What Does The Closing Process Involve When I Sell?

Posted on October 6, 2016 by firsttitleandabstract

We wanted to take a break from our blogging posts about the mortgage process which fundamentally educates our buyers, and offer something of interest to the sellers we serve.

As this video explains, a signed sales contract doesn’t mean your house is sold. There are still financial, contractual and legal steps for both sides.

What Does The Closing Process Involve When I Sell?

The buyer has to get financing to meet the contract terms – which includes credit checks.

The property is inspected and appraised; title insurance and escrow accounts are set up. And you are working on locating new housing, packing, and preparing to move.

One of the most important obligations for sellers is to cooperate with the title company to clear any title issues, and to assist with obtaining association estoppels, and mortgage payoff information.

Of equal importance, is addressing all obligations under the contract, such as providing a prior owner’s title policy, maintaining the property in good condition, and taking care of any obligations which come up during the inspections, such as painting or repairs.

After the contract is signed, it can take a month or more of undertaking these steps to get ready for closing.

A good seller leaves the property in the condition they would want to take it if they were buying, and nothing breeds good will more than taking such an attitude.

If you need help preparing for closing, please count on us. We are the title company that believes in “Putting You FIRST!”

Non other title company in Naples or Marco Island will go the extra mile like we will … we want to exceed your expectations and make your sale easy and hassle-free.

Please call upon us to assist you, and if you wish to be represented separately in your closing, please contact us. Our real estate attorneys and title attorneys at Woodward, Pires & Lombardo, P.A. can handle seller-side only representation.

So please plan on being amazed at our service. We’re here for you!

Understanding Your Loan: Additional Information Can Be Important

Posted on September 28, 2016 by firsttitleandabstract

VISIT THIS LINK FOR INFO ABOUT PAGE 4 OF THE CLOSING DISCLOSURE:

Understanding Your Loan: Additional Information

The information found on Page 4 of your Closing Disclosure is important.

And you won’t find a Naples title company which will take the time to explain these things to you.

But our title attorney on staff, and Naples real estate attorney available for your closing, along with our closers and title agents are very familiar with the new Closing Disclosure form, and all the info it contains.

It is NOT just standardized form with information that is identical for every loan.

It includes important explanations about features of your loan, including:

Assumption: can this loan be transferred to another person if you sell or transfer the property?

Demand: can the lender require early repayment of the loan?
Late Payments: what penalty, after what period, applies?
Negative Amortization: does this loan schedule or allow payments that do NOT fully cover the interest due, resulting in increased loan principal?
Partial Payments: what is THIS lender’s policy?

You should also review Escrow Account details to understand whether you will pay additional property costs via regular Escrow Account payments or handle them yourself directly.

Understanding Your Loan – Beware of Negative Amortization!

A trap for many borrowers are those loans with negative amortization.

If your loan has this feature, please contact us, as we can help you fully understand the potential risks associated with such a mortgage.

At First Title & Abstract, Inc., we believe understanding your loan is critically necessary before you sign your paperwork.

We will take the time to make sure you know what you’re signing, before the closing.

Please call our offices in Naples, Florida or Marco Island, Florida, and we will be glad to discuss your loan with you!

First Title & Abstract — “Putting You FIRST!”

What Is A Rate Lock?

Posted on September 28, 2016 by firsttitleandabstract

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!”