Frequently Asked Questions About Title and Closing Services
As most people say, one of the greatest investments you"ll do in your lifetime is buying your own home. Having a home can mean a lot especially if you"re planning to start a family or reward yourself after those years of hard work. Going to open houses is a thrilling experience, but there are more things to worry about than being fascinated by fancy walls.
When buying a house, you might have heard about title insurance and real estate closing. If it"s your first time to encounter these terms, you might be overwhelmed of finding out what these could mean during the purchase process. Do you need title services in Ponte Vedra Beach, FL or would you just rely on your real estate agent?
Not to worry though, we have some frequently asked questions that would help you get a clear picture of the topics of concern.
What is title insurance?
Title insurance is a policy that aims to protect both homeowners and lenders against any property damage. These losses could come from liens, defects, and other legal actions concerning the title of the property. While other insurances such as car and health insurance are paid by annual or monthly premiums, a title insurance only requires a one-time fee. By paying once, you get to have protection from legal claims as long as you and your heirs own the real estate property. You would breathe easily to find out your safe from fraud, forgery, unannounced heirs claiming the property, unpaid debts and so on.
Lenders may require you to purchase a lender"s title insurance before you can borrow any amount of money. They do this to make sure that you have a legitimate property to finance on.
Who gets to pay for the title and closing services?
This differs from state to state as there would be norms in various areas. In some states, the buyer and the seller split the cost of title insurance and closing fees. It all depends on what usually happens in your state. On the other hand, you can always check your contract or loan application for details on who should pay what.
What are the title and closing fees about?
The fees revolving around these services differ according to how complex the transaction is, loan amount and purchase price. You can request a quote on whichever company catches your interest.
Title insurance is mostly based on the purchase price, and the amount of mortgage can be a factor, too. Title service fees are charged for the amount of work done which can include extensive research about the title of the property, examination of defects and preparation of documents.
Closing fees are more directed to what happens during the last transaction such as preparation, carrying out the closing, recording documents, notarizing signatures and so on.
Every company may have different fees, but the amount doesn"t vary that much.
What should I expect during the closing?
Most closings may approximately take an hour to finish, so it"s better to schedule it to avoid conflicts. Your closing attorney will explain all the documents related to the transaction. If you have any questions, this is the perfect time to ask about terms you"re not familiar with on some documents. We highly recommend that you would remove any doubts before closing so that you would have a smooth and stress-free experience.
What to bring on the day of closing?
Be sure to bring along a government-issued ID. You may also need to bring along your spouse and his or her ID if you"re married. Don"t forget to secure your certified check for paying the down payment and closing fees.