If you’ve purchased a home, you know what it’s like to sit on the buyer’s side of the closing table. But how does the closing process differ for sellers? To provide an idea of what to expect at closing when selling your home, we’ve comprised a list of frequently asked questions and corresponding answers surrounding this process.

1. Does the seller have to be present at closing? No, the seller does not. In fact, there are many situations where the seller has already moved to a new location and isn’t able to be present for the closing. There will still be paperwork that requires the signature of the seller, but this often can be completed prior to the closing date. The seller must sign the deed (transferring ownership of the property to the buyer) and other seller-specific documents before proceeds of the sale are released or balance of the loan is paid.

2. Who represents the seller’s side of a transaction at closing? The seller and his/her real estate agent typically represent the seller at closing. If the seller is unable to attend the closing in person, he/she can sign sign a power of attorney, allowing the closing agent to act on his/ her behalf at settlement.

3. How should a seller prepare for closing? The best way to ensure a smooth closing as a seller is to make certain the title company has correct information regarding the current mortgage and payoff amount. If a seller is non-local at the time of closing, he/she may agree to have the closing agent email the required documents to the seller, who can sign them in the presence of a notary and mail them back to the title agency.

4. What can a seller expect to pay in closing fees? In general, seller closing fees typically total around one percent of the sales price and vary depending on title agency.

Have other questions about the closing process? Talk to the team at Linear Title & Escrow today!

The entire home buying process, from mortgage application to closing, can be a bit confusing – especially if you’re a first-timer. But knowing what basic real estate, mortgage and closing terms mean helps keep you in the know throughout the entire process.

We’ve compiled a list of common terminology you’re likely to hear at different points throughout your home buying experience:

-Escrow: When funds and documents from the sale of a property are in “escrow,” a third-party (typically the title company) holds, maintains, and disperses these funds and documents to the appropriate parties during real estate settlement.

-Closing: Closing occurs when all necessary documents regarding the sale of a property are completed by both the seller and buyer sides of the transaction, including transfer of title (ownership), mortgage notes and other necessary financial commitments. This is the final step in the home buying or selling experience.

-Settlement: Settlement refers to the same activities as closing.

-Mortgage Pre-Approval: To be preapproved for a mortgage is to be approved by a bank or mortgage lender for a specific loan amount based on your credit history, income and other pertinent documentation.

-Mortgage Pre-Qualification: To pre-qualify for a mortgage is to receive a general estimate from a bank or mortgage lender on the amount of home loan you can afford, given your current income-to-debit ratio.

-Title: To have title is to own or retain rights to a property. Title is also regarded a deed or formal document indicating ownership of a piece of land or real estate structure.

-Title Defects: Title defects (also referred to as clouds on title or unmarketable title) are issues preventing proper transfer of property ownership from one party to the next. A range of title defects exist, but common examples include forgery, unknown heirs, liens, judgments and recording errors, among others. Any discovered title defects must be resolved, and title declared free and clear, before closing can commence.

-Title Search: A title search is a meticulous process of reviewing legal events surrounding the ownership history of a property. This process seeks to discover any title defects.

–Title Insurance: Title insurance are policy types that protect the mortgage lender (Lender’s Title Insurance) and owner (Owner’s Title Insurance) against financial loss should title defects arise following the closing process.

-Closing Disclosure (CD) Form: The CD Form is a formal document submitted to the buyer by the lender at least three business days prior to closing. This form outlays all financial details of the real estate transaction, including mortgage particulars, anticipated monthly payment amounts, taxes, closing fees and other financial responsibilities associated with the mortgage.

-Earnest Money Deposit: An earnest money deposit is a financial gesture put forth by the buyer, showing the seller that he/she is serious about his/her intent to purchase a property. This amount typically is held in escrow by the title company and applied towards the down payment at closing.

Have other questions about terms surrounding a real estate closing? We have the answers! Contact Linear Title & Escrow today.

Most of our posts center on topics related to the title, mortgage and real estate industries. But we wanted to take a moment and write about something different. With Thanksgiving just days away, we thought it appropriate and timely to share exactly what our team at Linear Title & Escrow is thankful for.

Our Clients

We are fortunate enough to work with some of the best real estate agents and lenders in the industry. Our clients are dedicated and passionate about helping homebuyers and sellers discover the real estate and mortgage solutions that best meet their needs. We are grateful for the trust they place in us to bring the highest level of industry standards to their clients and businesses.

Our Support Team

In addition to real estate agents and loan officers, we have a professional network of support associates who make our job possible. Our appreciation for the title examiners, surveyors, underwriters and recorders who are so integral to our operations cannot be overstated. We truly could not provide the quality of services we do without these incredible individuals and their daily contributions to our business.

