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Archive for the ‘Title Insurance’ Category

Definition:

Unnecessary closing costs are charged to unsuspecting borrowers on almost all mortgages that close. Closing costs can be broken into three general categories, costs that the lender charges, costs that third parties charge and money that is paid on your behalf i.e. taxes and insurance.

Due to the scope of this article, we are unable to go into detail in each category. However, there will be a link at the end of this article for a tutorial that does.

First and foremost, “no closing costs loans” do not exist. Like the medical field, mortgages have become an industry of specialized sub-contractors, each sharing a piece of the pie. Most mortgage companies have contract underwriting, title companies, escrow agents and some even sub-out the processing. All of these services represent a cost to the lender, all lenders. Also included in that list is the appraisers, inspectors, surveyors, state taxes, local taxes and of course there are the escrows, thus we have closing costs.

In days gone by, banks would hold their loans to collect the interest and make a profit; this allowed them to recoup the closing cost over time. This isn’t true anymore; banks now securitize their loans by selling them on Wall Street to raise capital to make more loans. Therefore, since the banks are not holding their loans to recoup the cost of originating the loan, the costs must be built into the interest rate or the closing costs. Now that we are clear on that, we can get on with the tips to avoid unnecessary closing costs.

Third Party Charges - When you take out a mortgage through a lender, nine out of ten times you will use their title company; this is the company that will charge you for the physical closing, the title and title insurance. For simplicity’s sake, almost all lenders will use the same title company. Due to the captive nature of the title company’s clients, namely you, they are free to charge whatever fees they like, and most of them do. Very few people scrutinize the title fees at the closing table; they are usually focused on the lender’s fees.

One way that you can avoid unnecessary closing costs is to open up the phone book and shop different title companies. Before shopping, ask your lender for a “fee sheet” from the title company he uses, he will know what you mean. Call different title companies and compare the rate sheets. Pay special attention to the title insurance, this is where most of the title companies like to over-charge. I have had borrowers save as much as $900 by using a different company.

Lender Charges – When you look at the good faith estimate before closing, and you’d better, you will see that all of the fees are grouped into sections, and each section has a corresponding set of numbers. For example, 800, 801, 802 and so on. For the most part, the lender only controls the 800 block of fees. This is the place where you will find their “junk-fees”; these are made up or unnecessary fees that the lender charges for additional profit.

Don’t get me wrong, there are some legitimate fees in the 800 block like the origination fee, which can be negotiated, the appraisal fee, the discount fee and the credit report fee. There are other fees that nearly all lenders will charge; these are the processing fees and underwriting fees. Processing is a real cost to the lender and is understandable, however most mortgage companies have their loans underwritten my M.I. companies and this really doesn’t represent a cost to them.

Unfortunately, these two fees are usually the “house fees” and are not negotiable. However, most of the other fees that you will find in the 800 block of the good faith estimate are negotiable or just made up for additional profit. For example: the Lender Inspection fee, what are they trying to say; that they are going to charge you a fee to inspect the loan before you close it?

Below you will find a list of the line item numbers that I consider “junk fees” or made up charges. When you look at the good faith estimate before you close, find the fees that are beside these numbers. I suggest that you demand that the lender remove most, if not all of these fees before you close. If the lender insists on charging a particular fee I would ask them for proof that it is a bona fide expense to them.

The fee numbers that I feel are unnecessary are: 805,806,807,808 (this is a real charge but it should have been included in the original quote), 810, 812 and 813. If you see any of these fees on your HUD before closing I suggest that you delay the closing until they are removed, unless, the lender can show you proof that these fees really exist. If you’re interested in finding out more ways to avoid unnecessary closing costs you will find our tutorial interesting.

When you are buying real estate, title insurance is an insurance policy purchased from the title company. The company researches the history of the title, ensuring that the real estate in question is legally clear to sell. The title insurance means that the title company is willing to back their research and correct any mistakes if it is later found that the land should not have changed hands in the first place.

Title insurance may be required to obtain a mortgage, because it protects the lender in case of a title issue. This is lender’s title insurance; you’ll also want an owner’s policy, which provides you protection as the buyer. Be sure that you know exactly what title insurance covers and what it does not cover. It does not cover liens that do not show on public records. It does not cover easements or other disclosed title issues, or some other situations. Despite this, without this insurance you are assuming quite a bit more risk when purchasing a home or other piece of real estate.

When would title insurance cover you? For one example, you purchase a newly constructed home that is part of a subdivision. The title is clean, and the purchase goes through smoothly. Down the line, let’s say the sub-contractor never got paid for his work on your home, or the builder never paid off his mortgage. The sub-contractor or lender could conceivably place a lien on your property, and you would be responsible for these costs. Or, you purchase a home that is being sold because the previous homeowner passed away. Years down the line, a long-lost child of the homeowner could knock on your door and claim to have inherited your house from the previous owner. There are all sorts of situations like these that you simply can’t foresee when buying real estate. Title insurance would cover these issues; in many cases they will negotiate with these claimants so that you can keep your property.

Title insurance is only available after a land survey is conducted on the land in question. ALTA and ACSM land surveys cover not only the boundaries of the property, but also additional information that may go against the purchaser’s interests, such as evidences of possession. The land surveyor you choose for an ALTA land survey has your best interest in mind as they search to discover any information that would show purchasing the land is not in your best interests.

