1. Why do I need Title Insurance?
Title insurance is an insurance policy or contract issued by a title company. It protects the purchaser or owner, against a loss that may arise by reason of a defect in your ownership or interest you have in real property.
2. Why did you mail me a title commitment and what is it?
The contract requires us to provide a commitment to issue a policy
3. Why do I need a years worth of insurance plus extra in my escrow account and taxes collected so far in advance?
The amount of escrows required depends on your lenders requirements, however insurance paid in advance of 1 year is required on most all loans. Taxes run in arrears, there must be enough money for the full tax bill in your escrow account when they come due without creating a shortage in your escrow account if possible.
4. Why does my spouse need to attend closing?
If married state law requires both parties to sign on at least the Deed of Trust. If cash transaction both parties on contract, both parties on all documents.
5. Who is my lender and where do I make my payments?
Buyers will be provided this information at closing. Due to the transfer of servicing on loans however, the place where payments are made is subject to change.
6. Why do I need a cashiers check?
The Texas Department of Insurance limits personal checks to $1,500.00
7. Why am I paying Property Owner Association dues?
Dues are being prorated for the current year from the date of closing as set out in the restrictions
8. Why am I paying taxes at closing?
We are prorating taxes at closing. We are collecting the portion due from the seller and crediting the buyer and they will be responsible for the entire year.
9. Why is my Truth In Lending (TIL) statement different from my Note rate
The lender will explain to you that they are required by Federal Law to disclose to the buyer that their Annual Percentage Rate is higher the first year due to certain fees, interest and discount points paid by the buyer in advance.
10. Why am I paying more or less at closing then I expected? Sometimes due to pro-rations HOA, taxes and escrow items your figures will change, especially, if you have changed your closing date. Your lender and your Realtor usually advise you if there will be an increase in your closing costs.
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