For first time homebuyers involved in their purchase of a Charlottesville Virginia home there is so much to understand about the homebuying process. One of the things that you may ask about is mortgage insurance.
Mortgage insurance is an insurance policy that protects mortgage lenders if a borrower defaults on their home mortgage. It is required in cases where a borrower's downpayment is less than 20% of the purchase price.
Like any other insurance policy mortgage insurance involves the payemnt of a premium and protects the mortage lender against loss. Mortgage insusrance will be included in the monthly mortgage payment. If the borrower defaults on the loan and the lender is forced to foreclose on the property, the lender may file a claim with the mortgage insurer for a portion of the total losses.
If you have questions about the home buying process, contact me. I would be happy to speak with you about what is involved in buying a home. Helping buyers get into the home of their dreams is my favorite thing to do.
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Pam Dent
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