Insurance Coverage You'll Need For Your First Home

When you buy your first home, you will naturally be excited about finally becoming a homeowner. However, while you are busy planning how you will decorate your new home and when you will have your family and friends over for a dinner party, you should also be looking carefully at the insurance coverage you will need. 

To make sure you have the proper coverage, here are the types of coverage that are crucial for first-time buyers.

Liability Coverage

This is extremely important coverage for your first home. Liability insurance will pay the medical expenses and property damage that you or another member of your family cause to someone else. 

 

This may include if your dog bites someone, or if your kids happen to break a neighbor's window. It will also pay your legal expenses if someone sues you after being injured on your property, which could keep you from being financially ruined.

Private Mortgage Insurance

If you make a small down payment when buying your home, your lender may require you to buy private mortgage insurance. This puts your lender's mind at ease, knowing you should be able to make your monthly mortgage payment. 

 

 

The good news is that you won't need to keep this insurance forever. Once you pay down your mortgage to less than 80 percent of your purchase price, this insurance can be canceled.

 

Flood Insurance

When purchasing home insurance, remember that most homeowner's insurance policies do not offer flood protection. Thus, if your home is located in an area that may be prone to severe flooding, you should consider purchasing flood insurance. 

 

If you don't and you sustain a major flood that causes severe damage to your home and possessions, you may be stuck trying to pay for your losses out of your own pocket.

 

Title Insurance

Finally, your lender may require you to purchase title insurance as you are buying your first home. 

 

Remember that until you actually close the deal on your home, there is always the chance issues could arise regarding the home's title; especially if it is discovered the property has liens against it of which you were not aware. Should this happen, you may be very glad you have title insurance to help with the matter.

 

Whether it's insurance coverage you need while buying your first home or after you are officially a homeowner, knowing you have the right types of coverage will always provide you with plenty of peace of mind along the way.

Why Spending a Little More on Metal Roofing Is Worth It

If your roof is nearing the end of its lifespan, you might consider upgrading to a metal roof. That material can be slightly more expensive, but switching over to a metal roof will provide you with a wide array of benefits in the coming years.

Longevity

One of the most common reasons people invest in a metal roof is the longevity of that material. Even though traditional roofing materials can often last for two decades, a well-maintained metal roof could have a lifespan of 40 years or longer. 

With certain types of metals and panel designs, some metal roofs have even lasted for up to 100 years.

Improved Home Efficiency

It is an unfortunate fact that many homeowners spend thousands a year on their HVAC systems, which is why you should do everything in your power to make your home as efficient as possible. 

Asphalt and clay tile roofs allow quite a bit of heat transfer to take place, and that is going to drive up your energy bills during the hottest and coldest months of the year. 

A metal roof will reflect UV light from the sun and potentially improve your home’s insulation, which could save you hundreds of dollars a year.

Better for the Environment

Anyone who is trying to minimize their impact on the environment should consider upgrading to a metal roof. Metal roofs are often made from 30 percent recycled material; some are fully recyclable when uninstalled. 

When it comes time to replace your metal roof, a reputable roofing company should be able to preserve most of the materials to create a new roof or other metal products. As a bonus, metal roofs also create a flat surface perfect for installing solar panels.

Easy to Install and Repair

Metal roof panels are relatively lightweight, making them extremely easy to install. Once in place, they can also be repaired very quickly. 

A metal roof repair company should be able to remove a damaged panel and replace it with an identical piece in a matter of hours. If you have traditional shingles or tiles, a roofing company might have to remove quite a bit of material to replace the damaged pieces.

While a metal roof will cost slightly extra, the pros often outweigh the cons. A metal roof will be a major investment in your home and your family’s comfort.

Ideas for Paying Off Your Construction Project Loans

If you're taking out loans to finance your construction project, you're not alone. In fact, according to the U.S. Census Bureau, over 60% of all residential construction projects are financed with some type of loan.

The most important thing you can do when taking out a loan is to create a repayment plan that will work for you and your unique situation. In this blog post, we'll share a few ideas for repaying your construction project loans.

