SCHUTT LAW FIRM, P.A.
Phone: 239.540.7007
Real Estate
Home Closing 101
Do you know what to expect on closing day?
Most people don’t. And that can lead to some uneasiness. But help is here. The American Land Title Association, or ALTA, has created a website featuring information every homebuyer can use to help familiarize themselves with the closing process before walking into the closing
The Home Closing 101 Site
At Home Closing 101 you will find information you can use to prepare yourself for closing. The site covers topics such as title insurance, escrow fees and closing costs. So when the time comes to sign on the dotted line you’ll feel fully prepared.

Home Closing 101 is especially helpful for first time buyers. Buying a house is an exciting time and the more you know about the process, the more relaxed you’ll be going through it. Spend a little time on the site and you can walk through the home buying process, receiving explanations for each step and helpful hints on how to find the right people to help you on your journey to homeownership.

Click here to start learning about the home buying process.
What Is American Land Title Association (ALTA)?
Founded in 1907, ALTA is the national trade association and voice of the title insurance industry. ALTA members search, review and insure land titles to protect home buyers and mortgage lenders who invest in real estate.

ALTA members advocate safe and efficient transfer of real estate and insist on high standards when searching land title records and preparing insurance documents. The industry seeks to eliminate risk before insuring, which provides homebuyers with the best possible chance of avoiding land title problems. But, title difficulties can and do occur, and members offer both Owner’s and Lender’s title insurance policies as effective safeguards.

Click here to visit the ALTA website.
About Stewart Title Insurance
Stewart (NYSE: STC) is a leading provider of real estate services, including global residential and commercial title insurance, escrow and settlement services, lender services, underwriting, specialty insurance and other solutions that facilitate successful real estate transactions. Stewart offers personalized service, industry expertise and customized solutions for virtually any type of real estate transaction, through our direct operations, network of approved agencies and other companies within the Stewart family. Through a focus on integrity, smart growth and conservative management, Stewart remains committed to serving our customers, innovating and improving to meet their needs in an ever-changing market. 

Please click on the link below for more information:
http://www.stewart.com/en.html
WHY TITLE INSURANCE?
Owning real estate is one of the most precious values of freedom in this country. You want the assurance that the property you are buying will be yours. Other than your mortgage holder, no one else should have any claims or restrictions against your home.

Title insurance is issued after a careful examination of the public records. But even the most thorough search cannot absolutely assure that no title faults are present, despite the knowledge and experience of professional title examiners. In addition to matters shown by public records, other title problems may exist that cannot be disclosed in a search. Title insurance eliminates any risks and losses caused by faults in title from an event that occurred before you owned the property.

Title insurance is different from other types of insurance in that it protects you, the insured, from a loss that may occur from matters or faults from the past. Other types of insurance such as auto, life, or health cover you against losses that may occur in the future. Title insurance does not protect against any future faults, but does protect you from risks or undiscovered interests. Another difference is that you pay a one-time premium for a policy that remains effective until the property is sold to a new owner - even if that doesn't occur for decades.
What is a Lender's Policy?

A lender's policy, also known as a loan policy or a mortgage policy, protects the lender against loss due to unknown title defects. It also protects the lender's interest from certain matters which may exist, but may not be known at the time of the sale.

This policy only protects the lender's interest. It does not protect the purchaser. That is why a real estate purchaser needs an owner's policy.
What is an owner's policy?

An owner's policy protects you, the purchaser, against a loss that may occur from a fault in the ownership or interest you have in the property. You should protect the equity in your new home with a title policy.

What does an owner's policy provide?

- Protection from financial loss due to demands that may be charged against the title to your home, up to the cost of the title policy.
- Payment of legal costs if the title insurer has to defend your title against a covered claim.
- Payment of successful claims against the title to your home covered by the policy, up to the cost of the policy.
Why the seller needs to provide title insurance?

Any purchaser will need evidence that his investment in your property is free of title defects. The title insurance policy that you provide the purchaser is a guarantee that you are selling a clear title to your real estate, unencumbered by any legal attachments that might limit or jeopardize ownership. It will reassure your purchaser that he or she is protected from any risks or losses and could help you close your deal.
Why the buyer needs title insurance?

