Phone: 239.540.7007
Title Insurance

Credit Scores and Mortgages

You're ready to buy a home, you've got one all picked out, and now all you need is the mortgage approval.  If you're like most potential homebuyers, you've probably checked your credit score in order to see where you stand.  Now you have a number, but what exactly does it mean?  And how will it affect your mortgage application?

Credit Score Range

A FICO score of 740 or above will probably be good enough to secure the best rates that any lender has to offer.  A score below 620, and some more renting is probably in your future.  Depending on the lender, the mortgage rates offered to the highest and lowest credit tiers can vary as much as a full percentage point and a half.  So every little bit of credit score improvement helps, as each percentage point makes a huge difference.  For example, a $200,000, 30 year fixed mortgage will cost you $954.83 monthly at 4%, but at 5% will jump to $1,073.64.  So, take care of your credit, and you'll soon reap the rewards.

What Factors Contribute to Your Credit Score?

Your FICO credit history explores a number of different aspects of your spending habits.  A higher credit score would mean that you maintain low balances on revolving credit lines, have a history of paying on time, and that your use of credit is fairly diverse, i.e. a mixture of a car loan and a couple of revolving accounts such as credit cards. Other factors that contribute are the outstanding debt relative to the available debt (the lower the better), the length of your credit history, and how many credit inquiries appear on your report (how many times you have pursued new credit lines).

Title Insurance in Fort Myers, FL

If your mortgage has been approved, then congratulations, you've done a good job of maintaining your credit over the years.  The next critical step in finalizing the purchase of your home is obtaining title insurance in Fort Myers.  Buying a home is a substantial investment, and that investment needs to be protected.  Here at Schutt Law we can advise you on how to obtain the proper title insurance policy, what coverages you'll need, and what rights you'll have after signing.  Call us today at (239) 540-7007 and let us guide you through the final steps on the path to homeownership.
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