to ask about bundling and potential savings!