This Is Why Arizona Home Insurance Is Needed
Lenders Won’t Fund A Loan Without Arizona Home Insurance
The cost of your Arizona Home Insurance should be know during the inspection period. And more important, it must be in force before your lender will fund your loan. A Tucson Home Buyer must have Arizona home insurance and Evidence of Insurance (EOI) before closing.
Your insurance agent will send an EOI to the lender and escrow officer BEFORE close of escrow. It is worthwhile to have your agent send you written confirmation when sent.
Your Realtor will get a CLUE report of all claims made by the seller. Your Realtor should review that report with you during the inspection period.
A lot of claims is likely to increase your homeowners insurance. Sounds odd, but understand, the insurance policy covers the home. A larger number of claims by the seller suggest the “home” has a greater potential for future claims. Its about the property, not the owner.
Getting An Insurance Quote
Getting a homeowner insurance quote is the first step to making sure your house and property is covered.
As with most things in today’s world, getting a quote is easy. Go online. Or contact your current insurance agent. They will be able to find an agent in Arizona.
You can use the coverage for you prior home as a starting point. BUT keep in mind that different coverage may be “appropriate” for Arizona.
A ?home insurance policy will ?usually cover things like:
Understand the Insurance Coverage You Need
But no matter how you get a quote, take time to understand the coverage details on your new home. Every State has its own unique coverage options.
For example, Arizona isn’t known for natural disasters. But flood insurance is common in some areas.
At Close Of Escrow
The Arizona home insurance premium becomes part of your closing costs. In most cases, 3 months to one year of insurance premium goes into your mortgage escrow account.
Mortgage lenders prefer property taxes and insurance go into an escrow account. The monthly mortgage payment includes these amounts.
Funding these items monthly insures funds are available to pay these items when due. The mortgage servicing company will make the payments.
It is a good idea to confirm the mortgage servicing company has the correct information. There are instances where payments went to the wrong parties. Both insurance and property taxes.
Some mortgage companies will allow you to pay your home insurance premium yourself. But you will need to discuss that option with your lender and receive permission.
Escrow Will Want To Know
As the buyer, you will be contacted by the closing officer to confirm that you have a binder for homeowners insurance.
They may request a receipt for the first-year’s premium.
NOTE – In many cases the Arizona home insurance premium will be included in closing costs and the first years payment made by the escrow company immediately after Close of Escrow.
Also, when the mortgage lender maintains the escrow account, an additional amount equal to two months of premiums must be paid to fund the account. This adds to a total of 14 months of premiums due at closing.
The Insurance Agent you use will provide your lender and the closing officer the required Evidence of Insurance. This will be done as soon as you sign the policy documents.
Remember – Arizona real estate lender’s won’t fund a loan until they know the home is insured. They want to protect their loan amount should the home be destroyed.
Considering A Home In Tucson, AZ?
Are you thinking of buying a home in the greater Tucson area? Finding the right home can be a challenging process. But we can make the process much less stressful for you.
We have been Tucson Realtors since 2002. We know Tucson and the Tucson Real Estate market. As a top Realtor duo, we invest the time to understand your home buying interests and desires. At our first meeting, we will review the current real estate market with you. Show you the market data and then walk you through the Arizona home buying process.
Why? We want you to know what to expect. And what to plan for.
Interested in new construction? We’ll brief you on buying a new construction home. And what’s unique about the process.
For us, you are not another real estate transaction. You are a client and, future friend. We strive to create a relationship that continues long after you move into your home. Review our profiles. Check out our backgrounds, education, and certifications.
We are here to help you “know what you need to know” to buy a home in Tucson, AZ. We provide you information on Tucson events, places to shop and restaurants. Our resources include contractors, electricians, and home services. We will also help you get deals on tile and paint to make the home you buy yours. Our professional service backgrounds mean we put you first!
Thinking about selling a home in the Tucson area?
Selling a home requires more than listing it in the Tucson MLS system. It’s about marketing. Marketing through multiple online channels.
To no one’s surprise, 80% of home buyers start their search on the internet. Homes must be visible on multiple internet channels. The more visible a home is, the faster it will sell.
We use multiple online marketing channels to showcase your home. We will build a stand-alone website built to show your home. Our marketing program targets key cities in the U. S. based on the season. For luxury listings, our drone service provides video of your home and neighborhood. This video along with professional photos helps the online buyer see and feel in your home.
To learn more about how we can help you sell your Tucson home, call us – 520-940-4541 – to arrange a meeting. We will visit your home and prepare a comparative market analysis. Then we will meet with you to review our analysis and our marketing program to “get your home sold!”
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Our website provides information on communities and neighborhoods in the greater Tucson area. Want more? Give us a call – 520-940-4541. We are ready to answer your questions and help you get the information you are looking for.
We are a top Realtor duo in Tucson, AZ since 2002. Read our client testimonials. Give us a call. We look forward to making your home buying or selling a home an enjoyable experience for YOU!
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