Purchasing your home can often be as stressful as it is exciting. We want all of our homebuyers to know that we are looking out for you. We understand the process might be unfamiliar to you and we will do everything in our power to keep you informed, educated, and feeling secure about your home purchase.
Know your property
Do your homework on the property you are buying. If you are financing your home through a typical mortgage lender, some of the questions you have will be resolved through lender requirements. For example, lenders usually require the following:
- Home Condition Report/Assessment
- Wood Destroying Organism Inspection
- Title search
- Land/Boundary survey
- Flood Zone Determination
Other matters to address include whether or not there are restrictions on the property and, if so, what those may be. If the property you are purchasing is in a neighborhood with a home owner’s association, request a copy of the neighborhood’s covenants and restrictions, if they exist. In newer neighborhoods in Florida, there is often a “CDD” (Community Development District) fee charged in addition to the home owner’s association fee. The CDD is collected on the tax bill, under Non-Ad Valorem Assessments.
Know your closing documents
At closing, there will be a multitude of documents requiring your signature and others requiring the seller’s. Some will require both. Common closing documents include:
- Deed: The deed is the document that the seller signs that transfers title of the property to you, the purchaser. The deed contains a full legal description of the property.
- Closing Disclosure: A closing disclosure or Alta statement will break down how much the seller and buyer are each responsible for paying at the time of closing. It is a complete breakdown of all funds spent for the closing, and includes such things as the cost of the title search and the deed filing fee.
- Promissory Note: The promissory note is the document that states the amount of money you are borrowing, your interest rate, and the additional terms of the loan.
- Mortgage: The mortgage is the document that ties the promissory note to the real property. It is the document that creates the actual lien on the property.
- Amortization Schedule: The amortization schedule lists each payment that is to be made on the loan, and identifies how much goes toward the principal vs. the interest, as well as the loan balance.
- Escrow Explanation: In most cases, the lender will require that you pay an escrow amount each month on top of the principal and interest. This amount goes into a separate account and your lender will use these funds to pay your taxes and home insurance when they are due.
Don’t be afraid to ask questions
It is normal to have questions throughout the home purchasing process. At Town Square Title we encourage you to reach out with any questions or concerns you may have so we can address them. Together, we can put your mind at ease and make your home purchase go as smoothly as possible!