Tag: mortgage

MYTH: You don’t need title insurance

Everyone needs title insurance. You may think you know the entire history of the house you’re purchasing, but it’s impossible to know everything. Title insurance protects your right to the property in the event that a previously unknown heir claims ownership of the property if it is later revealed that the “sellers” were not the rightful owners, or if liens against the property resurface. If you have an owner’s title insurance policy, you will not be responsible for paying any of the fees associated with protecting your right to the property, should these types of issues arise.

MYTH: New construction homes don’t need title insurance

Your home could be brand new, but the land on which the house is built isn’t. Chances are, the land had several previous owners before construction began. Buying property on such land opens you up to certain risks tied to ownership issues from previous owners.

Disputed wills, easements, and property liens are just a few of the issues common to land ownership. You could get caught in the mess and end up losing your resources or, worse still, your new property as well. Title insurance is crucial even for a new home and should be on your list of priorities during the closing process.

MYTH: If no one challenges ownership, then the title policy is a waste

At the closing, when you purchase a title insurance policy, the closing company does the bulk of the work behind the scenes. The title company goes through many steps to make sure that everything is in place by that time, including conducting a comprehensive title search and identifying any potential issues. The team investigates the entire history of the property to ensure that you, the buyer, will be aware of any problems that will need to be addressed before closing. By the time the closing comes around, the title company has completed a great deal of research and legwork for you.

MYTH: Title insurance offers only minimal protection

When you purchase a home, you receive the “title” to the property. This title is your legal right to own it. Early in the home-buying process, a title search is conducted to review the history of the property and uncover any issues that could limit your right to ownership. Even after the most meticulous search of public records, there can be hidden title defects, such as tax liens, forged signatures, claims by ex-spouses, and recording errors. These title defects can remain undiscovered for months or even years after you purchase the home.

MYTH: Title insurance is the same thing as homeowner’s insurance

Homeowners insurance protects you so you have the resources to pay for any damage that might occur to your property. Title insurance protects you from anyone else claiming your home is theirs or for some prior owner’s back taxes or encumbrances or any other real property dispute

Title First Agency: Dedicated to innovation and passionate about service, Title First Agency is your comprehensive, nationwide resource for title and real estate settlement services. Headquartered in Columbus, Ohio, Title First has branch offices throughout the Midwest and a robust virtual partner network throughout the country. Title First got its start in 1956 as an affiliate of a local law firm and has since emerged as one of the largest independent title agencies in the nation. Proudly servicing Realtors, lenders, builders, developers, law firms, buyers and sellers, Title First is equipped to serve your residential and commercial title and settlement needs.

Real estate investing comes with plenty of pros and cons to consider. It’s especially important to evaluate the situation and the property that you are attempting to put an offer on and eventually buy. How do you identify if there are any signs that you might be jumping into a bad investment?

It’s important to know that when a realtor shows excitement in selling you a property, it is literally their job to do so. However, if they seem overly avid or even pushy, there might be some details about the property that could make it hard to sell which is making the realtor a bit extra aggressive to sell it. Listen to your instincts and, if necessary, investigate as much as you need to ensure you are making a good investment. Have the property fully inspected before agreeing to sign anything. Realtors should be truthful and upfront, offering their professional guidance on the best course of action, even if it’s not what you were expecting or hoping to hear.

One of the most important factors that determine if a property is worth investing in is the location. Even if the property is in a perfect state, if it’s poorly located, chances are you will be losing money. Some of the factors that determine a location are the local economic health, the levels of vandalism and crime, the school district, etc. Before coming to a final decision, make sure you do a thorough investigation of the location. Choose areas, for instance, that have great schools, fun attractions, quality transportation options, high walkability, and great retail spots. Proceed with caution—no matter how the numbers look on paper.

If a property has been on the market for six months or longer, other investors have probably checked it out. There’s a reason it’s not selling. It could be a bad neighborhood, or too many issues to fix, whatever the reason…a property that has been for sale for months and hasn’t sold might be too much trouble than it’s worth. Dig deep into why it has been for sale for far too long to find out why exactly. While it’s possible for a property to simply evade the attention of other prospective buyers and investors, this isn’t the most likely explanation for a listing that’s been up for a long time. If it seems like there’s no interest in a given property, it’s a red flag that there isn’t sufficient market demand for that type of investment.

