Why soaring home insurance premiums are ruining mortgage approvals

Home insurance premiums have jumped two to three times in the last six months. A policy that cost $1,500 last year could now be in excess of $4,500, especially in states like Florida and California.
I see this unexpected expense throwing off real estate transactions over and over again. Buyers get a pre-approval and start shopping for homes, but when they factor in the new, higher insurance premiums, their Debt-to-Income (DTI) ratio no longer works, and the deal falls apart.
When you are shopping for a house right now, do not just look at your pre-approved amount. You must work with a qualified insurance agent to get accurate quotes early in the process. Most importantly, you need to work with a highly qualified realtor who understands these market shifts.
If you are looking for an experienced buyer’s agent, reach out to me directly and I will connect you with the right professional for your specific needs.
And of course, if you need a solid mortgage pre-approval that factors in today’s actual real estate costs, comment the word MORTGAGE below and I will be glad to help you get started.
Marat Tsirelson
The Lending Group Co.
Phone: (267) 400-0763
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