Insurance

[Faith81]

Hi Guys,

Can I pay the insurance up front so that it is not counted in my PITI??

Thanks

[Nelsont]

I tried to do the same thing. I never got a straight answer and instead I was handed a condition from bank of America to provide the insurance binder as they requested. If it’s possible it may or may not affect your DTI. One thing is for sure is that next year when you renew your policy you can make the necessary changes and boa will issue you an escrow refund if the difference is greater than I think 20%…they are allowed to hold onto overages if the escrow difference year over year is less than $50 but if it’s greater than 20% they are required to refund the difference. In between the 2 it depends on the situation.

[Faith81]

Thanks Nelson. Do I get to pick my own insurance or I have to go with whom they supply?

[Nelsont]

Insurance is entirely up to you. They won’t provide insurance and will put your file on hold until you do.

[Faith81]

Got it! Thanks a million Nelson!

I have another question for you. I was already qualified about two months ago and requested to be resubmitted for a higher amount but they said they had to run my credit again and I had to do the rental verification over is that correct? I’m just concerned about my credit being constantly pulled (third time in 7 months) and then I’m also worries about the rental verification taking long because the rental office for my residence is very sssllllooowwww

[Nelsont]

I am not sure. I wouldn’t be surprised because you are looking at doing a complete redo of the underwriting so everything needs to be as current as possible.

And I would not worry about your credit inquiries. 3 in 7 months is nothing. If you buy a car you might get half a dozen inquiries for every dealer you visit or every car you think about purchasing. If your credit isn’t 700+ the dealer will run you through 3 or 4 banks to get you the best rate. And that’s every dealer. And then what if you decided to try your bank?

Banks notice trends. If they see a grouping in a few days they will know you tried to apply for a loan. If they see that all the time that’s an issue. and 3 in 7 months is not a trend and it will be pretty obvious on your report that you are trying to buy a house.

Plus if it makes you feel any better paying a mortgage loan on time is one of the best things you can do for your credit. That 5 to 10 hit will turn into a 20 or more point increase after nearly a year of on time payments.

[Author]

Posts