Did you know that today's mortgage rates are the LOWEST since the Summer of 2005??!! It is a terrific time to find out what you qualify for and take advantage of today's low FIXED rates.
Don Cohen, Downeast Mortgage
207-773-6161
Thursday, January 17, 2008
Monday, January 7, 2008
Save on closing costs by choosing your title company.
Your title company may seem like the last step in the purchase of a new home or refinance. In reality your title company has been working along with your realtor and/or lender to produce that magical day where you refinance or buy your home. (And sign a 2 inch thick stack of paper work). It’s called the closing, escrow or settlement depending on your state.
The title company you choose performs three essential functions, the title search, issuing title insurance and the closing. The title search consists of reading the previous deeds and any other in documents recorded in your county’s offices regarding the property to determine if the seller does indeed have title to the property. A title company should be searching back at least 40 years in the registry of deeds to establish clear title.
Your title insurance company also issues title insurance. Title insurance is an insurance policy which protects the lender and the homeowner against loss resulting from any defects in the title or claims against a property that were not uncovered (or missed!) in the title search. These claims may result from liens on the property, claimed easements, forged documents, unrecorded “wild deeds” or the lack of proper authority to sign a document.
You will be required to purchase Lender’s title insurance which protects the lender. You will also have the option to purchase an owner’s policy of title insurance. It is a one-time fee that protects you as long as you own the property against claims to your title. Note, that a lender policy protects the lender only, not you. The only way for you to benefit from the title search that was performed is to purchase the owner’s title insurance.
The last service the title company you choose will perform is the closing. The closing is the day when you will go to the title company and sign all of the paperwork to purchase or refinance your house. The title company will coordinate the lender, the real estate brokers, the sellers, the buyers and any lawyers if they are involved. After the closing your title company will record the relevant documents and you can move into your new home.
I’ve used the phrase “title company you choose” a few times in this article. That’s because you should choose your title company and avoid being directed to one particular title company by your lender or realtor. You should be shopping for your title company just as you shopped for a realtor or shopped for an interest rate. State law guarantees you the right to choose your title insurance company and protects you from any increased fees for exercising this right. If you feel that you are being forced to use a particular title company, you should contact the attorney general.
All title companies are not created equal. They vary on the quality of service, price and the product they provide. Here are the questions you need to ask.
1. What is the price for the closing and what is the price for the title search? These are the fees for coordinating all of the parties involved in the closing and performing the title search at the registry of deeds. You should ask your title company to account for every charge that it is going to assess to you.
2. What is your overnight carrier fee? Title companies will have to overnight mortgage payoffs and all the documents you just signed at closing to the bank via an overnight carrier. This is an area where there are frequent “up-charges.” You shouldn’t pay any more than $15.00 for each overnight package.
3. How much will I pay for recording? Recording fees at the registry of deeds are the same in all 16 Maine counties. Generally the charge is $16.00 for the first page of a document and $2.00 for every page thereafter. On your settlement statement you will be able to note the amount you are being charged and at closing you will be able to count the pages of your deed and mortgage to make sure the amount is correct.
4. Will you close at my real estate sales agent’s office? It may be more convenient to close at your mortgage brokers’ office, your real estate sales agent’s office or even your home. Will the title company you are choosing close away from their office?
5. If I am not satisfied with your service will you refund my closing fee? The closing fee is payment for organizing and performing the closing. You as a buyer will most likely be paying the closing fee and if you are not satisfied with the service you received, ask for it back. Make sure your title company puts this guarantee in writing; don’t just accept their word on this.
6. How much is the title insurance premium? Different companies charge differing amounts for title insurance and you can request a quote ahead of time. You will be required to purchase a loan policy of title insurance to protect the lender and the owner policy is optional (but a very good idea).
7. Are there any other fees I will be paying directly to you? This is the catch-all question to hopefully identify any other miscellaneous charges that the title company may charge.
You should be shopping for a title company just as you shopped for interest rates and a great real estate sales agent. You can save hundreds of dollars (or more) and more importantly, you can choose a quality title company which will result in a smooth and problem free closing.
And lastly, buy the owner’s title insurance. It is optional so you could save a few hundred dollars by declining it. However, your home is your largest investment and just as you would not want to be without hazard insurance, you don’t want to be without title insurance. A recent survey by the by American Land Title Association found that there were title problems in one-third of all residential real estate transactions. An owner’s title insurance policy is your protection against a title error such as previously recorded liens or an outstanding ownership interest by prior owners in the chain of title. It is cheap protection for your most valued possession.
For More information contact Matthew J. McDonald
mjmcdonald@landam.com
Your title company may seem like the last step in the purchase of a new home or refinance. In reality your title company has been working along with your realtor and/or lender to produce that magical day where you refinance or buy your home. (And sign a 2 inch thick stack of paper work). It’s called the closing, escrow or settlement depending on your state.
