Understanding Mortgage Closing Costs

When you purchase a home with a mortgage, there are still a number of costs you need to pay up-front. One of these costs is the down payment on the loan. The other costs all fall under the umbrella of "closing costs." These are various fees you pay to the bank, the attorney, your title settlement service, and other individuals and companies involved in the real estate transaction. 

It's important to be an informed buyer, and part of being an informed buyer is knowing where various closing costs come from. Here are the typical closing costs you'll pay when buying a home.

Loan Application Fee

This is a fee is paid to the bank to cover the costs associated with you applying for a loan.

Escrow Fee

At closing, you will generally be asked to pay several months' worth of taxes and mortgage insurance payments into an escrow fund. This is bundled into the escrow fee. The funds will be kept in your escrow fund once the loan closes.

Lender's Title Insurance Fee

Title insurance protects the lender if any defects in the title arise after closing. The fee for this insurance is paid to a real estate title company.

Owner's Title Insurance Fee

You have the option of purchasing title insurance to protect you, the new owner of the home, from defects in the title. If you want this insurance, you'll pay for it during closing.

Credit Report Fee

The bank will need to access your credit report in order to make you a loan offer. The fee for this credit report will be passed on to you.

Private Mortgage Insurance Premium (FHA Insurance Premium)

If your down payment is less than 20% of the home cost, you'll generally be required to have private mortgage insurance. The first month's premium is typically due at closing.

HOA Transfer Fee

If your new home is a part of a homeowner's association, you'll generally pay an HOA transfer fee to put the home into your name with the association.

Prepaid Daily Interest

Interest will accrue on your mortgage between your closing date and the first mortgage payment. You'll pay this interest at closing as a fee called "prepaid daily interest."

Survey and Recording Fee

The survey fee goes to the company that checks and establishes the property's boundaries. A recording fee goes to the county clerk's office for the processing of these records.

Title Search Fee

The title search will reveal any liens on the property or other possible discrepancies with the title. The fee for this service is paid to your PA settlement service at closing.

Transfer Fee

Many municipalities charge a transfer fee or transfer tax when ownership of a property changes. Costs vary widely from town to town and county to county.

Now that you understand these closing costs, you can enter the next real estate transaction as an informed buyer. If you're looking for a "title search company near me" to work with you through the process, contact Heritage Land Transfer. We have a great network of real estate professionals to hold your hand through it. If you need a real estate escrow company, know that we offer escrow services too.

Our guaranteed lowest rates for title insurance, and our customer-centric, efficient title search and closing process helps our client reduce a lot of the stress and risk associated with real estate transactions. Contact us today.

This blog was originally posted on https://landtransfer.com/understanding-mortgage-closing-costs/

Title Insurance FAQs: Everything You Should Know

Most people only purchase title insurance a couple of times in their life. So it's not at all unusual for customers to have questions about this. We believe that all title service customers deserve to have a thorough understanding of what they're buying and why it is important. As such, we are always happy to answer our customers' questions about title insurance. Below, you'll find some of the most common questions we receive — along with their answers.

What are the two types of title insurance?

The first type of title insurance is owner's title insurance, which protects your interest in the home as its owner. The second type is lender's title insurance, which protects the bank that holds your mortgage. Lender's title insurance is required in most cases. Owner's title insurance is not always required, but it is highly recommended. The best title insurance companies will talk with you about your risk and help you decide whether an owner's policy is needed.

Do you need owner's title insurance and homeowners insurance?

Sometimes customers assume that if they have homeowners insurance, they don't need owner's title insurance. However, both types of insurance are important because they cover different risks.

Homeowners insurance applies to your home and physical property.  The owner's title insurance protects the deed to your property and your actual ownership of the property. If any liens against the property or other defects in the deed were to be discovered after closing, title insurance would protect your ownership of the home. It would also pay for any fees or costs related to the discovery.

Do you need title insurance when you refinance?

When you refinance a mortgage, you do still need a lender's title insurance policy. This policy protects the bank from any unknown liens or judgments against the property.

Do you need title insurance on new construction?

In most cases, you should still purchase title insurance when buying new construction. Even though the building is new, the land is not. The land will have had at least one owner before you. In this case, title insurance will protect you and the lender against any potential defects in the title for the land.