A property can look good on paper and still be a bad investment. If a house has structural damage, foundation issues, or other problems that will require a long inventory cycle or cost so much that it will eat into your profits, then your best bet is to walk away. Considering renting out the home? If the plumbing, electricity, and other infrastructure will need constant and frequent repairs, it could be a bigger headache than it’s worth.

Thinking to the future not only on the property you are interested in but to its surroundings as well. Learning of the current and potential growth in an area can greatly benefit any investor. Visiting the municipal planning department can yield information on developments and project plans that have already been zoned into the area. 

One important consideration is the amount of new construction in the area. Lots of new planned projects and those still in development typically represent an area of substantial growth. If you will be renting out the property that would mean new tenants with the growth of the area.

The Bottom Line:  These are just a few signs on how to spot a bad investment. Nobody wants to deal with the fallout after a bad real estate investment, so you must do everything you can to minimize your risk and do a lot of investigating on each property. Arm yourself with a good realtor, access to information, and patience.

Closing on a house is the most rewarding part of the home-buying experience. This is a time to celebrate this important milestone in your life! And it’s the last step in buying your new home. The actual closing and paperwork can be tedious and sometimes a little overwhelming. What should you expect once the seller accepts your offer? The behind-the-scenes work begins and then you can expect closing to happen within 30 to 90 days.

1. Select a Closing Agent: If you are working with a realtor, with your permission, he or she may place an order with a closing agent as soon as your sales contract is accepted. The closing agent can be a title company, an escrow company, or a settlement company. Most homebuyers rely on their real estate agents to select a closing agent – someone they work with regularly and know to be professional, reliable, and efficient. The closing agent will oversee the closing process and make sure everything happens in the right order and on time, without unnecessary delays or glitches.
2. Draw up an Escrow Agreement: First, a contract or escrow agreement is drafted, which the closing agent reviews for completeness and accuracy. The agent will also put your deposit into an escrow account, where the funds will remain until closing.
3. Title Search is Conducted: Once the title order is placed, the title company conducts a search of the public records. This should identify any issues with the title such as liens against the property, utility easements, and so on. If a problem is discovered, most often the title professional will take care of it without you even knowing about it. After the title search is complete, the title company can provide a title insurance policy.
4. Shop for Title Insurance: There are two kinds of title insurance coverage: a Lender’s policy, which covers the lender for the amount of the mortgage loan; and an Owner’s policy, which covers the homebuyer for the amount of the purchase price. If you are obtaining a loan, the bank or lender will typically require that you purchase a Lender’s policy. However, it only protects the lender. It is always recommended that you obtain an Owner’s policy to protect your investment. The party that pays for the Owner’s policy varies from state to state, so ask your settlement agent for guidance. before closing.
5. Obtain a Closing Disclosure: Your lender must provide a Closing Disclosure to you at least three days prior to closing. Your lender may also have a closing agent provide the Closing Disclosure to you three days before you close your transaction. If your lender makes certain significant changes between the time the Closing Disclosure form is given to you and the closing, you must be provided a new form and an additional three-business-day waiting period after the receipt of the new form. This applies if the creditor: 1: Makes changes to the APR above 1/8 of a percent for most loans (and 1/4 of a percent for loans with irregular payments or periods) 2. Changes the loan product 3. Adds a prepayment penalty to the loan. If the changes are less significant, they can be disclosed on a revised Closing Disclosure form provided to you at or before closing, without delaying the closing.
6. The Finish Line: Prepare for Closing: As closing day approaches, the closing agent orders any updated information that may be required. Once the closing agent confirms with the lender and the seller, he or she will set a final date, time, and location of the closing. On closing day, all of the behind-the-scenes work is complete. While you’ve been busy packing, ordering utilities, and coordinating the movers, your closing agent has been managing the closing process so that you can rest assured, knowing all the paperwork is in order.

