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Avoiding a Homeowners Insurance Disaster When You Apply for a Mortgage
 
Avoiding a Homeowners Insurance Disaster
When You Apply for a Mortgage
 
When buying and financing a home, prospective Borrowers are required to produce a variety of documentation  and information to their Lender at the time of application and prior to the Closing of their loan.  In almost all cases, Homeowners Insurance is included within that documentation requirement.  
What service does Homeowners Insurance provide? Why is that service so important?
Homeowners Insurance policies offer multiple types of protection and coverage to an insured borrower/home owner.  Those include:

Coverage on the STRUCTURE of the home For PERSONAL BELONGINGS LIABILITY protection LIVING EXPENSES, should the homeowner be displaced from their home because of disaster 
How is Homeowners Insurance paid for?
You've probably heard or seen the acronym, "PITI" when reading and learning about mortgages and monthly payments.  This is especially true if you're a first-time home buyer.  "PITI" equals all portions of a monthly mortgage payment. 
PITI stands for:  

Principal Interest Taxes Insurance  
Homeowners Insurance makes up the 2nd "I" within that acronym. 

Once the first year of insurance premium has been paid for prior to (or at) the Closing of a loan, monies must be set aside to pay for future insurance premiums when they come due.   ... more

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