Author Archives: lineartitleandescrow

A Day in the Life of a Title Agent

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Ever wondered what, exactly, title agents do all day? Are we busy? Are we bored? Do we sit around drinking coffee and checking our Facebook feeds?

No. Nope. Not even close. We take our coffee on the go (because let’s face it – caffeine is one of the four main food groups). We work non-stop, from the second we arrive at the office to the moment we leave for the day. Our days demand the ultimate in multi-tasking, fine attention to detail, and sheer excellence in time management. But what makes up the fabric of our day? What do we really do that keeps us so busy?

An Average Day as a Title Agent (Though No Day Is Ever Really Average)

When it comes to preparing for a closing, a great deal goes on behind the scenes. The daily responsibilities of a title agent range from preparing closing documents to conducting title searches and reviewing Closing Disclosure (CD) forms. We read and respond to hundreds of emails from lenders, agents, attorneys and other parties involved in settlement proceedings, and prioritize our daily agenda to deliver the highest level of efficiency for each of our clients.

Our duties include (but are not limited to):

  • Prepare closing documents
  • Transfer closing documents to CD forms
  • Review CD forms for upcoming closings
  • Enter revisions on CD forms
  • Compile title binders
  • Execute title searches
  • Research and resolve title issues
  • Prepare files for title orders
  • Ensure funding for loans
  • Coordinate CD instructions with lenders
  • …and a whole host of other title and escrow-related duties

How We Stand Out Among the Crowd

No day is the same as the next. At Linear Title & Escrow, our ultimate goal as title agents is to work diligently, competently and thoroughly at ensuring the most efficient closing possible for our clients. We strive to be quick, but highly efficient (which is important for lenders, clients and ultimately home buyers/sellers). We strive to be competitive with returning title requests back to lenders, typically within one week of said request. And most importantly, we maintain integrity, confidentiality, and strict adherence to regulations and the highest level of standards in our industry.

Yes, we are busy – but we love what we do. For more on how Linear Title & Escrow works  to create smooth, seamless closings, contact our team today!

Closing Timetable: Why the Wait?

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Photo by Tristan Colangelo on Unsplash

You’ve put in an offer and it’s been accepted. You’re super excited and ready to move forward with transitioning into your new digs. The only thing standing between you and your dream home is the closing process. If you’re a first-time homebuyer, you may be surprised to learn that it typically takes between 30 and 45 days to close on a home – and sometimes longer, depending on the type of mortgage and circumstances. Why the wait? Why does this process take so long?

The Real Estate Transaction, From Beginning to End

A great deal happens between the time your offer is accepted and you sign on the dotted line. Here’s a general overview of the real estate transaction, from start to finish. (Keep in mind, the processing times for different mortgage products may vary.)

  1. Loan application
  2. Loan approval process
  3. Home inspection
  4. Home repairs (if necessary)
  5. Home appraisal
  6. Review or execution of land survey
  7. Walk-through
  8. Closing

Beware of Potential Closing Delays

A number of factors can delay the closing process:

  • Necessary repairs identified during the home inspection
  • Title defects or other related problems
  • Appraisal comes in under asking price
  • Missing or erroneous information (title and/or mortgage related)
  • Survey discrepancies
  • Buyer’s financing falls through

How Can You Help Ensure the Fastest Route to Closing?

The speed at which your loan is processed may be out of your control, but there are a few things you can do to ensure the straightest path to the closing table.

Be extremely prepared. Have all necessary documents compiled and ready to submit when requested. If you’re the buyer, this includes tax returns (from the past two years), pay stubs and evidence of additional income, bank and asset statements, and other information.

Be responsive. Your lender may request additional information from you throughout the process. To avoid any further delay, it’s best to respond as quickly and thoroughly to any questions, documentation or other requests they may have.

Stay in the loop. Stay in close contact with your agent, reaching out periodically (if need be) to inquire about where things are in the process and how your real estate transaction is progressing.

 

At Linear Title & Escrow, we work hard to ensure each closing is as efficient and streamlined as possible. Contact our team today to learn more!

Title Insurance: Who Needs It, and Why?

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What exactly is Title Insurance? Title insurance Policies protect lenders against financial loss and homeowners from the inability to buy or sell a home. They also protect new homebuyers from losing their home after purchase due to title defects.

