NOLA Home Buying Tip 8: Get Insurance Quotes During Your Inspection Period

New Orleans insurance

New Orleans insurance

As New Orleans insurance costs, particularly flood premiums, have risen over the last few years, they are having a big impact on home buying decisions. You may love a house, but if the cost of insuring it pushes your mortgage payment up by several hundred dollars per month, it may not be the best choice for you.

Lately, we’ve seen folks waiting until shortly before closing on their new home to attempt to get insurance. Finding out at the last minute that the cost was going to be prohibitive led to some cancellations, along with very disappointed buyers and sellers.

New Orleans Insurance Advice

Our advice? Don’t wait until you’ve spent money on an appraisal, time preparing the myriad of documents needed by your lender and tied up your deposit for weeks only to find out that insurance costs will be a deal killer.

Price your insurance during the inspection period or you may end up in breach of contract or unable to qualify for a mortgage if the premiums push you past the acceptable debt to income ratio for your loan. Get that information during your contracted inspection period and you can cancel a contract with little to no loss.