will pre-qualify you for a loan by determining the maximum loan
amount. A certificate will be issued indicating the loan amount
and period of time. With this information you can shop for a home
and know what price range of homes to look at.
I need an Attorney?: Few buyers or
sellers obtain an attorney. Only you can make that decision, but
if you choose to use legal counsel make certain they are
experienced in real estate. An attorney not familiar with standard
forms, the mortgage process and closing procedures could cost you
hundreds of dollars without corresponding benefits. Beware of the
attorney that offers free legal advise in exchange for other
services such as the title work.
Title Insurance......what is it? Title
insurance is perhaps the most unique form of insurance offered
today. It was first issued in 1878, but it remains widely
misunderstood by consumers.
Basically, it protects the insured from losses as the result of
claims on the one's ownership of land. For instance, a seller may
forge a signature of another, creating a loss for the new owner.
Other problems that can occur include improper court proceedings,
unfiled liens, recording mistakes, incompetence involving previous
are two basic forms of Title insurance - an Owner's Policy and the
Lender's Policy. As the names indicate, the Owner's Policy covers
the land owner and the Lender's Policy covers the Lender on a
particular parcel of real estate. If a Lender's Policy is issued,
why do I need an Owner's Policy? A Lender's Policy offers no
protection to the land owner. A claim may arise that does not
jeopardize the lender's interest, but may, in fact, cause a great
loss to the owner.
Probably one of the most comforting features of title insurance is
the obligation of the insurer to defend you against claims of
others. A neighbor may claim rights to a portion of your land.
Without Title Insurance, you would have to bear the cost of
settling this dispute through the courts, regardless of the
validity of the claim.