Tuesday, September 3, 2013

The Closing Process Explained


While buying a home can be one of the most exhilarating and rewarding experiences a person can have, the litany of rules, regulations and processes to obtain a home can wear down even the savviest purchaser. How do you stay on top of everything AND keep your sanity? It all starts with quality information. Our website, www.championstitleservies.com has tons of resources to help make your home buying experience a pleasant one. Though we cannot cover all the information in today’s post, we will go over one of the most important aspects of any home purchase: the closing.

What is a closing?

A closing is defined as “a meeting of all parties involved in a property transaction during which pertinent documents are signed and transferred, and funds are distributed.” If that definition is a little too technical, it basically means that everyone involved in selling the home (buyer, seller, real estate agent, title company, attorney, etc) needs to attend a short meeting to make sure everything that needs to happen, happens accurately and legally. Typically, it is handled by a closing agent, either a title insurance company or an attorney, and will last approximately 45 to 60 minutes.

When does your closing process begin?

The closing agent will begin preparation for your closing shortly after you sign your contract.

What information does the closing agent obtain?

A request for payoff information is sent for existing mortgages, as well as a request for any information regarding homeowners or condominium association dues and/or transfer fees.


If a new mortgage is being obtained, the closing agent will work closely with the new lender to make sure that all of the lender’s closing requirements are met.

A title exam is ordered to verify the seller’s right to transfer ownership, and to discover any outstanding mortgages, liens, restrictions, easements, etc., which may affect the property. A title commitment will then be issued to show any matters reflected in the title exam, as well as a determination of the documents needed to properly transfer the title of the property to the buyer.

Who else other than the closing agent works on this process?

The closing agent will also work closely with the lender and Realtors to coordinate the ordering of the termite inspection, survey, homeowner’s insurance and flood insurance, if applicable.

What happens after the buyer receives the required documents and the loan is approved?

When the lender has received all required documents from the buyer and the loan has been approved, the closing agent will schedule the date and time for the closing with all parties. The lender will prepare a closing package consisting of the loan closing instructions, fees charged in connection with the new loan, and any loan documents to be delivered to the closing agent. The closing agent will then prepare all of the necessary closing documents, including a closing statement outlining all costs associated with the transfer of ownership as well as fees charged in connection with the new loan.
Copies of the closing statement are usually faxed to the lender and Realtors, if any. If the closing agent has been provided a fax number for buyer and/or seller, they may also receive a copy.

What does the buyer need to bring to the closing?

The buyer must bring a cashier’s check to closing made payable to whatever title company was hired.

Where does the closing take place?

The closing typically takes place in the closing agent’s office.

What are the final steps?

The closing agent, buyer, seller and any Realtors sit around a table together while the closing agent explains the closing statement as well as other closing documents. When all of the documents have been signed, including the deed, and the buyer has given the cashier’s check to the closing agent, the seller receives his or her proceeds from the sale.

After the closing, the closing agent sends the original deed and mortgage to the courthouse for recording. The completed loan package is sent to the lender. All remaining funds are disbursed according to the settlement statement, including mortgage payoffs. The owner’s and lender’s title policies are issued when the deed and mortgage are returned to the closing agent after recording.


Wednesday, June 5, 2013

Hurricane Preparedness Tips

Get Your Facts In Order

If you’ve lived in Florida for any period of time, you probably have dealt with a hurricane or two. However, because Floridians are so familiar with hurricanes, we tend to underestimate their devastation and overestimate how preparedness. So, Champions Title Services wants to share with you a few important tips and guidelines on what you need to do to keep you and your loved ones as safe as possible during a hurricane.

Information:

Keep a list of contact information for reference.
  • Your Property Insurance Agent
  • Local Utilities
  • County Law Enforcement
  • County Public Safety Fire/Rescue
  • Local TV Stations
  • State, County and City/Town Government
  • Local Emergency Management Office
  • Local Hospitals
  • Local American Red Cross
  • Local Radio Stations

Assess the situation

If you can get online, there are several tools that can help you figure out how dangerous your situation is and what particular dangers your should look for..

