Insurance for First Time Home Buyers

Home ownership, it’s the American Dream. For most people buying your first house is both exciting and daunting. There’s a mountain of forms to fill out, appraisals and inspections to be done. Now they’re telling you that you need to buy insurance too…This sounds like a bad dream, not the American dream.

The people you work with should be providing you guidance and advice so that you know what to expect next. They shouldn’t be pushy or rude. If they don’t understand that you have not done this before, then I would go elsewhere for services. You’re in control. It’s your money!
Professional Realtors like Steve Medeiros www.justleaveittosteve.com render much more than a guided house tour. You can tell a nice kitchen or bath when you see it. You don’t need a realtor to tell you that.

Steve will let you know what’s next in the process of home buying.
So your offer has been accepted, and the bank has approved your loan. “We will close on May 31st” the banker says. What exactly is a closing any way? The closing date is when the actual sale of the house is recorded at the registry of deeds. It’s officially yours (and the banks) on that day. The name(s) on the deed are recorded in book form. You own it!

You’re told by the lender that you will need to provide them with a “binder” effective the date of closing. A binder is a legal document that informs the lender who the insured is, which insurance company is insuring the house, and the coverage amounts. Many times a first time home buyer will be asked for a one year paid receipt be included with the binder. In that case, you will need to pay for one year worth of insurance up front. A lender will usually ask for this receipt because they plan to escrow your Massachusetts home owner insurance premium.
Each month you pay your mortgage the bank takes 1/12 of the annual insurance premium. They put that money into a separate ”escrow” account. At the end of the year there is enough money accumulated to pay the following annual bill from the insurance company. Nothing too complicated.

It’s my job as a local independent Insurance agent is to find you the right coverage at the right price. www.jmdins.com We take photos. We take measurements. We ask about the home AND about the customer. You’re making a big purchase. J.M. Doherty Insurance takes away the guess work. We are going to do it right. We do this every day!

The realtor, the bank, the lawyer are all looking to close the deal. No one gets paid until you close on the loan. That’s understood. You are in charge of the insurance buying process, here. There are certain things you need to be mindful of, coverage limits, deductibles (very important), liability limits.

For almost 40 years J.M. Doherty Insurance “steering you in the right direction”.
Thank you!!
Hans Doherty CIC, LUTCF