Step 24: Set Up Homeowner's Insurance
During the underwriting process, one of the things that the mortgage underwriter will require that you do is set up Homeowners insurance. Better to set it up sooner rather than later. Buying a home is an extremely big purchase so you will want to make sure that it is properly insured.
If we can offer any words of advice about homeowners insurance, that would be to shop around. It may benefit you to start by contacting the company that insures your car. Often times they will offer you a discount since you already have another type of insurance with them. After that, shop around a little bit more to see if another company can give you a better rate.
Make sure your homeowner’s insurance policy takes effect the day before you close on your new home. This way if something significant (fire, flood, etc.) was to happen to your new home while you are at closing, you’ll be covered. Also, it is important that you have proper documentation from your homeowner’s insurance company to provide to your underwriter. They will require proof of insurance anyway before approving you for your loan.