Now that you’ve decided to buy a home, what happens between now and the time you can become its legal owner.
First, your loan application will have to be approved. In doing this, the lender will include a credit check on you and an appraisal and survey of the property. Legal papers will be prepared for you (and the seller) to sign. This will include a new deed, note and mortgage. The title to the property will be checked to determine what debts are owed against the property and who is its legal owner.
Finally, when all things are in order, the settlement (“closing”) will take place. The seller will sign a deed to you. You will sign a note and mortgage to your lender. The old loan on the property will be paid off and the new loan set up. The seller, realtor, attorneys, title company and other performing services for you will be paid. Title insurance polices will then be issued to you and your lender.
At Allied Closing Title Services, Inc., we search, examine, close, and insure land titles. Title insurance policies are issued to the homeowner and the lender, assuring them financial protection against adverse title claims or risks. Equally important are any potential title claims that surfaced in the search/examination process that can be resolved by the parties prior to closing their transaction.