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Take a moment and go to the HOME CLOSING 101 site provided by the American Land Title Association. Many of the questions you have are answered. Preferred Title Company is a member of the American Land Title Association. 1. How long does a closing take? It is our experience that a sale will take approximately one hour, and a refinance can be completed in a half-hour. 2. Do I need to bring anything to the closing? Proof of Identity: We are required by the title insurance underwriters, as well as the US Patriot Act to obtain a copy of a valid government issued photo ID of all parties to the transaction, such as a current driver’s license, passport, or military ID. Funds for closing: Louisiana law requires “good funds” be provided at the closing. Good funds may include a cashier’s check, certified check, money order, or confirmed wired funds. Should you have any questions regarding the amount, call our office. Documents your lender requires you to bring to closing in compliance with their loan approval, such as gift letters. Insurance declarations page, if we have not received proof of insurance prior to closing. 3. Who will attend the closing? Buyer and Seller: The parties to the purchase agreement must be present at the closing. Should you know in advance that someone will be unable to attend you should immediately contact our office to determine if a power of attorney or other document can be used to have another sign for that individual. Real Estate Agents: Agents will attend the closing to assist their customers. Lender: Often a representative from the lender will attend to assure that all loan documents are correct. 4. Do I need to have a survey of the property? Your lender may tell you that a survey is not required. That is because the lender is often provided protection under the lender’s policy of title insurance for survey issues. The owner however is not protected under the Lender's policy. We recommend that you consider the need for a survey, and perhaps ask the seller for a copy of any survey they have showing the improvements on the property. Often you may obtain a “slab survey” from a builder of a newly constructed home. If no survey is available to you, you must determine whether you believe one is necessary or not. 5. What is a HUD? When you began the process of purchasing or selling property, you will hear reference to a document called the “HUD-1”. This document is also referred to as the Settlement Statement. So why do people use the term HUD-1? HUD is an acronym for the federal government’s Department of Housing and Urban Development, and under the provisions of the Real Estate Settlement Procedures Act (RESPA) the Department has the responsibility of enforcing the provisions of the Act. The Settlement Statement is their Form #1, hence the name “HUD-1”. The HUD-1 is where you will find all references to any money being collected and or disbursed in association with the real estate transaction. The Department provides a brochure explaining the Settlement Statement, which can be obtained from your Lender. The HUD-1 Settlement Statement is the financial picture of the closing. All money flowing into and out of settlement appears on the form. The Settlement Agent is responsible for preparing the HUD-1 and closing the transaction in accordance with 1)the purchase agreement, 2)the lender’s loan closing instructions and 3)title commitment, which reflects any existing mortgages, judgments or liens that must be satisfied or paid off at time of closing. It is the responsibility of the Settlement Agent to see that all charges on the HUD-1 are substantiated in writing and to see that all deposits and disbursements are made in accordance with the HUD-1. Once you are satisfied that the information shown on the HUD-1 Settlement Statement is complete and accurate, you will be asked to sign the statement, indicating your approval for the disbursement of funds in connection with the transaction. To view a sample HUD-1 Settlement Statement, and to obtain other helpful information, go to the Department of Housing and Urban Development web site by clicking on this link http://www.hud.gov/offices/hsg/sfh/res/sc3sectd.cfm. 6. How do I file for Homestead Exemption? Under Louisiana law, the owner-occupant of a residence is entitled to file for an exemption from State and Parish property taxes on the first $75,000.00 of value of the property. This homestead exemption does not apply to city taxes. The homeowner must file for the exemption with the assessor for the parish in which the property is located. As the custom varies from Parish to Parish, you will be advised at the closing where and when you should file for the exemption. (c) 2008 Preferred Title Company, All Rights Reserved. |
