This includes collecting invoices and written information from the mortgage lender, insurance agent, surveyor, attorneys for buyer, seller-lender, tax search firm, mechanical and termite inspection companies and title underwriter. Your closing will actually take place at the title company, which will act as escrow agent and title insurer.Īs detailed in the earnest money contract, the title insurance agent may hold the earnest money, prepare the closing statement and generally coordinate with all the entities involved in the closing. The initial contact with a real estate agent is often to answer the question: “Can I afford to buy a house?” or “What kind of house can I find in this price range?” The real estate agent deals in the real estate market every day and can assist you in making an informed decision on your purchase. Most buyers and sellers utilize the services of a state licensed real estate agent to aid them in identifying a home, negotiating the earnest money contract, selecting a lender and title company, and generally acting as a consultant throughout the closing and beyond. Numerous entities will participate in and provide services to the purchasers however, the real estate agent, mortgage lender and the title company are the primary participants in the closing of your home. The better this process and the responsibilities of the various providers of services are understood, the more likely we are to relax and benefit from the transaction. For many buyers and sellers it can also be a time of confusion, primarily because many people are not familiar with the closing process. Yet the protection lasts as long as you, or your heirs, retain an interest in the property.Ĭlosing on a home can be an exciting time. You Pay Only Once: There are no renewal premiums, and there is no expiration date on the policy. You need an owner’s title insurance policy to protect your investment. However, this mortgagee’s title insurance policy doesn’t protect you, the homeowner. The Lender’s Coverage: If a mortgage is to be placed on your new home, the mortgage lender will probably require that you purchase title insurance to protect the institution’s position as a holder of a mortgage loan. Your Coverage: Your title insurance protection is a permanent assurance that your ownership and use will be defended against claims at no cost to you, whether the claim is valid or not. Then, your title insurance protects you against mistakes or threats that might otherwise result in financial loss to you include hidden, unknown items. Without the protection of title insurance, you’ll be in jeopardy of losing your investment.Ī service known as a title search describes, as well as possible, the condition and quality of the title you are buying. These are just a few of the problems that can suddenly surface. Defects may include: a forged will or a deed a title transfer by someone under age a married person conveying real estate without his or her spouse fraudulent impersonations invalid divorces, false affidavits. But even the most diligent search of the public records could fail to disclose a number of title defects. When you buy a home, you want to be certain it’s safely yours.
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