As a Title agent it is my job to explain to you and your clients what you should know about title insurance so we can make the closing process as easy as possible.
What is title insurance: Title insurance protects the holder from any losses sustained from defects on the title. It's required by most mortgage companies. Title Insurance protects your ownership right to your home, both from fraudulent claims against your ownership and from mistakes made in earlier sales, such as a misspelled name or an inaccurate description of the property. It's a one time cost usually based on the price of the property. Most of the time it's paid by the sellers, although this can vary depending on the county in Florida. There are both lender title policies which protects the lender, and owner title policies which protects the owner. Lastly, discounts on premiums are sometimes available if the home has been bought within a few years. Make sure to check with us to see if discounts apply.
When buying, refinancing or selling a home we may get confused as to what documents we need to keep in our personal records. Title Junction suggests you should file away the following documents for future reference: The HUD-1 Settlement statement. This document itemizes all costs associated with your closing. You may need for tax purposes if you paid points. The Mortgage and Note. This spells out the legal terms of your mortgage obligation and the agreed upon repayment terms. Affidavits are also important. These are binding statements by either party, for example; the sellers will often sign an affidavit stating they haven't incurred any liens. The Truth in Lending statement this form summarizes the terms of your mortgage loan obligation, including the APR and recision period. Riders, these are amendments to the sales contract that affect your rights. Example: the sellers won't move out until two weeks after closing but will pay rent to the buyers during that period.The Deed, this form transfers ownership to you. Lastly, Insurance policies, this provides proof of your coverage.
I know closing can feel overwhelming but with better explanation and what you should do with the stack of papers, hopefully you will not feel so stressed out by the process. Title Junction will make closing a pleasant experience. We believe in treating you like family, please feel free to call, or email me with any questions, I will be happy to help. Title Junction "the real estate / closing relationship you deserve..."
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