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Should I Purchase an Insurance Binder before Closing on My Home?

You don't really purchase a binder. What you actually buy is an insurance policy. You usually pay for it at the closing. It is most often figured in to your closing costs. The lender collects the money from you that has been estimated by your insurance agent and either sends a check to the agent or to the company when they are billed by the insurer. You can always ask your agent who is preparing the binder and application for insurance what the estimated premium is so you have an idea of how much will be included in the closing costs for insurance.

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