We understand, you need a realistic and competitive hazard insurance estimate for the GFE…We understand you need the binder and invoice 10 days before closing… More if closing gets to Hurricane Season. We understand if the rate changes a week from closing – that’s bad. That’s why we’ve created a specific process for home buyers which helps avoid those last minute issues and make sure we can get your processors the information they need on time…often before they ask for it.
We know there are also many factors about the property as well as the people buying the house which can affect their insurance rate or even eligibility. The best way to avoid a closing snafu is to have your borrowers call us IMMEDIATELY after getting an accepted contract. We can talk with them about how to overcome any potential insurance issues as well as give a realistic estimate on the rate for your GFE and budget going forward. Not to mention, we can reinforce what you’ve warned them about such as not getting a new credit card to buying a bunch of furniture, or a new car, or co-sign for anything, etc.
Pre-Qualifications for Insurance
Everyone gets prequalified for a mortgage, but almost no one gets pre-qualified for insurance. Below are a list of factors about the borrower which can affect their home insurance rate or eligibility.
Past property claims or losses in last 5 years
Bankruptcy, short sale, repossession, and other negative financial issues within the last 5 years
What types of animals you have or what breed of dog you have
Ownership of recreational vehicles (ATV’s, Golf Carts, mini-bikes, Jet Skis, etc)
Unrelated owners of the property being purchased
Any owners of the property who will not reside there full time
You are getting more than 2 mortgages/liens on the property
If your borrower has any of these issues, it doesn’t mean they cant get insurance. It simply means they need to start getting options right away. Have them call or text us at 850-329-6996, and we’ll help give them guidance and direction, even if that means pointing them to another agency so they can close. We’re happy to help even if we don’t write that specific policy.