Our Ability to Continue to Serve

We love what we do. And we are thankful each and every day for the opportunity to provide the Hampton Roads community and beyond streamlined, efficient closing procedures. Linear Title & Escrow has proudly served the Commonwealth Virginia since 2007, and we are honored to offer all those who sit at our closing table continued excellence in title and escrow services. From our family to yours, we wish you a very Happy Thanksgiving!

For real estate agents and homebuyers alike, a “clear to close” is a sweet, sweet, sound. But what about when the closing process is stalled, delayed by unforeseen circumstances or other factors? Though some delays are beyond anyone’s control, there are a few things homebuyers can do to minimize barriers to the settlement process. Before we take a look at those, let’s first review the more common reasons behind delayed closings.

Photo by Tristan Colangelo on Unsplash

Common Causes of Closing Delays

• Appraisal Concerns: Overlooked or undervalued repairs missed by the appraiser may need to be addressed before closing, as required by the mortgage lender. Such concerns might include heating or air conditioning problems, roof leaks or cracks, and issues with exterior or interior paint.
• Title Defects: Clouds on title, or problems surrounding the transfer of property ownership from one party to another, often slow the closing process. A title search is performed to screen for title defects like liens, unpaid taxes, unknown heirs and recording errors. Some title defects are simple to resolve, whereas others require more work.
• Incomplete Documentation: Pertinent paperwork, such as homeowner’s insurance and inspection documentation and verification, is required by the lender in order to proceed with funding the loan. Any delay or missing information will slow the closing process.
• Communication Issues: To facilitate a successful closing and minimize roadblocks, maintaining transparency in actions and full disclosure in communication is paramount. The importance of communicating with the right party as soon as possible to resolve any potential or concrete concerns cannot be overemphasized. Checking emails and responding to requests for information can go far to keeping the closing process on track.

Stay in the Know

The best way homebuyers (and agents) can foster a smooth, efficient closing is to stay abreast of how the loan application process is progressing, and provide any requested information or documentation as quickly as possible. Communication is key, and keeping the lines open between all parties involved can help minimize delays in the closing process. The following are additional tips for expediting closing procedures:

• Be sure to complete mortgage pre-approval and loan application paperwork promptly, accurately and thoroughly.
• Gather all necessary documentation, such pay stubs, tax returns, asset statements and other related information, in one central location and have it ready to submit when requested by the lender.
• Call for a home appraisal as early as possible.
• Review and sign your Closing Disclosure (CD) Form three business days prior to your closing date.

Our team at Linear Title & Escrow works diligently and efficiently to streamline your closing process. If you have questions about factors that delay closing, please contact us today.

Lender’s vs. Owner’s Title Insurance Policies

When preparing to close on your home, you’re going to hear the term “title insurance” at some point during the process. There are two types of title insurance, Lender’s and Owner’s policies, and it’s important to know how each impacts your property. Typically required by your mortgage lender, a Lender’s title insurance policy covers their financial interest should title defects threaten your ownership stake in your home. Owner’s title insurance is entirely optional, but highly recommended for a number of reasons.

Purchasing owner’s title insurance is one of the best investments you can make when buying a new home. Owner’s title insurance protects you, the homeowner, from undiscovered title problems or defects that occurred before you owned the property. It offers financial protection and covers legal fees to defend your property interests in court in the event another person can claim an ownership stake in your home.

What Are Title Defects?

Title defects are issues that prevent proper transfer of ownership or rights to the property from one party to the next. Common title defects include:

• Mechanical liens
• Judgments
• Undisclosed heirs
• Unpaid taxes
• Fraud
• Forgery
• Clerical errors
• Improperly probated wills
• Incorrect legal descriptions

How Owner’s Title Insurance Serves to Protect You

When it comes to purchasing title insurance, you have the option of a standard or enhanced policy. As you might expect, an enhanced policy offers greater protection than a standard policy. Your title agent can provide further details on the coverage each policy type offers, but here’s a general overview of the differences between the two:

-Standard Owner’s Policy:

A standard policy covers the basics and most common of title defects, including clerical or recording errors, fraud, ownership claims by other parties and discovery of unknown heirs.

-Enhanced Owner’s Policy:

An enhanced policy protects against everything a standard policy covers, but also includes less common defects such as zoning, easement and encroachment issues, liens, forgery, additional tax assessments, lack of property of access and subdivision violations.

Even if the title search performed on your property was rendered free and clear of title defects initially, there’s always a possibility of a title problem arising in the future. Having an owner’s title insurance policy in place can bring peace of mind in such a situation.

Have question about Owner’s title insurance or the closing process? Talk to our team today!

Sitting at the closing table is an exciting time in your life, whether you’re a first time homebuyer or home buying pro. But regardless of the number of home closings you have under your belt, you likely still have questions about the process.

Here are five commonly asked questions about closing on a home.

