National Home Warranty Day: What Every Homebuyer Should Know Before Closing

Each year on February 10, National Home Warranty Day serves as a timely reminder for homebuyers to think beyond closing day and consider how to protect their home after they get the keys.

Buying a home is exciting… and a little overwhelming. Between inspections, appraisals, and final paperwork, it’s easy to focus on getting to the closing table and overlook what comes next. One often-missed piece of the puzzle is understanding how a home warranty can support you during your first year of homeownership.

Here’s what every homebuyer should know.

What Is a Home Warranty?

A home warranty is a service contract that helps cover the repair or replacement of major home systems and appliances if they fail due to normal wear and tear.

Coverage often includes:

• Heating and air conditioning systems
• Electrical and plumbing systems
• Water heaters
• Kitchen appliances
• Washers and dryers

A home warranty is different from homeowners insurance. Insurance typically covers damage from unexpected events like fires or storms, while a home warranty focuses on mechanical breakdowns that happen with everyday use.

Why Home Warranties Matter for Homebuyers

Peace of Mind After Closing

The first year in a new home can come with surprises. A home warranty can help reduce stress by offering support when a major system stops working shortly after move-in.

Extra Protection for Older Homes

If you’re buying a resale home, especially one with aging systems or appliances, a home warranty can add an extra layer of confidence beyond the home inspection.

More Predictable Costs

Instead of facing a large, unexpected repair bill, a home warranty typically involves a service fee, which can make budgeting easier during your first year as a homeowner.

Who Usually Pays for a Home Warranty?

In many transactions, the seller may offer a home warranty as part of the purchase agreement. In other cases, buyers choose to purchase one themselves for added protection.

Your real estate agent and lender can help you understand what’s common in your local market and whether a home warranty makes sense for your situation.

Home Warranty FAQs for Homebuyers

Is a home warranty required to buy a home?
No. A home warranty is optional, but many buyers choose one for added peace of mind.

Does a home warranty replace a home inspection?
No. A home inspection is essential before buying a home. A warranty helps after closing, not before.

Can a home warranty be renewed?
Many home warranty plans offer annual renewal options after the first year.

How Home Warranties Fit Into Your Homebuying Journey

At BankSouth Mortgage, we believe confident homeownership starts with clarity and preparation. While a home warranty isn’t part of your mortgage, it’s one more consideration that can help you feel more prepared for life after closing.

National Home Warranty Day is a great reminder that buying a home isn’t just about qualifying for a loan. It’s about understanding the full picture and making informed decisions every step of the way.

Ready to Take the Next Step?

Whether you’re just starting to explore homeownership or actively preparing to buy, our team is here to guide you with clarity and confidence.