HomeBuyer University: Buying a Home, Just Got Easier
Course 1: The Home Buying Process
Step 1: Getting Pre-approved
Step 2: Hire A Real Estate Agent
Step 3: Search For a Home
Step 4: Make An Offer
Step 5: Complete Submit Your Mortgage Application
Step 6: Get A Home Inspection
Step 7: Get the Home Appraised
Get A Home Owner's Insurance Policy
At this stage in the process, you should get a home owner’s insurance policy if you haven’t done so already. This coverage is not only required in order to obtain financing, but it also protects your investment from costly hazards. You will typically purchase the policy now, because your loan will not be cleared to close until you provide proof you have a policy.
Most home buyers get up to three quotes for home owner’s insurance before purchasing a policy. Annual premiums can range from a few hundred dollars, to over one thousand dollars for larger homes. Many factors influence your annual premium to include:
- Type of home
- Size of home
- Rebuild cost
- Claims you filed on other home owner’s insurance policies you’ve held
- Discounts for security systems
- and more…
How to Get A Policy
Getting a policy is very easy, and the common methods of obtaining one are:
- Your loan officer can usually refer you to a few good insurance companies.
- You can ask a friend or family member for their agent’s phone number.
- Contact the company that currently insures your automobile. They might offer home owner’s insurance and give you a discount for having multiple policies with them.
NOTE: You will have to give the insurance agent a date to begin the policy. Use the anticipated closing date that is in your purchase and sales agreement as the effective date. If you end up closing earlier than this date, your loan officer will instruct you to call the insurance agent to change the policy’s effective date. If such an update on your policy occurs, your insurance agent will need to email or fax the updated policy to reflect the changes.