SCHUTT LAW FIRM, P.A.
Phone: 239.540.7007
Title Insurance
02/08/2017
A very important requirement for getting a good deal on a mortgage loan is to have a credit score. Good credit rating isn’t something you get from one day to the next, it takes years of dedicated care to cultivate a good score. There are some tips you can try to help you achieve some quick improvements in your credit score. After all, a good credit score is what might just get you your dream home.  Schutt Law, experts in title insurance in Fort Myers, FL, have some tips to help you improve your credit rating.

 Six Tips to Improve your Credit Score in Fort Myers

Check Your Credit Report

The first thing you need to do to improve your credit score is get a copy of your credit report! You can do it by visiting AnnualCreditReport.com. You’re allowed three free copies per year from the major credit reporting units. Getting your report will let you know where you stand, and you’ll be able to check it for errors. If you find any mistakes, talk to the credit bureau to fix them.

Fix Late Payments

If you find missed payments that you simply forgot to pay, you may consider closing your account hoping the debt will disappear. However, that won’t happen, you’ll only be ignoring the problem. The best thing you can do is pay those debts and set up payment due date alerts with all of your accounts. Organization is the key to never missing a payment. You can talk to your credit card issuer or lender to see if they can forgive that late payment. If you have a good track record of punctual payments, credit card companies tend to be pretty forgiving.

Get a Credit Card

Owning a credit card or two can be beneficial to your credit score. That is if you’re a responsible credit user who pays bills on time and doesn’t charge too much onto it. There are many good credit card options you can choose from. If you can’t get a traditional plastic, try getting a secured credit card. A secured credit card requires that you make a cash deposit which then becomes the credit line for your account. You are be able to deposit more to extend your credit or if you’re constant with your payments, sometimes the bank can reward you with extra credit. A secure credit card is good for people trying to build or repair their credit history.

Pay Bills on Time

One of the most important ingredients to a good credit rating is paying off bills on time. This shows you’re constant and punctual in your payments and are a trustworthy client. Your payment history makes up 35% of your FICO score. If you don’t trust yourself to remember to pay your bills, automate your payments so you don’t have to worry. Trustworthiness is what many mortgage loaners look for. A person who punctually pays off their debts and has a good credit history will get a better interest rate on their mortgage. Once you get that mortgage, you can continue with your home buying process.  When you do, don't forget to get title insurance. Call Schutt Law at (239) 540-7007 for further assistance in the title insurance process in Fort Myers, FL.

Reduce Your Debt

Even more satisfying than having a good credit score is knowing you’re living debt-free. It’s easier said than done, though. The first thing you need to do is stop using your credit cards unnecessarily. Check your bank statements to determine how much you owe and what interest rate they’re charging you. Try to create a payment plan that allows you to make bigger payments towards the highest interest cards while maintaining a minimum payment on your other accounts. Banks are generally more forgiving towards health and educational debts.

Raise Your Credit Limit

Only do this if you know you won’t be increasing your spending habits along with your new credit limit. The percentage of available credit you use on your cards, or utilization rate, has a great influence on your credit score. The lower the rate, the more it boosts your credit score. You want to try to keep it below 20 percent. So, if you have a higher credit limit but your spending remains the same, you will be reducing your utilization rate and  raising your credit score.

Get Title Insurance in Fort Myers, FL

Apart from having a good credit score, mortgage loaners often ask you to get title insurance for the property you intend to buy. Title insurance protects both parties from hidden debts and ownership claims. To get title insurance in Fort Myers, FL you need to call Schutt Law at (239) 540-7007. There’s no better agency to help you protect your property.
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