Selling a home carries the same excitement as buying a new house, for many people. Though most sellers have less to do at closing when compared with buyers, it’s still important to ensure everything is in order to facilitate a smooth settlement process.

Pre-Closing Preparation

In the days and weeks leading up to your closing as a home seller, there are myriad tasks that must be completed. Here’s a checklist highlighting some of main responsibilities pertaining to a seller’s closing, to help make certain you’re ready for the big day:

• Prepare for home inspection.

• Inform your lender of your intent to sell.

• Request loan payoff amount from lender.

• Complete any necessary repairs (or negotiate these items with the buyer).

• Schedule cancellation date(s) with utility companies.

• Review the Closing Disclosure (CD) Form for accuracy.

What to Expect on Closing Day

Buyers and sellers usually have separate closings, and different responsibilities in terms of settlement costs. As the seller, your closing costs typically will include:

• Remaining mortgage balance

• Property taxes and HOA fees owed

• Agent’s commission on the sale

• Title fees and transfer taxes

• Seller concessions/other contract agreements

Make sure to bring the following items to your closing:

• Government-issued ID

• Keys, remotes and list of entry codes

• Certified check or wire instructions for payoff amount

• Wire transfer instructions for proceeds of sale

If you have any questions along the way, be sure to reach out to your real estate agent, lender and/or title company as soon as possible. The more prepared you are for your closing, the more efficient and streamlined the overall settlement process.

Need more information on what to expect at a seller’s closing? Reach out to the Linear Title & Escrow team today!

Buying a house is an exhilarating and life-changing event, whether it’s your first home or one of many. But how can you make certain you’re prepared for the big event?

Preparation and Communication

Careful preparation and ongoing communication with your agent and lender are crucial for facilitating a smooth closing experience. Ensuring you have all of your necessary paperwork and documentation organized and ready to submit to your lender and title agent when needed helps minimize delays in loan approval, and ultimately the closing process. It’s highly important to respond to any lender or title agent requests for information as quickly and thoroughly as possible.

Review the Closing Disclosure Form

The Closing Disclosure (CD) Form is a document submitted to you by your lender at least three business days prior to your closing date. (The CD Form replaces the HUD-1 settlement statement, formerly used for real estate closings prior to August 1, 2015.) This important document outlays the terms of your mortgage, payment amounts and other financial details related to your home loan. Careful review of your CD Form is crucial, as this reflects the information that will appear on your final closing documents. Any discrepancies or questions regarding this form should be resolved and answered prior to sitting at the closing table.

The Day of Closing

It’s extremely helpful to have an idea of what to expect, and what to bring, when the big day finally arrives. To help you prepare, we’ve created a list of what you need to bring to your closing:

• Government-issued photo ID
• Any paperwork required by your mortgage lender
• Certified check in the exact amount of down payment or wire transfer information

Homebuyers and sellers have different closings, as both parties rarely sit at the closing table together. A homebuyer’s closing with our team typically lasts around 30 minutes, unless it involves a Power of Attorney (in which case, requires additional time). Be sure to ask the closing agent any questions you may have as you go through the documents in your closing package. Upon signing the final documents and receiving your keys, you’re free to visit and move into your new home right away!

Have other questions about a homebuyer’s closing? Contact the Linear Title & Escrow team today!

Buying or selling a home is a major event in the lives of many Americans. Whether you are purchasing your first home or sitting on the seller side of the closing table, understanding your financial responsibility in the real estate transaction is important to ensuring you know what to expect from the process.

Preparing for a Home Closing

As the homebuyer, you will be informed of your closing costs on the CD (Closing Disclosure) Form, which is a document provided by the lender listing details of your loan, payment amounts and total closing costs for your purchase. Your lender will remit your CD form to you for your review at least three business days prior to your closing date. It is highly recommended that you review this document thoroughly, and ask any questions regarding its content or resolve any discrepancies prior to closing day.

What to Expect as the Buyer

In general, closing costs for homebuyers average between two and seven percent of the sale price. Closings costs for homebuyers typically include the following:

• Mortgage origination fee (if applicable)

• Loan discount points (if applicable)

• Mortgage insurance (if applicable)

• Prepaid mortgage interest

• Homeowner’s insurance

• Home appraisal fee

• Property taxes

• Transfer taxes

• Recording fees

• Title search fee

• Title insurance (Owner’s and Lender’s)

• HOA fees (if applicable)

• Survey (if requested)

• Other closing/escrow fees

What to Expect as the Seller

Even though you’re selling your home, you can still expect to pay some amount of closing costs, with the bulk of the financial responsibility deriving from the real estate agents’ commissions. Seller’s closing costs typically include:

• Loan payoff

• Real estate commission

• Home repairs (if applicable)

• Property taxes

• Title transfer and recording fees

• Closing credits to buyer (if applicable)

• Settlement fees

• Deed preparation

• Courier fees

• Agent administrative fees (if applicable)

• Other closing fees

Have other questions about closing costs or the settlement process? Contact the Linear Title & Escrow team today!

