An escrow account is essentially a savings account designed to help you pay your mortgage, property taxes, and even homeowner’s insurance in smaller, periodic installments. Your lender usually deals with payments from your escrow, which means less stressful financial management for you. If you're buying a coastal property in North Carolina, please keep in mind that coverage can be hard to get and expensive compared to recent years. The coastal area has been hit hard by storms over the past several years, which generated large insurance claims. Some insurers refuse to cover properties in parts of North Carolina that they consider high-risk. Other companies have stopped insuring in North Carolina altogether. Thankfully, the Sandhills area of North Carolina is largely not affected.
A HOME WARRANTY LETS YOU SLEEP BETTER AT NIGHT
Whether you’re a first-time home buyer or an empty-nester downsizing after several previous home purchases, a home warranty might be a smart idea so that you can sleep well at night. The advice also applies to experienced real estate owners who just don’t want to have the thought of maintenance and repairs hanging over their heads. A good home warranty is a way to protect yourself from expensive, unexpected repair bills. Depending on the local market and the specific transaction, the home warranty can be paid by the seller or the buyer. A home warranty paid for by the seller can be a negotiation point or inducement offering to protect the buyer from having to do any additional, expensive repairs to the house after the deal is closed. The cost of a home warranty is generally not too high—often between $350 and $600, depending on the coverage. The payment must be made one year in advance.
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