The Bottom Line: This long process can seem daunting at times, but if you are teamed up with the best realtor and title agency you will be well prepared. When you finally reach the closing date and are holding the keys to the property, plan a celebration!

What do new home buyers want? We are in the era of social media, smartphones, and AI algorithms, leaving us with a plethora of information on how we should renovate, remodel, and increase the value of our homes. Of course, affordability tops the list, followed up with updated large open gourmet kitchens with large center islands for cooking and gathering.

If you will be selling your home and you only have a certain amount of time and money, there are a few things that buyers are looking for right now.

HOME OFFICE: More than 13 million Americans work from home, according to the most current U.S. Census data, and all signs point to that trend continuing. That makes a home office important for many buyers. As you would list rooms like kitchen and living room, a greater amount of people working and schooling from home means “home office” should be included in the listing. Or, consider saying there is a room as a potential home office.

ACCESSIBLE LAUNDRY ROOM: According to a nationwide survey of recent and prospective homebuyers conducted by the National Association of Home Builders, 87% of respondents wanted a laundry room, making it the most requested feature on their list. No more dark basements. Today’s home buyers seek a bright and large laundry room with plenty of storage, and counter space for folding clothes and it’s always a plus to have a utility sink.

ENSUITE MASTER BATH:  If your master bathroom only contains a shower stall or a tub and not both, you’re going to be at a big disadvantage when it comes to selling. According to the latest annual report published by the National Association of Home Builders (NAHB), a whopping 76% of millennial buyers consider this their top must-have. When pushed to specify, potential buyers also revealed that they’d want the tub to feature whirlpool jets and that the shower should have multiple heads. 

CENTRAL AIR CONDITIONING: Nearly seven in 10 homeowners said they would be willing to pay more for central air conditioning — the same as new kitchen appliances and more than any other feature. Central air conditioning was considered “very important” by more than 60% of people in all age groups.

ENERGY EFFICIENCY: This is a top home feature that has earned high marks from home buyers. As the cost of energy continues to rise, many home buyers today are looking for homes that are going to be easier and less expensive to run long-term. Consider installing LED lights or using a programmable thermostat.  These features can be attractive to home buyers because they often result in saving money on utility bills.

The Bottom Line: Team up with the most successful realtor in your area who will recommend what updates you will need in your specific home to bring in the most money. We can’t control the circumstances of the current real estate market, but we can control parts of our home’s value and appeal. Making strategic improvements can significantly increase the success of the sale of your home.

What can I get for my home? This is one of the first questions a homeowner will ask a realtor.  Hiring an experienced realtor is key to getting the magic number – the price that your home will sell. Getting your home priced right is quite possibly the most important thing your realtor can do for you. Too many times, realtors will tell sellers what they want to hear instead of what they need to hear to sell their homes.

Pricing a home is a skill that takes training, an understanding of the market, and comparable sales (comps). Negotiating a home price requires a lot of patience, organization, and sometimes compromise. When a home is listed too high, buyers pass on even looking at it. It will end up being on the market for a long period of time and the price will eventually be forced to be lowered to be competitive. But, by that time buyers assume there must be something wrong with the home and it will gain a bad reputation and continue to be bypassed. Even the buyers who do look at it will lowball the new price and the home will end up being sold for less than what it would have had you priced it correctly to being with. Homes sell for the most money when they are on the market for less than 30 days in almost all markets.

You don’t want your home priced lower than it is worth, but you want it low enough to create excitement among buyers and possibly even multiple offers coming in. This is an excellent option if you want to sell a home fast.

A good Realtor will make sure that the seller’s home shows up in online searches. To make sure this happens, a proper price is paramount. If the neighborhood comps are lower, the house may not show up if it’s even slightly higher! For instance, if the comps top out at $300,000, and the buyer wants a 4-bedroom home in that neighborhood under $300,000, the house listed at $325,000 won’t even show up in the search.

