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Key Things to Know About Your Title and Closing
Your title verifies your legal right to your new home and your closing makes you an official new home owner!
When the title is transferred, you will receive a Warrantee Deed that gives you title and the legal right to your new home. Closing (also called the settlement) usually takes place at a title company. Your real estate professional will help coordinate a convenient date for you and the seller.
Understanding Title Insurance
There are two kinds of title insurance - a lender's title policy and an owner's title policy. To protect their interest in your property, mortgage lenders require buyers to purchase a lender's title policy. But a lender's title policy doesn't protect your interest as the homeowner.
For this you need an owner's title policy. This pays for all court costs and related fees associated with any claim that might come up. Also, if a claim is found to be valid, your actual loss-up to the face amount of the policy-is covered.
What To Expect At Closing
Many people may attend the closing: you, your REALTOR®, your loan offices, the seller (or builder) and their real estate agent, and an escrow agent (closer) from the title company.
During the meeting, which usually takes an hour, you and the seller will review all of the relevant closing papers, many of which you'll sign. Then, after providing a cashier's or certified check for the down payment and closing costs, the keys are passed to you and the house is yours!
What To Bring to Closing
In the rush of excitement of owning a new home, don't forget to bring these following items with you:
· A photo ID.
· A list of your addresses for the past 10 years (required by some title companies).
· A certified check, made payable to yourself, for the amount specified in your most recent Good Faith estimate you received from your mortgage consultant or lender. This usually includes the balance of your down payment (subtract the earnest money you paid when your offer was accepted), and fees for other services.
· Your personal checkbook so if other charges come up, you can write a personal check to cover them.
· Your homeowner's / hazard insurance binder with proof of one year's payment (usually a receipt).
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