General

Closing/Settlement

General

What is title insurance?

Title insurance protects real estate purchasers and/or lenders from losses that arise after a real estate settlement, but result from unknown liens, encumbrances or other defects upon the title that existed prior to settlement. Examples of title defects include outstanding property taxes not paid by a previous owner, fraud or forgery of a prior deed or transfer, or a spouse or unknown heir who steps forward to make a claim against the title. If a claim were made, defending the claim could cost thousands of dollars in attorney fees and, if the claim were valid, could even cause you to lose the property itself. A title insurance policy provides coverage for legal defense, as well as the coverage amount listed in the policy, which usually equals the purchase price of the real property.

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How much does title insurance cost?

Title insurance policies are paid for at the time of closing through a one time premium charge that will be listed on the settlement sheet, commonly known as the HUD-1. The Owner’s Policy premium is based on the value of your home; whereas the Lender’s Policy Premium is based on the loan amount. An average policy is typically between $500 and $2000.00.

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What is an unreleased trust and how does it affect me and my property?

An unreleased trust occurs when you or a prior owner pays a loan in full but the lender fails to release the lien on the property that is recorded at the Court House. We simply need to release the lien and show it is no longer a valid lien on the property. This is part of what title insurance guarantees. Sometimes the lender sends the release document (also known as a Certificate of Satisfaction) to you with instructions to record it. If the instructions were unclear, you may not have known what the document was or what to do with it so you still have it. We will ask you to look through your documentation from previous settlements to see if you can locate it. If not, we may ask you for other documentation which can help us obtain the release from the previous lender so that we can move forward.

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When does my current loan get paid off?

We will pay off your current loan as soon as we receive funding for your new loan. This occurs on the 4th business day after you settle, on what we call the disbursement date or day of funding. We will either wire the payoff to your current lender or we will send a check via overnight courier.

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If I refinance how long will I wait before receiving my proceeds?

If you are not self-employed and you are not refinancing investment property, you must wait for 3 business days before your loan funds. This period is required by federal law and is known as the 3-day right of rescission. Your loan will fund on the 4th business day after you settle. Your processor or closer can give you the specific date at settlement.

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How will my proceeds be delivered?

You have an option to (A) pick up your proceeds check at our office on the day of funding; or (B) have the funds wired into your checking or savings account; or (C) have a check sent to the address of your choice via overnight courier.

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Can I transfer my escrow account from my old loan to my new loan?

No. Escrow accounts are serviced by 3rd parties hired by the lender servicing your loan. Your new lender may use a completely different 3rd party from your existing lender. Therefore, your new lender will require your current loan to be paid off in full. Once this has occurred, any balance remaining in your escrow account will be sent back to you in the form of a check by regular mail (typically 30-45 business days).

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Closing/Settlement

When and where will my settlement take place?

As soon as your title work is complete and your loan is approved, your lender will ask us to schedule your closing. We will call you and find out what is convenient for you. You can settle when you want, where you want. We can send a closer to your home or office, or to your lender or realtor's office or you can come to our office in Upper Marlboro. Our closers are available to settle in your home, office or any other mutually agreed upon location from 8 am to 7 pm, Monday through Friday. Settlements in our office must occur between 8:30 am and 4:00 pm, Monday through Friday.

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What do I need to bring to settlement?

You will need to bring a government issued photo I.D. (driver's license, passport or military I.D.) and a cashier’s or certified check for any funds due from you for any amount over $1000. If we are coming to your home, please make certain to make a copy of your photo I.D. for our closer to include in the settlement package, they will not be equipped to make a copy from your home.

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How long will the closing last?

A typical refinance will take between 30 and 45 minutes. If you have questions about the documents or the process it may take longer. A typical sale or purchase will take an hour to an hour and a half, again, depending on the questions or concerns you might have.

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When will I know how much money I need to bring to closing (or how much I’m getting back)?

CU Title makes every attempt to get you a final HUD-1 at least 24 hours prior to closing. We will e-mail you the settlement sheet (also known as the HUD-1) and go over any payoffs with you to make sure you are getting what you asked for PRIOR to coming to settlement. If you have any questions, we hope to clear them up prior to settlement to make for a much smoother settlement experience.

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