Buy Title Insurance getting started

5 Reasons to Buy a Home in the next 5 Months

clock July 24, 2014 06:50 by author MyTitleDirect
by Hal M. Bundrick courtesy of Yahoo Homes : July 21st, 2014       A combination of market factors may make you think you're getting priced out of the home market. But one observer believes first-time homebuyers might want to consider making a move.  "I know it's hard to face rising interest rates and rising home prices at the same time," says Ilyce Glink, real estate expert and managing editor of the Equifax finance blog. "The good news is there's still plenty of runway if you want to buy a house this year." Glink believes first-time homebuyers should consider these five good reasons to buy a house before the end of the year: Home prices are still off their highs Yes, home prices are rising from the lows seen during the housing crash of 2008, but they're still nearly 20% off their mid-2006 peak. According to the S&P/Case-Shiller Home Price Index, average U.S. home prices are currently at summer 2004 levels. In markets that are still recovering, first-time homebuyers could see significant appreciation over the next few years, if they buy now. Interest rates are expected to keep rising Interest rates are slowly climbing, and as the Federal Reserve concludes its economic stimulus plan, rates are expected to continue to rise. Some experts believe mortgage interest rates could hit 5% by the end of 2014 or the first quarter of 2015, according to Glink. And even a small bump in interest rates can mean a significant jump in your monthly note. "If you're offered a 4.2% interest rate on a $400,000 mortgage, for example, your monthly payment will be $1,961, and you'll pay more than $300,000 in interest over the loan's 30-year term," Glink says. "If your interest rate were 4.9%, your monthly payment would jump to $2,115, and the total interest paid over the life of the loan would exceed $360,000." Rental rates are rising There is always an argument to be made regarding whether to buy or rent. It's all a matter of your particular situation – as well as the status of your local housing market. If you need to be mobile -- prepared for job transfers or out-of-state promotions -- or are continuing to search for "the perfect place," renting is probably right for you. However, if you would like to put down some roots, and rents are high in your hometown – it might be cheaper to buy. "Divide the list price of the home you're interested in by the annual rental rate of a comparable property to determine the price-rent ratio," Glink advises. "If it's below 20, chances are it's a good time to buy." Of course, buying a home means more than a mortgage. Remember to consider the other built-in expenses: maintenance, insurance, taxes and utilities. Consider your buying power Americans have been steadily reducing their debt load. Maybe you have, too. The lower your debt, the higher your buying power. Creditors will consider your debt-to-income ratio – how much debt you have, compared to your gross (before-tax) income. "Experts generally agree that you can spend between 28% and 36% of your gross income in total debt service -- that's your housing expenses plus your other debt payments," says Glink. With lower debt comes a higher score As you pay off student loans, credit cards and consumer debt, your credit scorewill improve. And that's one of the biggest factors mortgage lenders consider when determining the interest rate and terms of your loan. "You should definitely consider buying this year, because it's unlikely the housing market will look much rosier next year, when interest rates and home prices could be even higher," Glink says.


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)


Title Insurance Series: The Good Faith Estimate (GFE) Why You Order Your Own Title Insurance Part 4 of 8

clock July 18, 2013 11:27 by author MyTitleDirect

We will be beginning Part 4 discussing one of the most important of the sections on page 1 of the Good Faith Estimate (GFE): the SUMMARY OF YOUR LOAN. We will discuss this sections and how they relate to a purchase and a refinance transaction.


[More]


Title Insurance Series: The Good Faith Estimate (GFE) Why You Order Your Own Title Part 3 of 8

clock July 16, 2013 08:52 by author MyTitleDirect

We will be beginning Part 3 discussing some of the sections on page 1 of the Good Faith Estimate (GFE): PURPOSE, SHOPPING FOR YOUR LOAN, and IMPORTANT DATES. We will discuss these sections and how they relate to a purchase and a refinance transaction.
[More]


Good Faith Estimate (GFE): Why You Should Order Your Own Title Insurance On a Purchase or Refinance Part 2 of 8

clock July 8, 2013 12:10 by author MyTitleDirect

In this article, we will be discussing what a Good Faith Estimate is (GFE), who provides it and what it means. The average person does not know what a GFE is and too often think that they are “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.


[More]