Settlement Procedures

WHAT DOES THE TITLE COMPANY DO TO HELP YOU SETTLE YOUR GERMANTOWN HOME PURCHASE?

The title company will get your Germantown home purchase to settlement. How they do that is almost like Elves working in the night. Everything should be ready by the time your have a loan commitment. You've been touring home with your Homefinders.com buyer's agent for two weeks now. You have selected the home you wish to buy. Once you and your agent have gotten a fully accepted Contract of Sale, it's time for your agent to get your contract to a title company so that they can prepare for settlement.

Some of the steps that the title company will take to get ready for settlement are:

Before the title company begins to prepare for settlement they will review the Contract of Sale to make sure all of the information is available to them to complete their duties and conduct settlement. The title company has little interest in the terms and conditions of a Contract of Sale for a Home in Germantown. They do, however, need to make sure that the location, price, lender information, dates are all feasible.

Next, the title company will:

*Order a title search for examination. These searches are conducted at the county land records office of Montgomery County. Companies located in the area of the Office of Land Records in Rockville, known as "abstractors" will pull the title to the home you're buying, look at the history of ownership, verify the legal address. They will also search the county records to make sure that there is no recording to show that the seller is in bankruptcy. They will also inspect the tax lien records to make sure that the owner has no tax liens that would attach to real estate. And, finally, they will search the county records for any judgments that may be liens against the real estate that you plan to buy.

*The "Abstract" or title search report will be sent to the Title Company and it will be "examined" to make sure that the seller can convey a clean or clear title to you. You'll notice a fee on the settlement document for "Title Examination".

* The Title Company will order a survey of the property you've contracted to buy. As long as there is nothing, fences, buildings, etc. encroaching on the property you are buying, the survey is fairly routine. Keep it for your records. It will come in handy if you install fencing.

* The Title Company will communicate with the loan company to receive the loan document and loan proceeds prior to settlement and then prepare the documents and Settlement Sheet, as required by HUD, to show your charges in great detail. The Title Company will prepare the documents based on instructions from the lender. Most documents are routine and created by Fannie Mae and are standardized.

You should have been advised by your agent or lender approximately how much money to bring to settlement in a Cashier's Check. Title companies do not take personal checks for the balance you owe unless it is a small amount of probably less than $200. The title company must record the new deed in the land records of the County, they must make sure that everything is in order and that the property transfer will be final. That can only be done with liquid funds, not personal checks. This information is included in your contract of sale.

Your Homefinders.com agent will be there with you to review the HUD-1 Settlement Sheet and make sure you are receiving the credits and charges as agreed in the Contract of Sale and Good Faith Estimate provided by your lender.

That's all that's to it. You give the Title Company your check for the down payment and you get the keys to your newly purchased home in Germantown.

Enjoy your home.

"The title company will record the deed to your home in Germantown"

Germantown Real Estate
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