Does Your Realtor Inform You About Title Insurance?

The Title Search, The Title Policy & The Loan Policy ~ Do I Need Them When Buying A Home?

What is The Title Search?
After your offer has been accepted, the title company will perform a search on the property to look for any problems with the home's title.  Some simple problems can be corrected before you get to the closing table.  This search typically reviews public records and land records going back many years.  Some problems could be contractor liens, tax liens or IRS liens on the property.

Why Does Someone Need an Owner's Title Policy?
Even though a title search was done on the property before closing, title problems can occur afterwards.  To help protect the new owner, it is recommended that a Title Policy be purchased.  This is a one-time fee paid at closing and usually issued in the amount of the real estate purchase.  Title Insurance protects the owner and their heirs for as long as they have an interest in the property. 

Receiving an Owner's Title Policy isn't always an automatic part of the purchase transaction and, depending on what was negotiated, can be paid by either the buyer or the seller.  If the owner has no title insurance, any problems that are found on the title after closing, could be the complete responsibility of the new owner.

What is The Lender's Title Insurance For?
The Loan Policy is usually required by most lenders if you are getting a mortgage for the purchase of your new home.  This also is usually based on the purchase price of the home.  This policy only covers the lender and not the buyer if there are any problems that are found on the title after closing.  This is also usually a buyer's cost at closing.

Now You Know!
(As always, check with your specific Realtor, Lender, Title Comany or Attorney for your specific situation.)

Check our this link to Capital Title Insurance Agency (A Part of Real Estate One's Team) to get more information about Titlework.

http://www.homeclosing101.org/whyneed.cfm

How Can I Prepare Myself For Buying A Home?????

BE PREPARED!

Your goal and your Realtor's goal is to have a smooth and pain free home buying process!  Yes they do happen!  Being prepared is a big part of it!  Some questions/suggestions for your preparation could be:

1. CAN I AFFORD TO BUY A HOME?

First, talk with a lender to see if your credit, work history and money available qualifies you to be able to buy a home. 
          *What is the down payment amount I need?
                 (3% - 10%  or even up to 25% if you are buying as investor)
          *What Interest Rate will I be paying?
          *Do I need to worry about property taxes when searching for
            homes?
          *What other closing costs can I expect to pay?  (i.e. taxes and
            homeowners insurance for 1 year of escrow, title company
           fees, mortgage fees.  These need to be paid at closing.)

If you are paying CASH, be prepared to show proof that you have the funds available (copy of bank statement, liquid funds...)  NOTE:  These funds usually have to be in the buyer's name.

2.  WHAT LOCATION DO I WANT TO LOOK IN?

          *Do I need to be close to work, family?
          *Do I need to buy in a particular school district or do they offer
            school of choice?
          *Is the area growing or declining?
          *Is the home located near airports, railroad tracks, freeways
            or industrial areas?
          *Visit the area at different times of the day. 
          *Talk with the neighbors-they usually are more than willing to
            share the neighborhood scoop!
          *Visit the neighborhood police station.

3.  KNOW YOUR "HAVE TO HAVES" AND "LIKE TO HAVES" IN A HOME!

           What style are you looking for?
           How many bedrooms, bathrooms, do you want a garage
           or basement?
           What about the lot size or the square footage of the home?
NOTE:  The more information you can give your REALTOR, the faster your buying process will be.

4.  START SEARCHING ON THE INTERNET

          *Become familiar with selling prices and how long homes have
            been on the market.  Are there a lot of foreclosures in the
            area?  Are homes selling quickly?

5.  FIND A REALTOR TO HELP YOU WITH YOUR SEARCH

           *Realtors have access to all the listings on the market.  Most
             buyer's agents do not charge a fee for their services and
             most get their commission paid by the seller.  It would be
             in your best interest to have a buyer's agent.  They will
             present an offer and negotiate it on your behalf.  If you
            don't understand - JUST ASK THEM!  That's their job.   :)

Be prepared with your pre-approval letter or proof of funds and deposit when writing an offer.  Most sellers will require these, and time is of the essence!  If you find that home you've been searching for and then need to get your financing in order, it may be too late!  Sellers won't wait if other offers are coming their way!  A prepared buyer usually has an advantage! 

If you are prepared and know what you want, your home buying process will be a lot easier!  Bring some patience!  Buying a home is very stressful and a big decision!  Good Luck!