“Bad Insurance Quote Can Mess Up the Debt Ratio”

  “Bad Insurance Quote Can Mess Up the Debt Ratio”




Joe, our mutual client told me that she got her insurance quote, it is $2854 for the full year policy on the house, which is crazy!  She told me you gave them a couple of names and I did the same. I know if she can’t do better we will have a problem as we were already tight on the debt ratio. Keep your fingers crossed.


I never talk someone out of using their insurance agent unless it jeopardizes the approval of a mortgage and this is one of those cases.


When I was taking this client through the pre-qualification process we estimated $100 per month for the estimated homeowner’s insurance cost. Unfortunately the quote that the client got was $2854, which was more than double and would make this a loan that would not get approved. The client told me that that was the best that the agent could get her.


I explained that the debt ratio would be higher than was allowed and the mortgage would get denied. I gave the client two names to contact and so did her agent. The net result was that she ended up getting a policy for $1148, along with two other bids that were both around $1200.


Joe, thank you for the referral, here is a copy of the insurance quote of $1148 and binder as it has already been paid for. It is actually more coverage than the quote that she had gotten from her agent. The quote she got was truly crazy. Kate


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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com



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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

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Comment balloon 5 commentsJoe Petrowsky • October 26 2016 11:01AM


Good morning Joe. It pays to shop around to make it happen! Enjoy your day!

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) almost 3 years ago

This is an example of how the kingdom could be lost because of a loose shoe. isn't it Joe Petrowsky 

Bill Roberts

Posted by Bill Roberts, "Baby Boomer" Retirement Planner (Brooks and Dunphy Real Estate) almost 3 years ago

Joe Petrowsky  Some policies are ridiculous aren't they and can throw off the buyers mortgage payment

Posted by Hannah Williams, Expertise NE Philadelphia & Bucks 215-953-8818 (Re/Max Eastern inc.) almost 3 years ago

Gheez ... that was one heck of a quote ... a great way to lose business and cause someone to not get their mortgage loan.  Thank goodness you offered resources that provide market competitive insurance. 

Posted by Kathleen Daniels, San Jose Homes for Sale-Probate & Trust Specialist (KD Realty - 408.972.1822) almost 3 years ago

Joe-what  a difference.  This is why it is so important to work with knowledgeable professionals!   

Posted by Kathy Streib, Home Stager - Palm Beach County,FL -561-914-6224 (Room Service Home Staging) almost 3 years ago