4590 Ulmerton Rd., Suite 120, Clearwater, FL 33762
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Genisy Title, Inc.

Professional ~ Reliable ~ Dedicated

Buyers

Purchasing a property?

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.

What services does a title company perform?

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. 

Here are some of the tasks a title company customarily handles:

  • Order title search; 
  • Title examination by underwriter or title agent; 
  • Real estate tax search;
  • Order mortgage payoffs; 
  • Order HOA/Condo Association maintenance and special assessment payoffs; 
  • Prorate and pay property taxes;  
  • Check for municipal liens (purchases only); 
  • Check for code violations (purchases only); 
  • Prepare loan and mortgage documents for FSBO (for sale by owner);
  • Prepare HUD closing statement (also known as a closing statement);
  • Payoff all mortgages, liens. Judgments, HOA dues (if applicable); 
  • Receipt and disburse funds;  
  • Record the deed and mortgage and all other necessary documents with the Clerk of the Court; and  
  • Issue owners and loan title insurance policies

Why does a buyer or a lender need title insurance?

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. 

Here are some common title problems:

  • Fraud & Forgery 
  • Conflicting Wills 
  • Missing Heirs 
  • Incorrectly executed deeds by minors, corporations, heirs or non-entities 
  • The seller has fraudulently sold the property to another recent buyer. 
  • A prior seller has fraudulently sold the property to more than one buyer. 
  • The seller purchased the property while committing mortgage fraud. 
  • The boundaries may be incorrect and part of the property may actually be owned by an adjacent  neighboring property owner. 
  • There may be an easement burdening the property which limits the use, which can decrease the  value of the property. 
  • Structures on the property may encroach into valid easements or an adjacent property. 
  • There may be an older unrecorded deed transferring the property which is now recorded. 
  • The seller or prior seller may have outstanding personal judgments which could attach to the  property. 
  • Foreclosure sale issues 

How can buying a property be different in Florida than other states?

  • Florida is both an Attorney and Agency state. Licensed Title agent and attorneys both can conduct  closings and be escrow agents in Florida.  
  • Florida is a "one-stop shopping" state for your real estate transaction. A Florida title insurance  agency can handle all aspects of your escrow, title insurance and closing. You do not need to hire  different companies to handle escrow and title insurance, unless you chose to hire an attorney to  assist. 
  • All the services are included in one title quote. No junk fees. No surprises. 
  • Florida is what is known as a "filed" state. Title insurance rates are regulated and filed annually  with the state. A title company cannot charge more than the promulgated rate. To check current  legal rates filed with the State of Florida, you can access the following link: 


Rates that have been set for title insurance are as follows:

                                                                                 Per Thousand 

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 

BASIC MORTGAGE INFORMATION

(The information presented here is generalized. Your specific mortgage situation may differ. Please  consult your tax advisor or mortgage professional for more information.) 

How Large of a Mortgage Will You Qualify For?

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

What's the Difference Between a Fixed Rate and an Adjustable Rate?

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.

What are Some of the Different Types of Mortgage Programs?

There are several types of adjustable rate and fixed rate mortgage loans. Here are some of the more  common loans:

  • 30-Year Fixed Rate Mortgage This is a conventional mortgage which provides for a fixed interest rate and level payments for the  30-year life of the loan.  
  • 15-Year Fixed Rate Mortgage The 15-year loan is a conventional mortgage in which the borrower will pay fixed monthly  payments for the life of the loan. With a 15-year loan, payments are higher than a 30-year loan, but  the loan is paid off sooner. 
  • 1, 3, 5, 7, 10 Adjustable Rate Mortgages These types of mortgage programs allow you to carry a fixed interest rate for a specified amount of  time. Once that time is up, you will assume an adjustable rate for remaining life of the loan. For  example, if you choose a 3 year adjustable rate mortgage, you would have a fixed interest rate for  the first three years of the loan and an adjustable rate for the remainder.  
  • 10/1, 7/1, 5/1, 3/1 Treasury ARMs These loans provide for a fixed interest rate for a specified amount of time. After that you pay a  variable interest rate with annual adjustments. For example, if you selected a 10/1 Treasury ARM  loan, you would have a fixed interest rate and fixed monthly payments for the first 10 years of the  loan. The remaining life of the loan would assume a variable rate annually.  
  • 3-Year, 1-Year, 6-Month Treasury ARMs This type of loan applies adjustments to the interest rate payments in various ways. For example, if  you selected the 6-month option, your interest rate would adjust every six months. In comparison, if  you selected the 3-year option, your interest rate would adjust every 36 months.  
  • Jumbo Loan Programs These mortgages allow you to borrow more than an amount set by the Federal National Mortgage  Association. In most (but not all) U.S. counties, any mortgage of more than $417,000 is a jumbo  loan -- and jumbo mortgages have higher interest rates than smaller loans. In counties with high  home prices, borrowers are able to get mortgages for more than $417,000 without paying the higher  jumbo interest rates. 
  • Conventional Loan Programs Any loan that allows you to borrow within the amount set by the Federal National Mortgage  Association. Currently, loans under $417,000.00.

Which Mortgage is Best?

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.