Question about Home Binder
As a first-time buyer feeling a bit overwhelmed, I have a question. My insurance agent is asking me to pay for the full year of insurance today, but my mortgage company is still waiting for the insurance binder.
Do I need to pay the full amount first before they send over the binder, or should the binder have been sent to the mortgage company before the payment?
It’s completely understandable to feel exhausted and confused as a first-time buyer! The insurance binder is a temporary document that confirms you have insurance coverage in place, which is often required by your mortgage company before they finalize your loan.
Typically, you don’t need to pay for the full year upfront to receive the binder. You can usually request the binder once you’ve agreed to the terms with your insurance agent. Once the binder is issued, you can then discuss payment options, which may include paying in full or setting up a payment plan.
It might be worth having a conversation with your insurance agent to clarify the process and see if they can provide the binder before you make the full payment. This way, your mortgage company can proceed, and you won’t have to feel pressured to pay everything upfront right away. Good luck, and don’t hesitate to ask more questions if you need it!