What are the basic building blocks of a preapproval?
Credit Score Job Status/History Debt to Income Ratio Current Assets
Debt to Income is one of those components that is ever-changing depending on debts paid off, new credit lines, property tax rates, and....Homeowners' Insurance...YES, you read that correctly.
So why is Homeowner's Insurance counted? It is one of those payments homeowners are required to pay at a certain frequency, just like property taxes and monthly mortgage payments.
So you could see why deciding on the appropriate coverage and payment early in the mortgage process is so important.