Buying a house is an exciting time, but it can also be stressful. The last thing you want to do is forget to do something important before you go to settlement. That’s why in this week’s blog, we’re going to talk about exactly that! Learn what you should do before you go to settlement in this week’s blog. If closing day is coming up, give this a read! Educating yourself before you go to settle can help ensure the process goes smoothly, as well as help you negotiate better terms.
4 Things to Do Before You Go to Settlement
Get a Bank Check the Revised Good Faith Estimate (GFE)
When you applied for the loan, the lender gave you a Good Faith Estimate (GFE) of the settlement costs. The lender is required to provide you with an updated version that tells you exactly how much you owe. This is so you can get a bank check to pay this amount. In most cases, a bank check will not be accepted.
Ask Your Lender for the HUD Settlement Pamphlet
Most lenders are required under the Real Estate Settlement Procedures Act to provide you with a copy of the HUD pamphlet, “Buying Your Home: Settlement Costs and Helpful Information.” This pamphlet is a guide to shopping for settlement services, and also goes over the settlement process itself and the expenses you will incur. An online version of the pamphlet is available here.
Research Title Insurance
You are not obligated to buy title insurance for yourself, but you are required to purchase it for your lender. In a nutshell, title insurance protects you from third-party claims on your home’s title that could come up as a result of an issue that occurred with your home’s title at some point in time. It doesn’t matter if it’s not your fault. If you’re the owner of the home, you will be liable, which could put your ownership of your home at risk. So protect yourself with title insurance!
Find a Settlement Service
A settlement service in Maryland will help guide you through the closing process and will ensure that all parties involved get their respective documents and finances. The settlement services does everything from preparing the property deed and loan documents to disbursement of funds.
Real Estate Settlement Services from Colony Title Associates
Colony Title has been in business since 1995 and handles more than 2,000 real estate closings per year. If you have any questions or would like to speak to a representative about closing, please give us a call at 410-884-1160 or visit our website for more information.