Homeowners Insurance in Lawton, Oklahoma

Services for Real Estate Pros with Farmers Insurance


 There are many talented loan officers and realtors in Lawton, Oklahoma.   We work with all of them that we can to facilitate the home-buying process.  

Let me outline a situation that happens all too often in the loan process;  the customer has been pre-approved, the titlework is done, the appraisal has come in above the purchase price, everyone is just waiting on final approval and closing instructions.   Then, out of the blue there are problems.   The insurance is higher than the loan officer initially estimated in the loan application.   So what?   Here is why this can be a potentially huge problem;

  1. The loan officer can only make a somewhat educated guess as to how much the insurance premium will be
  2. The debt to income ratio is affected by the insurance premium and if the premium comes in higher, the underwriting decision is invalidated and has to be re-run.
  3. For loans underwritten to conform to Fannie Mae/Freddie Mac guidelines, debt ratio can be a huge issue; sometimes causing an otherwise clean deal to be either turned down or put in a different pricing tier---higher rates.

While it is true that the insurance premium is derived in a large part from the property itself, an equally important factor in deriving premium is the individual borrower's insurance score.    In other words, I'll pay a different rate than you will to insure the same exact property for the same exact amount of coverage.   Why?   My consumer history is different from yours.  My credit history is different from yours and my claims history is different from yours. 

What's the point?

The point is, until the loan officer or realtor or the customer gives an insurance agent the exact customer specific and property specific information, the premium the loan officer used to get the pre-approval is a guess.  Which means the debt ratio is a guess, which means the pre-approval could be meaningless.   

As a loan officer, I could take a customer's information, input it, pull credit and generate an automated Fannie Mae/Freddie Mac underwriting decision in minutes.    This almost always has to happen first, because realtors and sellers usually will not take an offer seriously until they know a customer has been pre-approved for the loan.   The pre-approval process is done by the loan officer, not by an insurance agent, so there is simply no way for the LO to know the true premium.   Most LO's will overestimate the premium to protect against premium swings.    A truly experienced LO will ask permission to get an insurance quote as well, or instruct the borrower to obtain one BEFORE issuing a mortgage pre-approval letter and BEFORE the deal goes to contract.  

Homebuyers in Lawton, Oklahoma.......please contact us for a prompt and exact homeowners insurance quote.


Comments (6)

Alan Kirkpatrick
Austin Texas Homes - Round Rock, TX
Alan in Austin


Very good information. Thanks for the post.


Also thank you for taking the time to post on my site. Have a great weekend.

Oct 11, 2007 07:23 AM
Faina Sechzer
Henderson-Sotheby's International Realty - Princeton, NJ
Real Estate Expert - Princeton, Montgomery ,Hopewell, NJ
Seth - your post provides important information for consumers, agents and LO. I read your other posts and can see that providing such information brought you new business. Congratulations and thanks for commenting on my blog.
Oct 12, 2007 11:48 PM
Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495


Seth:  I went to Google, and entered "lawton ok insurance."

Here's what I got on the very first page!  Good job.

Thanks for coming over and commenting.

Mike in Tucson

Nov 13, 2007 02:52 PM
Gary White~Grand Rapids Home Selling Pro Call: 616-821-9375
Flexit Realty "Flexible Home Selling Solutions" - Grand Rapids, MI
Real Estate Services You can Trust!
Hi Seth, very nice post and the analysis of the impact on loans is truly something that many buyer do not understand that many of these numbers are guessaments.  Nice post Seth.
Nov 19, 2007 09:17 AM
Seth Callen
Farmers Insurance - Lawton, OK
Mike and Gary, thank you very much for the comments.   What are your feelings on "bait" sites?
Nov 20, 2007 01:05 AM
Heather Wood - REALTOR® Midwest City, Oklahoma
Metro First Realty - Midwest City, OK
Very good post! Many people do not realize the impact insurance can make on a loan. Do you have a sister company in OKC area?
Feb 17, 2008 05:25 AM