Credit Scores and Insurance...They did What???

A funny thing happened on the way to the closing table.

I was able to help a mortgage company place a FHA loan where the borrower had a middle credit score of 545. The borrowers did not want to believe (and neither did the mortgage broker) that we were actually approved. That was until they received a mortgage commitment and were cleared to close. Now comes the bad part.

They were buying a single family home in NJ that was 5 years old. Everything in it was new, from the roof to the basement. It even still had 5 years left of the New Home Builders Warranty. They held off on applying for Home Owners Insurance (against my demands) until they were cleared to close. The closing was on August 22 and we were cleared to close on August 15th. This may all seem normal, EXCEPT they were turned down by every insurance carrier that they went to.

I had no idea that almost every insurance carrier will deny an insurance policy base on credit scores that low, regardless of circumstances or past claims.

Fortunately, I have a contact at a National Carrier that does not look at credit scores and I was able to help again to make sure that we closed the file.

Has anyone else heard of such a thing?

My insurance agent only covers NJ, PA, NY, and CT. I get referrals in all the time for all 50 states and need to help place those loans and insurance policies. Can anyone else make a referral to me for those states that would help in this situation?

Or is you need help with this kind of situation, please let me know and I will be glad to help.

Thank you and please let me know as soon as you can.

Larry Bailey

Vice President of Marketing

TruClose Financial Services, LLC

300 Mt. Lebanon Boulevard, Suite 2215

Pittsburgh PA 15234

 TF: 888.510.9665 x 86

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