Author Archives: firsttitleandabstract

Understanding Your Loan Estimate: Page 2, Loan Costs

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Understanding Your Loan Estimate: Page 2, Loan Costs

Your real estate mortgage costs are summarized on page 2 of the closing disclosure.

Generally, closing costs are fees paid when the title of the property is transferred to the buyer making them the legal owner.

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Understanding Your Loan Estimate: Loan Costs

The fees associated with obtaining a mortgage make up a portion of your closing costs, and are called “loan costs.”

They include Origination Charges— the fees collected by the lender for the loan process.

They may including fees for handling the loan application and “Origination Fees”, which are compensation paid by the creditor to the entity that originated your loan.

“Points” are fees paid to lower interest rates; points are considered prepaid interest for the buyer, and are usually tax deductible. Be sure to check with your tax advisor on the deductibility of points.

Finally, Underwriting fees are costs associated with assessing the risk that the loan might not be repaid, based on the loan specifics and your financial characteristics.

Your loan officer will be able to explain the fees which make up your loan costs.

As always, however, you can count on your friends at First Title & Abstract to review your mortgage terms and offer our assessment. We’ve seen thousands of mortgages and fully understand what are typical and atypical charges for your mortgage.

The one title company in Naples and Marco Island which has come to be trusted above all others, is First Title & Abstract.

We were the FIRST title company in Collier County, and after almost forty years,  we remain the FIRST choice among Realtors and buyers and sellers of real estate in the Naples area.

For friendly, professional title services, call on First Title & Abstract!

We believe in “Putting You FIRST!”

Understanding Your Loan Estimate: Other Costs

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Understanding Your Loan Estimate: Other Costs

Your Closing disclosure will contain an area showing you other costs of your mortgage. These may include: taxes, certain pre-payments, and escrow funding.

Recording fees are charged by government agencies for keeping legal ownership records, while “transfer taxes” may be imposed by states, counties and municipalities on real estate ownership transfers.

Prepayments may include homeowner’s insurance premiums on the property mortgage insurance, if required property taxes for a period of months in advance, and prepaid interest, typically for the period from closing to the first mortgage payment.

Escrow funding may also be required against future annual charges for homeowners insurance, mortgage insurance and property taxes.

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Understanding Your Loan Estimate: Other Costs

Another important fee you’ll see on this section of the Closing Disclosure is for title insurance. This is an optional purchase, but most buyers purchase title insurance to protect their legal ownership under an “Owner’s Title Policy”

For more information on title insurance, be sure to call us, and review our Resources page.

Some of these “Other Costs” may vary substantially between Loan Estimate and Closing Disclosure ask your lender about the tolerance rules or watch the video “Could My Loan Cost Exceed The Loan Estimate?”

Most title agents won’t take the time to help you understand your Closing Disclosure. But we will!

At First Title & Abstract we believe in “Putting You FIRST!”

Realtors and lenders have come to recommend us as the top title company in Naples and Marco Island. For nearly forty years, we’ve served our clients successfully, always with friendly and professional service.

We look forward to assisting you with your closing, and answering any questions you may have!

Understanding Your Loan Estimate: Services You Cannot Shop For

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Understanding Your Loan Estimate: Services You Cannot Shop For

These costs are paid to outside parties, not the lender, but you don’t get to choose them. They may include:

  • appraisal, which puts a value on your property on the lender’s behalf
  • a credit report on you
  • fees to assess flood risk of your property, or for ongoing monitoring of flood zone changes related to your property
  • tax monitoring to keep track of your property tax payments
  • tax status research to assess the state of tax payments on the property.

While you can’t shop for these services, the price for these services in your final loan disclosure MUST match the price on the Loan Estimate; items in “Cannot Shop” have 0 tolerance for change.

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Understanding Your Loan Estimate: Services You Cannot Shop For – Know the Rules under TRID! The disclosures and timelines are for YOUR protection! Call us for help!

