3 Questions to Ask When Buying a Home
Buying a home is one of the largest investments and most exciting purchases you will make in your lifetime. From finding the perfect home to securing a mortgage, there are many things to consider. Let’s face it, insurance isn’t the first topic that comes to mind when thinking of buying your new home, but it is a crucial part of the process. Here is a guide from American Advantage Petersen Insurance Group in New Berlin, Wisconsin to help simplify the insurance process when buying a home:
Do I need home insurance prior to closing?
The only situation where you will not be required to have insurance prior to closing is if you are paying for your new home in cash. While insurance is still vital in this situation, it is not required to purchase the home.
If you are like most people and are taking out a mortgage for your new home, your lender will require home insurance to be purchased. In many cases, you will need to provide proof that you have paid for a year’s worth of coverage before a lender will consider closing.
What does “escrowing” insurance mean?
Since a year’s worth of coverage is required to close on your new home, so is the years’ worth of insurance payments. Escrowing your insurance means that your lender will pay for your insurance up front, and you will make monthly payments to the mortgage company that are included in your house payment.
How do I lower insurance costs on my new home?
Using an independent insurance agent, like those at American Advantage – Petersen group will ensure you are getting the correct coverage at a competitive price. Unlike, agents who represent a single carrier, independent agents represent multiple insurance companies and offer unbiased advice on the best insurance options for your needs.
Let the insurance professionals of American Advantage – Petersen Group in New Berlin, Wisconsin simplify the insurance process for you when buying your home! Contact us today!