For Summit buyers looking at a house built decades ago: how the homeowners insurance quote can change the loan, what the appraisal does and does not check, and the options when the house needs work. Fidelity Residential is a direct, licensed mortgage lender with a New Jersey office on Route 36 in West Long Branch, in Monmouth County, and we lend across New Jersey.
Pick the closest, or call and talk it through.
Fidelity Residential · NMLS #103098 · Equal Housing Lender
Summit is a city of about 22,700 residents and about 8,800 homes, according to the American Community Survey estimates the Census Bureau published for 2020 to 2024. Roughly two occupied homes in three, an estimated 68.3 percent, are owned by the people living in them.
About seven homes in ten were built before 1960, and an estimated 33.3 percent in 1939 or earlier. The Census Bureau puts the median value of owner-occupied homes at about $994,500.
Fidelity Residential is a direct mortgage lender licensed in New Jersey under a Residential Mortgage Lender License. Our office is at 121 NJ-36, Suite 230, West Long Branch, in Monmouth County; we do not have an office in Summit, and we lend across New Jersey.
Source: US Census Bureau, American Community Survey 5-year estimates, 2020 to 2024. Estimates, not counts.
Lenders require homeowners insurance, and the premium counts as part of the monthly housing payment an underwriter weighs against your income. When a file has little room to spare, the quote can decide whether the loan still fits.
Why the age of the house matters. An older roof, or a history of claims on the house, can move the price. Raise either with your insurance agent at the start, not in the last days before closing.
The cash to close. You usually pay the first year of the premium at closing, plus deposits to start the escrow account, so a higher premium raises the cash you need by more than the change in the yearly figure suggests.
The deductible. Lenders set limits on policy terms, the deductible above all. A policy written with a high deductible to bring the price down may not be accepted as written, so check it against the lender’s limits before the price is settled. If the house needs flood insurance, get that quote early too.
Once you are under contract, an appraiser values the house for the lender. Some programs also check the home against safety standards, but an appraisal does not stand in for a home inspection, which is strongly recommended on any purchase.
On a jumbo loan the house is appraised every time, because jumbo loans do not use appraisal waivers, and larger loans may need two appraisals from different appraisers.
Work the house needs does not have to end the purchase. Which loan fits depends on whether the work is done before you move in or later on.
Pays for the house and the work with a single closing, on a home you will live in. The loan is based on what the house will be worth when the work is done, and the money for the work is paid out in stages after inspection.
Renovation loansOnce you own the house, a line lets you draw for each stage of the work and leaves your first mortgage alone. Its rate moves with an index, so the payment can too.
How a HELOC worksAbove the conforming limit for the county, a jumbo program applies, with its own rules for the down payment and the savings you keep after closing.
About jumbo loansRenovation loans repair or improve a house; tearing it down to build again is outside what they pay for.
Yes. Fidelity Residential is a dba of PFN Lending Group, Inc. (NMLS #103098), which holds a New Jersey Residential Mortgage Lender License, and we lend across New Jersey. You can check the licence on NMLS Consumer Access (opens in a new tab).
No. Our office is at 121 NJ-36, Suite 230, West Long Branch, NJ 07764, in Monmouth County, and we lend across New Jersey. Call 732-686-9999 to talk with a licensed loan officer.
The appraiser values the house, and some programs also check it against safety standards. It is not a home inspection, so arrange one of your own.
The premium is part of the monthly housing payment the underwriter weighs against your income, and the first year is usually paid at closing. A late, higher quote can tighten a file.
Larger jumbo loans may. Every jumbo loan is appraised, because jumbo loans do not use appraisal waivers.
Yes, with a renovation loan on a home you will live in: one closing, a loan based on the value when the work is finished, and the money for the work paid out in stages.
Get a quote online, or call us and talk it through with a licensed loan officer.
This page is general information, not a commitment to lend. Programs, terms and eligibility depend on credit, income, property and underwriting review and are subject to change without notice.
Reviewed by Robert Shamie, CEO, NMLS #241428 · Last reviewed:
Fidelity Residential (PFN Lending Group, Inc., NMLS #103098) is a direct mortgage lender licensed in 40 states and the District of Columbia, with 26 years in business.