Tips For the College-Bound

While they are soaring to new heights, don’t forget about proper coverage.

Sending a child off to college is a big change. It’s a good idea to update your insurance policies to have the correct coverage in case of unexpected accidents or theft. If you have a student heading away to school, below are a few tips to help you get the most out of your coverage.

Homeowner’s Insurance (varies by state)

  • Personal Property: Most homeowners policies will cover personal property for up to 10% of your total policy while your child is residing at school (a $100,000 policy equals $10,000 in coverage). Not all types of damage are covered, so read your policy carefully. Some items, such as jewelry and expensive electronics, require special coverage. Renter’s insurance is strongly recommended.
  • Liability Coverage: General damage to a dorm room or apartment is usually not covered.
  • Documentation: Creating an inventory of the items taken to school is wise. Use photographs and keep receipts.

Auto Insurance (varies by state)

  • Car Stays at Home: Keep your child listed on your policy if they are
    • a) Still using your address as their primary address
    • b) Will still drive your car while at home on school breaks
  • Car at School: Make sure to notify us if your child will be taking a car away to school. In most cases, if the car is registered to you and on your policy, it will be covered.
  • Driving a Friend’s Car: Students are generally covered if they are listed on their parent’s policy and are not regularly using the vehicle.
  • Discounts: A full-time student meeting certain academic requirements can qualify for a good student discount. Distant student discounts may also be available. Drivers under 21 years old who have completed driver’s education may also get a discount.

Before your child leaves for school, call Howard Hanna Insurance at 412-696-0310 or email insurance@howardhanna.com. We can walk you through coverage options to help you make an educated decision.

15 Ways to Afford Buying a House in 2024

If you’re one of the millions aspiring to own a home, you’ve likely spent considerable time online browsing properties and prices, wondering, “How do people afford houses in this market?”

It’s a fair question, especially given the recent rise in home prices and interest rates. However, with some planning and preparation, there is a way forward, even in challenging times. Here are some tips and strategies to help you get closer to your dream of homeownership.

 1. Use an Affordability Calculator to Gauge Your Budget

Starting with an affordability calculator is essential to determine how much you can afford based on your income, debts and down payment savings. This will give you an idea of a suitable home price and its monthly costs.
Pro tip: Adjust the affordability calculator figures to see how income, debts and down payment changes affect the price you can afford.

2. Get a Real-Time Estimate with an Affordability Calculator

Enhance your budget estimate using our affordability calculator. This tool offers a precise, real-time estimate of your buying power, considering your financial details and current market conditions.
Pro tip: Regularly update your information in the calculator to see how changes in market rates, credit score or down payment savings affect your affordability.

3. Understand Debt’s Impact on Mortgage Approval

Debt can significantly impact your ability to secure a mortgage. Lenders use your debt-to-income ratio (DTI) to assess whether you can manage monthly mortgage payments alongside your other debts.
Pro tip: Utilize a DTI calculator to see how paying off or taking on more debt changes your financial situation.

4. Use a Mortgage Calculator for Detailed Cost Insights

Once you have a home price in mind, use a mortgage calculator to understand how different down payments and interest rates affect your monthly payment.
Pro tip: Experiment with different scenarios to see potential savings or costs with varying interest rates and down payments.

5. Get Pre-Qualified for a More Accurate Budget

Pre-qualification estimates what you can afford based on your self-reported financial details. This step can help you focus your home search within your budget.
Pro tip: For a more precise estimate, get pre-approved, which involves a more thorough review by a lender and can strengthen your position as a buyer.

6. Consult with a Loan Officer

Loan officers can help you understand how different mortgage options affect your affordability and guide you through the loan process.
Pro tip: Shop around for lenders to find the best mortgage rate. Hanna Financial offers financing options, including fixed-rate, adjustable-rate, FHA and VA loans.

7. Improve Your Credit Score

Your credit score significantly influences the interest rate you qualify for. A higher score can lower your monthly payments and the total cost of the loan.
Pro tip: Read these tips on how to boost your credit score.

8. Compare Renting vs. Buying with a Calculator

Use a rent vs. buy calculator to evaluate whether it makes financial sense to buy a home based on your long-term plans.
Pro tip: Hanna Financial’s rent vs. buy calculator can help determine the “break-even horizon,” showing when buying becomes more advantageous than renting.

9. Work with an Experienced Real Estate Agent

An experienced agent can help you find good deals and write competitive offers in your local market.
Pro tip: Find tips on selecting a good real estate agent to assist you in your home purchase.

 10. Use a House Hunting Checklist

Define your preferences for a home and neighborhood with a house-hunting checklist to stay focused during your search.
Pro tip: Use our Essential Guide to Buying a Home to help you navigate your home purchase.

11. Broaden Your Search to Different Markets

If you have flexibility in where you live, consider looking at housing markets where prices are more aligned with your budget.
Pro tip: Use Howard Hanna’s property search tool to find homes that fit your requirements. This tool can also be used to access a property’s public records.

12. Consider a Fixer-Upper

Dated homes or those needing repairs can offer potential deals if you’re willing to invest time and money in improvements.
Pro tip: Learn about finding and affording fixer-uppers to see if this option is right for you.

13. Explore House Hacking

Generate income by renting out parts of your home or buying a multi-family property where you can live in one unit and rent out the others.
Pro tip: Discuss with a lender about financing options for multi-family properties that may count future rental income towards your mortgage qualification.

14. Find Creative Ways to Save for a Down Payment

Consider using gifts or loans from family and friends or adding down payment funds to your wedding gift registry to boost your savings.
Pro tip: Check out these 21 creative ways to save for a down payment.

15. Research Low Down Payment and First-Time Buyer Programs

Look into down payment assistance and first-time home buyer programs that allow for smaller down payments.
Pro tip: Explore down payment assistance programs and talk to a loan officer about low down payment mortgage options.

By following these strategies, you can better navigate the housing market and move closer to your goal of homeownership.

 

Related articles: 5 Things Worth Compromising When Buying a HomeExpert Tips on How Buyers Can Win in a Seller’s Market10 Things to Look for in a Home Inspection