A good lender is going to do as much as they possibly can, on the back end, to get supporting documentation for your file so you don’t have to bother yourself with it. There are limitations to what lenders can get for you, and homeowner’s insurance encapsulates all of the stuff that we cannot do for you.
Homeowner’s insurance is required on EVERY home loan. You can’t avoid it. Since this is one of the unsexiest parts of an unsexy loan process, very few loan officers prepare you for this but, in reality, getting your homeowner’s insurance is going to be the most work you’re likely to have to put in to the home loan process. Why? Because YOU have to call the insurance company or hop onto their website and get a quote. Your lender cannot do that for you. If you get an online quote, you STILL have to call the company to give them the additional information they need to issue a policy, your lender cannot do that for you. You still have to be in contact with the insurance agent/agency to approve your coverages so they can issue a policy, your lender cannot do that for you. And the insurance agencies will not provide us the documentation we need to close your loan without talking to you to get all of your information and have you approve the coverages for the home.
To soften the process, many lenders will recommend that you start with the insurance agent/company you use for your auto or renter’s insurance. And I totally recommend this too because they already have a majority of the information they need for you on file but, even in this case, THEY ARE STILL GOING TO NEED TO HEAR YOUR LOVELY VOICE. Also remember that there are a TON of insurance agents and companies out there. If, for whatever reason, you do not enjoy the service your current company provides or you think the annual premium they quoted you is too high, please feel free to shop around. However, you will need to have made a concrete decision on who you are going to get your coverage from before you send us their information. With all this said, I HIGHLY recommend that you start shopping for your homeowner’s insurance when you get an accepted contract. Because, the earlier in the process you provide your chosen insurer’s information to your lender, the better it is for everyone. Also, please note that your lender and processor are not insurance professionals, so we cannot comment on what types of coverages or the amounts of coverage you should get. We can only tell you what our minimum requirements are for your loan to get it closed.