Your mortgage company will require you to purchase a hazard insurance policy before you will be able to complete the purchase of your home. Below is a checklist of procedures used by lending institutions which vary depending on individual requirements.

This checklist should assist you in completing your transaction.

                   Be sure the effective date of the policy or binder is the date of title transfer. * Your insurance agent can help you decide on the replacement cost. The amount required should equal or exceed the mortgage amount but the replacement cost may vary.

                   Ask if the first year premium must be paid in advance before closing.

                   Ask if a paid receipt for the first year’s premium will be required by the lender for closing.

                   Ask if you are required to have your insurance premiums included with your mortgage payments. NOTE: In this case you must still pay the first year premium to your insurance company, then next year they will bill lender.

                   Ask the exact address of your mortgagee (bank or loan company) as it should be listed on the policy.

Any Questions?
Don’t hesitate to contact Fredericksburg Realty
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