Make Biweekly or Accelerated Payments

One way to make sure you're on track to repay your loan is to schedule biweekly or accelerated payments. Biweekly payments are simply half of your monthly payment paid every two weeks instead of once a month. This may not seem like a big difference, but it can shave several months (or even years) off of the life of your loan.

Get a Loan Modification

If you're struggling to make your loan payments, you may be able to modify your loan terms. This could involve extending the life of the loan, lowering the interest rate, or changing the type of loan from an adjustable rate to a fixed rate. 

Loan modifications are typically only available if you're facing financial hardship, so be sure to speak with your lender about your options.

Refinance Your Loan

If interest rates have dropped since you first took out your loan, you may want to consider refinancing. Refinancing means taking out a new loan with better terms (such as a lower interest rate) to replace your existing loan. This can save you money in the long run and help you pay off your loan more quickly.

Make Extra Payments When Possible

If you come into some extra money (perhaps from a bonus at work or a tax refund), consider making an extra payment on your loan. Any extra payment above the minimum required amount will go towards the principal balance of your loan, which can help reduce the interest you pay over time.

There are many different ways you can go about repaying your construction project loans. The most important thing is to develop a plan that works for you and stick to it. 

By making biweekly or accelerated payments, refinancing for better terms, and making extra payments when possible, you can get ahead on your loan and avoid falling behind on payments.

What Is “Asset Rich” And How Can I Achieve It?

You might be in a very wealthy or well-off position regarding how much cash you have in the bank. This may result from working for 50 years straight, building up a nice pension, or maybe you even won the lottery and have a chunk of cash you are itching to spend.

Financial advice you should start following now is to build up your asset portfolio. The key to long-term wealth is to have your money work for you, not you work for it. 

By this, we mean if you are looking to spend the money you have earnt on something, make sure it is a lucrative investment that can increase in value over time.

What do we mean by this exactly? As you should be aware, the currency and exchange rates of money constantly fluctuate due to economic and generic world events that are technically out of our hands. 

If you look at the great British pound in recent times, for example, the value of the pound is at an all-time low, meaning across the globe, the Brits are not reaping the benefits of their cash being worth more.

Due to these factors and from what we can see from the wealthiest people in the world, it is important to store your money into assets. 

Assets, of course, still have liabilities out of investors' hands that fluctuate their value. Still, more often than not, it is easier to manipulate your end take-out value exceeding your initial investment when you cash in. 

Investors in assets see a higher return on their investment, which they then can enjoy the money made and continue to reinvest the capital asset.

What Is Classed As Assets?

Assets can be good, liabilities, or neutral. Good assets are investments in real estate, rental properties, crowdfunding projects, bonds, and businesses. 

What makes them more reliable and lucrative is their adaptability to all economic conditions. If invested in the correct way you can see capital appreciation in all economic climates as long as you are making the correct decision or using a facial advisor to do it for you.

 

You should view your financial advisors like you do your life insurance broker, they are both important for long-lasting wealth and keeping the money you have. Just ensure if you are searching for a financial advisor that they are fully compliant and regulated.

Neutral assets can be appreciated assets such as your home, gold, artwork, and antiques. The reason why they can be deemed as neutral is that it can't be certain whether the appreciation of their value will exceed the cost of upkeep as inflation comes and goes.

Liabilities are assets such as your TV, home furniture, car, and mobile phone. Although some may argue they are essential to everyday life which in some cases they are, you never see a return on investment. 

The reason for this is they simply just lose value as time goes on and can cost you more and more the longer you have the asset with maintenance. 

Do not be discouraged if you only have liabilities at the moment, they are a luxury but many asset-rich people start with more liabilities than assets.

What Does The Saying “Asset Rich, Cash Poor” Mean?

When it comes to being “asset rich”, you may have heard the saying “asset rich, cash poor”. This saying means that you have locked most of your wealth into assets, such as real estate, which may be hard to convert into cash when needed. 

Ideally, you want to create a balanced portfolio of assets and it’s important to remember that both assets and cash can be good, quality assessments. In an ideal world, you should have cash in the bank and strong assets that are likely to appreciate in value over time.

Being asset rich and cash poor doesn’t mean that you’re broke. This only means that you have tied most of your wealth into assets, such as real estate and property, which can be hard to convert into cash. 