Pre-approval

Most mortgage lenders these days require homebuyers to purchase a Lender’s Title Insurance Policy. A Lender’s Policy, issued in the amount of the loan, ensures the financial institution backing the mortgage doesn’t incur loss due to title problems. This type of title insurance offers no protection for the the property owner.

While purchasing an Owner’s Title Insurance Policy is entirely optional, there are many, many prudent reasons for doing so. Title problems can date back years, decades even, only to be discovered in the most recent title search. An Owner’s Title Insurance Policy is well worth the cost, and can save you from suffering monetary loss and heartache during the time you own the property and when you go to sell. Why risk your home and financial investment by not having one?

What Happens When a Title Has Defects?

In short, title defects are problems surrounding property ownership. Defects include issues like recording errors on deeds, unreleased liens, unknown or undisclosed heirs, and other encumbrances preventing a clear (or “marketable”) title. When a title is determined to be unmarketable, the property typically cannot be bought, sold or conveyed. Further, the lender will not approve the home loan until a clear title is presented.

Consider the following scenarios:

Example One

You’ve accepted an offer on your home, and are nearly ready to pass the keys on to the next owner. A title search, however, reveals that the previous owner of the property (from whom you purchased) failed to have an ex-spouse sign off on the sale of the home. This ex-spouse, by all legal standards, can still lay claim to the home you are now trying to sell – the sale of which will not take place until this person has signed and relinquished his/her claim to the property. Having title insurance will save you in this situation, particularly from spending considerable time in court, money in legal fees and delayed closing on the sale of your home.

Example Two

The house you are ready to purchase has changed hands numerous times. The more times a deed changes ownership, the greater the chance of recording errors, omissions and other title defects. You decide to purchase an Owner’s Title Insurance Policy. Shortly after closing, it is brought to your attention that a forgery occurred on a past deed of trust. Since you purchased Owner’s Policy, your costs to remove the defect and establish clear title are covered.

Owner’s Title Insurance Tidbits

  • Each policy incurs a one-time premium, payment for which is rendered at closing.
  • Policies are issued on an individual basis and written for the sale price of the property.
  • Owner’s policies cannot be transferred. A new policy must be purchased when the property sells or conveys to a new owner.
  • An Owner’s Policy covers financial loss along with attorney and other litigation fees for defending title on a property.

At Linear Title & Escrow, we work with some of the top Title Insurance underwriters in the industry. For more on title defects or the importance of having an Owner’s Title Insurance Policy, contact our friendly team today!

 

 

E-Closings: The Future of Real Estate Settlement?

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Cloud-based software systems are designed to make processes, workflow and information retrieval more efficient, streamlined and simply more expeditious. But how has this technology affected the mortgage and title industries? Electronic management of mortgage application/processing and real estate settlement invokes impressions of a totally paperless chain of events. In reality, are e-mortgages and e-closings 100 percent digital? Read on as we explore key points associated with these processes.

E-Mortgages

With e-mortgages, all phases of loan processing occur digitally. Loan documents are drawn up, executed, transferred and maintained electronically. (Though, a “wet” signature is still needed for many mortgage products.) E-mortgages are beneficial in a number of ways. Errors are minimized and shipping costs (for document delivery) are reduced. Companies are able to decrease their carbon footprint, and enable a faster, more efficient transaction overall. Fannie Mae® offers excellent insight and information regarding this topic on their eMortgages page.

 E-Settlement/Closings

The term “e-closing” leads many to assume the property buyer does not need to be present for the closing. And this may be the case, for those utilizing and embracing cloud-based closing software. While “wet” signatures are still required on mortgage documents, some companies are using e-notarization to verify signatures. Notaries bear witness to the signing of documents through Skype or FaceTime, allowing for a completely remote real estate closing.

 The Future of Real Estate Transactions

As with changes to any process in most every industry, complete transformation to a totally digital mortgage and closing process for all transactions is likely far off in the future. Many parties, both mortgage/title professionals and buyers/sellers alike, may continue to prefer doing business face-to-face, or at the very least with a hybrid model that includes partial electronic processing. Others, especially those purchasing homes out-of-state or involved in out-of-area transactions, may find e-mortgages and e-closings more efficient for their needs.

