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

Buying 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.

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?

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.

2. 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.

3. 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.

4. 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.

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

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.

Closing costs are a necessary part of a real estate transaction. But these fees differ depending on which side of the table you sit. Buyers have a greater number of closing costs compared to the seller, however some of these fees are often negotiated in the real estate deal. (For instance, a seller may agree to contribute a certain amount towards the buyer’s closing costs.) Read on for a breakdown on the fees appearing on the buyer’s side of the Closing Disclosure (CD) form.

 Understanding Buyer’s Closing Costs

According to Realtor.com, closing costs are usually between 2% and 7% of the amount of the home. These costs also vary based on the type of mortgage you choose or for which you qualify.

Buyer’s closing costs typically include the following items:

• Loan Application: Amount varies per lender, and covers the administrative cost of processing your loan application.
• Home Appraisal: Applies to every real estate transaction involving a lender, and provides an objective estimate of the fair market value of the home.
• Land Survey: Optional – only ordered upon request by a buyer or agent. Describes the boundaries and other pertinent details of the property.
• Credit Report Review: Charged by the lender to ensure good credit status.
• Flood Determination: Performed by the lender to determine if the property falls within a flood zone.
• Flood Elevation Certificate: May be required if it’s determined that the property is, in fact, located within a flood zone.
• Attorney Fee: Applies only if you hire an attorney versus a settlement company to handle your closing.
• Homeowner’s Insurance: Applies to every transaction with a lender.
• Flood Insurance: Often required if the property is located within a high risk flood zone.
• HOA Assessment: Charged if the property is part of a homeowners’ association, and is typically prorated.
• Prepaid Interest (Loan Discount Points): The amount of interest that accrues between your closing date and the first loan payment. Loan discount points reduce the interest rate on your mortgage. 
• Private Mortgage Insurance (PMI): Typically required if the down payment is less than 20 percent. Certain mortgage products require PMI for the life of the loan.
• Lender’s Title Insurance: Protects the lender’s interest if title problems arise surrounding the property.
• Origination Fee: Charged by the lender, and covers the cost of creating the home loan.
• Courier Fee: Amount charged by some lenders for document delivery throughout the real estate transaction.
• Recording Fee: Varies by city or county, and charged for public recording of the real estate sale.
• Transfer Taxes: Charged by the city, state or county to cover the cost of transferring title on a property.
• Underwriting Fees: Amount charged by the lender to evaluate in depth your ability to repay the home loan for which you’ve applied.
• Title Company Closing Fee: Amount charged by the title company to conduct the real estate transaction.

*Some types of mortgages may include fees specific to those products. Closing fees and their amounts may vary per state and/or municipality.

Have questions on how closing costs are determined, or about the settlement process in general? We’re happy to help! Call Linear Title & Escrow at (757) 340-0340 today.

Thrilled. Ecstatic. Elated. These are all emotions associated with buying a new home, whether it’s your first time or you’re a seasoned buying pro. Yet with each home buying experience, there is something to be gleaned. Some pearl of wisdom you didn’t know or overlooked before, that can make you a smarter homeowner, future seller or home buyer if and when you purchase another home. What will you take with you from your recent real estate purchase? How can you get the most out of your home buying experience?

• Did you use an agent? Real estate agents have much to offer in the way of knowledge about the housing market and in finding your dream property. Take advantage of having an agent in your corner for future purchases, if you skipped it this time around.
• Assess your initial property search. What worked? Was it as productive as possible? Did you maximize your time by looking in the right location and appropriate price range?
• Did you get pre-approved prior to looking for a new home? Mortgage pre-approval certainly offers some advantages. Read our previous post on the benefits of being pre-approved here.
• How was the road to closing? Did you experience an easy loan application process, or are there ways to improve the management of documentation in future real estate transactions? Keeping meticulous financial records and statements can help streamline this process for the future, in a big way.
• Make note of what worked. If you did your homework, stayed within your budget and got an awesome deal on your home, pat yourself on the back! Take careful note of what factors or actions worked best for you, so you can apply them to future home buying experiences.
• Make note of what didn’t work. On the same token, identifying things that you would do differently the next-go-round also is prudent. Avoiding past mistakes can go along way in making any future home buying experiences easier.

If you’ve just purchased a home, congratulations! You’ve reached a milestone, whether it’s your first home or your third. At Linear Title & Escrow, we focus on making your closing as smooth, efficient and streamlined as possible. Contact us today at 757.340.0340 with your closing questions.