|You’ve made your decision to move...
|You’ve found your new home…
|You’ve lined up your financing…
At Broker’s Title, we understand that the purchase of your home is one of the most important decisions you will make in your lifetime. Moving into your new home can be both exciting and stressful.
At Broker’s Title, we understand your stress during this transitional period. While you make preparations to move into your new home, Broker’s team of knowledgeable and experienced specialists will ease you through the closing process.
At Broker’s Title, we understand your need for dependability and convenience. Broker’s Title will travel to you, ready to explain your closing documents and answer any questions you may have.
IT’S TIME TO CHOOSE BROKER’S!
What you should know about your closing
Borrower/Buyers. Your home mortgage loan application inevitably leads you into the capable hands of the closing agent who will represent your lender in the real estate transaction. At Broker’s Title & Closing, it is our practice to be as helpful as possible to assist you, the borrower/buyer, with your residential mortgage loan purchase or refinance. Occasionally, title issues arise during the closing process. If such problems do occur, we will endeavor to resolve them quickly and accurately, keeping the borrower/buyer informed of all relevant issues and to help insure that your loan closes as scheduled.
Cash Buyers. As your cash transaction specialist, Broker’s Title & Closing will work closely with you and your realtor, the seller and listing agent to coordinate and conduct a swift and efficient closing. We practice the same due diligence in performing title examinations, document preparation and completing recording/filing requirements as with our borrower/buyers to give you the piece of mind you deserve when purchasing your new home.
Listed below is an overview of information you will be required to supply and an outline of costs you can anticipate in order to successfully complete your real estate closing:
1. BUYER QUESTIONNAIRE. Upon choosing Broker’s Title & Closing, LLC as your settlement services provider, please print and complete the attached Buyer Questionnaire and return it to us as quickly as possible. One section of this questionnaire addresses the borrower/buyers hazard insurance requirements, as follows:
Homeowners Insurance (Borrower/Buyers Only). Unless you are purchasing a condominium, a hazard insurance policy must be in place and paid for in full at the time of closing. Your homeowner’s insurance coverage must be in an amount at least equal to the total of all new mortgages on the property or 100% of the replacement cost of all insurable buildings and other improvements on the land. IF YOU ARE GOING TO RELY ON THE 100% REPLACEMENT COST AMOUNT AS SUFFICIENT INSURANCE, THEN THE POLICY OR BINDER MUST STATE THAT 100% REPLACEMENT COST IS IN EFFECT. The insurance policy or binder must name all of the persons who will hold title to the property. The mortgage clause adding the mortgagee’s insurable interest to all policies MUST BE WORDED in accordance with the instructions listed in your commitment letter issued to you by your lender. Your insurance agent MUST fax or deliver to our office at least one week prior to closing a copy of a binder for such insurance along with a receipt showing that the first year’s premium is paid in full (please see Buyer Questionnaire).
Flood Insurance. If the premises are located within a specially designated Federal flood hazard area, then flood insurance is a mandatory requirement and you must provide a flood insurance policy together with a paid receipt for the full first year’s premium before the closing.
Condominiums. If you are purchasing a condominium unit, we will require a Certificate of Insurance from the insurance carrier for the condominium association naming you and the association and identifying the unit you are purchasing. The language naming the lender must be in the form set forth in Paragraph 2 above. Please note that you may be required to purchase additional insurance if the insurance company does not provide 100% replacement cost coverage.
2. CLOSING COSTS. Both Borrower/Buyers and Cash Buyers will be subject to common closing costs as detailed on the HUD-1 Settlement Statement at your closing. Part of our function as your closing agent is to explain and clarify these costs for you. For borrowers, the closing fees quoted to you by your Lender as a Good Faith Estimate include a variety of items. The closing costs that directly involve our office are standard transactional items for all buyers, and include the following:
Settlement Fee. Includes a title examination and review, obtaining tax information, loan document preparation, communications with all parties involved, conducting the closing, final rundown of title, recording of documents, payoff of liens, and other matters relating to the loan or cash closing.
Transfer Taxes. The State of New Hampshire imposes a transfer tax or tax stamps on all residential real estate transactions. This tax rate is currently equal to $15 per thousand of the selling price of the property which is then divided evenly between the buyer(s) and seller(s). Therefore, the amount that will appear on your HUD-1 Settlement Statement as part of your closing costs will be $7.50 per one thousand dollars of your purchase price, unless otherwise agreed upon in accordance with your signed Purchase and Sales Agreement.
Recording Costs. These include the costs to record your new deed and mortgage(s) with the Registry of Deeds in the County where the property is located.
Courier Fees. These costs include the expedited, traceable delivery of your executed documents back to your lender, the Registry of Deeds, or any other required delivery location.
Title Insurance. Your lender requires that they be provided with a lender’s title insurance policy (Loan policy) to protect their interest in your property up to the amount of the mortgage. While the premium for the loan policy is included in your closing costs, it does not protect you. Your ownership interests are insured only by an owner’s title insurance policy (Owner’s policy). While the lender’s coverage under the loan policy decreases as the mortgage is paid down and terminates when the final payment is made, your owner’s policy remains in effect for as long as you and your heirs own the property. An owner’s title policy is available for a one-time premium and at a discounted rate if purchased simultaneously with the loan policy at the time of closing. The owner’s policy provides coverage for numerous matters which are not discovered by a title search. Typical examples of such title problems include: unrecorded liens, document/recording errors, forged documents, the incapacity of a grantor, undisclosed or missing heirs, and problems involving access to the land. Strongly recommended for homebuyers are value-added title insurance policies which provide you with additional protection for risks such as zoning and building permit violations, restrictive covenant violations, encroachments and defects in title.
What is title insurance?
It is an insurance policy that protects the insured against loss should the condition of title to the land be other than as insured. Unlike other types of insurance that offer protection against future possible occurrences, title insurance offers protection against past occurrences which could result in a claim at a future date. Coverage continues in effect for so long as you have an interest in the covered property. If you should die, the coverage automatically continues for the benefit of your heirs. If you sell your property, giving warranties of title to your buyer, your coverage continues. Likewise, if a buyer gives you a mortgage to finance a purchase of covered property from you, your coverage continues to protect your security interest in the property. Title insurance provides the insured with "peace of mind" in knowing that you are receiving good and marketable title to the real estate you are purchasing.
Why do I need title insurance?
When you buy a home — or any property for that matter — you expect to enjoy certain benefits from ownership...to be able to occupy and use the property as you wish, to be free from debts or obligations not created or agreed to by you, and to be able to freely sell or pledge your property as security for a loan. Title insurance is designed to cover these rights. Without an owner's title insurance policy, you may not be fully protected against errors in the public records, hidden defects not disclosed by the public records, or mistakes made during the examination of the title of your new property. As a result, you may be held fully accountable for any liens, judgments or claims brought against your new property. However, your owner's title policy insures that if such an occasion arises, you will be defended, free of charge against all covered claims and paid up to the amount of the policy to settle valid claims.