Just because an asset may be expensive doesn’t mean it’s a strong asset to keep hold of. For example, cars can be costly in the short term, but they depreciate fairly quickly. Stronger assets, such as real estate, will likely value over time.

Final tips

Now you have a better understanding of assets and liabilities, you should start small and figure out in what form you are going to gain your first assets. Enjoy an early retirement living off of your investments and start building generational wealth today!

Steps You Can Take to Grow Your Savings Before Retirement

No one knows how long they will live, but most people want to ensure they have enough money saved to cover their retirement costs. There are many steps you can take to help make sure you have enough money saved when you retire.

Save Early and Often

It may seem like a no-brainer, but one of the best things you can do to ensure a comfortable retirement is to start saving as early as possible. 

The earlier you begin saving, the more time your money has to grow. For example, let’s say you start saving $200 per month at age 25. If you earn an annual return of 7%, by the time you retire at age 65, you will have nearly $500,000 saved. 

However, if you wait until age 35 to start saving, even investing the same amount each month, you would only have about $250,000 saved by retirement – half as much as if you had started 10 years earlier. 

Time is your friend when it comes to growing your savings! If you have questions about how much money you should personally be saving each year, work with a wealth management professional.

Invest in Yourself

Investing in yourself is one of the best investments you can make. When it comes to retirement savings, there are a few different ways to invest in yourself. 

One way is to contribute to a 401(k) or another employer-sponsored retirement plan. If your employer offers matching contributions, that’s even better! Another way to invest in yourself is to open an Individual Retirement Account (IRA). An IRA is a savings account that offers tax advantages for those saving for retirement. 

There are two types of IRAs – traditional and Roth – and which one is right for you depends on your current income and tax bracket.

Live Below Your Means

One important step you can take to grow your retirement savings is to live below your means. This means spending less than you earn and Investing the difference. 

When you live below your means, it frees up extra money that can be used to save for retirement or pay down debt. 

It may not be easy, but living below your means now will pay off later when you don’t have to worry about where your next paycheck is coming from.

There are a number of steps you can take to grow your savings before retirement. Save early and often, invest in yourself, and live below your means. By taking these steps now, you can enjoy a comfortable retirement later.

What Does it Mean to Get a Raw Land Loan

Many people dream of building a custom home on an untouched piece of land, but that type of project can become quite complicated if you don't plan ahead.

In addition to designing the house and setting up the utilities, you will also need to consider your loan options for purchasing the land itself.

Traditional Home Loans

There are dozens of different home and land loans to choose from, and each financial product is for a very specific situation. The type of loan that you will need to acquire depends on some key factors, and that includes the state of the land, how the land is zoned, and what types of structures you are building. 

For a piece of land that doesn’t have any structures or utilities, you most likely won’t be able to use a traditional home or construction loan.

Overview of Raw Land Loans

A raw land loan allows you to buy a piece of property that doesn’t have any existing sewage lines, electrical lines, wells, or structures. 

With that type of loan, you will need to verify that the land has had no previous improvements carried out on it, and that means there is no collateral other than the land itself. 

You must also verify that the land is properly zoned for personal residences, growing food, raising animals, and any other uses you are considering.

Finding the Right Lender

To purchase the property, you will need to work alongside a reputable lending company, someone like Raw Land Lenders, that has experience with those types of loans. Purchasing raw land is slightly more complicated than most people realize, and there will be a few extra steps that must be carried out. 

Your lender will need to know exactly what you plan on doing with the property and take an extensive look at your current financial situation.

Getting Approved

The approval process is carried out over a few steps, and you should start getting your finances in order well before you send out any applications. 

Improving your credit score is a great start, but building up a sizable down payment is going to be necessary as well. You will also need to research the land and come up with a comprehensive plan for what you are going to do once you are approved. 

Lenders want to see buyers who have done their research and have an actionable plan in place.

Purchasing raw land can open up countless opportunities, but getting a loan for an undeveloped piece of property is going to take some time. Luckily, with a little bit of patience and some assistance from a reputable lender, you could be building on your land before you know it.