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Home Ownership Made Easy
543 hits
| May 10, 2005 4:59 pm |
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Insurance and Pre-Approvals |
josh boege
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As far as insurance goes the best policy you can pick up will have Guaranteed Coverage. It will cover the cost to rebuild no matter the dollar amount. So if you your $100,000 house burns and costs $150,000 to rebuild you would be on the hook for anywhere from $35-50k. With guaranteed coverage it wouldn't matter if it costs $500,000 to rebuild, you are covered.
As far as a pre-approval, all it really means is that if you the borrower haven't lied on your application, the lender will be able to lock a loan for you on the terms you happen to qualify for. For instance you can't claim to make $100,000 per year and then when you submit paystubs and w2's you only show $30,000 expect for your lock to be valid. Before you make an offer get pre-approved and do it through a lender, bank, or mortgage broker not through a real estate agent. The simple fact is that realtors know houses-mortgage brokers, banks, and lenders know financing. Once you have been pre-approved and been truthful in obtaining it, take it to a realtor and find a new house to make an offer on. Once you have the offer made get all documents to your financing source, obtain insurance, and have the property inspected and appraised so you know it is worth what you are paying.
Private Reply to josh boege (new win) |
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