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Setting A Closing Date: The How's and Why's

clock August 1, 2014 06:28 by author MyTitleDirect
When setting a closing date, there are a few things to keep in mind. First off, most people decide to close at the end of the month. The reason behind this desire is due to the fact that there is prepaid interest due at closing. This means that at closing, you are required to pay the interest for the month you are closing. The prepaid interest is calculated from the date you close until the end of that month. For example, if you close on the March 14th, you will pay interest from that date until March 31st. If you close on March 30th, you will pay interest until March 31st, or only one day’s worth of interest. Closing towards the end of the month will require less prepaid interest to be brought to the closing table. It is also important to understand that your 1st mortgage payment will not be due until the 1st full month after you closing is complete. This means that is you close on March 14th, your 1st mortgage payment will not be due until May 1st. Coordinating the date of your closing will take some planning. There are a few items to factor in.  First, you want to make sure all parties can attend. Parties in a home purchase will include:  the buyer’s attorney, the buyers, the seller’s attorney, the sellers, the bank’s attorney and the title company. All of these people will need to agree on a date, time and location. You also want to make sure to bring any necessary items. For instance, a necessary item could be a satisfaction of a judgment that which showed up on the title exam. Your attorney will let you know what these items will be, if any. You will also need a valid ID, such as your driver’s license or passport. Additionally, you may be asked to bring proof that your property taxes are paid (seller). Bank checks will also be needed for certain payments. You will be advised prior to closing on all of these conditions. It is important to stay alert as well as patient during your closing. You want to make sure everything goes smoothly for all parties associated with this transaction. A closing can take several hours; so don’t expect to run in and out. Remember, this is probably the biggest purchase you will make in your life, so you want everything to be clear and understood.     Learn more tips about the home buying process by going to 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


Setting A Closing Date: the How's & Why's

clock April 21, 2014 05:57 by author MyTitleDirect
Now that the title search is complete and you have your mortgage commitment signed, you are ready to set a closing date. When setting a closing date, there are a few things to keep in mind. First off, most people decide to close at the end of the month. The reason behind this desire is due to the fact that there is prepaid interest due at closing. This means that at closing, you are required to pay the interest for the month you are closing. The prepaid interest is calculated from the date you close until the end of that month. For example, if you close on the March 14th, you will pay interest from that date until March 31st. If you close on March 30th, you will pay interest until March 31st, or only one day’s worth of interest. Closing towards the end of the month will require less prepaid interest to be brought to the closing table. It is also important to understand that your 1st mortgage payment will not be due until the 1st full month after you closing is complete. This means that is you close on March 14th, your 1st mortgage payment will not be due until May 1st. Coordinating the date of your closing will take some planning. There are a few items to factor in.  First, you want to make sure all parties can attend. Parties in a home purchase will include:  the buyer’s attorney, the buyers, the seller’s attorney, the sellers, the bank’s attorney and the title company. All of these people will need to agree on a date, time and location. You also want to make sure to bring any necessary items. For instance, a necessary item could be a satisfaction of a judgment that which showed up on the title exam. Your attorney will let you know what these items will be, if any. You will also need a valid ID, such as your driver’s license or passport. Additionally, you may be asked to bring proof that your property taxes are paid (seller). Bank checks will also be needed for certain payments. You will be advised prior to closing on all of these conditions. Read the rest of the article on Buyhomeapp.com here


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)