SCHUTT LAW FIRM, P.A.
Phone: 239.540.7007
Title Insurance
08/08/2016

How to Get the Best Deal on Your Mortgage

Purchasing a property is a big investment. When talking in terms of hundreds of thousands or even millions of dollars, a saving of 1 or 2% could mean a huge amount of money. Because of this, home-buyers are always trying to look for the best deals. Of course you want value for money for the property itself, but there are also many other factors that determine the final cost of your investment. One huge factor is the mortgage. If you can manage to get a mortgage with low rates and flexible terms, you will save yourself a lot of money and end up paying a lot less in the long run. But, what factors affect the terms of your mortgage? And how can you improve them? In this blog, your local Title Insurance Agency, Schutt Law Firm, P.A. would like to share a guide to getting the best deal on your mortgage.

Save Save Save

No bank or other mortgage lender is going to offer you a large sum of money if you don’t at least have a down-payment saved. Generally speaking, the larger the amount that you can get together, the better the terms of the mortgage. Buyers who are able to put down a down-payment of over 20% of the property’s value get the best rates. On top of this, if your deposit is less than 20% of the value of your home, you will more than likely have to pay mortgage insurance. This could add up to a couple of thousand dollars a year, so it might be worth delaying your purchase until you can get a larger deposit together to ensure the best deal. If you are able to save above and beyond what you need for the down-payment, even better! This demonstrates financial stability to the lenders, reducing the amount of ‘risk’ that you pose as a borrower and making it more likely that they will offer you favorable terms for your mortgage. In the cut-throat world of real estate, it’s crucial that you are ready for any eventuality. Without the proper safeguards, you could be vulnerable to other people contesting your ownership rights to your property. Title Insurance is the only way to fully protect yourself and your investment. Call Schutt Law Firm, P.A. today at 239 540 7007 to find more about how title insurance in Villas can protect your investment.

Improve Your Credit Score

Credit scores are calculated depending on a number of factors – your monthly income, your total amount of debt, how many times you have missed or delayed payments, etc. When you apply for a mortgage, the lenders look at your credit score and uses a calculator to decide what interest rates to offer you. Those with the best credit scores will be offered better rates as they represent a lower risk and a wiser investment to the lenders. To really optimize your credit score you need to plan ahead and take steps to maximize it well before the time when you’ll want to apply for your mortgage. One good way to improve your score is to consolidate all of your store card or credit card debt into one place. This is also advantageous as you will only have to make one monthly repayment, so it’s easier to avoid penalties for late or missed payments.

Shop Around

Have you ever heard of anyone getting the best deal on their weekly shop or their new car without shopping around? Well, the same goes for mortgages. Each different bank or other mortgage provider will have different criteria and different terms for their mortgages. Don’t just go with your usual bank, or the closest one to your home. Look online and visit a number of different agencies to find the best deal for you. When visiting multiple lenders, don't be shy about letting them know the previous rates you have been given. If they want your business then they may just offer you a better rate.

Secure Your Investment with Title Insurance in Villas

As purchasing a property is such a large investment, you’ll want to protect that investment in any way that you can. Imagine going through the whole long, frustrating process of saving a deposit, applying for a mortgage, putting in an offer and finally being able to purchase your dream home, only to then lose it due to a historical error in its title. Errors in the Title to a property can arise for a number of reasons – human error, fraud or issues with inheritance to name a few. Title insurance is the only way to protect your ownership rights from other people’s claims to your property. Call Schutt Law Firm, P.A. today at 239 540 7007 to find out more.
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