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What Insurance Protections Might be Needed During Mortgage Financing?
What Insurance Protections Might Be Needed During Mortgage Financing? The buying and financing of a home can seem like a pretty detailed and confusing process at times. As a result, it's vitally important that new buyers and those refinancing thoroughly understand the process they're entering and being asked to navigate prior to making decisions. As a Mortgage Lender, I've found that some of my clients are confused regarding different forms of insurance that they may be required to secure and hold while obtaining their financing.
The following is the information I share with my clients in Chicagoland - IL/WI to assist them with their mortgage and insurance decisions. The provided information covers an exploration of each form of insurance (and what protections it offers, etc.). I hope it proves helpful to you, should you be entering or considering the home buying and mortgage process.
There are 4 types of insurance that are most often required by Mortgage Lenders when financing a home. Those are:
Homeowner's Insurance (Borrower Generates) Private Mortgage Insurance (with <20% down) Title Insurance (Ordered by others) Flood Insurance (only if in a Flood Plain)
Homeowner's Insurance defined: Homeowners insurance is a form of property insurance that covers losses and damages to an individual's house and to assets ... more
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