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If during the inspection there is an area that the inspector says in accessible because of clutter or storage at the property, you must insist from the Sellers that the area be cleared.
The Mortgage Company. Work closely with your mortgage company. Be responsive to the documents they need in order to process your loan. The mortgage representative will generally keep you informed about any missing documents needed to finalize the commitment. It is also important that you clarify with your mortgage representative any fees that you will be responsible for either upfront or at the time of closing. Also, and most important, make sure that the loan is locked when you request that the loan be locked. Interest rates vary on a daily basis and it is important that you understand the rate you are paying before you come to the closing. Also, if you are opting for an alternative to a fixed mortgage, make sure that the mortgage representative fully explains how the loan works, such as an adjustable rate mortgage, commonly referred to as an ARM. Remember, this is one of the largest purchases you will ever make. Take the time to understand the terms and conditions of your mortgage, including all the charges you have agreed to pay for obtaining the loan. Finally, when you receive the commitment, make sure to read it and verify that the Lender has agreed to lend you the correct amount of money as set forth in the contract.
Insurance. Please check with your mortgage company to find out what type of insurance requirements you will need for the property. Your mortgage company will not permit you to close without insurance. If you are not obtaining a mortgage you should still seek out the advice of an insurance broker to determine how to protect your purchase in the event of damage or catastrophe. Be sure to obtain a homeowner’s policy before closing. In addition, if you are purchasing a condominium or townhome, we recommend that you contact an insurance company for advice on purchasing insurance for those items not covered by condominium or townhome insurance.
Title Search and Survey. Our Firm will order a title search on the property. We generally prefer to order the title work after you have received a mortgage commitment and all inspection issues, if any, have been resolved. Title companies need ample notice to prepare the title search of the property, therefore, it is important that you complete the inspection process as soon as possible and obtain a mortgage commitment. Our Firm will also order a survey of the property from a surveyor of your choice. Please see the attached supplemental notice regarding your property survey.
Please note that title insurance will insure both the mortgage company and the buyer. The rates for title insurance are governed by State law and should be found on your Good Faith Estimate supplied by your mortgage company.
In order to comply with the Dodd-Frank Wall Street Reform Act and the regulations promulgated by the Consumer Financial Protection Bureau, the title insurance company will also act as the settlement agent at the time of closing and handle the exchange of funds and post-closing services. Their charge for same will appear on the title invoice paid at closing. Generally, this settlement fee is $425.00. Additional fees due the title company (other than the premium) are estimated as follows:
$50.00 E-Docs fee
$20.00 Overnight FedEx
$5.00 Wire fee
