A Lender’s Perspective: How does the Homeowners Insurance Agent fit in during a Home Purchase?
In the case of a home purchase, the mortgage lender cannot do his job unless homeowners insurance is provided. And a good insurance agent is very important to make sure the client has the correct and adequate insurance coverage. How is the right coverage amount determined and how does the mortgage lender and insurance agent work together to insure this gets done?
As part of the process of buying a home the subject property needs to be appraised by a certified appraiser who works in conjunction with the mortgage lender. The appraiser determines the market value of the property and provides a formal document with all of the detail of the property, like the square footage and many other things.
What I do as a lender is provide a copy of the appraisal to the insurance agent to assist him or her with their process of ensuring there is adequate and full insurance to cover the client and the lender in case of a loss. Once the cost of the insurance is determined, the insurance agent provides that information to the mortgage lender and we factor that information in the cost of purchasing the home.
As you can see the lender and insurance agent need to work together to make sure that this information moves freely between each and in a timely fashion.
West Portal, SF Market Trends as of July 23, 2010
If you have a West Portal home that you are thinking about selling now may be the perfect time. There is solid buyer demand, the properties that are well priced & show well are receiving multiple offers and inventory is really low (a balanced market is considered 6 months of inventory; <6 mos.is a sellers market; >6 months is a buyers market).
Trying to buy your dream home in West Portal? Be prepared, it’s going to take time, patience and perhaps writing an offer on more than one property to get in.
