Is it a normal procedure for a loan comapny to ask for an insurance premium to secure a loan?
Answers:
Usually only the online scammers are asking for these. Reputable lenders don't require an insurance premium upfront. Don't confuse with credit life or owner's insurance; scammers want a premium to "secure" a rate or a loan approval. Scammers; check them with BBB.
They will all ask for that info before the deal is closed. It's required.
You must be using online companies. Ive never heard of it. But then again I have only been doing mortgages for 15 years. Most states require that if you have to pay any upfront money they have to describe exactly what its for and it has to be refundable if not used.
I agree with the other poster its a scam. Call a few local mortgage companies. They will tell you the same.
in some states or provinces it is mandatory
I assume it is "credit life" insurance. A lot of lenders want you to get it (they get a kickback onthe premium) but in some states it is illegal to make it a requirement for a loan.
It is also overpriced, usually you can get simple term life insurance for less money and more coverage.
No, it's not.
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