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Sonic Realty

The Importance of Home Protection Plans in Real Estate: Safeguarding Your Investment

A home protection plan, or a home warranty, is a service contract designed to provide financial protection for homeowners against unexpected repair or replacement costs of major home systems and appliances. Let’s explore what a home protection plan entails, its importance in real estate, and how it benefits homeowners.

A home protection plan typically covers essential home systems and appliances, such as HVAC systems, plumbing, electrical systems, water heaters, kitchen appliances, and more. When a covered item experiences a mechanical failure or breakdown, the homeowner can contact the home warranty provider, who will arrange for a qualified service technician to diagnose, repair, or replace the item, usually for a nominal service fee.

One key benefit of a home protection plan is the profound peace of mind it offers homeowners. The financial burden of unexpected repair costs can be overwhelming, potentially straining household budgets. A home protection plan steps in to alleviate this stress, providing coverage for major systems and appliances. This assurance allows homeowners to rest easy, knowing they are shielded from the unexpected financial strain of repair expenses.

Additionally, a home protection plan can be especially beneficial for first-time homebuyers or those purchasing older homes with aging systems and appliances. These buyers may not have the financial reserves to cover costly repairs or replacements, making a home protection plan an attractive option for added security and financial protection.

Home protection plans also offer a competitive edge to sellers. By providing added peace of mind to potential buyers and enhancing the marketability of their property, sellers can feel confident in their offering. Including a home protection plan as part of the sale can instill confidence in the condition of the home, potentially alleviating concerns about potential repair costs after closing and making the property more attractive to buyers.

Moreover, home protection plans empower homeowners by simplifying the resolution of repair issues. Instead of the daunting task of searching for and vetting service technicians, homeowners can directly contact the warranty provider to initiate service requests and schedule repairs. This streamlined process puts homeowners in control, making the management of home repairs a breeze.

In conclusion, a home protection plan is a valuable investment for homeowners, providing financial protection, peace of mind, and convenience in the event of unexpected repair or replacement costs. By understanding the importance of home protection plans and including them in their homeownership strategy, homeowners can safeguard their investments and enjoy greater confidence and security.

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DJ Peterson

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Affiliated Business Arrangement Disclosure Statement
This is to give you notice that Sonic Loans Inc., Sonic Title Agency LLC, and Sonic Realty LLC have a business relationship. The nature of the relationship between the Referring Party and the provider(s), including percentage of ownership interest, if applicable, is: Sonic Loans Inc., Sonic Title Agency LLC, and Sonic Realty LLC are all 100% owned by the same party. Because of this relationship, this referral may provide any of the above parties with financial or other benefit.
A. Set forth below is the estimated charge or range of charges for the settlement services listed. You are NOT required to use the listed provider(s) as a condition for settlement of your loan on, or purchase, sale, or refinance of, the subject property.
THERE ARE FREQUENTLY OTHER SETTLEMENT SERVICE PROVIDERS AVAILABLE WITH SIMILAR SERVICES. YOU ARE FREE TO SHOP AROUND TO DETERMINE THAT YOU ARE RECEIVING THE BEST SERVICES AND THE BEST RATE FOR THESE SERVICES.
Provider and Settlement Service Charge or Range of Charges
Sonic Realty LLC 1%-6% of purchase price
Sonic Title Agency, LLC Title Insurance Policy: $950 - $1706 on a $250,000 property. (Rates vary and are dependent on the state, selling price, and loan amount on the property.)
Title Search Fee: $250 - $325 (where applicable)
Closing Fee: $450 - $650
Sonic Loans Inc.

This company provides various real estate mortgage loan origination activities either as a third-party originator or a mortgage broker, including loan pre-qualification, competitive bid process (when providing third-party origination services), loan origination, loan pre-approval, loan structuring, processing, and closing.

Loan Origination Charge: 0-3 % of loan amount (may include 3rd party fees)
Loan Discount Fee/points: 0.5%-6% of loan amount.
Application/Processing Fee: $0.00 - $875.00
Flood and tax service: $0.00 - $95.00
Underwriting Fee: $0.00 - $1295.00
Document Review Fee: $0.00 - $400.00
Appraisal Fee: $0.00 - $850.00
Credit Report Fee: $0.00 - $135.00

Actual charges may vary according to the particular lender selected, the particular services provided, and the underlying transaction, borrower selections, etc. Some or all of these fees may be charged by third parties and/or the Member Mortgage Lender/Mortgage Broker. The Member Lenders and Mortgage Brokers have agreed to pay a fee ranging from 0.5% to 2.75% of the loan amount to Sonic Loans in connection with a range of loan origination services provided by Sonic Loans to the Member Lender/Mortgage Broker. The fees are paid either directly to Sonic Loans by the Member Lender/Mortgage Broker or billed directly to you at closing.
B. Set forth below is the estimated charge or range of charges for the settlement services of an attorney, credit reportingagency, or real estate appraiser that we, as your lender, will require you to use, as a condition of your loan on this property, to represent our interests in the transaction.
Sonic Loans Inc. provides mortgage lender/broker services. Sonic Realty LLC provides real estate brokerage services. Sonic Title Agency LLC provides title insurance and settlement services.

Provider and Settlement Service Charge or Range of Charges
Appraisal Fee $0-$800
Credit Report Fee $63-$125
 Actual charges may vary depending on the lender and loan program selected which can be found on your loan estimate.
ACKNOWLEDGMENT
I/we have read this disclosure form and understand that Sonic Loans Inc., Sonic Realty, LLC, or Sonic Title Agency LLC are referring me/us to purchase the above-described settlement service(s) and may receive a financial or other benefit as the result of this referral.