Most of the time, waiting to purchase Homeowner's Insurance causes the payment to jump and pushes the debt-to-income ratio over the allowable threshold. And the Homeowners Insurance Hustle begins and everyone is frantically running around trying to find a lower premium.

This can be avoided by starting the hunt for Homeowners Insurance EARLY in the process. It doesn't hurt to shop around to be sure you are getting the best homeowners insurance policy and premium. Keep in mind that credit score, previous claims, and age and location of the home all play an important role in the amount you will pay for insurance as well as what insurance companies will be able to write the policy.

By starting early in the mortgage loan process (even before the appraisal is completed) you can avoid last minute surprises. (Birthday party surprises are fun! Last minute mortgage loan surprises are NOT!) Most insurance agents can give you a quote without an appraisal in hand with the understanding that it may adjust slightly once they review the appraisal report.

My advice: Start shopping for your homeowners insurance once you have a signed contract to avoid last minute surprises!