FAQ

At least one day before closing, you have the right to inspect the HUD-1 Settlement Statement. This statement itemizes the fees charged to you, such as the cost of the survey, discount points, origination fee, title insurance, recording cost, etc. It also lists your credits, such as the mortgage amount being borrowed, earnest money deposit, taxes, and assessments.

What are discount points?

Often called "points", a loan discount point is a one-time charged imposed by the lender. Each "point" is equal to one percent of the loan amount. All interest rates have "points" attached to it. The better the interest rate, the more it costs in the form of "discount points" to get that interest rate.

What is title insurance?

There are two types of Title Insurance. One is called Lender's and the other, Owner's. Lender's title insurance is obtained on every mortgaged property. However, Owner's title insurance is optional. Title insurance protects the insured against a loss resulting from claims of others against the property.

What is mortgage insurance?

Mortgage insurance protects the lender against default by the buyer. This enables the lender to make a loan, which the lender considers a higher risk. Lenders often require mortgage insurance for loans where the down payment is less than 20% of the sales price. You may be billed monthly, annually, by an initial lump sum, or some combination of these practices for your mortgage insurance premium. Mortgage insurance should not be confused with mortgage life or disability insurance, which are designed to pay off a mortgage in the event of the borrower's death or disability.

How do I get more money for my home when I sell?

Anything you can do to get your home in tip-top condition will contribute to a quick sale at a maximum price. Here are some things to do before posting the for sale sign:
- Clean, paint, caulk, and repair where necessary. Stick with traditional light neutral paint colors.
- Tidy yard and keep the lawn and hedges trimmed for maximum "curb appeal".
- Shampoo or replace carpet with neutral colors.

Why is a home inspection important?

Anyone who is planning to buy a house to live in or for investment purposes should have a professional inspection company check the structure and all permanently installed system of the house. It benefits the buyer in that if there are deficiencies found by the inspector, the buyer will still be in a position to negotiate.