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Preparing yourself for a home purchase

clock June 16, 2014 07:18 by author MyTitleDirect
Preparing yourself for a home purchase is very important. When you are investing in one of the biggest purchases of your life, you want to make sure you are ready. Here are things to consider that may help: Look over your Financial Situation A. Check your credit. Run your credit (if you haven’t in the last 3 months); you are entitled to a free credit report once a year. There are online sites such Credit Karma who do this for free, or you can even look into creating an account with one of the three big credit Bureaus (Experian, TransUnion, Equifax). Knowing your credit score will give you an idea if you are in good standing to buy a home. You will also be able to see if there are any issues on your report that you need to take care of. Certain issues can prevent you from buying a home at this time, and remember too, the better your credit score, the better rate you will qualify for. B. Gather information on all of the monthly income you generate by collecting documents such as W2’s, tax returns and recent pay stubs. Your lender will look at your gross monthly income as the source for qualifying you. Your gross pay is the amount you receive before any deductions (federal and state taxes, social security, etc.). If you are not receiving any income, it is probably not the best time to look into buying a home. C. Make a list of all your monthly payment obligations. This includes all credit card payments, student loans, car payments and any other loan balances (you will see these on your credit report). You do not necessarily need the utility bills at this time because your lender will not use them for qualification. D. Prepare a budget based on how much of a mortgage payment you believe you will be able to afford. This may not necessarily be the amount you will qualify for, but it a good first step in understanding based on your monthly expenses, what you feel confident in being able to pay. E. Have a game plan for your down payment. Find out how much money you plan on using for your home purchase and if you will be using money from your checking/savings accounts, a retirement account, money inherited or even gifted from a friend or family member.   Read the rest on buyhomeapp.com here


Final Loan Approval: Underwriting Explained

clock June 5, 2014 09:30 by author MyTitleDirect
Now that your lender has received your appraisal report, they can begin underwriting your file. The underwriter will make the ultimate decision of whether or not the loan is accepted or denied. They will verify all documentation submitted by the processing department and make sure the information meets the loan program guidelines. If there are any deficiencies, they will ask for additional documentation to remedy them. Once they’re comfortable that all guidelines and criteria have been met, a final commitment will be issued along with the final rate-locked Good Faith Estimate. Signing the Commitment It is now time to sign the final commitment. The commitment is a contract that is usually sent to all parties involved in the transaction including realtors and attorneys. Once you sign the commitment, you have accepted the conditions in the contract and your mortgage has been completed. At this point, both you and the bank are obligated to fulfill all the terms of the mortgage and failing to do so will put your down payment and other prepaid fees at risk. Now that the commitment is signed and executed, all parties are notified and you are now ready to work on closing.   Download the article on Buyhomeapp.com


What Is The Title Search Buyhomeapp.com

clock May 8, 2014 11:00 by author MyTitleDirect
What is Title Insurance? Title insurance is usually required by the lender to protect against loss resulting from claims by others against your new home. In some states, attorneys offer title insurance as part of their services in examining title and providing a title opinion. In other states, a title insurance company or title agent directly provides the title insurance. To save money on title insurance, compare rates among various title insurance companies. Under RESPA, the seller may not require you, as a condition of the sale, to purchase title insurance from any particular title company. Generally, your lender will require title insurance from a company that is acceptable, and in most cases you can shop for and choose a company that meets the lenders standards and save significant money on closing fees. Ask what services and limitations on coverage are provided under each policy so that you can decide whether coverage purchased at a higher rate may be better for your needs. However, in many states, title insurance premium rates are established by the state and may not be negotiable. If you are buying a home that has changed hands within the last several years, ask your title company about a "reissue rate," which would be cheaper. If you are buying a newly constructed home, make certain your title insurance covers claims by contractors. These claims are known as "mechanics liens" in some parts of the country. A way to compare title insurance quotes to see where you can save money is to look at the Good Faith Estimate. A Good Faith Estimate is (GFE) is not just full of “mandatory” charges by the bank. If you look at a GFE, you will see there are also Title Insurance charges on it. These charges, unlike popular belief, are not mandatory charges. In fact, nearly almost every charge on your GFE are all estimates, hence the name Good Faith Estimate. Here is a link to what the standard GFE looks like blank: http://www.hud.gov/offices/hsg/ramh/res/gfestimate.pdf.   Read the rest of the article here on buyhomeapp.com