How do you pay for title insurance?

Title insurance is typically paid for during closing. If you close with a title company in Pennsylvania, the fee for title insurance is often wrapped up in a closing fee that also includes the title search and the settlement fee. The fee for title insurance is a one-time charge.

Hopefully, these questions and answers have cleared up some of the queries you had about title services. If you're looking for a title company and an escrow agency, contact Heritage Land Transfer. With more than 30 years of experience, our award-winning team of professionals always put the clients' needs first. We partner with industry leaders and employ our own team of in-house attorneys to ensure a smooth, worry-free closing process.

This blog was originally posted on https://landtransfer.com/title-insurance-faqs-everything-you-should-know/

Are You Able to Buy a Title Insurance Policy After Closing?

Purchasing lender's title insurance is generally a part of the home buying process. But what about the owner's title insurance? If you did not purchase an owner's title insurance policy during the home buying process, can you buy one after closing? The short answer to this question is "yes," but there are a few more details worth mentioning.

The Ideal Time to Buy Title Insurance

If you close on your home and then realize you want title insurance, a title service will typically allow you to buy a policy. However, buying title insurance after closing is not the best choice. You're far better off buying such a policy during the home buying process, when possible.

There are a number of issues that can be revealed with a home's title shortly after closing. You may discover that there was an error in public records, and someone else has a claim to the property. Or, you may discover that there is an outstanding lien on the property. If these issues are revealed in the first few weeks that you own the home and you don't have title insurance, you'll be held financially responsible. On the other hand, if you buy title insurance before closing, you'll be protected — whether an issue comes to light the day after the sale or 20 years down the road.

The Right Type of Title Insurance

Don't assume that the lender's title insurance that you're paying for will also cover you, as the owner of the home. That policy exists to protect the bank that holds your mortgage. Lender's title insurance is required when you buy with a mortgage, so it will automatically be included as a part of your home purchase. The buyer typically pays for the lender's title insurance as a part of their closing costs.

For your own protection, you need an owner's title insurance policy. Typically, you can purchase such a policy from the same title company that issues your lender's title insurance. Sometimes, you may be able to negotiate with the seller and arrange for them to pay for your title insurance policy. This can be seen as an act of good faith; it's a reassuring sign that, to the seller's knowledge, the home's title is clear and free from defects.

If you recently purchased a home and did not buy an owner's title insurance policy, then buying one now is better than having nothing. On the other hand, if you have not yet purchased a home, then you should aim to buy title insurance prior to closing.

Feel free to contact Heritage Land Transfer if you're looking for an escrow agency and title company Pennsylvania residents trust. We've been in the business for more than 30 years, and we take a personalized approach with every client. Our guaranteed lowest rates, efficient processes, and lightning-fast, convenient closings make us the favorite of buyers, sellers, realtors, and lenders alike!

This blog was originally posted on https://landtransfer.com/are-you-able-to-buy-a-title-insurance-policy-after-closing/

Lender’s Title Insurance Policies, Everything You Need to Know

When you purchase real estate with a mortgage, there are a number of fees you're required to pay. One of these fees will be for the lender's title insurance. It may sound strange, at first, for you to pay for insurance for your bank. However, once you know the basics about lender's title insurance, it becomes more clear why such a policy is needed. Here are the key facts that all potential home buyers should know about lenders' title insurance.

What Is It?

Title insurance exists to protect the policy holder from any defects in the title that are revealed after the sale of the home. For example, if a home is found to have a lien against it years after you purchase it, title insurance will come into play. It will also come into effect if someone else is found to have a claim to the property after the sale.

Why Does the Lender Need It?

It's important to point out that the lender's title insurance protects the lender — your mortgage holder — and not you, personally. If someone has a claim or lien against the home, this policy ensures they can not come after the bank for the money they claim to be owed. The insurance company will instead pay any necessary costs.

Do You Have to Buy It?

Yes. If you take out a mortgage to purchase a home, buying a lender's title insurance from a title service is required. You should be informed as to the cost of such a policy early on in the home buying process. It's generally wrapped into your closing costs.

How Much Coverage Does It Offer?

