Getting a mortgage is an arduous process. If it’s not one complication, it’s another. But did you know buying a home insurance policy from our agents at The Owens Agency LLC in Waldron, AR before you start your home search can help? Here are three ways home insurance makes it easier for you to get a mortgage:
- It helps you qualify for your mortgage. Lenders require borrowers to have home insurance before they approve the loan. Having home insurance already in place can avoid any delays in the approval process.
- It lowers your mortgage interest rate. Lenders think borrowers without home insurance are risky, so they charge higher interest rates to offset this risk. When you come into the process with home insurance in hand, it gives the lender the impression you’re a responsible borrower. Having home insurance in place also helps you avoid paying for lender-placed insurance. This is a type of insurance your lender gets for you when you don’t have a policy. Lender-placed insurance is more expensive and less comprehensive than home insurance.
- Home insurance protects both your investment and your lender’s interest in the property. If your home is damaged by fire, wind, or theft, home insurance pays to repair or replace it and your belongings. This saves you from defaulting on your mortgage or owing more than your house is worth. It also protects the lender from losing money if they have to foreclose on your home.
Home insurance makes it easier to get a mortgage because it provides tangible proof of your dedication to the homebuying process. Contact our talented and knowledgeable agents at The Owens Agency LLC today for more information, or visit our website to learn more about what we can do for you.
