You Have Questions - We Have Answers!

• What Is Title Insurance?
• What Is Escrow?
• What is a Signing Agent?
• How does this benefit the borrower?

What Is Title Insurance?

Title is an instrument that provides evidence of lawful ownership of real property, usually in the form of a certificate of deed. Title insurance is written by a title company to protect property owners against loss if title is imperfect.

Before a commitment for title insurance is issued, a search is conducted by the title company. This search is intended:

1. To determine if buyers are getting all of the rights they think they're getting.
2. To show any exceptions; any other parties who have rights to the property and what those rights are.
3. To determine if those selling the property have the right to do so, and those buying the property are getting all the rights to the property that they are paying for.

Because the property acts as security for the new mortgage loan, the lender has a stake in the quality of the title as well. Primarily, lenders are looking for assurance that the mortgage lien is in first position so that they will be paid before any other creditors should it be necessary to sell the property to satisfy a mortgage default or any other judgments against the property.

When these searches are complete, the title company will issue a commitment to insure, stating the conditions under which it will insure the title. If defects are found, the buyer, seller and lender must clear them before they proceed with the closing of the transaction.

Title insurance is required by lenders to protect their interest. This is paid for by the buyer, and remains in effect for as long as the loan is outstanding. The buyer, in turn, is protected by title insurance paid for by the seller, and it is in effect for as long as the buyer owns the property.

What Is Escrow?

Escrow is a process by which title is transferred from the current owner to the new buyer in order to complete the sale or purchase of a home. It is a means by which a neutral third party collects and holds all documents and funds necessary to legally transfer the property from one owner to another. In most states this third party is an escrow company; in others it may be an attorney.

The escrow agent (or closing agent) does not represent any one interested party in the transaction, but rather represents all. She or he is an agent for the buyer, the seller, and when applicable, the lender, and must follow their instructions without bias. In addition, the escrow agent must pass on to all parties any information learned during the escrow process.

The escrow agent (or closing agent) will gather all the documents, outline financial responsibilities of parties, obtain proper signatures, and prepare a settlement statement. The escrow agent cannot give legal advice or explain the loan documents. Legal advice may only be given by a licensed attorney, and any questions regarding the loan documents must be directed to the lender.

Everyone must be present at signing unless a representative with a proper power of attorney signs for the absent party. In some areas it is also customary for your real estate agent to be present. After all documents are signed, the escrow agent will return them to the lender for final approval. If everything is satisfactory, the lender will give the go ahead to record all documents. Funds will not be released until recording is completed. "Recording" refers to the actual process of officially transferring title by recording transfer documents with the county, and making them a matter of public record.

Closing is the day of recording, not the day of signing. Therefore, remember to schedule all moving activities accordingly. When all instructions have been fulfilled, documents signed and recorded, and funds disbursed, the sale is complete and the escrow "closed."

What Is a Signing Agent?

A Signing Agent is a Notary Public who is hired as an independent contractor by either a real estate lender, a closing agent (i.e., a title or escrow firm), or a signing service to ensure that loan documents are delivered to and signed by a borrower, then notarized as necessary and returned for processing in a timely manner. Lenders who offer correspondent loans across the country rely heavily on competent Signing Agents to complete the signing and notarizing portions of the real estate loan transaction in a professional, reliable and accurate manner. Attorney Lynn H. Arends is your answer for quality loan signing transactions in Washington's King, Pierce and Snohomish counties providing both in-office attorney closings and out of office witness only signings. Email sign with lynn for more details.

sign with lynn utilizes attorneys who are also commissioned notaries with a thorough working knowledge of:

• 1st and 2nd mortgages
• FHA and FHA streamline
• VA loans
• Conventional loans
• Jumbo Loans
• ARMS
• Purchases
• Home Refinancing
• Reverse Mortgages
• Foreclosures

How does this benefit the borrower?

The Signing Agent meets with the borrower at a designated location, ensures that the borrower signs, initials and dates the loan documents in all appropriate places and then notarizes the borrower's signature where necessary. Once this is completed, it is the Signing Agent's responsibility to see that the signed and notarized loan documents are delivered to the closing agent or other designated office.

By meeting the borrower at home or another convenient location for the signing, the Signing Agent eliminates the need for a time-consuming trip by the borrower to close the loan. This is more convenient for both the closing agent and the borrower. The Signing Agent also provides assurance that the signed and notarized documents will be delivered by the pertinent deadline. Notaries, in their unique role as public officers employed in private enterprise, are required by law to display a high level of honesty and integrity in their work. A notary who is also an Attorney is a unique credibility advantage in your increasingly complex real estate transactions.

sign with lynn saves you time and makes you look good to your client!

Book your next real estate closing with sign with lynn today!

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