Pricing a home to sell properly is a skill that the best Realtors have. It is the most critical piece to selling your home. The right price is 75% of the marketing for any home on the market. It’s what will attract buyers. So, when you are interviewing Realtors to sell your home, ask the question “What’s my home worth” and know they can’t tell you what it will sell for but expect comparable sales, pending sales, and active sales. Finally, ask to see a track record of their previous listings – the original price and the final sale number. And, don’t be afraid to ask for a personal guarantee from them.

The Bottom Line: If your home is immediately identified as being overpriced, agents will dismiss the property. As a result, sparking interest may take drastic measures (i.e. massive price reductions) and you might end up lower than where you could have been if you had priced the property right the first time.

Household maintenance is necessary if you want to protect your investment and keep your home in good shape. Homes require internal and external upkeep with regular cleanings and inspections to ensure everything is safe and functional. There is a lot to keep track of and first-time homeowners can mistakenly skip over something important that needs to be done simply because the list can seem so overwhelming. Keeping a regular home maintenance checklist and schedule will ensure that your house is in order year-round. Here are a few tasks that new homeowners may not even know about.

Window Weep Holes: Many sliding windows and vinyl replacement windows have weep holes on the exterior bottom of the frame. These holes are designed to drain away rainwater that can collect in the frame’s bottom channel. These tiny holes can easily get plugged up with bugs and debris, and if that happens, water could fill up the channel and spill over into your house. It’s best to clean them every six months by using a pin or paper clip to pick the debris out. To make sure they’re clear, spray water onto your window and check to make sure it leaks out. If it doesn’t, it means one of two things: the weep holes are still clogged, or they’re currently redundant due to a watertight seal around your windows.

Refrigerator Condenser coils: These are located on the back of the fridge or across the bottom. When coils are clogged with dust, pet hair, and cobwebs, they can’t efficiently release heat. The result is your compressor works harder and longer than it was designed to, using more energy and shortening the life of your fridge. Pull it away from the wall and vacuum the condenser coils or wipe them off with a clean dust cloth every few months. Your refrigerator is one of the most expensive and necessary appliances; you want to extend it’s life.

Chimney Cleaning: This needs to be cleaned yearly to remove creosote, a flammable byproduct of wood burning, that can cause fires and elevate the risk of carbon monoxide poisoning. A quick way to tell if your chimney needs cleaning is to run the point of your fireplace poker along the inside of your chimney liner. If you find a 1/8-in. or more layers of buildup. call a chimney sweep.  Finally, make sure there is not any damage to the chimney on the outside – missing bricks and flashing that should be tight against it to guide water away.

Flush Hot Water Heater: The water in your water heater tank contains minerals that can settle out of the water and build up in the bottom of the tank. Just a few minutes of water heater maintenance once a year pays off by extending the tank’s life span and maintaining your water heater’s efficiency and safety. Draining two to three gallons of water is usually enough to flush out sediments, but always let the water flow until you no longer see particles in the bucket.

The Bottom Line: Making a maintenance checklist to use year after year will help ensure your home is safe and secure. Some of your monthly checklist is likely to change with the seasons. A simple Google search will help you find websites dedicated to yearly home upkeep. Be sure that you set aside money for home repairs and maintenance. Neglecting small tasks will cause you grief, time, and money in the long run.

The most basic part of buying a new home is dealing with potential problems that may have been created by its previous owners. Short sales, foreclosures, bankruptcies, and financial situations have added another element to the entire closing process that makes title insurance essential.  The title to a house is the document that proves that a person owns it.  Without that proof, the house can’t be sold or bought.

Title First Agency experts oversee and perform thousands of closings each year nationwide and ensure that all of the details of the title transfer and closing are in proper order. Unfortunately, at this time there are plenty of situations that could cause problems with a title and complicate the process of buying the affected houses.  No matter why the house is being sold, its title problems must be cleaned up so they are not inherited by the buyer.

