Frequently Asked Questions (FAQs)

What is title insurance?
Title insurance is an insurance policy purchased when purchasing a home (or perhaps refinancing it) which can protect the buyer and his/her investment from issues that may have occurred prior to the buyer owning the property. You “take title” when you purchase a property and attempt to establish legal ownership. Your mortgage lender will require a title search be performed as part of the settlement process. Title insurance is bought by the homebuyer to cover his/her property.

What is a loan estimate (LE)?
A loan estimate is a disclosure banks must provide to mortgage applicants in three days’ time of applying for mortgage approval. The LE contains the mortgage lender’s terms in addition to the settlement charges.

What occurs at a real estate closing?
A meeting where property ownership is officially transferred from seller to buyer is known as a real estate closing. The closing agent, typically represented through a title company and/or a real estate attorney, conducts the settlement. It will typically take place at the buyers agent’s office or abstracting attorney’s office, and the buyer will usually choose who is performing the title (who’s responsible for the signing of all documents, disbursement of funds, etc.). Other closing documents, such as mortgage documents, are signed by the buyer as well at the closing table.

Present parties at settlement usually include the seller, the buyer, real estate agents, mortgage representative, attorneys and/or a closing agent.