Federal laws exist to safeguard consumers during the home-buying process when a mortgage is involved.

If you have questions about any charges during your home-buying process, please contact your friends at First Title & Abstract, Inc.

We’re the title company in Naples and Marco Island which thousands of satisfied buyers and sellers have depended upon for honest and reliable services.

At First Title, we believe in “Putting You FIRST!”

Understanding Your Loan: Closing Cost Details

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Understanding Your Loan: Closing Cost Details

Your loan officer can help you understand your Closing Disclosure.

However, if you’d like a second review, call First Title & Abstract, Inc. We are the title company in Naples, Florida and Marco Island which real estate clients and professionals have come to rely upon for nearly 40 years!

Page 2 of your Closing Disclosure details specific closing costs.

Section A includes: Origination charges collected by the lender Origination fees paid to brokers, loan officers or other parties and Discount Points – prepaid interest. These figures should match your original Loan Estimate.

Section B covers services for which you could NOT shop. The total of these should be within 10% of the total from your Loan Estimate.

Section C covers services you could shop. If you chose providers from the lender’s written list, costs should be within 10% of Loan Estimate. The set of services you can shop may vary on different loans.

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Understanding Your Loan: Closing Cost Details

The Recording Fees in Section E should be within 10%; other costs in E, plus F, G and H, may vary from your Loan Estimate without tolerance limits.

This page will also break out the costs YOU will pay, before or at closing; the costs the Seller will pay, any costs paid by others and any credits from your Lender.

Understanding Your Loan Estimate: Services You CAN Shop For

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Understanding Your Loan Estimate: Services You CAN Shop For

Most title companies in Naples and Marco Island won’t tell you that you can shop for certain services.

We believe in full disclosure with our customers and will always tell you what is optional and what is required.

Title and other services paid to outside parties may be among those which you may shop and compare.

This is true for a variety of services.

These might include pest inspection, home inspections, certain lender-required fees,  a survey to verify property lines,  and a range of closing and title services. Selecting a vendor on price alone is often a bad idea, but it’s always good to compare prices if you aren’t sure your designated provider’s cost estimate is in line with the marketplace.

Closing services you may shop for may include:

  • a Lender’s title policy, which protects their legal interest in their loan collateral- usually the property itself
  • settlement agent fees, paid to the individual or company responsible for facilitating the final transaction
  • Title Search, which clarifies and documents legal ownership of the property
  • a title insurance binder, which allows potential future use of the current title search results, conditions and exclusions for a short period to lower the cost of future title insurance.
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Understanding Your Loan Estimate: Services You CAN Shop For

 

If you select service providers from the list provided by the lender, their fees cannot change by more than 10% between the Loan Estimate and the final Loan Disclosure. If you select other providers the lender is not responsible for changes in those costs.

When selecting a title company on Marco Island or Naples— choose First Title & Abstract, Inc. — we are the FIRST choice for title among real estate professionals and buyers and sellers.

First Title & Abstract, Inc. — “Putting You FIRST!”

Understanding Your Loan: Cash And Transaction Summaries

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Understanding Your Loan: Cash And Transaction Summaries

Page 3 of your Closing Disclosure will compare cash requirements from your Loan Estimate to your actual final charges.

If “Did this change?” is marked “YES” there will be explanation of the changes made regarding the cash to close.

The bottom line final “Cash to Close” is the money you will need in-hand within three business days of the closing.

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Understanding Your Loan: Cash Transaction Summaries

If your transaction has a Seller the summary table will show a line by line comparison of Borrower to Seller transaction details.

If there is no Seller you may see a Payoffs and Payments table instead.

Review the summary tables to understand the transaction and your financial commitments at loan consummation.

Don’t let the amount of cash you need to close be a surprise, or a source of anxiety.

We’re experienced at helping our buyers estimate the cast to close requirement within a few hundred dollars, or less.

Let us help!

