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Financing |
Title |
Settlement |
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Taxes |
Buying Basics |
Foreclosure |
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Home Buying Basics
Call or E-mail the law firm for a free brochure on home buying basics.
Real estate transactions involve a lot of paperwork. Some of the key documents are:
- Real Estate Contract. Real estate transactions must be in writing, requiring a lengthy contract. Often, real estate agents help negotiate the price and other terms. However, agents cannot offer legal advice related to the contract. Maryland real estate contracts are usually long and can be quite complicated.
- Pre-approval letters, Commitment letters, Good Faith Estimates - these are all documents issued by a lender to a borrower related to the mortgage. The commitment letter is the bank's promise (or commitment) to lend money and a good faith estimate is a estimate of the costs to be paid at closing.
- Deed. The deed, of course, is the document that records the legal ownership. A related issue of TITLE involves who owns what, for how long, and what happens to the property if the owner dies.
- Deed of Trust / Promissory Note / Mortgage. If a home buyer needs to borrow money, there will be a promise to pay it back (called a promissory note), and a deed of trust which lets the bank sell the property if the borrower does not pay.
- An attorney can review your contract and explain it to you in plain English. E-mail for a free tip sheet on buying a home in Maryland.
- Foreclosure Law - find out more about MD foreclosure law
Closing / Settlement
The formal transfer of title from the seller to the buyer takes place at "closing" or "settlement." Generally conducted by the real estate attorney or title company, all of the necessary forms are signed and money is transferred. The sellers will deed the property to the buyer, and the buyer will sign the promissory note agreeing to repay the mortgage lender. Facing a stack of documents several inches thick may be overwhelming. Some of these forms are government required disclosures. For instance, the lender must tell you how much money you will pay in interest over the course of your 15 or 30 year loan. Your closing attorney should answer any questions you have about any document. Although a closing may be routine to a settlement attorney, it is one of the largest personal transactions in your life and you should feel free to take your time and ask any questions you wish.
FAQ: - How do I deed property to a family member without going through closing? I want to add my child to my deed.
Attorney Answer: If you don't have an outstanding mortgage, it is a relatively simple process. As with all deeds, it must be recorded. This firm can often have a deed ready for signing in as little as 2-3 days if no title work or financing issues are involved.
Financing
Financing fees - Some home mortgage fees are reasonable and some are not. The largest cost in obtaining a home loan is, of course, the interest paid over the life of the loan. Even a fraction of one percent in an interest rate can translate to a significant amount of money over the life of the loan. There are other smaller, one-time fees assessed at time of closing. Oftentimes, it makes financial sense to pay a little bit of money to refinance if it saves you many thousands of dollars in the long run. However, some fees can be avoided.
"Origination fee" - a mortgage broker may charge a fee for obtaining financing. This is usually a percentage of the whole loan. In a typical scenario, a 2% origination fee translates into 2% of the total loan. If you are buying a $300,000 home, this could be a $6,000 fee.
Interested in saving $500 or more on mortgage fees? Attorney Cedulie Laumann will help you save at least $500 in transaction fees as compared to going through a broker, or will give you a $25 gift card for dinner at a restaurant of your choice. Many clients can save upwards of $2,000! (Note that the firm does not offer direct lending and is not a mortgage banker or broker. Call for more details on how you can apply online for a home loan with our assistance.
Title
Title refers to who owns the property, of course. The way land is titled affects such things as how the property will be distributed at an owner's death and whether creditors can force a sale.
- Sole ownership. Here, there is only one owner. The property passes through the owner's estate and is distributed according to the owner's will.
- Tenants in Common. Here, there is more than one owner. The co-owners can own unequal shares (Thus, Jane may own 2/3 and John may own 1/3). At an owner's death, the property passes through his or her estate.
- Joint Tenants. Here, there is also more than one owner, but they all own equal shares. The property does not pass through the individual owner's estates, but rather goes to the other owners when one dies. Specific legal language and requirements must be present for this type of ownership.
- Tenants by the Entireties. This type of ownership is only available to husband and wife. If one spouse dies, the property automatically goes to the surviving spouse without passing through the estate. A key feature of this type of ownership is the protection it offers from creditors of one spouse.
Related issue: Title Insurance. Attorneys and title companies search land records to determine the historical chain of title before there is a completed transfer of ownership. However, problems do occasionally crop up. If there was a problem in one of the legal documents related to a prior "owner" or if someone who previously owned the property didn't have the legal right to sell, a buyer could lose the property, even if they fully paid and did not know about the problem. Title insurance provides protection if any problems surface in this area.
Pricing
Save $500 on your mortgage fees or lunch is on us!
Attorney Cedulie Laumann will assist you in obtaining financing at a savings of at least $500 off mortgage broker's fees or the firm will give you a $25 gift card for lunch at a restaurant of your choice! Current clients can apply online for a fast loan response - usually within 24 hours. Call for more details. Note that this firm is NOT a mortgage broker, lender or banker. Loans require lender approval and Attorney does not underwrite or guarantee loans.
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