While it isn’t uncommon for Boston real estate buyers to want to do some renovations prior to moving into their new homes, it is important to make sure that homes undergoing extensive renovations are properly insured and that loans allow a delay in occupancy.
Typically, single-family mortgages specify that Boston real estate buyers must move into their new home within 30 days of closing. Failure to do so may technically constitute mortgage fraud. Also, insurance for owner-occupied loans is different that insurance for an uninhabited home undergoing renovations.
When Boston real estate buyers are ready to close, the lender’s attorney and/or underwriters review the insurance to ensure that there is adequate coverage. It is important that if you plan to renovate for a long period prior to moving in to your Boston real estate home that you get the correct coverage before you get to this step. Otherwise, you may find yourself desperately scrambling to obtain an acceptable insurance binder.
Many times if you have the right Boston real estate agent to walk you through the process, from looking for a property to closing, you can avoid unnecessary turmoil and bumps in the road. Also, during your search process you’ll be able to determine (with the help of your realtor) whether or not you’re up for purchasing a Boston real estate property that requires a great deal of renovations first.
If you are interested in purchasing Boston condos, Boston luxury apartments, or Boston real estate contact a well-known Boston real estate agency like First Boston Realty to discuss your housing needs.
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