Without title insurance, you may not be fully protected against errors in public records, hidden defects not disclosed by the public records, or mistakes in examination of the title. As a result, you may be held fully accountable for any prior liens, judgments or claims brought against your new property. If this should occur, your title policy insures that you will be defended at no cost against all covered claims up to the amount of the policy.
How much does title insurance cost?

The insurance commission approves and controls the premiums for title insurance policies. The premiums are paid only once and the cost depends upon the purchase price of the property and the policy amount must be equal to the purchase price.
What does title insurance protect from?
  • Fraud
  • Adverse possession
  • Rights of divorced parties
  • Deeds by minors
  • Undisclosed Heirs
  • Errors in tax records
  • False affidavits of death or heirshipProbate matters
  • Deeds and wills by persons of unsound mind
  • Conveyances by undisclosed divorced spouses
  • Forfeitures of real property due to criminal acts
  • Deeds by persons falsely representing their marital status
  • Documents executed by a revoked or expired Power of Attorney
  • Defective acknowledgements due to improper or expired notarization
  • Mistakes and omissions resulting in improper abstracting
  • Forged deeds, mortgages, wills, releases and other documents
  • False impersonation of the true land owner
07/04/2019
Saving for a down payment may seem like a near impossible task, but it can definitely be done. To help you save up for a sizeable down payment, check out these simple money saving tips.

Easy Ways to Save for a Down Payment

Homeownership is a dream for many, but it can become a reality fast if you know how to go about it. An important step you have to take before looking for a home is getting your finances in order and saving up for a down payment. If you feel like you'll never be able to save up enough for a down payment, these tips from Schutt Law can help you get there faster.

Start With a Goal

In order to avoid having to purchase private mortgage insurance when buying a house, you'll have to make a down payment of at least 20%. Before you start looking for a home, figure out what your home buying budget is so that you can then figure out how much 20% of that is. Once this figure is clear, this should be your savings goal. It's a great idea to start a savings account where you can keep this money separate from the rest of your savings. You'll also have to figure out how much money you can transfer into this account each month to figure out how long it will take you to reach your goal. Do your best to stay on track so that reaching your goal doesn't feel impossible.

Cut Back on Expenses

This may not be something you want to do, but if you want your savings to accumulate faster, this is a great strategy. If you don't have a budget for your monthly expenses, this is a great place to start. Set a budget for things like monthly bills, groceries, outings, etc. This will let you see how much you're spending and pinpoint the areas where you can make some cuts. You don't have to save every penny you earn, but there are bound to be areas where you can make some sacrifices for now. For example, if you tend to eat out often, cut back on these outings and only go out to dinner a couple of times a month. If you spend a lot on new clothes each month, consider not going on so many shopping trips. You may miss these luxuries for a bit, but after a while, this will be the new normal and you'll save for your down payment faster.

Save Your Extra Income

Now that you've figured out how much of your monthly income you'll put towards your down payment savings, now it's time to consider any extra money you have coming in. If you get commission at work, consider putting all of this towards your down payment savings. Other extras, like a bonus, your tax return, or money from a freelance job, should also be put directly towards your down payment. While these may not seem like the biggest savings, they can help reduce the amount of time you spend saving up. Since you've done the hard work to save up for a down payment and a home in general, be sure your investment is protected by purchasing title insurance in Fort Myers at closing. With title insurance, you won't' have to worry about title issues coming up and putting your investment at risk. If you have any title insurance questions you want answered, contact Schutt Law at (239) 540-7007.

Pay off Debt

If you still have some debt you haven't paid off, you're better off waiting until after this has been cleared to purchase a home. Since debt will drain part of your monthly income until it's gone, you'll have more trouble saving and getting a home loan. It's also worth mentioning that getting rid of your debt can help improve your credit score, leaving you in a better financial position when it comes time to shop around for a mortgage.

Look for Assistance Programs

Many people have no idea that there are federal programs that can help them when purchasing their first home. For example, if you're a veteran, a VA loan or similar program can help with your down payment or even make it so that you don't have to make a down payment. If you're moving to a rural area, you may qualify for a USDA loan which can help with the purchase of your home. The National Homebuyers Fund also offers provides down payment assistance for qualifying first time home buyers, so it's worth checking out if you qualify.

Get Title Insurance in Fort Myers

After all the work you did to save up for your home, be sure your investment is protected by purchasing title insurance in Fort Myers. To find the best title insurance rates, contact the title insurance experts at Schutt Law. Give them a call at (239) 540-7007 to learn more.