Angie's List Buyer beware: How to avoid a home closing nightmare

clock March 10, 2014 06:29 by author MyTitleDirect
  Buyer beware: How to avoid a home closing nightmare January 27, 2014 by Michael Schroeder   Property titles: Be involved in selection While no guarantees come with any home purchase, experts reiterate that hiring professional advocates who put buyers first from loan to title work remains the best bet for the smoothest close. “I’m the advocate for my clients, because I know this business inside and out,” says Tina Harrison, vice president of highly rated JDR Title in Tysons Corner, Va. “Buyers really need to have … somebody looking out for them.” For title work, Harrison suggests getting quotes in writing. Lenders or real estate agents may provide lists of title companies, she says, but because affiliations sometimes exist between these parties, further evaluate these options before deciding to hire. “The influence and pressure of profits can cause a company to miss the mark on advocating for the buyer,” she says, noting JDR is an independent title company. That could play out in a lender that tells the title company to gloss over terms a buyer may be uncomfortable with — such as an interest rate that ticked up, or a pre-payment penalty — and pressure the buyer to sign. “There are behind-the-curtain incentives … literally some lenders who own their own title companies tell their employees that you have to refer to our title company,” she says. To evaluate title company options, ask if any affiliations exist when you receive a recommendation. Inquire, too, about licensure, required for title agents in all states, a full list of charges, and the title company’s hours. Tapan Desai, a member in Leesburg, Va., used a loan officer at a California-based mortgage company that he declined to name, since it still holds his loan, who “was terrible to put it kindly,” he says. “We were 10 days overdue on the closing date and the seller of the house had decided that he was going to start accepting new offers.” Fortunately, Desai says, JDR swooped in to help seal the deal. “They even sent a closing agent to our home at 10 p.m. with the finalized paperwork to sign,” he says, on a Friday before the Monday he closed. Desai says he paid JDR about $1,000 for title work and his growing family moved from a 760-square-foot condo to a 3,800-square-foot suburban home with five bedrooms and a basement for about $500,000. “They understand home buying is a very emotional process and they work very, very closely with you,” he says.  “They just went above and beyond in all aspects to make sure we could secure the home we wanted. . . . Member Brenda Payne expected to spend this Christmas hosting out-of-town family in her new home, a brick five-bedroom, renovated ranch located in an established neighborhood in Cheyenne, Wyo. “We thought it had pretty much everything we were looking for,” she says of the $370,000 house with three fireplaces where she and her husband plan to retire. “We were very excited.” Instead, after moving in briefly, Payne says she’s had to move back out and hire contractors to do an estimated $90,000 worth of repairs from fixing the roof to addressing structural issues. She says they’re tearing out drywall that covered mold in the basement, fixing a master bedroom fireplace that didn’t vent properly, and replacing improperly installed bathroom tile in addition to other repair and remodeling work. “It was like a Pandora’s box … I spent a few days crying I was so distraught and upset,” Payne says. “We’re looking at currently [moving in] January or February because the extent of everything that has to be done.” The purchase of a home should be a joyous occasion. But closing on a home can prove a stressful experience, too, as would-be buyers scramble to provide voluminous documentation to secure financing, quickly uncover imperfections  that could prove costly later, and review and negotiate terms — all before inking a deal. Senior writer Jason Michael White contributed to this story. [Source:  Angieslist.com. Read the complete article on their site here:  https://www.angieslist.com/articles/buyer-beware-how-avoid-home-closing- nightmare.htm] Click Here for PDF version of article: Buyer beware angieslist 1 title.pdf (115.98 kb)