In any case, the industry will likely continue to see a forward push to streamline and expedite real estate sales for a more efficacious process and experience for all.

 

Sources: 

https://www.fanniemae.com/content/fact_sheet/eclosings-emortgages-myths.pdf

http://www.e-closing.com

https://www.housingwire.com/articles/41054-the-game-changer-for-end-to-end-digital-mortgages-eclosings

https://www.housingwire.com/articles/41295-notarize-partners-with-adeptive-software-to-bring-eclosings-to-more-title-agents

 

What Factors Prevent Clear Title?

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magnifying-glass-145942_1280The last thing anyone wants in real estate is to be unable to buy or sell a home because of title problems. Defects, or “clouds,” on title at the very least can stall the real estate transaction, taking anywhere from days to months to resolve. Title companies and their agents work diligently to conduct a title search for each real estate transaction. Unmarketable titles not only prevent proper title transfers – they can be costly to resolve and ultimately result in the inability to sell a property.

Barriers to Settlement: Title Defects

A myriad of factors can prevent clear title and interfere with the closing process. Here are the most common:

  • Unknown or missing heirs
  • False impersonation
  • Liens
  • Prior owner judgments
  • Clerical errors in public records
  • Forgery
  • Fraudulent document execution
  • Inaccurate representation of marital status
  • Improper probation of wills
  • Boundary, survey or easement inaccuracies
  • Unreleased deed of trust

How Are Clouds on Title Resolved?

Resolving defects on title varies, depending on the issue preventing clear title and the circumstances surrounding it. The best way to protect against title problems is to work with a highly experienced title agent, ensure a thorough title search is conducted and purchase Owner’s Title Insurance. In some cases, the courts may need to get involved to “clear” title and render it marketable. In others, liens or judgments must be satisfied, or necessary paperwork completed to remove title defects before closing.

A Word About Title Insurance

Title insurance protects the lender and owner against title defects identified after the transaction closes. Most lender’s require a Lender’s Policy, and buyers are strongly encouraged to purchase an Owner’s policy to insure against significant financial loss. In some cases, the cost of an Owner’s policy may be included in seller concessions. Even if title appears to be “clear,” purchasing title insurance is highly recommended. Visit our title insurance page for additional information.

At Linear Title & Escrow, we are unwavering in our commitment to conduct a thorough title search for each real estate transaction. For help with your title concerns and questions, contact our friendly team today!

First-Time Homebuyer? Here’s What You Need to Know About the Closing Disclosure Form.

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Closing Disclosure FormBuying your first home is likely one of the most exciting and rewarding events you’ll experience in your life. As such, it’s important to be prepared and gain a sound understanding of the real estate transaction process, as this helps make for a more streamlined, smooth closing experience. One of the key components of the settlement process is the Closing Disclosure (CD) Form. Read on for more regarding the importance of this document to closing on your new home.

What’s the Closing Disclosure Form?

The Closing Disclosure Form is a five-page document detailing the final terms of your home loan and closing costs. It contains information similar to that of your Loan Estimate, but also includes details surrounding the escrow portion of your mortgage. The CD Form should be compared with the Loan Estimate you receive from your lender.

What Information Does It Contain?

  • The amount of your loan, interest rate, and projected monthly principle and interest payments.
  • A detailed breakdown of closing costs (those paid by you as the buyer along with the seller’s closing costs).
  • Your financial responsibility (cash needed) for closing on the home and a summary of the transaction.
  • Further details on the terms of your mortgage set forth by your lender, including escrow information surrounding your home loan.
  • Loan calculations (total amount of payments, total amount paid in finance charges, the amount you financed, your annual percentage rate and total interest percentage over the life of the loan). Additional disclosures and important contact information are also found on the final page of your CD form.

When Will You Receive Your CD Form?

Your lender should provide this document to you at least three business days prior to your closing date. During this time, you should carefully review your CD Form, compare it with your Loan Estimate and contact your lender with any questions or concerns. Reviewing this document promptly helps ensure your closing is as efficient as possible, and that you close on time.

Have additional questions about the Closing Disclosure Form, or the closing process in general? We’re happy to help! Contact Linear Title & Escrow today at (757) 340-0340.