The title company you choose performs three essential functions, the title search, issuing title insurance and the closing. The title search consists of reading the previous deeds and any other in documents recorded in your county’s offices regarding the property to determine if the seller does indeed have title to the property. A title company should be searching back at least 40 years in the registry of deeds to establish clear title.
Your title insurance company also issues title insurance. Title insurance is an insurance policy which protects the lender and the homeowner against loss resulting from any defects in the title or claims against a property that were not uncovered (or missed!) in the title search. These claims may result from liens on the property, claimed easements, forged documents, unrecorded “wild deeds” or the lack of proper authority to sign a document.
You will be required to purchase Lender’s title insurance which protects the lender. You will also have the option to purchase an owner’s policy of title insurance. It is a one-time fee that protects you as long as you own the property against claims to your title. Note, that a lender policy protects the lender only, not you. The only way for you to benefit from the title search that was performed is to purchase the owner’s title insurance.
The last service the title company you choose will perform is the closing. The closing is the day when you will go to the title company and sign all of the paperwork to purchase or refinance your house. The title company will coordinate the lender, the real estate brokers, the sellers, the buyers and any lawyers if they are involved. After the closing your title company will record the relevant documents and you can move into your new home.
I’ve used the phrase “title company you choose” a few times in this article. That’s because you should choose your title company and avoid being directed to one particular title company by your lender or realtor. You should be shopping for your title company just as you shopped for a realtor or shopped for an interest rate. State law guarantees you the right to choose your title insurance company and protects you from any increased fees for exercising this right. If you feel that you are being forced to use a particular title company, you should contact the attorney general.
All title companies are not created equal. They vary on the quality of service, price and the product they provide. Here are the questions you need to ask.
1. What is the price for the closing and what is the price for the title search? These are the fees for coordinating all of the parties involved in the closing and performing the title search at the registry of deeds. You should ask your title company to account for every charge that it is going to assess to you.
2. What is your overnight carrier fee? Title companies will have to overnight mortgage payoffs and all the documents you just signed at closing to the bank via an overnight carrier. This is an area where there are frequent “up-charges.” You shouldn’t pay any more than $15.00 for each overnight package.
3. How much will I pay for recording? Recording fees at the registry of deeds are the same in all 16 Maine counties. Generally the charge is $16.00 for the first page of a document and $2.00 for every page thereafter. On your settlement statement you will be able to note the amount you are being charged and at closing you will be able to count the pages of your deed and mortgage to make sure the amount is correct.
4. Will you close at my real estate sales agent’s office? It may be more convenient to close at your mortgage brokers’ office, your real estate sales agent’s office or even your home. Will the title company you are choosing close away from their office?
5. If I am not satisfied with your service will you refund my closing fee? The closing fee is payment for organizing and performing the closing. You as a buyer will most likely be paying the closing fee and if you are not satisfied with the service you received, ask for it back. Make sure your title company puts this guarantee in writing; don’t just accept their word on this.
6. How much is the title insurance premium? Different companies charge differing amounts for title insurance and you can request a quote ahead of time. You will be required to purchase a loan policy of title insurance to protect the lender and the owner policy is optional (but a very good idea).
7. Are there any other fees I will be paying directly to you? This is the catch-all question to hopefully identify any other miscellaneous charges that the title company may charge.
You should be shopping for a title company just as you shopped for interest rates and a great real estate sales agent. You can save hundreds of dollars (or more) and more importantly, you can choose a quality title company which will result in a smooth and problem free closing.
And lastly, buy the owner’s title insurance. It is optional so you could save a few hundred dollars by declining it. However, your home is your largest investment and just as you would not want to be without hazard insurance, you don’t want to be without title insurance. A recent survey by the by American Land Title Association found that there were title problems in one-third of all residential real estate transactions. An owner’s title insurance policy is your protection against a title error such as previously recorded liens or an outstanding ownership interest by prior owners in the chain of title. It is cheap protection for your most valued possession.
For More information contact Matthew J. McDonald
mjmcdonald@landam.com
Wednesday, January 2, 2008
First time homebuyers take note: if you qualify for the Maine State Housing program, you could receive a rate under 5% on a 30 year fixed mortgage loan!! Even if you do not qualify for this program, FHA fixed mortgage rates are as low as 6.25%!!
Sellers take note: work with a Realtor who understands the affordable loan programs that are available in today's market, thus assuring you the expertise needed to navigate through today's market.
There are many fixed rate programs available to help buyers BUY and sellers SELL.
D. Cohen, Downeast Mortgage
Sellers take note: work with a Realtor who understands the affordable loan programs that are available in today's market, thus assuring you the expertise needed to navigate through today's market.
There are many fixed rate programs available to help buyers BUY and sellers SELL.
D. Cohen, Downeast Mortgage
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