More Information

Do You Need Insurance to Buy Washington Park Real Estate?

Washington Park Denver Homes for SaleNo, you do not need homeowner insurance to buy Washington Park real estate as long as you’re paying the full price in cash. Colorado does not mandate insurance for anybody to own a home. However, if you plan on financing your purchase with a mortgage, then you must have insurance. Lenders require this coverage to protect their investment in the property.

Think about what would happen if you did not have insurance and something destroyed your home, such as a fire or flood. You probably would not have the funds to rebuild and so to cut your losses, you could walk away from your property. Your mortgage company would be left owning real estate that is worth less than the money they loaned you for it.

Lenders typically require that you have at least a year’s worth of coverage before they issue you a mortgage. Payment for such insurance is normally due in a lump sum once or twice a year. This can mean a large hit on your budget. To make payments more affordable, you can request that the premium be divided into 12 equal monthly amounts. You can then submit each month’s due with your mortgage payment.

Take into account any waiting periods or times that must pass before each component of your insurance goes into effect because many lenders demand complete coverage. For example, flood insurance may take 30 days to become valid, so you must apply for it at least a month in advance of when you expect the mortgage.

If you have any questions about what else it takes to buy Washington Park real estate – or any Metro Denver Luxury Home – please contact us.

,

Comments are closed.