Are you in the beginning stage of buying a property? Or are you already under contract? Either way, our title company can help you navigate the waters of home purchasing in Florida. Our team of licensed title agents and closing specialists will ensure title is clear and that you have a smooth transaction. Purchasing a home can be quite intimidating. Luckily, there are professionals to assist with every step, such as Realtors, Home Inspectors, Surveyors, Lenders, Appraisers, and Title Companies. Each has their expertise within the real estate arena and is available to guide you with your journey to home ownership. Buying real estate is also one of the largest investments you may make and it is important that you are protected. Title Insurance protects purchaser(s) and Lender(s) with protection against claims that may be filed against the land. A little history of title insurance: Title insurance was first developed in 1850 in Pennsylvania to protect buyers and lenders from defective property rights. It will defend against a lawsuit attacking the title as it is insured, or reimburse the insured for the actual monetary loss incurred, up to the dollar amount of insurance provided by the policy.
The title company handles the title search and escrow aspects of the transaction. They coordinate and act as the center point of the closing for buyers, sellers, lenders, realtors and third parties, such as surveyors and inspectors. Prior to closing, all the pieces of the closing puzzle are perfected with the primary objective of ensuring clear and marketable title, including that any judgments, liens, or encumbrances are satisfied at closing. In addition, the title company prepares closing documents and/or any other curative legal documentation related to the closing; reviews the lender’s closing instructions and the real estate contract and prepares the HUD-1 (settlement statement) accordingly. Lastly, the title company schedules and conducts the closing along with providing notarization.
Title insurance is a one-time fee that is paid at the time of settlement. The purchaser receives an owner’s title policy that protects your most valued asset, your home, from fraudulent claims against your ownership, liens, and undisclosed heirs, which are just some of the reasons you need title insurance. This is where the assurances of title insurance comes into play and provides protection. Problems with the title can limit your use and enjoyment of the property, as well as bring financial loss.
From $0 to $100,000 of liability written $5.75
From $100,000 to $1 million, add $5.00
Over $1 million to and up to $5 million, add $2.50 Over $5 million and up to $10 million, add $2.25
Over $10 million, add $2.00
(The information presented here is generalized. Your specific mortgage situation may differ. Please consult your tax advisor or mortgage professional for more information.)
You can usually qualify for a mortgage loan of two to two and one-half times your household's income. For example, if your family has an income of $40,000 per year, you can usually qualify for a mortgage of $80,000 to $100,000. Some lenders use other factors to determine the size of a mortgage you are eligible for. In general, lenders prefer that your housing expenses (mortgage, tax payments, insurance and special assessments) do not exceed 25% of your gross monthly income. Other financial obligations (monthly payments extending more than 10 months) should not exceed more than 36% of your gross monthly income. Lenders need to research your credit history to see how well you have repaid loans in the past. Also, the lender will inquire about your employment history
Fixed Rate - With a fixed rate mortgage your monthly payment will always be the same for the life of the loan. The benefit is that you always know what your principal and interest costs are.
Adjustable Rate Mortgage- Adjustable-rate mortgages, or ARMs, differ from fixed-rate mortgages in that the interest rate and monthly payment move up and down as market interest rates fluctuate. Most have an initial fixed-rate period during which the borrower's rate doesn't change, followed by a much longer period during which the rate changes at preset intervals.The interest rate on your loan is set to reflect changes in the index interest rate. As the index interest rate changes, your payment will be adjusted annually to reflect those changes.
Both types of loans have their pros and cons. For example, a fixed rate mortgage is appealing because you always know what your payment will be. On the other hand, when interest rates are high, choosing the adjustable rate mortgage is favored because it is probable that the interest rate will drop in the future, resulting in smaller monthly payments. However, with an adjustable rate mortgage you run the risk of ending up with a higher payment should the interest rate soar during the life of the loan.
Adjustable rate mortgages can be advantageous because they generally offer a lower initial interest rate than a fixed rate loan, but an increase in the interest rate will result in a higher monthly payment, unlike the fixed rate loan.
There are several types of adjustable rate and fixed rate mortgage loans. Here are some of the more common loans:
There are several types of mortgage plans available that are appropriate for different needs. If you are more comfortable with a steady payment, then you will want to choose a fixed rate loan. You may select the common 30 year fixed rate mortgage. This type of loan is beneficial if you plan on living in your home for several years.
On the other hand, if you expect to keep the house for only a short period of time or prefer an adjustable rate mortgage, you will want to investigate other loan options. There are many mortgage programs available to fit your needs. Consult your real estate professional for more information.