The local housing market in Lafayette, IN fluctuates over time. That’s why your house valuation is only an estimate of how much it would cost if it were on the market. However, it becomes more essential when you’re buying home insurance as it is one of the factors that determine your premiums.
Whether you just moved in or want to change your insurer, know that your home’s value has the following benefits:
It can be an essential factor when selling your home
If you intend to sell your home one day, you want to make sure that you know its value to have a reference point when you decide to sell. It is more important if you still have a mortgage. You will need to consider your mortgage amount or your loan balance before checking your house’s value. Ideally, this amount should be significantly lower than the average value of the house.
It helps you determine how much to allocate for renovation
Most people prefer to do several renovations to increase their home’s value when selling it. However, if you don’t know your home’s value, you won’t know if there was any additional value. Some renovation projects can take a toll on your wallet, which may not be worth it in the long run. Blevins Insurance Agency recommends checking with your insurance agent to determine your home’s average value before starting any renovations.
Aid in refinancing
Lenders in Lafayette, IN allow people to borrow a maximum of 75% and 95% depending on the available loan program. While you may qualify for other credit parameters, the equity available is what determines whether you will get another loan or not. The more equity you have, the better your loan terms and the amount you qualify for. Knowing your home’s value shows you the amount you need to borrow and your chances of succeeding.
At Blevins Insurance Agency, we care about your insurance needs. Our skilled agents can help you secure a policy that fits your budget, needs, and style. Contact us for more information.