Whether you’re a first-time homebuyer or looking to purchase a new home, it’s important to know the workings of the real estate closing process. The highly regulated title and escrow industry may have changed since your last closing experience. And if you’re new to the home buying process, settlement procedures can be confusing. Here are five key facts every homebuyer should know about the closing process.

1. Lender’s and Owner’s Title Insurance are different types of policies. Nearly all lenders require homebuyers to purchase a Lender’s Title Insurance Policy. An Owner’s Title Insurance Policy, while not mandatory, is highly recommended. An Owner’s Policy protects your financial and real estate interests as the new homeowner, in the event title troubles arise after closing.

2. Careful review of the Closing Disclosure (CD) Form is highly important. Your lender will remit to you a Closing Disclosure Form at least three business days prior to your closing date. This document provides detailed information regarding your loan, payment requirements and closing fees. Careful review of this document upon receipt is imperative. Any discrepancies you detect or concerns you have should be resolved prior to sitting at the closing table.

3. Proper identification is required at closing. Be sure to bring a current driver’s license or passport to your closing. If a representative is attending the closing and signing on your behalf by Power of Attorney (POA), the original POA document will be required.

4. Closing funds must be submitted in certified form or wire transfer (if funds are needed for closing). Personal checks (unless under $500) and cash typically are not accepted. Wired funds must be received no later than the day of closing.

5. As the homebuyer, you have the option of whether to request a boundary survey prior to closing. A boundary survey is a formal document outlaying the exact location and position of your property lines, and any easements that may exist in relation to the property. It serves to mitigate any future disputes over your property in the event another party attempts to claim a portion of your property as their own.

Educating yourself on current settlement proceedings and doing your due diligence when it comes closing on your new home is key to facilitating a smooth closing process. Remaining well-aware of the proceedings also helps ensure there are no unwelcomed “surprises” on the day of closing.

Have questions about the closing process? Contact the Linear Title & Escrow team today!

A “closing date” in real estate transactions is established by the lender. But as many well know, that magical date is subject to change dependent on a range of issues. Closing dates are scheduled for around 45 days following loan approval (on average) and most do, in fact, close on such anticipated day and time. However, often there are barriers along the way that cause delays in the scheduled time to close. Here are a few of those most common:

• Title Defects: Title problems can impede the proper transfer of property ownership from the seller to the buyer, and must be resolved prior to closing. While some title defects involve simple refiling of corrected or accurate documents, others require more time (sometimes even time in court) to sort out discrepancies in the chain of title.

• Home Appraisal Issues: When a home appraisal comes in lower than expected, the loan typically will not fund for the contract price. Underappraisals certainly can delay the closing date, and may even lead to cancellation of the contract.

• Home Repairs: Repairs identified during the home inspection must be resolved prior to closing, unless the buyer and seller come to some other arrangement. The type of repair, agreement and willingness of the homeowner to expedite this activity all impact the rate at which home repair issues stall the closing process.

• Lender Delays: Lenders may ask for additional income-, asset- or debt-related documents to ensure the buyer is financially able to pay the mortgage on the home. Timely submission of any requested information can help minimize delays of this type.

• Incongruities on CD Form: The Closing Disclosure (CD) Form is the document outlaying details of the loan, closing fees, payoff amounts, and other financial information relevant to the buyer and seller sides of the transaction. The lender must submit this document to both parties at least three business days prior to closing. Any discrepancies in the figures contained in this form must be resolved before going to closing, and will defer the closing date until this occurs.

Learn more about barriers to closing from our knowledgeable team! Contact Linear Title & Escrow today.

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!