The Influence of Social Media on the Real Estate Business

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Social media has changed many aspects of how we interact with others today. From communicating with family and friends to business networking and marketing strategies, social engagement is forever changed thanks to our cyber connections. Social media brings everything closer. Within reach. And it provides instant gratification, in a myriad of situations. So how does it fit into the real estate business? More importantly, how does it impact the process of buying or selling a home?

Social Media Image

What Social Media Does for the Real Estate Market

  1. Casts a wide net. Some real estate firms may prefer niche marketing, depending on their business model and clientele. But social media offers a huge opportunity to attract and engage buyers from all over the county, and even the world. People looking to relocate have the opportunity to connect with an agent, and even “interview” potential agents based on their social media persona.

 

  1. Saves time. Sharing links for listings (especially those with excellent, high-quality photos and videos) saves time for buyers, sellers and agents alike. While it’s true that nothing is as good as visiting a property in person, potential homebuyers who aren’t local or who want a preview before scheduling a showing can determine if a property potentially fits their needs.

 

  1. Builds credibility, and enables agents to stand out among the crowd. Real estate agents develop a name for themselves in a number of creative ways. However, a fast and (often) inexpensive way to reach a large number of potential clients is through social media. Facebook, Twitter, Pinterest, Instagram and Snapchat are all used with great success. Even Google+, LinkedIn and YouTube are platforms on which home buyers, sellers and agents are connecting with success. The more agents post and the higher the quality of content, the better their chance of building a credible image, engaging with their audience and standing out among their peers.

 

  1. Offers enormous networking opportunity and increased exposure. With social media, home buyers, sellers and agents all have greater access to resources, real time information and opportunities that might otherwise be missed. Agents can network with other agents, brokers, service businesses, and even retail and eating establishments to grow their reach. Homebuyers and sellers can turn to real estate professionals who serve as information facilitators, particularly for community details, home décor and improvement recommendations, and other types of resources these clients often need.

Social media certainly has certainly proven to be an information-at-your-fingertips sign-of-the-times, and an important part of a sound real estate buying, selling and marketing strategy today.

What Are the Most Frequently Asked Closing Questions?

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The the process of closing on your real estate purchase can be confusing, especially if you’re a first time home buyer. We’ve put together some of the most commonly asked questions surrounding settlement, to help make sense of the closing process.

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Do I need to purchase title insurance? Lenders typically require that you purchase Lender’s Title Insurance, to protect the financial institution’s interest in providing you a home loan. Owner’s Title Insurance is highly recommended, as it protects your financial investment in the property you intend to purchase. Learn more about both types from our title insurance page.

How long does the settlement process take? The entire settlement process depends largely on the type of mortgage, but the average time to close is 30 to 45 days.

Will seller concessions include my title fees? Yes. Title fees typically include items like title search and the Lender’s Title Insurance premium. Costs like these are covered in transactions where sellers contribute to closing costs on behalf of the buyer.

What do I need to bring to the closing table? You’ll need to present your driver’s license or other government-issued ID. Depending on the lender, two forms of identification may be required. You’ll also need to bring a Cashier’s or Certified Check for the amount of your closing costs.

Have other questions? Here at Linear Title & Escrow, we work closely with lenders and agents to make the closing process as simple, streamlined and seamless as possible. For more information on title and escrow, contact our friendly team at (757) 340-0340 today!

How Do Home Improvements Affect Resale Value?

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Thinking of upgrading your flooring? Putting in a pool? Changing out old faucets and hardware for shiny new replacements? Upgrading and enhancing a home’s features, comfort and esthetics is something many people plan and save for to improve their surroundings. But it’s important to know whether such home improvements have an impact on the resale value of your home. Though you may have no current plans to sell, you never know when life may lead you in a different direction. Knowing what your home improvement investment is worth can help you make the best decisions for your needs now, and whether you can expect any return on these projects in the future sale of your home.

*image courtesy of pixabay
*image courtesy of pixabay

Know What Your Investment Is Worth

We’ve put together some of the most common home upgrade and improvement items, and insight as to how they may affect resale value. Keep in mind your location may have much to do with whether these upgrades add resale value or fall under the “overimprovement” category.