Short Sale: A short sale is when the lender agrees to let you sell your home for less than the outstanding mortgage debt. The proceeds from the sale pay off a portion of the mortgage balance and the lender releases the lien on the property. A title from a short sale is not always free and clear. A good Realtor will make sure to get a preliminary title search performed to determine the extent of outstanding legal obligations. If a home is bought without a clear title, the buyer could be responsible for the mechanic’s lien, which is a legal claim placed on a home to settle unpaid or partially paid contractor work,  any unsettled contractor liens, property-tax liens, IRS liens, homeowners’ association special assessment liens or even a second mortgage loan.

Foreclosure: Homeowners who can’t afford their home may decide to relinquish ownership and give the house to the bank that holds the mortgage. Mortgage foreclosures can cause a lot of issues with the chain of title. Sometimes, even though the owner loses their home, they may not actually lose the title to the property.  The property may have plenty of repair problems since financially distressed owners often let their properties fall into disrepair. From leaky basements, and unpaid taxes,  to bills from homeowners’ associations to quarreling lenders – it can take some time to sort out who is owed what, how they will be paid, and when the title will finally be cleared. All buyers of foreclosed property need to protect themselves by making sure the title search shows that any previous mortgage was satisfied, canceled, or otherwise released to avoid any future title problem.

The Bottom Line: There are dozens of potential barricades to clear the title.  Buying or selling a home has become a complex transaction and you need a trusted title search company to guide you through the process. The experts at Title First oversee and perform thousands of closings each year. When using Title First, you can sign confidently on the dotted line knowing that all details of your title transfer and closing are in proper order. We are here to answer any questions you may have about buying or selling a home, and our team will guide you through the entire process.

Great Realtors should be held to a higher standard with their daily responsibilities and their fiduciary duty to their clients. Buying and selling a home can be a long and complicated process and it’s important to find a good and loyal realtor. Unfortunately, there are plenty of “bad Realtors​”. What are a couple of signs that you have hired one? 

How Are Their Communication Skills?

Does your real estate agent return your calls, text messages, or e-mails in a timely manner? Time is of the essence in real estate, so if it takes your agent hours or days to get back to you, odds are you might miss that new listing, an important deadline when you’re under contract, or a potential buyer if you are selling your home. Things are moving fast in the real estate world and your realtor must be attentive. Any delayed response can mean the difference between closing or losing a deal on your dream house. 

While it’s true, your realtor can’t be on call 24 hours a day, 7 days a week, you should expect to hear back within an hour or so. Whether it’s by text, call, or email, they need to let you know they received your message and are working on the answer you want. 

Is Real Estate Their Side Hustle?

It’s probably not a good idea to hire a realtor that also has a separate full-time job. There is a lot that goes into finding the buyers a perfect house or getting a seller’s house sold. There simply isn’t enough time to provide the full service that a client deserves if the realtor is unavailable during prime-time hours. It’s safe to believe that if the agent is doing this on the side, it’s not as important to them as it would be to someone who counts on the commission to feed their family.

Good Marketing Ideas?

You want a realtor with a marketing plan to sell your house. One that understands the importance of a web presence, one that will give your home the maximum exposure it needs to sell, and will have an appealing social media presence on all the important platforms. There should be high-definition, professional photos, and videos in the marketing plan. A solid staging strategy should be understood to make the greatest impact in photos as well as when the home is shown in person. In today’s market, it’s critical to have a realtor on your team willing to go the extra mile to sell your home.

Do You Feel Pressured?

Realtors can be the best person on your team, offering you support and keeping you in the know but they can also be pushy and try to pressure you to buy or sell. Your realtor is representing you and needs to be knowledgeable and ready to deal with negotiations. Don’t let him show you homes outside your budget and make sure to get any facts used in negotiating. Never be pressured into making an offer or accepting an offer before you are comfortable doing so. It’s your money.

The Bottom Line: Hiring the wrong realtor can make buying and selling a home more complicated and stressful than it must be. Successful agents are those who are passionate and enjoy what they do for a living. They have a deep passion for serving and helping people by showing them properties within their budget. When it comes to unearthing an unacceptable realtor, there are many ways to dig around before hiring them. Do your research!

Check their online presence (website, social media platforms) and ask for recommendations. Who you choose to work with is essential to the success of your house hunting & selling, so having the right realtor by your side can make a huge difference.