Requirements To Close
•Personal identification that includes your picture and signature to the closing
•If funds are needed bring a Cashier's or Certified check to the closing for the amounts you must pay. Personal checks are not accepted
•Provide homeowners insurance , along with a paid receipt for the first year's premium. If you're refinancing provide proof on insurance coverage for a minimum of 90 days
•Before the closing, contact your broker/lender regarding any additional requirements that must be satisfied PRIOR to closing
• If you are going to be paying off credit card balances at the closing, the most current statements must be brought to the closing.
•If your refinance requires a Notice of Right to cancel, disbursement may be delayed until the fourth day following the day of the closing.
Why the Buyer Needs Title Insurance
Without a title insurance policy, you may not be fully protected against errors in public records, hidden defects not disclosed by the public records, or mistakes in examination of the title of your new property. As a result, you may be held fully liable for any prior liens, judgments or claims brought against your new property. However, your policy from 1st Service Title & Closing, Inc. , insures that if such an occasion arises, you will be defended free of charge against all covered claims and paid up to the amount of the policy to settle valid claims.
Why Title Insurance is needed when Refinancing a Mortgage Loan
Today's lower interest rates have spurred you to refinance your mortgage. Now you can expect to reap the benefits of substantially reduced monthly mortgage payment, but you can also expect to pay to the lender the typical closing costs associated with any mortgage loan.
From the lender's standpoint, a refinanced loan is no different than any other mortgage loan. So be prepared for service fees or points and other expenses including a new charge for title insurance.
Title Insurance is Important When Refinancing
Why do you need to buy title insurance again even though you purchased a policy when you first bought your home and there is no change in ownership?
It's because a separate policy is needed by the lender insuring the validity of your mortgage when it is made. For as long as you won the property your mortgage is valid, but it doesn't insure the new mortgage created when you refinance, and it doesn't provide protection against events that may have transpired between the time you purchased the property and when it is refinanced.
For example, you may have taken out a second mortgage on the home that could treat the priority of the lender's mortgage. Or, there could be legal judgments against you or a mechanic's lien against the property by a supplier who wasn't paid for home improvements.
Lenders also insist on a new title policy because many mortgages are packaged as securities and sold to investors in the secondary mortgage market. Title insurance i
Chain of Title
This is simply a history of the ownership of a particular piece of property. Showing who bought it and sold it, and when. The information may be derived from public records, mostly the Register of Deeds offices and County Clerks Office, or obtained from title plants privately owned and maintained by title companies.
This is a search to determine the present status of general real estate taxes against the property. The tax search will reveal if taxes are current or whether any taxes are past due and unpaid from previous years. In addition, the tax search will indicate the existence of any special assessments against the land and, if so, whether or not these assessments are current or past due.
A due and unpaid tax or special assessment is a prior lien or claim on the property above all others. If a buyer purchases property with unpaid and past due taxes or assessments against it, he or she is likely to find a government body, the village, county or state placing the property up for sale to pay those taxes or assessments. A tax search reveals the status of the taxes. Title insurance protects the buyer against loss from unpaid and past due taxes and assessments.
One of the most important parts of the title search is to determine if there are any unsatisfied judgments against the seller or previous owners which were in existence while they owned the title. A judgment is a general lien against the debtor's real estate and constitutes security for any money owed under the judgment.
It is extremely important to be sure that a title is not subject to judgments against the seller or previous owners. Title insurance provides this protection. Rights established by judgment decrees, unpaid federal income taxed, and mechanic's liens all may be prior claims on the property, ahead of the buyer's or lender's rights. If a judgment is discovered that constitutes a defect in the title, it is pointed out, and the seller must then eliminate it before the title of the new buyer can be insured free and clear of that judgment.
Commitment to insure
When these searches have been completed, the title company issues a commitment to insure, stating the conditions/requirements under which it will insure the title. The buyer and seller and the mortgage lender can proceed with the closing of the transaction after clearing up any defects in the title which may have been uncovered by the search and examination.
The mortgage lender is as concerned as the buyer about the quality of the title because the property is to be security for the new mortgage loan. The mortgage lender requires assurance that it has a valid first (or another acceptable priority) mortgage lien on the property.
The lender's title insurance, however, doesn't protect the new buyer of the property. Although the land is the same, the interest of the buyer and the interest of the lender are very different. The provisions of a lender's title insurance policy are very different from those of a buyer's policy, so the buyer should obtai