If you’re in the process of buying or selling a home, chances are, you’ve run into some questions along the way. This is one of the many reasons why your Realtor® plays a valuable role each step of the way. One of your questions may have been what role the title company will play in your purchase or sale. In Clark County, escrow and title services are completed through the same company, but each department has different roles and tasks. Here is some helpful information that can help clarify what the title company does as well as what the differences are between escrow and title.
At the time your property is listed, thorough agents will request a preliminary title report. This will show loans, taxes (property and excise), certain kinds of personal debt (tax liens/back child support), which must be paid when the sale is completed. Of course, the total of these should be less than the purchase price of the home.
In addition, easements, road maintenance agreements, HOA information, and CC&R’s will also be on the report. These are examples of items that will stick with the property. Reading the title report will allow your Realtor® to know about any trouble spots that come with the property before closing happens. Once there is an accepted offer, the buyer and the lender are added to supplemental reports.
Escrow includes collecting all necessary documentation to allow the property to transfer over to the new owner. Escrow also will pay off underlying encumbrances (ie. Liens on the property), will place new encumbrances, and make the property transfer with the County. The escrow team will work up the costs for both seller and buyer, including pro-rated property taxes, pro-rated HOA dues, costs from the buyer’s lender, and closing utility bills that could become liens on the property (water and sewer).
While each real estate transaction is different, there are still some basic action items that need to happen with each one. The title and escrow company play a crucial role in the closing process. I will help walk you through the various steps to make sure you understand what you need to do.
We’re officially into 2018 now and it’s a great time to buy or sell your home. Contact me today to explore how to get the ball rolling.
Last week we discussed the basic steps in the mortgage process. There is a lot of complicated detail in a new home loan. Reading the fine print can be overwhelming if you’re not sure what it all means. Here are a few things to de-mystify the information coming your way.
#1: Choosing a good mortgage company and experienced loan officer.
An experienced loan officer will sort through all the financial complexities: the mortgage type of mortgage, closing costs, and monthly payment requirements. It’s in your best interest to meet with your loan officer before you make an offer—the purchase contract requires you declare your mortgage company within five days of agreement.
#2: Reviewing loan documents.
The multitude of documents you’ll be reviewing is quite daunting, but your loan officer will wade through them with you. At the onset, your loan disclosure will lay out all the details, and keep you from being surprised with closing costs. These costs generally include lender fees, closing fees, prepaid interest/insurance, prorated taxes, and HOA dues. There is a lot to create confusion! This is why a good working relationship with a lender is essential.
#3: Lock in your interest rate.
It’s important when your loan professional advises you to commit, that you lock in your rate ASAP—they can change by the hour! Most lending institutions are bound by the same guidelines, meaning that though one lender might offer a better rate, the quote can be manipulated by changing fees, especially the “loan origination fee.” If you want to shop around for rates, be sure that you’re comparing apples to apples. Rates are constantly in flux, so what might look good from one lender today could change tomorrow.
#4: Understand the terminology.
Feel free to ask your loan officer to define specific terminology that you should know. For example, what is APR? This is a universally term that defines the actual cost of your loan. It rolls lender fees into the cost, then recalculates the annual percentage rate—not to be confused with the “note rate” on which your payments are based. The general rule of thumb: the greater difference between the APR and the note rate, the more the lender is charging you for services.
Feeling confused? You’re not alone. You can see that a trusted mortgage professional is essential to understanding what you’re committing to. I have long-standing recommendations for competent, accessible, trustworthy mortgage professionals—seeing firsthand how they have worked with clients’ best interest in mind. Choosing one will serve as a major ally as you navigate financial details, paperwork, and terminology.
Well, the holidays are over, the dinner parties are done, and your company has left for a time. And have you noticed that the stores around town have moved all of the storage boxes, Rubbermaid containers, and organizational planners up to the front of the store so they are in your line of vision as soon as you enter the doors? The beginning of a new year is a great time to do some reorganization and rethinking of goals and priorities in your life. Have you thought about rethinking how you can get the most out of your living area, while making the most out of your finances? Are you tired of spending your money every month on rent, or are you done with living in a space that is clearly too small for you or your family? Or maybe your kids have moved out and it’s time to downsize? There are a variety of reasons why 2015 is a good year to make a move.
Listen up, buyers! Lending is loosening up and rates are low but may be on the rise in the near future, so getting the ball rolling on a new home purchase is important to do quickly. In addition, prices are still low but are steadily on the rise. So, getting into a home that works for your budget before prices go up too much is important.
Sellers, inventory is low! That means that if you choose to list your home, you will be able to get top dollar and have less competition. Selling prices have risen nicely, so that means that crunching the numbers on what you can get for your home is certainly worth looking at.
A new year means lots of open doors and opportunities. So, whether it’s buying or selling, if you’ve been debating on how you can make a move in the real estate market this year, it’s time to get a real estate review going. Perhaps 2015 will be a great real estate year for you!