The mortgage process is long and tedious. After calculating a mortgage payment you can afford, obtaining a pre-approval, finding a home and getting a contract, it is finally time to close on your new home. The closing process begins when you have a sales contract. The following four to six weeks is termed ‘pending” During this time, your lender, real estate agent, title, and real estate attorney are working on getting the contract clear to close.
A LOOK AT THE MOVING PARTS AND THE PEOPLE WHO BRING YOUR HOME TO CLOSING
- The title and closing agent obtains (i) loan payoff amounts, (ii) estoppel certificates from homeowner and condominium associations, (iii) judgment and lien releases, and (iv) title searches and municipal lien searches. The closing agent also pro-rates property taxes and non-advalorem taxes, incorporates information provided by the new lender and prepares a closing statement showing all debits and credits for both the buyer and the seller. The closing agent also collects all funds and prepares all standard documents required for a sale and prepares instructions for the buyer and the seller and coordinates all aspects of the closing. Following signing, the closing agent disburses all funds according to the closing statement and records appropriate documents in the public records
- Florida National Title Services researches the property to ensure the seller can sell the home and that the buyer’s title has no liens or restrictions rendering the title unmarketable..
- Your lender hires the appraiser and prepares your loan documents to send to the title company.
- Your real estate agent ensures everything is moving along as it should.
The Closing Costs
Excitement builds up as you imagine the move into your new home. Then you remember there are closing costs! Closing costs must be planned for, but, if you are knowledgeable about them, you can be financially prepared.
Closing costs are costs associated with selling and purchasing a home. Both the buyer and seller are subject to paying closing costs. Depending on various factors these fees can be quite minimal or substantial. You should request an estimate from either your real estate agent or the title company so you understand what funds you need if you plan to move forward with the purchase and sale.
What Closing Fees Include:
- Loan origination fees are upfront fees charged by the lender to process your loan. These fees range from .5 to 10% of the mortgage price.
- Appraisal fees are paid to the professional appraiser to evaluate your home to assess it and estimate its market value. A typical appraisal ranges in cost from $300 to $500.
- Title searches: Florida National Title Services will research the title to the property to ensure there are no liens, claims or restrictions on the property and costs $100 – $125..
- Title insurance protects you from financial loss if you are subject to any defects you discover after you acquire the property.
- A property survey will usually be required by your mortgage lender. A surveyor will evaluate your property will draw out a map showing property limits, setbacks, easements, encroachments and other property details. These fees depend on the complexity of the survey.
- Closing costs account for a prorated share of the property tax.
- The deed is recorded in county records showing the purchaser as the legal owner of the property.
Florida National Title has years of experience guiding Florida homebuyers through the real estate purchase and refinance experience and have helped them solve the problems that come up in the process. We will decipher the “legalese” and explain what we need and why we need it each step of the way. The blogs to follow will address specific issues to guide buyers to understand the process better and to help them avoid many of the pitfalls. Call us at (561)408-0729 or visit our website at.
Florida National Title Services, LLC
250 S. Central Blvd., Suite 101
Jupiter, Florida 33458
Phone: (561) 408-0729
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