Congratulations! You found the house of your dreams and have a signed contract. Before you move in, you want to be sure you will be purchasing a home with marketable title. That’s where Southern Title can help. We conduct a detailed search of the historical records concerning the property, including deeds, civil and probate court records, tax records and other items. We will verify the owner’s right to transfer ownership to you and take steps to address any title issues that are discovered, including recording errors, misspelled names or inaccurate legal descriptions. Then we will prepare the title commitment outlining the property insured, conditions that need to be met in order to insure the transaction, exclusions to the coverage, and prepare an agreement to issue a title insurance policy upon payment of the premium, which typically occurs at closing.
If you have selected a lender or creditor, let us know the name of your creditor so we can seamlessly coordinate the mortgage documents. The Consumer Financial Protection Bureau (CFPB) requires lenders to approve the settlement service providers in order to best protect your funds, your identity, and the integrity of the transaction. We want to be sure the lender or creditor has approved Southern Title to assist with your loan documents so we issue your Owner's and Lender's Title Insurance Policy quickly and seamlessly.
Closing: Three days prior to consummation (closing, or the date you as the buyer are contractually obligated to the creditor), you will have the opportunity to review the Closing Disclosure Form with either the lender of the closing agent, depending on your lender. This is a requirement of the new Know Before you Owe regulations implemented by the CFPB. During the closing, or consummation, you will sign many documents. Those documents include:
Closing Disclosure: This form contains the terms and costs of your transaction. By law, your lender must provide the Closing Disclosure to you three days before your closing.
Promissory note: This document is your promise to repay the loan (mortgage) to your lender. The note provides details regarding your loan, including the amount you owe, the interest rate of the mortgage loan, the dates when the payments are to be made, the length of time for repayment and where the payments are to be sent. The note also explains the consequences of failing to make your monthly mortgage payments.
Mortgage: This document transfers legal ownership of the property with the condition that the lender may foreclose on your home if you fail to repay your mortgage. This document restates the basic information included in the Promissory Note, as well as explains your responsibilities and rights as a borrower.
Most lenders require you to pay a year of premiums up front for homeowner’s or property insurance. If your loan includes an escrow account, the account will be set up for you to make monthly payments toward your future taxes and insurance on the property.
Don’t forget to make the smart choice and purchase an Owner’s title insurance policy and protect your financial investment. For a one-time fee, an Owner’s title insurance policy provides coverage for as long as you, or your heirs, have an interest in your property.
Are you a police officer, firefighter, active duty or retire military veteran, emergency medical worker, or educator? Southern Title is a Friend of Heroes, which is an affiliate of the Homes for Heroes program. Active duty and retired military, health care workers, police, firefighters, and teachers enjoy a reduced closing fee as our thanks to you for your service to your community and your country. Simply tell us when you provide the contract so we can provide you, your Realtor, and your lender an accurate quote. For more information about Homes for Heroes, and to find other professionals committed to assisting you with your home search, please check out Homes for Heroes.
For more information about the home buying process, please take a look at the ALTA Homebuyer Guide.