Homeowners looking to sell often purchase home warranties to help attract buyers. In other cases, homebuyers purchase home warranties a part of the real estate process, and may even receive a discount if done so within 30 days of closing on the home.

What Is a Home Warranty?

A home warranty is a protection plan that helps finance repairs or replacements on certain aspects of your home that occur after closing, were not apparent during a home inspection or are not covered by homeowner’s insurance. There are different types of home warranties, each of which is accessed when systems or appliances in your home are not longer in proper working order.

What Do Home Warranties Cover?

Home warranties can be purchased to cover:

• Home appliances (refrigerator, stove, dishwasher, etc.)

• HVAC system

• Electrical system

• Phone system (wiring)

• Plumbing

• Water heater

• Smoke detectors

• Exhaust fans

• Doorbells

• Roof

• Pool

How Long Do Home Warranties Last?

Home warranties are relatively inexpensive, and typically incur a cost between $250 and $500 for an annual premium. Dates of coverage and the time at which coverage begins vary depending on who is purchasing the policy (homebuyer, seller or existing homeowner). At the end of the 365-day term, the owner of the policy can then elect to renew or dissolve the home warranty coverage.

What to Consider When Buying a Home Warranty

Some aspects of your home may be covered under a builder’s warranty, depending on the construction age. If you decide to purchase a home warranty, just be certain that you fully understand the details of your policy, such as under what circumstances coverage kicks in, coverage limits and any additional expenses for which you might be responsible (such as service fees or deductibles). Home warranties only cover those systems and appliances specifically mentioned in your contract.

Technology has certainly improved our lives, businesses and the speed with which we can accomplish a multitude of tasks. However, technological advancements have also increased the incidence of cyber crimes, making it easier for thieves to steal sensitive and personal information, and ultimately your money.

Mortgage Closing Scams

“Mortgage closing scams” are one such fraudulent activity of which home buyers and sellers should be aware. In these scenarios, thieves send emails to unsuspecting parties stating that the wrong wiring information was previously provided or wiring instructions need to be changed, and the funds must be wired to a new or different account number. 

Emails hackers are very skilled at making these emails appear legitimate, and as though they’re coming from a credible source with whom the person has been in contact (home buyer or seller, mortgage lender, real estate agent, title agent or closing attorney).

How to Protect Yourself as Home Buyer or Seller

Closing time in a real estate transaction can often feel hurried and time-sensitive. Even if you’re feeling the pressure of time, it’s best to avoid responding quickly to emails regarding your real estate transaction, without first determining their authenticity. Here are tips on how to protect your personal information and assets as a home buyer or seller:

• Be very leery of emails asking for personal information, account numbers or financial details of your upcoming closing. Also be suspicious of emails requesting a change in payment type, financial institution or wiring instructions. If you receive such an email, do not contact the apparent sender via return email or the numbers provided in the email signature. Instead, visit the title company in person if possible, or use a phone number you know to be associated with the actual company or person.

• Review email correspondence from mortgage lenders or closing agents carefully. Bogus emails are often sent at odd hours of the day or night and may contain poor grammar or sentence structure, misspelled words and odd phrasing. The sender’s email address may also be slightly different (for example, one letter or character off from that of the legitimate party).

• Letting your bank know about anticipated wire transfers, the name of the sender or receiver, and dollar amount of the transaction can help your financial institution identify any red flags indicating fraudulent activity, if they arise. 

• It can be extremely difficult to recover funds wired to a fraudulent account. Protect your money and real estate investment by remaining aware and scrutinizing any communication regarding the real estate closing to determine its authenticity.

Though wire fraud and mortgage closing scams are on the rise, you can minimize your risk of becoming a victim of fraudulent activity by doing your due diligence when it comes to providing requested information.

How We Protect Against Wire Fraud at Linear Title & Escrow

At Linear Title & Escrow, we take the threat of wire fraud very seriously. We utilize encrypted emails when sending wire transfer instructions and do not accept any wiring instructions that are not encrypted. As an additional safeguard, we confirm all wiring instructions, regardless of whether or not we receive them encrypted.

To learn more about to protect against wire fraud, contact our team today!

Buying a home is one of the most important financial decisions Americans make. But in some cases, title problems prevent proper conveyance of property ownership from one party to the next, which can threaten the real estate investment. These issues, known as title defects or clouds on title, come in many different forms and typically are detected via a thorough title search.

