We will pre-qualify you for a loan by determining the
maximum loan amount. A certificate will be issued indicating the loan amount
and period of time. With this information you can shop for a home and know
what price range of homes to look at.
Do I need an Attorney?: Few buyers or sellers
obtain an attorney. Only you can make that decision, but if you choose to
use legal counsel make certain they are experienced in real estate. An
attorney not familiar with standard forms, the mortgage process and closing
procedures could cost you hundreds of dollars without corresponding
benefits. Beware of the attorney that offers free legal advise in exchange
for other services such as the title work.
Title Insurance......what is it? Title insurance
is perhaps the most unique form of insurance offered today. It was first
issued in 1878, but it remains widely misunderstood by consumers.
Basically, it protects the insured from losses as the
result of claims on the one's ownership of land. For instance, a seller may
forge a signature of another, creating a loss for the new owner. Other
problems that can occur include improper court proceedings, unfiled liens,
recording mistakes, incompetence involving previous sellers, etc.
There are two basic forms of Title insurance - an Owner's
Policy and the Lender's Policy. As the names indicate, the Owner's Policy
covers the land owner and the Lender's Policy covers the Lender on a
particular parcel of real estate. If a Lender's Policy is issued, why do I
need an Owner's Policy? A Lender's Policy offers no protection to the land
owner. A claim may arise that does not jeopardize the lender's interest, but
may, in fact, cause a great loss to the owner.
Probably one of the most comforting features of title
insurance is the obligation of the insurer to defend you against claims of
others. A neighbor may claim rights to a portion of your land. Without Title
Insurance, you would have to bear the cost of settling this dispute through
the courts, regardless of the validity of the claim.
