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First Time Buyers >Insuring Your Home
Many home buyers are concerned about whether they have an insurable interest in the property before the actual closing. The answer is an unqualified "yes". Although the buyer is not yet the recorded owner of the property, he or she has an insurable interest in the property as soon as the agreement of sale is executed by both the buyer and seller.
Should you get hazard insurance before the closing? It depends. Buyers do not usually insure a property until the title passes to them from the seller. However, it's wise to know what the agreement between you and the seller stipulates with regard to insurance.
Most agreements state that the property will be insured for a specific amount. This is very important to both parties. From the buyer's point of view, it is also critical that an adequate sum or full replacement value be stipulated. Watch out for agreements which read "as now insured". This is an all-too-common practice which usually indicates that the seller does not to want to increase inadequate insurance coverage.
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| Q |
Who is "Fannie Mae" and why is she a big name in real estate?
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| A |
"Fannie Mae" is the real estate industry nickname for FNMA, or Federal National Mortgage Association, the stockholder-owned corporation that purchases mortgages from mortgage lenders. |
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Pat McGee
Keller Williams Real Estate
300 Welsh Road Building 4 Suite 145
Horsham, PA 19044
215-657-8100
Fax: 215--657-8105
pat@patmcgee-realestate.com
Former president of a Fortune 500 subsidiary who likes people and enjoys the challenge of getting the best value for his clients. Certified e PRO who is committed to giving the professional service to his customers which they have a right to expect and deserve to receive. Willingly accepts the challenge to "Buy Low and Sell High".
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