One of the biggest mistakes you can make is not having homeowner’s insurance. This is one of the most important checks you will ever write and you may be quite surprised to find that it is really quite affordable. Some people get approved for a home loan, but they do not get the lowest mortgage rates in San Diego, so they think they will just skip the insurance so they can afford more house. This is never a smart decision.
Determine Your Homeowner’s Insurance Needs
Home loan rates in San Diego will take care of themselves, if you deal with an upfront lender, such as us here at Better Choice Loans. At least you will know it is the lowest rate possible, even if it is not as low as you hoped for.
You have to factor homeowner’s insurance into the equation. This is why we offer a calculator on our site that allows you to insert the mortgage rates in California you are approved for, plus insurance costs to give you an idea of what you can afford.
The conventional wisdom is that you only need enough insurance to cover about 80 percent of rebuilding cost, but it is not that much difference in your premium to get enough insurance to cover 100 percent. If you live somewhere prone to flooding, do not forget to have flooding included in your insurance. It costs more, but it will be well worth it, should you ever need the coverage.