New home warranties allow you to purchase your home with piece of mind. For most, your home is your largest purchase of you’ll have to make. Often we put down a large down payment, and after closing costs there isn’t a lot of spare money in the bank account (for some)

Did you know that you can also purchase a home warranty when buying a used home. Home warranties are service contracts that guarantee to pay the cost of repair or replacement if covered items, such as appliances, plumbing, and heating and air conditioning systems, stop working.  However, it’s important to note that home warranties have limitations and may not cover non-mechanical items such as windows or the structure of your home.

If you’re considering buying a home warranty, you should evaluate whether it covers what you want it to. You may also want to consider self-insuring by putting the money you would otherwise spend on a home warranty or a service contract into a savings account dedicated to product repair and replacement.

There are lenders that will include this warranty for the first year of your mortgage.

It is available on both prime and sub-prime lending. However it is not provided by all lenders:

• The program provides up to $10,000 per year in eligible home repairs and covers parts and labor, including emergency overtime and after-hours charges 1.
• You pay only a $50 initial consultation fee per incident
• The program covers a wide range of items, including central heating and air conditioning, electrical systems, and water heaters
• The first year of the program is free with some lenders, and the low membership fee (plus applicable taxes) will be conveniently added to your mortgage payments after the first year

If you’d like to know more, reach out to me anytime