A mortgage is more than a rate and a closing date. It is a family planning for what happens after the keys are in hand. That is why insurance is not optional and belongs beside pricing, product fit, and closing costs in a loan officer’s core toolkit. It is required for the loan, and it also shapes monthly cash flow, out-of-pocket risk, and how confident a borrower feels when life gets messy.
What borrowers need from us
Many buyers fixate on the lowest premium and only find out later that a high deductible or thin coverage leaves them exposed. Others set a policy once and never look again. The important thing to remember is that needs, codes, and weather patterns change. The smartest help starts with translating tradeoffs in plain language. Here is the premium. Here is the deductible. Here is what happens if something goes wrong. That kind of early guidance prevents false savings and protects the file from last-minute surprises.
Two phases, two different kinds of help
Insurance guidance falls into two distinct phases.
Before closing. Borrowers need a starting point of where to look, how much coverage to consider relative to the home, and how deductibles can improve qualification but strain a household if a claim is needed. In parts of the country where coverage is hard to obtain, the order sometimes flips. First, can the property be insured, and at what cost? Then, does the loan still pencil? Finding out about a flood zone after falling in love with a home is an avoidable kind of heartbreak.
After closing. The need shifts from selection to upkeep. A light annual review catches the quiet changes that add up over time including when kids learn to drive, a room gets added, or a carrier tightens appetite in a zip code. A quick check-in keeps the policy aligned with real life and turns insurance from a chore into a feeling that someone is paying attention.
A branch workflow that feels natural
A branch workflow should match market realities and borrower temperament.
- Solve for financing first in most markets, then move quickly to insurance so premiums, deductibles, and endorsements are set before final approval.
- In harder-to-insure areas, evaluate coverage in tandem with financing, or even a step ahead, to avoid dead ends.
- Put insurance steps inside the same borrower experience the customer already uses. Provide clear reminders, transparent requirements and avoid scavenger hunts for what to send and when.
The goal is momentum without noise. When borrowers see insurance as part of the plan rather than an afterthought, there is less scrambling in the final week.
The tone that opens doors
No one wants to be pushed but, everyone wants to be prepared. Start by asking how familiar the customer is with the process and whether a trusted agent is already in the picture. Offer help as an option, not a mandate, and keep explanations short and specific. Discuss how a higher deductible changes cash requirements after a loss, why replacement cost matters more than list price, and what to do when wind, flood, or other endorsements come into play. The right tone earns permission to keep helping.
Guardrails that keep timelines intact
Insurance guidance does not need to slow a file. Raise the topic once a borrower moves from curiosity to intent, and especially once a property is identified. Offer a simple checklist of proof requirements and timing. Make warm handoffs to responsive advisors who talk to the loan team in real time. People do not mind steps, but they do mind surprises.
Training that sticks
Loan officers do not need to be licensed insurance agents to add value. The most useful training is already in the building. Pay attention to live files. Note the sticking points that repeat. Build first-name relationships with reliable insurance professionals and talk often. Patterns emerge quickly and so do faster answers when an unusual risk pops up.
Clear lines, better service
Everyone wins when roles are defined. Loan officers guide financing and protect the timeline while insurance advisors guide policy selection and service after the fact. Shared customers benefit when both sides agree on a light follow-up cadence that feels thoughtful instead of intrusive. A quick call, a short email or a text that lands at the right time is crucial. The message is simple. Someone has your back.
The small upgrade borrowers remember
Placing insurance guidance next to APR calculators reflects how homeownership really works. It reduces last-minute detours, aligns expectations with reality, and helps families handle tough moments long after closing day. That combination of preparedness and care is what people talk about when they send a friend your way. It is also what keeps a customer coming back when the next move is on the horizon.
Jeff Kvalevog is the Chief Strategy Officer of New American Funding.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners. To contact the editor responsible for this piece: zeb@hwmedia.com.
