Set Up Homeowners’ Insurance
During the mortgage underwriting process, you will be required by the underwriter to obtain Homeowners Insurance, which is why it's best to begin the task early. As your home is likely the most significant purchase you'll ever make, it's crucial to ensure it is adequately insured.
To get the best deal on your homeowner's insurance, we suggest shopping around because rates can vary significantly. You can start by obtaining a quote from the company that insures your car, as you may be eligible for a discount if you already have car insurance through them. Additionally, if you would like additional quotes you can reach out to Kristen’s Colorado Insurance Provider:
Here’s a great article with tips on saving money on your homeowner’s insurance policy
Have your homeowner’s insurance policy go into effect on the day you close on your new home. It is required by your Colorado lender to have proper insurance before you’re clear to close on your new home. A lot of times your insurance provider will reach out to your lender to ensure they have proof insurance. You will not be paying for your insurance directly during the time you have home loan on your property. So part of your monthly mortgage payment will be put in escrow to cover your insurance each year. Ultimately, your lender will be taking care of that payment for you during the course of your home loan. Sometimes you will need to provide proper documentation from your new homeowner’s insurance company to the loan underwriter; proof of insurance is required before they’ll approve your loan.
Questions about Colorado Home Buying? Reach out to the Appreciate Realty CO agent you are working with directly or Call/Text us at (303)956-4948 or email us at hello@appreciaterealtyco.com