The ALTA and ACSM land surveys are conducted within a strict set of land surveying standards developed to promote uniformity within surveying. These surveys show buildings and other improvements, as well as easements, rights-of-way, and other claims to the land. They can be performed on both commercial and residential lands. This type of land survey goes above and beyond marking the boundaries on the land itself. It also includes records research to ensure that the title is clear. This can help catch problems even before the land changes hands and title insurance is needed.

A comprehensive title insurance software package will help your company reduce costs, increase productivity and shorten title production time. It should enable a company to automate title production, escrow closing and settlement, recordation and policy issuance and allow for interactions with lenders, real estate agents, vendors, buyers and sellers more efficiently.

Insurance software is a widely varied and specialized industry. There are an numnber of types of insurance software available. One of those types is title insurance software.

An effective title insurance software package should allow for automated settlement processing of mortgages, generate estimated closing fee costs, print published documents, centralize closing documents, upload email and fax documents and keep a history of all interactions and transactions

The program should be easy to use, provide excellent customer service, connect stakeholders in title Issuance and settlement transactions with a user friendly interface and offer competitive pricing.

When looking for a reputable and viable title insurance software package, it is advisable to talk with a live representative or salesperson. Ask the salesperson as many questions as you desire. The questions should relate to all of the above recommended basic features of the services you are looking for. Before making a final purchase decision, make sure your checklist of requirements is complete. Once the price has been determined, make sure it is within your budget. If any of those requirements are not met, look to another provider. Once you have a list of two to five programs, choose the one that best fits your requirements.

Thorough research on your part will ensure you the best quality for your investment.

Auto insurance is necessary for all vehicle owners in Georgia . You need to have valid proof of sufficient auto insurance even before you register or secure the title of your vehicle. These days it is a simple process to insure your vehicle in Georgia , which is in deep contrast to extensive law jargon until very recently.

How can I prove my insurance?

GA auto insurance providers give you an insurance card or tag as proof of your insurance. Card provides all details of your vehicle, available coverage, policy number, policy’s validity period, coverage details, full description of vehicle with details of make, model, identification number, etc. Additionally, you need license of Regulatory Services Division of Georgia Insurance and Safety Fire Commissioner’s office (ICO).

Do all vehicles need similar coverage?

Certain vehicles like mopeds, bicycles, and golf carts, non-motorized vehicles like campers and trailers, and all-terrain vehicles are exempt from registration. These do not require any auto insurance.

Where to look for my auto insurance

You can come across innumerable insurance companies offering GA auto insurance through their web sites on the Internet. You can gather details regarding premium amounts, coverage, etc. and collect different quotes. You can then compare rates and coverage and choose the best auto insurance suited to your needs.

What happens when I do not use my vehicle at all?

Sometimes you may not use your vehicle for long periods. You can then cancel your auto insurance tag with county’s tax commissioner. You need not surrender your tag.

Can I reinstate my insurance tag?

Yes, you can reinstate your insurance tag by paying all accrued taxes and other fees like registration etc. You also need to prove adequate coverage amounts. Thereafter, you can operate your vehicle after passing satisfactory emission inspection.

However, according to Georgia auto insurance laws, you cannot operate your vehicle if you have insufficient liability coverage or a suspended or canceled insurance tag.

When it comes to getting home owners insurance in Georgia the options are pretty limitless. There are numerous insurance providers in the state in both local offices and available on the internet. The types of coverage’s available are many at different premium points depending on a number of factors, including home and property value, location of your home and the condition the home is in.

One thing you will find is that home owner insurance rates vary from state to state. Some of this is because the various state governments have different requirements for home insurance. Geography can also play a role in this discrepancy simply because certain parts of the country are more susceptible to certain types of natural disasters then others.

Ultimately finding Georgia home owners insurance is a matter of finding the best coverage at the right price. By shopping around you can get a multitude of quotes, one of which should fall right into your monthly payment comfort zone. You don’t want to pay too much but you also do not want to have such a cheap policy that you do not have adequate coverage.

There are four things to keep in mind when shopping for Georgia home owners insurance.

1. Monthly Payment – A monthly insurance payment is an expense that every home owner must fit into their budget. It can take a good chunk out of a paycheck so it only makes sense to find the best deal possible. Always review the policy quotes fully before deciding which coverage to go with. It is important to make sure that your home is fully covered because it is most people’s most expensive asset. Be sure to check for discounts as well when applying for your Georgia home owners insurance. Combining home and auto insurance with the same company is a good way to save up to 10% off your monthly premium.

2. Established Insurance Company – The longevity and history of the insurance company is an important consideration. You don’t want to get taken by a fly-by-night company that is here one day and gone the next. Remember if the deal is to good to be true it probably is.

3. Customer Happiness – Just because you get a good deal doesn’t mean much if the customer service side is not up to par. A good way to check an insurance companies customer satisfaction is to check with the Georgia better business bureau. Getting a claim paid quickly with little to no hassle is the hallmark of good customer service and is something to check before getting any home owners policy.

4. Smooth Quote Process – The quote process can tell you quote a bit about an insurance company. Were all your questions answered in a helpful manner? If the sales people and agents seemed genuinely helpful chances are if and when you have to make a claim it will go smoothly.

If you keep these things in mind when buying Georgia home owners insurance you should be able to get a good policy at a price that won’t break your budget.