When buying a home in Florida, homeowners insurance is more than just a closing requirement—it can directly affect your mortgage approval. Getting an insurance quote early in the homebuying process can help you avoid surprises and ensure your monthly payment fits your budget.
Your monthly homeowners insurance premium is included in your estimated housing payment, along with principal, interest, property taxes, and, if applicable, mortgage insurance. Higher insurance costs can increase your debt-to-income (DTI) ratio, which lenders use to determine how much you can afford to borrow.
In some cases, a higher-than-expected premium could impact your loan approval or the price range you qualify for.
If you're purchasing a condo, it's important to understand that the HOA's master insurance policy may not cover everything. Many buyers also need an individual HO-6 condo insurance policy to protect the interior of the unit and personal belongings. Lenders will review insurance requirements before closing, so it's best to plan ahead.
Shopping for insurance early gives you time to compare coverage, understand your estimated monthly payment, and make informed decisions before you're under contract.
At Bluegrey Mortgage, we encourage buyers to obtain insurance quotes as early as possible so there are no last-minute surprises. Our team is here to help you understand how insurance costs fit into your overall mortgage and homebuying budget.