1. How much do I need to bring to the closing table? The amount needed to close on a home varies depending on a number of considerations. The type of loan, interest rate, points paid, down payment, HOA expenses, lender fees and other items all factor into total settlement costs. Generally, we can provide the final closing amount to you or your representative the day before closing.

2. How soon can I close? From contract to close, real estate settlements take about 45 days, on average. The best way to help ensure you close as soon as possible is to be well-prepared with information sharing and submission of documents to your loan office. Once our title team has all of the information in hand, we work diligently to streamline the process and get you to the closing table in a timely manner. In some cases, certain obstacles like title defects may slow the process. We work as quickly as possible to resolve any title concerns uncovered during the title search.

3. Can I get an estimate of my closing fees? At times, we can generate a preliminary Closing Disclosure (CD) Form, which is a list of estimated closing costs based on sales price and loan amount. However, it’s important to remember that a preliminary CD is solely an estimate based on rudimentary information. Several factors go into determining total closing costs. The final figures will be remitted via a CD form distributed by your lender three business days prior to closing.

4. What is a title search? A title search is an investigation into the ownership history of a property, to ensure that proper and legal transfer has occurred from one owner to the next. Title defect, or clouds on title, are factors surrounding title that could allow other parties to lay claim to a property. Such defects include liens, judgments, mortgages, undisclosed heirs, forgeries or boundary disputes, among others.

5. Do I need title insurance? There are two types of title insurance: Lender’s Policies and Owner’s Policies. Nearly every lender requires Lender’s title insurance, which protects their interest in the property should another party attempt to lay ownership claim to the home. An Owner’s Policy isn’t required but is HIGHLY recommended. This type of coverage protects your interest, as the homebuyer, should someone try to claim ownership of your property after purchase. Visit our Title Insurance page for additional information.

Have other questions? We have answers! Talk to our experienced Linear Title & Escrow team today!

Closing on a home brings joy, excitement and feelings of accomplishment (and often relief) to all those involved in the real estate settlement process. But depending on which end of the table you sit, closing day represents a culmination of a vast array of steps and procedures that go into making that very closing possible. It may appear as though the file of closing documents you are required to sign and initial seems the result of a straightforward, simple process. However, much preparation, research and communication goes into getting a home loan cleared to close.

Initializing the Closing Process

Though the mortgage process starts with the loan application, the initialization of closing procedures begins when the real estate agent or lender sends a ratified contract and a request for title to the title agency conducting the settlement. Generally, this takes place two to four weeks prior to the scheduled closing date.

What Happens In-Between

Once the contract is received, the title agent initiates a title search on the property. A title search is conducted to ensure ownership of the property can be transferred properly from the current owner to the homebuyer, and typically takes about three to five business days to complete. Any title defects must be resolved prior to closing. The title company then completes the title binder (collection of documents pertaining to closing on the property and mortgage details) and sends this documentation to both the mortgage lender and seller’s representative. The title agent then determines the pay off amount on behalf of the seller and issues clear title.

The Final Hours

On the big day, final closing documents are sent from the lender to the title company. The documents are scanned, organized and compiled for the represented party to review and sign at the closing hour.

Want to learn more about the closing process at Linear Title & Escrow? Contact our experienced team today!

The most anticipated aspect of real estate, sitting at the closing table is the crown jewel of the home buying experience. Receiving the keys to your new home, whether it’s your first or fifth, represents the beginning of a brand new chapter in your life, one filled with hope, dreams and thoughts of lasting memories. But as many of us know firsthand, getting to the point of closing often presents anxious moments, prolonged processes and checked (or unchecked) patience as we travel the (sometimes) prickly path to real estate settlement.

What Are Potential Closing Obstacles?

In some cases, unforeseen events or circumstances beyond your control interfere with a smooth closing process. However, there are steps you can take to get ahead of some potential obstacles and streamline the closing process on your end. Before we get into how you can accomplish this, let’s first take a look at some of these potential roadblocks:

• Insufficient information for mortgage application
• Need for additional documentation
• Discrepancies in appraisals
• Changes to your credit score or income
• Changes in contract agreements
• Issues in title (or transfer of ownership)
• Foreclosures and short sales

How You Can Help Facilitate the Closing Process

• Submit all required documentation to your lender as soon as possible.
• Respond quickly and thoroughly to any requests for information.
• Know and understand the mortgage product for which you’re applying.
• Remain in close contact with your loan officer and real estate agent.
• Make sure you’re available on closing day!

At Linear Title & Escrow, we do everything within our power to ensure your closing is as smooth and streamlined as possible. For more on the closing process, contact our knowledgeable team today!

You’ve found the perfect house, the one situated around your dream kitchen positioned within mere steps leading to a backyard straight off the pages of Home and Garden. Or Coastal Living. Or Southern Living…or whichever style tickles your fancy. You and your family are beyond excited to start a new life in the confines of your perfect home, and can’t wait to begin the process of decorating your new space to your heart’s content, maybe with new furniture or outdoor seating or painting the walls the latest Pantone color of the year.