A lender's title insurance policy usually offers coverage equal to the loan amount. For example, if you take out a $200,000 mortgage, your lender will need a title insurance policy for $200,000. As you pay off your mortgage and the lender's interest in your property decreases, the title insurance coverage decreases, too.

Should You Have Title Insurance, Too?

If you also want personal protection from any liens or claims against your property's title, then you will need to purchase what's known as owner's title insurance. This is a separate title insurance policy from the one that protects your bank.

Owner's title insurance is not required by law, except under some very specific circumstances. However, holding such a policy is a good idea, especially if you have reason to believe there may be claims or liens against the home that weren't uncovered in the title search.

Purchasing a lender's title insurance is an important part of any real estate transaction that involves a mortgage. If you're looking for a title company Philadelphia residents rely on, consider Heritage Land Transfer. We're a full-service title company and escrow agency that offers a superior experience, thanks to our client-centered approach and decades in the industry.

This blog was originally posted on https://landtransfer.com/lenders-title-insurance-policies-everything-you-need-to-know/

Title Endorsements: The Concept and the Types Explained

As you go about buying real estate, you're likely to encounter some less-familiar terms. One of these terms is "title endorsement." Your real estate agent may mention title endorsement, or you might see it listed on an estimate from your title company. In either case, it's a good idea to understand this term so you have a better idea of what you're paying for and why you need it.

So, without further ado, here's an explanation of the title service known as title endorsement, along with a look at the different types of title endorsements.

What Is Title Endorsement?

Perhaps you're familiar with title insurance. It is a type of insurance that protects the buyer or the lender from any liens or claims against the title that may be revealed after real estate is purchased. Title endorsement basically takes things one step further from title insurance. It protects you against specific types of issues with your property's title.

Title endorsement is not necessary for every real estate transaction. However, it can be a very smart buy in certain situations. If you or your attorney have any reason to suspect there may be a specific issue with a title, you can purchase a title endorsement against that issue. 

What Are The Different Types of Title Endorsement?

There are many, many different types of title endorsements. Those most commonly used types are explained below.

Survey Coverage

Survey coverage protects your interests should there be a discrepancy between the land identified on the title and the land that's listed on an insurance policy. This is helpful coverage when buying large tracts of land with poorly defined boundaries.

Minerals and Substances

Does someone have an easement to access minerals, oil, or other substances located beneath your land? A title endorsement can protect you should these parties cause damage to your land when adhering to the terms of the easement.

Zoning

A zoning endorsement can protect you if the local jurisdiction changes the zoning in a way that keeps you from using your property in the way you intended. This is a common title endorsement for business owners.

Access

If your property does not directly border a public street, such as if the driveway to access your home is on a neighbor's land, you will want an access endorsement. It protects you from losing that pathway to access your land.

Easements

Perhaps a neighbor has an easement allowing them to use your driveway to access your land. Or, perhaps the power company has an easement to access lines on your land. An easement endorsement, drawn up by a title company Pennsylvania residents trust, can protect you in this case.

Could you benefit from having a title endorsement drawn up as a part of your real estate purchase? Reach out to your Philadelphia title company for their expert advice. Heritage Land Transfer would be happy to help. We're a full-service title company and escrow agency, and we always put customers first.

Our team of expert professionals provides a seamless title transfer experience, guaranteed lowest rates, and the fastest closings. We believe in making the real estate transaction a happy experience for our clients and partners alike, and to that end, we do what it takes, including traveling to their preferred locations.

This blog was originally posted on https://landtransfer.com/title-endorsements-the-concept-and-the-types-explained/

4 Things You Need to Know About Commercial Title Insurance

Buying commercial property always comes with some risks. One of those risks can be related to the property title. Commercial title histories can be long and complex, and it's not terribly rare for previous liens or claims to a title to show up. The good news is that commercial title insurance from a title company can protect you and your lender from these risks. Here are a few key things you should know about commercial title insurance.

1. There Are Two Key Types of Title Insurance

When you're purchasing a commercial property, there are two separate entities that should take out title insurance policies. The first is your lender. In fact, most lenders are required to have title insurance in order to hold the loan on a commercial space. This title insurance ensures that if there is an issue with the title, the lender is protected from financial risk.

