Mortgage Tips & Education Blog | Liberty Star Mortgage

A First-Time Homebuyer’s Guide to Home Warranties

As a first-time homebuyer, you’re likely overwhelmed with all the decisions you need to make. One of the most important, yet often overlooked, aspects of buying a home is understanding what a home warranty is and why you might want one.

What is a Home Warranty?

A home warranty is a service contract that covers the repair or replacement of important home system components and appliances that may break down over time. Unlike homeowners insurance, which protects against events like fire, theft, or natural disasters, a home warranty is specifically designed to cover the mechanical and electrical systems in your home, such as your air conditioning unit, water heater, and even a broken garage door.

Why Might You Need a Home Warranty?

When you’re purchasing a home, especially as a first-time buyer, it’s easy to overlook the potential for things to go wrong. The last thing you want is to move into your new home and immediately face costly repairs on your air conditioning unit or water heater. A home warranty can provide peace of mind, knowing that these potential issues are covered.

Rely on Your Real Estate Agent

Choosing the right home warranty isn’t a one-size-fits-all decision. This is where your real estate agent becomes an invaluable resource. They can help you navigate the different options, ensuring that the plan you choose aligns with the home you’re moving into, how long you plan to stay there, and your budget.

Pro Tip: Negotiating for a Home Warranty

Here’s a little-known fact that could save you money: You can negotiate with the seller to cover the first year’s home warranty cost. For example, if a home warranty costs $500 for a year, this could be an expense you don’t have to worry about during your first year in your new home. This negotiation tactic can be especially useful in a buyer’s market or if the seller is eager to close the deal.

What Does a Typical Home Warranty Cover?

While coverage varies between companies and plans, a typical home warranty may cover the following:

  • Air Conditioning Unit: Protects against costly repairs or replacements.
  • Water Heater: Ensures you won’t be left in cold water if your heater fails.
  • Garage Door: Covers mechanical failures, providing security and convenience.
  • Locksmith Services: Some home warranty companies will even send out a locksmith to change the locks on your doors after you move in.

A home warranty can be a valuable investment for first-time buyers, offering protection and peace of mind. Whether you’re curious about what a home warranty covers or need advice on negotiating with the seller, Liberty Star Mortgage is here to help.

Book a one-on-one consultation with Loan Officer, Collette Horton, to discuss your mortgage options and find the perfect loan for your needs.

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Fulshear, TX 77441

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Fulshear, TX 77441

Sherry Collette Horton , NMLS #290357

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