Whether you’re a first-time home buyer or seasoned pro, you likely have the experience all planned out in your head, probably wishing you could simply snap your fingers to bring you from contract to close. But, there is a process to closing. And having a general idea of the fundamentals of the closing procedure can help keep a positive perspective and realistic expectations on the time it takes to close on your new home.

Common Terms Relative to the Closing Process

We often post discussions related to closing terms, concepts and procedures. Getting back to the basics of the closing process, there are a few common terms that are good to know, or of which to refresh your understanding if it’s been a few years since your last closing.

-Loan Estimate: Document detailing the estimated loan payments, interest rate and other pertinent information of the mortgage product for which you are applying. A Loan Estimate is provided by your mortgage lender within three business days of your home loan application date.

-Closing Disclosure (CD) Form: Document presenting the details of your home loan, terms, closing costs and other information relative to your real estate purchase. The CD form is provided by your lender at least three business days prior to your scheduled closing date.

-Title Search: A process by which a title agent/company investigates the history of a property with respect to proper transfer of ownership, claims to property and a host of other legal factors that may affect the marketable condition of title on a piece of real estate.

-Title Insurance: Types of insurance policies that protect the lender’s interest and your interest (as the homeowner) in a property. Lender’s Title Insurance Policies are required by most mortgage lenders, whereas Owner’s Title Insurance isn’t required but is highly recommended. Visit our Title Insurance page for more on the importance of having Owner’s Title Insurance.

-Escrow: Third-party handling of a real estate transaction, with respect to the holding of funds and management of documentation relevant to the property until said monies or documents are ready to be dispersed.

From Contract to Close

Knowing what happens from the time you sign your real estate contract to when the keys to your dream home become yours is important for newbies and old pros. Keep in mind, what follows here is a general overview of the process that begins with a real estate contract and ends at the closing table. Additional steps or requirements may be necessary, depending on your mortgage product, timeframe and unique set of circumstances.

1. Signing your real estate contract
2. Securing your home loan
3. Home appraisal
4. Home inspection
5. Review of CD Form
6. Final walk-through
7. Closing day!

No matter your level of experience in the home buying process, Linear Title & Escrow is here to streamline the closing experience. Contact our experienced team today!

“Reverse mortgage” is a term we seem to hear more of today. Created for senior adults aged 62 and older, a reverse mortgage (also known as a Home Equity Conversion Mortgage) allows a homeowner to cash out a portion of the equity in their home. Borrowers can elect to receive their funds on a monthly basis or in a lump sum, depending upon the loan type. According to Reversemortgage.org, the amount received depends upon factors that include the age of the homeowner(s), appraisal value of the home and current interest rates.

A reverse mortgage can be a supplemental income source for senior adults, allowing homeowners to liquidize home equity with the promise of no monthly mortgage payments. Reverse mortgages often are used to cover general living expenses, home renovations, medical bills and even to pay off an existing mortgage.

The balance of a reverse mortgage loan is paid when the last surviving homeowner vacates the property or passes away, and the heirs sell the home. The proceeds of the sale are then used to repay the balance of the reverse mortgage, and any remaining equity is passed on to the homeowner’s heirs.

Key Factors of a Reverse Mortgage

• Insured by the Federal Housing Authority
• Issued by a mortgage lender
• Applicants must attend credit counseling
• Minimum age requirement is 62 (youngest borrower)
• Property must be primary residence
• No monthly mortgage payments
• Utilizes a property’s equity as loan collateral
• Structured as a refinance or new purchase loan
• Fixed and adjustable rates available
• Taxes, property insurance and HOA fees paid by borrower
• Condition of property must be maintained
• Must be the only lien on the property
• Interest accrues (compounds) throughout the life of the loan
• Interest paid only on amount received (at repayment)

The Closing Process for a Reverse Mortgage

Closing on a reverse mortgage varies a bit from traditional real estate settlement. In place of the Closing Disclosure (CD) Form, a HUD Settlement Statement is used to itemize fees and other details pertinent to this form of loan. Mortgage Insurance Premium (MIP) is 2% of the home’s appraisal value or FHA lending limit ($679,650), whichever is less. Servicing fee set-aside is processed during closing, deducted from the proceeds of the loan and used to cover anticipated costs of servicing the loan throughout amortization. Remaining closing fees are generally comparable to those standard to any other type of mortgage, and vary by lender; however, additional fees and documentation may also apply.

This information is meant to provide a general overview on reverse mortgages and closing on this type of loan. Please contact a loan officer or credit counseling agency for more information on reverse mortgage products.

Have questions on closing a reverse mortgage? We can help! Contact Linear Title & Escrow today.