Common Title Defects

To conduct a title search, the title or settlement agent carefully reviews ownership history of the property, searching for instances in which other parties may have authority to claim ownership over the property in question. Court and other public records are reviewed to search for encumbrances and other potential barriers to transferring proper ownership. There is a wide array of title defects that can exist. Some of those most common include:

• Liens held against the property

• Clerical or filing errors

• Unknown heirs

• Fraud and forgery

• False impersonations

• Encroachments or easements

• Boundary disputes

• Improperly probated wills

• False representation of marital status

• Unreleased deeds of trust

Clearing a Defective Title

Clouds on title can take anywhere from a few hours to several months to resolve. In a number of cases, correcting clerical errors or addressing omissions is simply a matter of refiling necessary documentation with accurate information. Resolution of some clouds can delay closing, if, for instance, the defect must be resolved in a court of law or unknown heirs must be located.

Protecting Against Title Defects

The best way to protect against financial loss, or the loss of your real estate investment, is by obtaining an Owner’s Title Insurance policy. This type of insurance plan is entirely optional (as opposed to a Lender’s Title Insurance policy, which is generally required by mortgage lenders), but can cover legal and other fees, and provide remuneration in the event the property must be relinquished to another party.

Do you have further questions about clouds on title or title defect resolution? Contact the Linear Title & Escrow team today!

Title Insurance is a type of indemnity policy that protects lenders and homeowners from financial loss in the event title defects are identified after closing or the associated home loan becomes unenforceable. There are two types of Title Insurance policies: Lender’s Title Insurance and Owner’s Title Insurance.

Lender’s Title Insurance protects the mortgage lender’s financial stake against loss due to title problems. Owner’s Title Insurance protects the homebuyer’s/homeowner’s financial and real estate interests in the property.

Those new to the homebuying process, and even seasoned homebuyers, often have questions about Title Insurance. We’ve compiled a list of common and frequently asked questions regarding this topic.

Common Title Insurance FAQs

Is Title Insurance Required? Lender’s nearly always require homebuyers to purchase a Lender’s Title Insurance Policy. Choosing to purchase Owner’s Title Insurance is at the sole discretion of the homeowner; however, it’s highly recommended. (For more information, visit our Title Insurance section.)

What Does Title Insurance Cover? An Owner’s policy covers legal fees and other court costs to defend against another party posing an ownership claim to the property. Owner’s Title Insurance also provides monetary reimbursement on loss if title defects are unable to be resolved. Lender’s Title Insurance protects the mortgage lender in the event a loan is no longer considered valid.

Who Pays for Title Insurance? The homebuyer is financially responsible for the Lender’s Title Insurance policy. In many cases, the homebuyer also pays for Owner’s Title Insurance, though a portion of this may be negotiated into seller concessions. Both Lender’s and Owner’s Title Insurance policies are paid via a one-time premium.

How Are Coverage Amounts Determined for Title Insurance? An Owner’s policy is based on the sales price of the home. A Lender’s policy is based on the mortgage amount.

Can I use the same Title Insurance policy if I refinance my home? All lenders will require a new title insurance policy on any real estate transaction; however, homeowners typically receive a discounted rate on a Lender’s policy when refinancing.

What Is the Difference Between a Standard and Enhanced Owner’s Title Insurance Policy? When purchasing Owner’s Title Insurance, you have the option between a Standard or Enhanced policy. While both cover certain types of common title defects, an Enhanced Policy provides coverage for a wider range of title problems. Visit our previous post for more on Standard vs. Enhanced Owner’s Title Insurance.

Contact the Linear Title & Escrow team for more on Title Insurance!

From healthcare to retail, technology continues to drive growth and evolution in how businesses and consumers interact. The title and escrow, and real estate industries, are no different.

As we work to simplify home buying and selling procedures, we inevitably lead with a technological inclination designed to improve the overall real estate settlement experience. We thought we’d take a moment to examine exactly how technology has changed the overall closing process, specifically.

Today’s Benefits: A Smoother, More Streamlined Process

Digital processes and cloud-based solutions streamline the real estate transaction, in myriad ways:

• Increase the speed and breadth of information sharing
• Reduce loan application and approval times
• Enable digital submission of documents
• Generate better informed homebuyers and sellers
• Allow for a (largely) paperless environment
• Automate reconciliation procedures
• Improve title search and recording efficiency
• Enhance communication among transaction parties
• Organize and maintain records and documentation in a more centralized manner

The Future of Home Closings

In several localities across the nation, the real estate transaction (from loan application to closing) is occurring in a completely digital space. A growing number of others are working towards the adoption of online notarization and other facets that allow for complete digitization of closing on a home.

While the entire closing process may not be completely digitized yet in many areas, the future certainly points towards this affect and is, in its most basic form, another technological sign of the times.

Need assistance with or information on real estate settlement? Contact the Linear Title & Escrow team today!

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.