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.
(Use your browser's back button to return.)


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 begin 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 the settlement appears on this 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/buying/index.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.