As the oldest and most established title company in Naples and Marco Island, our experienced staff is prepare to assist you with every aspect of your closing.

First Title & Abstract, Inc. — “Putting You FIRST!”

What Is A Rate Lock?

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What is a rate lock?

Mortgage rates change constantly through an unpredictable combination of government policies and economic conditions. This video explains the common term ‘rate lock.’

A “Rate Lock” is a guarantee that a lender will honor a specific combination of interest rates and points for a given period of time. A lock protects a buyer from rate increases but commits them to a higher rate if mortgage rates fall below the locked rate.

As of 2014, rate locks aren’t usually an option until a purchase offer for a specific property – new-home or resale – has been accepted by the seller. The borrower’s credit score, the loan-to-value ratio property type, location and other factors plus, of course, market rates and market conditions will also affect rate-lock decisions.

Decide whether to lock or “float” based on your capacity for risk and your best rational knowledge about construction and closing schedules. If your rate lock expires an extension might be available but both you and the lender will be looking at current mortgage rates to decide the best option.

Mortgage questions often have legal implications affecting your contract.

That’s why our clients and real estate agents depend upon the real estate attorneys, title attorneys, and title agents at First Title & Abstract, Inc. to provide you with answers to your important questions and to guide you through the process of successfully closing on your property.

Making sure your rate-lock will protect you during the length of your contract is important.

As the oldest and most established title company in Naples and Marco Island, we’re here to help.

First Title & Abstract, Inc. — “Putting You FIRST!”

 

What Is RESPA?

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What is RESPA, and why should consumers, real estate agents, and title agents know about it?

RESPA stands for the Federal Real Estate Settlement Procedures Act. This video tells you about it all.

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What is RESPA?

 

RESPA requires lenders to disclose information to potential customers throughout the mortgage process. By doing so, it protects borrowers from abuses by lending institutions.

RESPA mandates that lenders fully inform borrowers about all closing costs, lender servicing and escrow account practices and business relationships between closing service providers and other parties to the transaction.

Serious criminal and civil penalties can result from violations of the rules against kick-backs and other illegal business practices.

For more information about RESPA, visit HUD.GOV or call 1-800-569-4287 for a local counseling referral.

First Title & Abstract, Inc. is fully dedicated to complying with the letter and spirit of RESPA.

We urge all consumers and mortgage brokers and real estate agents to only work with a Naples title company or Marco Island title company that takes seriously the obligations of federal law.

First Title & Abstract, Inc. has been in business longer than any other title company, and we are proud of our long-standing record of independence and service with integrity.

Our attorneys zealously guard our company’s reputation for full compliance with state and federal laws.

Lending Process Dos and Don’ts

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Lending Process Dos and Don’ts are good to keep in mind … not just as useful guidelines to make the borrowing process easier, but to make sure you protect your privacy and avoid violating federal lending guidelines which can have serious consequences.

To ensure you won’t fall victim to loan fraud, as you’ll see in this video, you will want to be sure to follow all of these steps as you apply for a loan:

  • Be sure to read and understand everything before you sign.
  • Refuse to sign any blank documents.
  • Do not buy property for someone else.
  • Do not overstate your income.
  • Do not overstate how long you have been employed.
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Lending Process Dos and Don’ts – The Key to Unlocking a Satisfying Mortgage Approval Experience

  • Do not overstate your assets.
  • Accurately report your debts.
  • Do not change your income tax returns for any reason.
  • Tell the whole truth about gifts.
  • Do not list fake co-borrowers on your loan application.
  • Be truthful about your credit problems, past and present.
  • Be honest about your intention to occupy the house

And do not provide false supporting documents.

Honesty and full disclosure are the keys to a good mortgage experience.

At First Title & Abstract, Inc. we are the one title company in Naples who has your back.

We care about every aspect of the real estate buying process, and want to guide you along the way.

Our experienced real estate and title attorneys are here to help you with your mortgage process.

Just call us and we’ll be there … “Putting You FIRST!”