Make A Plan

The phrase “plan for the worst, hope for the best” works for hurricanes as well. Unfortunately, your loved ones may not be near each other when disaster hits. Now, you need to have a plan of how you will locate one another, where will you all meet, what route you will take, etc.

Supplies

It’s important to have basic disaster supplies kit and know about different storage locations for different situations.

Emergency Strategy

Get an emergency strategy and write it down. Then make sure everyone involved knows about the plan and what to do.

Evacuation

  • If you follow the FEMA Evacuation Guidelines, you should make sure to plan for enough time to gather your things, your loved ones, and contact whoever you need about your move.
  • Leave IMMEDIATELY if you are ordered to do so.
Watch Out For:
  • Several hurricanes will cause tornadoes. Be careful!
  • When looking it the "eye" of the storm” often people think the storm is over. However, this is not the case. As soon as the eye passes, the winds will return just as violently as before. Stay vigilante.

Recover


  • Do not return home until it is officially deemed safe again.
  • Unfortunately, disasters take to time to recover from. Just remember it is a process, but it can be accomplished. 

Monday, April 22, 2013

Why Use A Title Company?


Let’s face it, home buying is stressful. You save for years, you search for weeks (or even months), then you finally find the place you want for the price you want and then, someone mentions a title company. A title company?! After all this time and effort, it is fair to ask, why do I want to involve another party and why do I want this home sale to get any more expensive than it already is? Well, these are all good questions that deserve solid answers. Fortunately, the Champions Title Services' blog will provide you with informative response.

1. Why do I want to involve another party?

It is best for both the buyer and the seller to have a full-service reputable title company, like Champions Title Services, handle the title to make sure both parties are protected. Title companies have a legal obligation to ensure that the title is free and clear of any problems that may come back to hurt either party down the road.

2. Why do I want this home sale to get any more expensive than it already is?

The simple answer is this: peace-of-mind. Would you ever consider buying a home without getting a home inspection, first? Would you feel comfortable that the roof didn't leak or the foundation didn't have cracks without one? Most people would not feel safe about that. Just consider using a title company like getting a home inspection, but rather than check your outlets and your heating ducts, a title company inspects the history of the title. Here are a just a handful of the problems that can wrong if you buy a home without relying on a title company.

A. Lost heirs or interest(s) in the property: A previous owner or descendant of an owner may find a loophole to challenge your rights to the home you just bought. This can occur if any of the deeds in the previous chain of title are not acknowledged, executed or recorded correctly.

B. Unsatisfied, incorrectly satisfied or illegally satisfied mortgages, encumbrances, and liens in the back chain of title. Basically, this comes down to people committing fraud. For example, someone files a “satisfaction to a mortgage” in order to get new finances, and then run with the money. If you buy that property, you now will have to pay for the mortgage, too.

C.  Municipal liens: Not all liens are public record. Therefore, if you buy a home at a foreclosure auction without the safety of title insurance, then you will end up paying any municipal liens that are on that home.

D. Boundary line disputes, sinkhole properties: Sinkholes may be the most important reason to get use a title company in the Pasco, Hernando, and Northern Pinellas areas. You want to be sure no “notice of sinkholes” documents have been filed against the property you are considering buy.

E. Judgments: Credit card debt, child support, alimony, and federal tax liens are just a few of the many judgments that could be levied against the home you are trying to purchase. Without title insurance, you may have to pay these judgments before you can own your new home.

Even with all the reasons given above, some people will still risk forgoing the title company, and leaving themselves and their families unprotected. If you want the safety and peace-of-mind that comes with using a reputable title company, then contact Champions Title Services today. Our email is info@championstitleservices.com, our contact page is here, and our phone number is (727) 264-2394.