Tag Archives: Naples Title Company

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: 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!”

 

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!”

 

Understanding Loan Fees

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Understanding loan fees is an important part of the mortgage process.

In addition to the cost of an appraisal and credit report, which have been covered in other videos, this video help you understand the various other costs of obtaining a mortgage, including:

— points

— loan origination fees

— pre-paid items

— escrow items

As you’ll see in the video, when you turn in your application you’ll be required to pay a loan application fee to cover the costs of underwriting the loan. Sometimes this fee pays for the home appraisal and credit report, or may be in addition to those charges.

You will receive a copy of your credit report and appraisal prior to or at closing.

The application fee is generally non-refundable.

Points and loan origination fees are up-front interest you pay on the loan. Often, this is where mortgage lenders make their initial profit on the work they do for you.

Sometimes you can “buy-down” an interest rate by paying more in points and origination fees. In effect, you’re giving the lender their profit early, so they have less risk, and will capture expected revenues earlier than they might otherwise.

This allows them to charge less in interest.

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Understanding Loan Fees Isn’t Hard … We Can Help!

The most qualified individual to advise you on your loan costs is your loan officer. They are required to do so with a loan estimate within three days of your applying for a loan.

However, as the oldest and most established title company in Naples and Marco Island, we have represented tens of thousands of borrowers on mortgage financed purchases. Our attorneys and title professionals are able to review your loan terms and costs to provide you with added assurances that you are choosing the best mortgage for your needs, and fully understand the features of the loan.

For nearly 40 years, First Title & Abstract, Inc. has been the FIRST choice for thousands of borrowers when selecting a title company in Naples and Marco Island. We are TRID, CFPB, and ALTA compliant, and knowledgeable about hundreds of loan products.

We would be pleased to assist you in closing on your refinance, or mortgage financed purchase.

Please call upon us anytime.

Your Loan Estimate

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Your Loan estimate is one of the most important documents you’ll receive during the mortgage process.

We know, because First Title & Abstract, Inc. is the oldest and most established Naples title company, and we have decades of experience working with loan officers and borrowers in calculating closing cost estimates.

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Your Loan Estimate – A Brief Tutorial

Your loan estimate from you mortgage lender will list your loan’s projected upfront costs, and monthly payments, including your escrow expenses for taxes and insurance.

Also, it will show your loan’s Annual Percentage Rate and Total Interest Percentage to give you an idea of the total cost of the loan.

Under federal law, each lender must supply a loan estimate within three business days of your application so that you can make accurate comparisons when shopping for a loan.

For more information about your loan estimate, please review the video above, and don’t hesitate to contact your loan officer, or any of us at First Title & Abstract, Inc.

We can explain all the features of your loan and help you evaluate whether the charges are fair and legal.

We are the title company that Naples, Florida and Marco Island property buyers have come to trust!

Licensed, bonded, and insured, we’re fully compliant with the latest federal lender and title agent closing requirements.

“Putting You FIRST!” means putting ourselves in your shoes, and helping you understand your loan before you sign your documents.

What Happens After I’ve Applied For My Loan?

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What Happens After I’ve Applied for My Loan?

This brief video tells you what to expect after you’ve applied for a mortgage.

Once you’ve supplied the 6 required pieces of information and included any other information the lender deemed necessary, you’ll receive a Loan Estimate within 3 business days.

Waiting is the difficult part, but there are some important things you should not do until after your loan is actually funded and closed!

Very important, be smart, guard your credit while waiting for your loan to close:

1.) DO NOT CHANGE JOBS!

2.) DO NOT BUY A VEHICLE OR MAKE ANY MAJOR PURCHASE!

3.) DO NOT MAKE PALRGE BANK DEPOSITS!

4.) DO NOT CANCEL CREDIT CARDS!

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What Happens After I’ve Applied for My Loan? Things NOT TO DO After Loan Application!

Once all the information has been verified if the loan is approved the lender will provide a Closing Disclosure to you three business days before loan consummation.

They’ll usually set a date for loan consummation – which may also be at your closing meeting.

Closing is basically transferring ownership of the property; consummation is commmitting to the loan itself.

Once both are completed, you should be planning your move-in.

At First Title & Abstract, Inc. we believe in “Putting You First!”  

We are the most established Naples title company serving Marco Island, Florida and Naples, Florida, and founded in 1978!

And we’re available to help you answer questions at any point of your transaction— not just questions about the title and closing process, but all facets of your sale or purchase.

Please don’t hesitate to call upon us!