Are you buying a home for the very first time? Even if you are buying your thirtieth home, you may not realize that your homeowners insurance can cause a kink in your Albany NY mortgage approval process. It is very important that you work with both a reputable insurance agent and experienced mortgage broker when purchasing a new home.
Most banks and lenders require that homeowners buy enough insurance to cover the amount of their mortgage. The mortgage broker or loan officer that you choose to work with will usually comply with the lender. However, you should also ensure that your insurance policy covers the cost of rebuilding your property in the event of an insurable claim. There will likely be a difference between what it costs to rebuild your home and the mortgage amount. You do not want to lose that in the case of, say, a fire.
For example, your loan amount may be $150,000 after you make a down payment of $50,000. That would mean that your purchase price for the home is $200,000. But to rebuild your home (labor and material) could cost $275,000. Of importance to note is the difference between selling price and cost to rebuild. A proper homeowners insurance policy would give you $275,000 of coverage, not $150,000.
Your mortgage broker will also require that your insurance agent provide a binder with the bank listed on it. If your insurance agent does not correctly list the bank, your closing could be delayed.
A good Albany NY mortgage broker will provide you with the exact clause the bank needs and review your binder before closing.
The Murray Group would love to give you an insurance proposal for your new home. We have over 40 years of experience in helping first time home buyers. We educate our home buyers to ensure they understand their homeowners insurance and its importance. We encourage home owners to package their home and auto insurance to maximize discounts.
We also work with the mortgage brokers to ensure they receive all of their required documentation in a timely manner. We know that an insurance binder is critical to the mortgage approval process.
The Murray Group has experience working with every mortgage broker in the Albany NY area. Here are just some of the mortgage brokers that we work with on a daily basis:
Kristen Brooke from Homestead Funding – visit her profile here
Heather Close at 1st Priority – visit her profile here
Ray Lefco from Maple Tree Funding – visit his profile here
Jason Solghan from First Rate Funding – visit his profile here
Tim Halliday at Victory Funding – visit business profile here
Nick Lemme from Homeowners Advantage – visit his profile here
The Murray Group is committed to bringing security to our partners lives. We provide you with valuable tips and advice that you can apply in your daily life. Visit our blog for tons of information on all kinds of insurance.
Our phone number is (518) 456-6688 to speak with a team member. Also, you can connect with The Murray Group further on The Murray Group Facebook Page.
Disclaimer: This article is for informational purposely only. There is no legal advice being suggested. The author assumes no responsibility or liability for the actions taken or not taken by the readers based upon such information.
Photo credit to: https://www.abcbank.net/annual-mortgage-checkup/