Homeowners insurance is one of those new expenses that first-time homebuyers have to factor into their monthly mortgage payment calculations. A basic principal and interest payment can get expensive in a hurry when you factor in the homeowners insurance and property taxes that come with it.
That's why shopping around for the best insurance policy at the best price is so critical. The key is striking the right balance between both. And that's not always an easy thing to do. Just know that homeowners insurance is one of the things you control during the loan process, and it's to your advantage to do your homework, get multiple quotes and be sure you're truly able to make good comparisons among potential policies.
Unlike renters insurance, homeowners insurance is a mandatory part of the process. Lenders are going to require you obtain a policy before the loan can close. It's in your best interest anyway. So many things can go wrong or affect what is likely the biggest purchase of your lifetime. Homeowners insurance can give you peace of mind and help you avoid financial catastrophe.
Finding the best policy for your lifestyle, your new property and your financial situation can be a challenge. An obvious first place to start is whoever provides your car insurance, renters insurance or any other insurance policy you have.
Prices and polices can vary greatly, sometimes by $500 or more. But don't just look at the bottom line. Make sure you're comparing the same type and scope of coverage on each policy, with the same deductibles and other important information. Your current insurer may be able to offer discounts if you use them for both auto and home insurance.
Get quotes from multiple companies. Your loan officer will likely be able to recommend one, too. Evaluate them closely, and as long as you're comparing apples to apples in terms of the policies, go with your gut, whether that's the cheapest or the reputation of the insurer or some other factor that's important to you.
Don't hesitate to ask your loan officer for help. They're talking about homeowners insurance every day and can provide some helpful insight.
You can talk with a loan specialist at 855-870-8845 or visit Veterans United online.
Buying a condominium with you VA home loan benefit is a great option. However, there are additional requirements that differ from purchasing a single-family residence or a multiunit complex.
Credit score requirements vary by lender. However, most lenders have similar criteria. Let's look at the minimum credit score for a VA loan and what lenders typically expect.