Title Processes and Real Estate Closings: What are they, and what do you need to know?admin
If you’re thinking of buying property, you probably have questions about the key steps to a successful closing. Before you begin, it’s important to remember that you don’t have to tackle this alone. There are companies dedicated to supporting you throughout the process, ensuring that every step is completed efficiently and securely.
At First Title Team, we are dedicated to using our extensive knowledge about the real estate industry to accompany our clients through the title and closing process.
We’ll keep you informed every step of the way. From the moment you start planning to buy a property, we can provide certainty that you’re handling the legal side correctly. Step by step, we’ll make sure you know what to keep in mind to acquire your desired property with total confidence. After you have found the property of your dreams, keep the following steps in mind:
Step 1: Preparing to Submit a Mortgage Loan Application
Before buying property, it’s important to evaluate your financial options. Keep in mind that banks pay close attention to the following metrics when deciding whether to approve a loan:
· The amount of the loan
· The relationship between your income and debts
· Your income and assets
· Your credit history
Usually, the lender will issue a pre-approval letter, which you can present to the seller when you make your offer.
Step 2: Choosing a Closing Agent
After you have signed a purchase contract, generally with an escrow deposit to be delivered to a closing agent, who will begin the closing process by opening a title order. This step involves soliciting information about any outstanding taxes, mortgages and any other liens related to the property in question.
Step 3: Title Searches and Reviews
Next, the agent in charge will access public records office in the county where the property is located. They’re looking for deeds, mortgages, liens, divorce agreements, and other documents that could affect the title of the property. When the search is complete, the attorney prepares and delivers a title commitment or preliminary report with items that must be reviewed and cleared before a title insurance policy can be issued.
Step 4: Closing the File
Once an agent is certain that there are no legal issues with the property and the lender has finalized its loan process, we will receive all the documentation for loan for thorough review. The transaction is then moved to closing, a time and place is set and all parties will sign all documents related to the transaction.
Step 5: Funding the Transaction
The closing agent oversees the real estate closing, in which the seller and the buyer sign all required documents, including the deed and the mortgage. At this point, the escrow agent disburses all funds to the interested parties, such as sellers, insurance agents and outstanding mortgages.
The deed, mortgage and any other necessary documents are then sent to be recorded in the county where your property is located.
Finally, the title policy is issued to both lender and borrowers in a transaction protecting all parties from any claims that could arise in the future.
To tackle to this process, it’s important to be prepared and to have the best allies. In First Title Team you’ll find professionals whose mission is to bring you complete peace of mind with this process, helping you to achieve the properties of your dreams.