Now it is time to promptly apply for the loan. You must have final approval by the date specified in the sales contract. Your mortgage lender requires you to have minimum insurance coverage. One year's prepaid homeowner's insurance must be obtained prior to closing . The original copy of the policy and the paid receipt must be presented at or before closing.
Most people choose to buy broader coverage than the minimum.
Call your insurance agent for additional information to insure proper coverage. The lender may require you to buy flood insurance if the property is located within a designated flood plain as determined by the Flood Plain Maps or the Department of Housing and Urban Development. About two weeks before closing you will need to call the utility companies to have the gas, electric, water and sewer, garbage and telephone services etc. turned on as of the closing date. Closing Closing is the act of transferring ownership of a property from the seller to the buyer. Depending on where you live, the lender, attorney, title company, or escrow agent will see to it that all terms and conditions of the transaction are met.