Once you close your purchase transaction, you may have an escrow account with your lender. This means the amount you pay each month includes an amount above what would be required if you were only paying your principle and interest. The extra money is held in your escrow account for the payment of items like property taxes and homeowner’s insurance when they come due. The lender pays them with this "extra" money instead of you paying them yourself. … [Read more...]
What are Closing Costs?
Closing costs are separated into what are called "non-recurring closing costs" and "pre-paid items." Non-recurring closing costs are any items which are paid just once as a result of buying the property or obtaining a loan. "Pre-paids" are items which recur over time, such as property taxes and homeowners insurance. A lender makes an attempt to estimate the amount of non-recurring closing costs and prepaid items on the Good Faith Estimate which they must issue to the borrower within three days … [Read more...]
What Can a Title Search Reveal?
A title search can discover title defects, liens, encumbrances and restrictions such as unpaid taxes, unsatisfied mortgages, mistakes in public records, liens and judgments against the seller's property, and restrictions limiting the use of the land. … [Read more...]