As a requirement of underwriting, you’ll be required to carry homeowner’s insurance for the life of your loan. Beyond being a smart idea to protect your investment, this is a legal requirement, and you might as well start the process ahead of time.
Shop around for your homeowner’s insurance. Check with your car insurance company, and check into other options as well to find the best rates for the level of coverage you need.
Set up the insurance policy to take effect the day BEFORE your closing date. This ensures that if the new home is damaged during the closing day proceedings your investment is protected. Request, and require proper documentation from the insurance company to provide to your underwriter, and keep a copy saved in digital format. You’ll be required to provide proof of insurance before the underwriter will fund the loan.
For further questions or advice, please call us at 703.539.2053 or email us at Abraham@AskAWalker.com