The second party that should buy insurance from a title service is the buyer. In commercial transactions, this is generally the LLC, sole proprietorship, or corporation that is buying the property. This policy is separate from the one held by the lender, and it protects the business financially should any title problems come to light.

2. Title Searches Don't Negate the Need for Insurance

Before you buy a piece of commercial real estate, you should have a title company conduct a title search. This search should turn up any liens or claims to the title prior to purchase. However, the title search process can occasionally miss liens. As such, a title search is not a replacement for title insurance. Even the best title company Pennsylvania has to offer may not be able to uncover everything in the search process, and insurance protects you from this possibility.

3. Commercial Title Insurance Is Paid For Once

Commercial title insurance is not something you or your business need to pay for month after month. Rather, you pay for this insurance via a one-time fee due at closing. The escrow agency will typically hold the funds while you're in the process of purchasing the real estate. Then, when you sign the closing documents, the title insurance company will be paid for the policy or policies. 

4. Title Insurance Offers Continued Protection

Policies to protect both you and the lender last for as long as you own the property. Or, in the case of the lender, they last as long as there's a loan out on the property. So, if an issue with the title comes up in 5 years, you're protected. If an issue arises in 15 years, you are still protected. It's nice to get such long-lasting risk reduction for a one-time payment at closing. 

Commercial property can be a sizable investment, so it is worth protecting your investment. Your lender will likely require title insurance, and you should strongly consider taking out a policy to protect your business, too.

Contact Heritage Land Transfer to learn more about our title services. Our stellar customer service, unmatched resources, and guaranteed lowest rates are brought to you by an award winning team of professionals, dedicated to helping our clients and partners have the most seamless transactions.

This blog was originally posted on https://landtransfer.com/4-things-you-need-to-know-about-commercial-title-insurance/

Why Choose Heritage Land Transfer Company, Inc as your Title Company

Title search and title transfer are two very important parts of a real estate transaction. It's important to choose a title company Pennsylvania residents can trust in order to handle these processes. At Heritage Land Transfer, we are proud to be a step above the competition. We are confident we can handle your transaction with ease, but don't just take our word for it. Here are a few key reasons to choose us as your title company. 

1. 20-Minute Closings

Closing on a real estate deal is not anyone's idea of a good time. As such, you probably don't want to be sitting around the closing table and signing paperwork for any longer than is necessary. At Heritage Land Transfer, we can deliver 20-minute closings when time is of the essence. This allows you to finish and get on with your day, whether that means heading back to work or going home to see your family.

2. In-Home and Virtual Closings

Do you have kids you don't want to leave with a sitter? Perhaps your car is in the shop. If you can't make it to our offices, we can come to you. We offer in-home closings to make things simpler for our customers, whatever their needs may be. 

Maybe you got called away on travel, or perhaps you're selling a home remotely. In cases like these, we can provide title services and closings virtually and securely, using our cutting-edge software.

3. In-House Attorneys

Many title companies rely on outside attorneys. This slows down the title search process and can lead to longer closing times. At Heritage Land Transfer, we employ our own attorneys in-house. This allows us to provide our customers with more comprehensive services, and it also allows us to work faster than our competition.  

4. Client-Focused Approach

Every client is unique. As we work with you to facilitate your real estate transaction, we get to know you personally so that we are better able to understand and fulfill your unique needs.

We have in-house interpreters to help us communicate clearly when a language barrier comes into play, and we contract with additional, outside translators as needed, too. We'll keep you informed every step of the way as we conduct your title search, prepare your settlement, and ready your account for closing.

5. Community Involvement

At Heritage Land Transfer, we are proud to be a part of the communities we serve. Our employees can spend up to 20 paid hours each year volunteering in the community. We also offer scholarship programs to help support our youth.

If you're looking for a title company Philadelphia is proud to call its own, then Heritage Land Transfer is the choice. We offer a wide range of services, from title transfer to contingency resolution, and we are also an escrow agency.

Contact us to learn more about us and our dedication to putting clients first.

This blog was originally posted on https://landtransfer.com/why-choose-heritage-land-transfer-company-inc-as-your-title-company/