I'm looking to apply for an FHA loan in the very near future.Do lenders require that homeowners insurance and property taxes be included with the mortgage payments?If not,is it usually inexpensive to take the homeowners insurance offered by the lender?
I think all lenders will let you choose your own insurance provider. Many require that these be bundled into your payment simply to ensure that you actually maintain them. You wouldn't be able to maintain the property without keeping insurance and property taxes up to date. It's much like a bank requiring you to maintain insurance on a car while you're making payments.
I had the same experience as JonRun. The builder/lenders preferred insurance company was more than $60 a month cheaper than any other option I could find.
My lenders insurance recommendation beat all the quotes I got by at least 200 a year.