Many buyers wait until the last minute to get their insurance on the home their buying. Many Realtors allow them to wait until the last minute — usually that’s when the title company calls them and asks for the buyer’s insurance information.
Unless it’s a cash deal, the buyer is REQUIRED to have home insurance. They won’t get a mortage without it for the simple reason that should something horrific happen to the home, the bank wants to be compensated. You’re paying for it over 30 years and the day you close you might get the keys but you don’t own the home, the bank does.
Most local contracts read something like this:
This Means that
you can still get out of your offer if you find the home is not insurable OR if you find the insurance that the home requires is so high that it knocks you out of contention on your monthly mortgage payment and you can no longer get your loan.
Wouldn’t you rather know that in the first week than at the closing table
