Understanding Your Loan Estimate: Services You Cannot Shop For

Posted on October 3, 2016 by firsttitleandabstract

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!”

Comparing Mortgages

Posted on September 15, 2016 by firsttitleandabstract

Comparing mortgages is an important step in determining which financing is best for your property purchase.

This video gives you valuable tips on how to evaluate different mortgage choices to make the best decision for you.

You wouldn’t buy a car without comparing models, would you?

So, be a savvy consumer and go mortgage shopping armed with the information you need!

Comparing Mortgages is a Good Idea

First, devise a checklist for the information from each lending institution. You should include:

the company’s name and basic information
the type of mortgage (fixed, variable, 15 year, 30 year, adjustable after 7 years, convention, VA, FHA, etc.)
minimum down payment required
interest rate and points
closing costs
loan processing time
whether prepayment is allowed

Speak with companies by phone or in person.

Be sure to call every lender on the list the same day as interest rates can fluctuate daily.

In addition to doing your own research, your real estate agent may have access to a database of lender and mortgage options or suggest a variety of different lender options.

At First Title & Abstract, Inc., our staff can refer you to competent and friendly loan officers who will provide guidance to you on available mortgage products. Comparing mortgages is easy when you are working with professionals who are experienced and knowledgeable.

We hope you will not hesitate to call us for a referral, or to help answer any questions you may have about your mortgage features.

We offer this mortgage shopping worksheet for your convenience as a good starting point.

Mortgage Shopping Worksheet

Closing Costs Explained Visually

Posted on August 26, 2016 by firsttitleandabstract

This video explains some of the basics about closing costs.

At First Title & Abstract, Inc. our Marco Island and Naples offices are dedicated to making sure you understand upfront the estimated costs you will incur for closing.

Purchasing a home is exciting!

However, once escrow begins, the excitement can change to frustration, particularly if you are not ready for the closing costs that quickly accumulate. Many people make the mistake of only assuming they need the down payment money, and have to rush around town trying to come up with money for the closing fees.

However, you need not be surprised!

Just have your Realtor request from us a preliminary settlement statement reflecting an estimate of your closing costs.

As you may know, closing costs simply refer to the fees associated with the escrow and closing process in a real estate transaction.

Typically, you will incur charges for tax pro-rations, homeowner’s association or condominium fee pro-rations, lender’s fees, including credit check and appraisal fees, points and loan origination charges, and pre-paid escrow fees for your escrow account with the mortgage company. As well, there will be title charges, including the settlement fee, abstract fee, courier and delivery fees, title insurance premiums, and recording costs paid to the clerk of court.

Should you desire a preliminary settlement statement for your closing, just click on the link below and complete some basic information about your sale or purchase. We will provide an estimate for you with no obligation or cost for this service!

At First title & Abstract, Inc. we believe an informed consumer is a happy customer. All of us stand ready to serve you in your real estate transaction, and look forward to working with you!

Title Insurance Explained Visually

Posted on August 24, 2016 by firsttitleandabstract

This video explains why title insurance is one of the most important investments a buyer can make when purchasing real estate.

Often, real estate buyers ask—

“Doesn’t the attorney or settlement company handling the closing see to it that I have clear title? Why do I need to buy title insurance?”

Indeed, a careful title search is performed at the time property changes hands, and title issues are cleared prior to closing. However, on occasion, title defects can arise after the closing which a title search would not reveal. For example, what if a judgment was recorded in the wrong county, but still is valid as against the property? What if there was fraud in signing a deed, two sales ago, which only now is revealed? What if an unknown heir steps forward and claims title to the property?

Title insurance is designed to protect against such unanticipated title issues, and to prevent economic loss.

Whether it is after-discovered title defects, or mistakes made by the title abstractor or clerk of court— without title insurance, a property owner could suffer complete financial loss, and loss of ownership and occupancy rights to the property.

On our Resources Page, we have an article on “The Many Ways to Lose Title to Your Property” unless one has purchased a policy of title insurance.

We highly recommend watching this video, and studying the article on our Resources Page.

Title insurance is only purchased once, and the rates are strictly regulated by state law, with the same amount charged by all title companies and title agents and attorneys within the state.

If you have questions about the amount of coverage you should purchase, and the cost of title insurance, please contact us at our Marco Island or Naples Office at First Title & Abstract, Inc.

We look forward to assisting you in protecting title to your property.