Flooring: The type of flooring and its resale value depends largely on where in the country you live. But in general, trading old, worn-out carpet and vinyl flooring for a hearty product like wood, tile or engineered hardwood has higher resale value. Flooringinc.com reports a relatively equal balance between initial cost and ROI for these products.

In-ground Pool: According to Homeadviser.com, the national average cost to install an in-ground pool is $44,873. This, of course, varies depending on your location, time of year you install, and the bells and whistles you choose for your backyard oasis. Unfortunately, many homeowners do not recoup their entire pool investment when it comes time to sell.

Kitchen: A kitchen remodel, or at the very least upgrading appliances and countertops, resonates well with buyers – especially with those in the market for the first time. Consumer Reports adds that upgrading your kitchen offers a potential increase of 3 to 7 percent in sale price.

Going Green: Eco-efficient solar energy is a hot topic in home designing, building and renovating these days – and for good reason. Upgrading to solar energy not only saves you money on utility bills and tax credits, it lets your recoup your investment. A recent study shows that home resale values increase by about $4 for every watt of solar energy installed.

Landscaping: Improving your home’s curb appeal has a positive impact on resale value, as reported by Houselogic.com. In fact, in the 2016 National Association of Realtors® Remodeling Impact Report, landscaping returned nearly a 100% on investment.

Many homeowners want their properties to be comfortable, and to enjoy their time while living in their homes. Your decision to upgrade may be based on any number of considerations. Knowing whether your projects add value to or over-improve your home is important as a homeowner, and could help you determine the right course of action for your humble abode.

What Are My Closing Costs When Selling a Home?

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Our last post discussed closing cost breakdown on the buyer’s side of a real estate sale. But what closing costs can you expect when selling a home? The seller’s side of the Closing Disclosure form typically has fewer line items than that of the buyer, but the costs vary based on a number of factors.

Seller's Closing Costs

The two portions of seller’s closing cost having the most impact on the bottom line are the agent(s) sales commission and mortgage payoff balance. Though paid at closing out of the proceeds from selling your home, we’ll leave these aside when discussing fees associated with seller’s closing costs. Total seller’s closing costs typically average between six and 10 percent of the sale price, as reported by Realtor.com.

Understanding Seller’s Closing Costs

Here’s a breakdown of typical closing costs incurred when selling a property:

  • Loan Payoff Fee: Covers the cost of forwarding the loan payoff to the lender.
  • Lien or Judgment Releases: Settles any liens or judgments against the home.
  • Termite Letter: Covers the cost of a termite inspection. A termite inspection and letter are generally conducted and submitted prior to closing.
  • Home Warranty: The purchase of a service plan that covers the cost of repairing or replacing major systems and appliances in the home you are selling in the event breakdowns, damage or loss occurs. (This coverage typically lasts for one year after closing.)
  • Home Repairs: Often appear in the form of a credit to the buyer to cover the cost of any necessary (pre-negotiated) home repairs.
  • Homeowner Association Fees – Prorated based on the amount owed at closing. (If paid in full or through a date beyond closing, these amounts are prorated back to the seller and paid by the buyer.)
  • Condo/Co-op Fees: Also prorated based on the amount owed at closing. Like HOA fees, any amounts paid for in advance for time beyond the closing date are prorated back to the seller and paid by the buyer.
  • Property Taxes: This amount is prorated based on the percentage of the year the seller owned the property.
  • Deed Preparation Fee: Applies to the document composed to transfer title on the property from the seller to the buyer.
  • Storm Water Fee: Varies per city, and is charged to cover the cost of treating, storing and managing storm water runoff within the community.
  • Grantor’s Tax: Transfer tax paid to the state, which covers the cost of conveying the property from the seller to the buyer.
  • Notary Fee: Fee charged to verify signatures on closing documents. This typically applies if the seller is not local to where the transaction occurs.
  • Settlement Fee: Paid to the company or attorney conducting the closing and covers the cost of preparing documents and executing the transaction.
  • Seller Concessions: Paid by the seller on behalf of the buyer to cover the cost of certain closing fees. These amounts or items are negotiated prior to closing.

*These fees may vary based on state, city and county, and per mortgage product. Some may not be applicable, depending on the circumstances surrounding your closing.

Learn more about closing costs and the settlement process by contacting our friendly, knowledgeable team today! Call Linear Title & Escrow at (757) 340-0340 for additional information.