Home Insurance - You can't close on your new house without it
Buying a house is an exciting thing, really it is. You can take advantage of the low interest rate right now, it is a
buyers market, so many choices out there, you may even find some good foreclosure deals and save more money.
If you are working with a good lender, and good real estate agent, you will be guided towards closing in every step of the way. You will be reminded what you need to do before closing, and there are a few things you need to do. One of them is you have to have home insurance in place before the closing or you can't close.
Even if you are buying the property in cash, it will still be your best interest to get home insurance on the house you are buying before closing. Things can happen unexpectedly.
If you already have an insurance agent , call them to give you a quote on your new home. If you don't have one, you can ask your real estate agent for some referrals, or call around for a few more quotes and decide which one you want to use. Then you need to go and sign the insurance binder and your insurance agent will send that binder to your lender and process it to closing.
This is a very important step before closing, make sure you get it done early in the process so you have enough time for your insurance agent to get the paper work done before your closing date. Sometimes extending the closing date may not be an option in some cases, always allow enough time to let your lender to process your loan application so you can have a smooth closing as much as possible.
photo courtesy : http://www.flickr.com/photos/dhilowitz
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