Melissa's Home Journal

  If you own a home in Texas—or you’re thinking about buying one—you’ve probably noticed that homeowners insurance has become a much bigger part of the conversation. Between rising premiums, severe Texas weather, higher construction costs, and changes in coverage options, insurance isn’t something we should think about only when we’re sitting at the closing table. It’s becoming an important part of the true cost of homeownership . And while I’m certainly not an insurance expert, I do believe part of my job as your Realtor® is helping you know which questions to ask and which things deserve a closer look. The Three A’s: Affordability, Availability & Adequacy When it comes to homeowners insurance in Texas, there are really three things homeowners and buyers should be thinking about: Affordability — What will the policy cost, and how does that premium affect your overall monthly housing budget? Availability — Can you obtain coverage on the home, and what options are available ba...

  One of the   steps between signing and closing   on a home is when homebuyers typically deposit money into an escrow account. An agent who is a   REALTOR®   can help advise you on your offer and how to keep your deposits safe. When it comes to escrow, here’s what homebuyers should know: What is escrow? Escrow is a financial agreement in which a third party, such as an attorney or another settlement or title agent, controls payments between the buyer and seller, only releasing the funds involved when all the terms of the contract are met. As the buyer, once you close on the home, the money you’ve placed in escrow will often be applied toward your down payment and other closing costs. Other costs that can be covered by funds in an escrow account include property taxes and insurance premiums. What is “earnest money?” Also known as a “good faith deposit,” an earnest money deposit is paid by a homebuyer to show their interest is legitimate and they intend to close ...

  How Much Home Equity Have You Gained? The Answer Might Surprise You Have you ever stopped to think about how much wealth you’ve built up just from being a homeowner? As home values rise, so does your net worth. And, if you’ve been in your house for a few years (or longer), there’s a good chance you’re sitting on a pile of equity — maybe even more than you realize. What Is Home Equity? Home equity is the difference between what your house is worth and what you owe on your mortgage. For example, if your house is worth $500,000 and you still owe $200,000 on your home loan, you have $300,000 in equity. It’s essentially the wealth you’ve built through homeownership. Right now, homeowners across the country are seeing record amounts of equity. According  to  Intercontinental Exchange  (ICE),  the average homeowner with a mortgage has $319,000 in home equity . Why Have Homeowners Gained So Much Equity? The rise in home equity over the years can be credited to two key...