1. Timing is Important
• In order to avoid delays, you will want to communicate and respond to everyone including the agent, lender, and escrow officers as soon as requested.
• Try to work as close as possible with the different professionals in order to have a seamless process and to avoid delays.
2. You Have a Choice
• Just know that you have a choice when it comes to choosing the right providers to help facilitate your closing.
• Try to speak with different professionals in the real estate industry in your area in order to get the requisite information you need about the various providers that are assisting in our closing.
3. Protect Your Information
• You should expect to receive secured emails from both your lender and your settlement service provider in order to protect all of your personal information being used.
• You should be looking at and following the instructions provided in order to properly retrieve the information. You will typically need to create a brand new account to do this and you want to ensure that you respond using the same secured email system.
4. Loan Estimate (LE)
• You can expect to receive the LE within three days of applying for it. If there are any changes in the circumstances, you can expect to receive more than one copy.
• You will find the terms that are on the LE also on the Closing Disclosure document. The changes in the fees listed on the Closing Disclosure must be explicitly explained.
5. Prep For Closing
• At around 10 to 14 days prior to signing any of the documents, you want to be prepared to communicate directly with your lender and everyone else involved including a settlement professional and your real estate agent. You will need to provide information pertaining to your hazard insurance at this time.
• NOTE: You will have strict verification subjected to any wire transfers in order to minimize the chances of fraud. Therefore, you want to discuss these things prior to the closing date to minimize interference.
6. Closing Disclosure (CD)
• As mentioned, the CD will be utilized in the majority of loan applications. The CD is to be sent directly to the buyer (you) rather than your chosen agent.
• The CD is purposefully designed in order to make the terms of your loan extremely easy to understand.
7. 3-Day Review Period
• The CD needs to be delivered directly to the buyer of the transaction a minimum of 3 days before the documents are to be signed.
• If the CD is being delivered electronically through e-mail you should acknowledge that you received it in order to prevent further delays.
• The CD can be physically mailed 7 days before the signing date. In this case, there is no proof of receipt required.
• This time is used as a buffer in order to give you the opportunity to share the document with everyone including your attorney, real estate agent, or even your financial advisor in order to get everything you need to make a good decision. That way, you can ask any questions or demonstrate any concerns you may have on the terms and conditions of the loan.
8. Lender’s Policy
• You will usually need to purchase a Lender’s Policy that applies to the title insurance for the loans.
• The total loan amount is usually what will dictate the fees.
• A Lender’s Policy is there to protect the lender’s interests if something comes up related to the title.
9. Owner’s Policy
• You will want to look at the value of an Owner’s Policy of title insurance at the beginning stages of the entire process when you are looking to get yourself a loan and when you are aiming to close on the home. Usually, the buyer’s owner’s title insurance policy will be paid for by the seller. This will give you equal protection that they got when they originally purchased the property themselves.
• Usually people who buy homes make the assumption that the policy will protect them from various challenges to ownership rights to the property they are buying. While it can be easy to see why this mistake is made, it’s simply not the case. Rather, the Owner’s Policy is what protects the home buyer’s interests. This type of coverage usually helps provide protections against various things including challenges to ownership, forgery, undisclosed heirs, and various other situations. Along with this, it offers coverage for various fees including attorney’s fees in a situation where there are legal challenges to your property. The cost of these fees is usually based on the total purchasing price fort he home and it is usually paid at closing time.
10. Ask Any Questions You Have
• Buying a home is likely one of the biggest investments you will make in your entire life. Because of this, you shouldn’t be scared to ask any questions you may have about the process to the professionals you hire for assistance.