Some common questions asked at closing, answered!
Selling or buying a home? The Lawhead Team would like to share some frequently asked questions Coldwell Banker answered that buyers and sellers had at closing.
These frequently asked questions are from Coldwell Banker’s Mortgage FAQ’s on Closing. Do you have questions about closing that weren’t answered below? Comment on our blog!
Where do I go to close the loan? In most cases, you will go to a local Title Company or attorney’s office for the closing. If you let us select the closing agent for you, we will work with our network and try to find an agent within 15 minutes of the property. The closing agent will have all your mortgage documents needed for closing. You may need to bring money, picture identification, etc. Your closing agent will let you know what you need to bring.
Can I bring a personal check to the closing? You will need a cashier’s check or certified check for closing. Since this is such a large transaction, a cashier’s check provides verification that the funds are actually available.
What is title insurance and why is it required? Title insurance protects the lender or you against losses from disputes over the title of a property. It ensures against the possibility that there may be an unknown lien or any discrepancies in ownership. You may want to consider purchasing a separate buyer’s policy to protect your interests.
How much title insurance do I need? The amount of title insurance needed is based on the value of your home and the amount of your mortgage. Lenders are covered for the full value of the mortgage. This policy is required and will vary from state to state. There is a one-time fee for the policy that you pay at closing. In addition, you can obtain a separate owner’s insurance policy to cover the full value of your home. However, this additional policy is not required.
How much homeowner’s insurance does a lender require? Your homeowner’s insurance policy must cover the cost to rebuild the home. The insured amount may be higher or lower than the actual purchase price as long as it meets the program requirements. The insurance company you choose can give you an actual quote based on specific information about the property.
Entire article about closing questions answered can be read here.