I am in the process of refinancing my loan and lender indicated that they need to see their name as loss payee on the home insurance policy document before the loan closes. Firstly,How is this possible while I am still with my old lender?Secondly is this normal as I did not come across this condition during my first loan. Appreciare your inputs.
I'd ask your insurance agent. I think the lender just wants to preserve the equity and value of the property in case something happens and they need to lien/foreclose.
I'd ask your insurance agent. I think the lender just wants to preserve the equity and value of the property in case something happens and they need to lien/foreclose.
This is standard. Just ask your insurance agent to provide a binder which shows the new lender as a mortgagee. This coverage will begin the day of closing. We require the same thing on everyone of our loans