SCHUTT LAW FIRM, P.A.
Phone: 239.540.7007
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Title Insurance
Get Your Credit Score in Better Shape
There can be nothing worse then being denied for credit, especially when it is for a mortgage to buy your dream home. However, instead of not changing your habits and keeping the credit score, which is holding you back, consider some of the tips below from Schutt Law Firm to help repair your credit score in anticipation of a further mortgage application.Get Yourself Together
The first thing that you will want to do is to see how your finances are. Create a basic budget which shows you just how much money you have coming in each month against all your monthly outgoing expenses. Once you have this in front of you, you can easily identify ways to reduce costs and get your finances under control.Make It a Reasonable Budget
Maintaining a consistent level of savings is a great way to boost your credit score. However, you can’t do this if you keep blowing your budget each month. When you are designing your budget, be sure that it is reasonable and allows you enough room to move should something go wrong, so that you don’t have to keep dipping into your savings.Consolidate Your Debt
If you are just making the minimum payments on your debts, then you aren’t improving your financial situation of your credit score. Instead, consider a debt consolidation loan which can wrap all your existing des into one management debt. This is often a good complement to a realistic budget as it allows you to more easily manage your money by only making one monthly payment against a debt you can see reducing instead of numerous payments scattered throughout the month. By doing this, you can not only show a level of consistent repayment but also effectively reduce your debt.Once You Are Ready for Your Application, Don't Forget About Title Insurance
When you have your credit score in a better position and you are about to meet with your mortgage lender, remember that you will need to take out a policy for title insurance to provide financial protection against the loan. Speak with Schutt Law Firm at 239 540 7007 to find out more about title insurance and how you can protect the title of your home.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 heirship
- Probate 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
12601 New Brittany Blvd
Fort Myers, FL 33907
Phone: 239.540.7007
Fax: 239.791.1080
