What is a Title Policy?

November 9, 2010 By Leave a Comment

I’m looking for a home and my friend said that the seller of a home usually buys the Title Insurance. What is title insurance? – Nathan

Great question Nathan. Title insurance is a policy that protects owners against forgeries, false representations, undisclosed heirs, delinquent taxes, fraud, etc. If a buyer has a contract on a property, the title company will do a title search to make sure there are no encumbrances to  moving forward with the sale.  A common scenario is a divorce decree or a deceased owner. The title company will make sure that the title to the property is passed legally to the new owner.

Another scenario is a tax lien or mechanic’s lien against a property. The lien must be cleared or paid before the property can pass to the new owner. I have seen scenarios where an owner discovers a lien on their property that existed before they purchased the home. The title company was responsible for clearing the lien.

Good luck and remember Austin’s Go To Team can help find the perfect home for you!

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First Steps?

September 1, 2010 By Leave a Comment

I’m looking to purchase my first home this year. What are my first steps? – Courtney C.

Thanks for your question Courtney. I believe that the first step in the home buying process is always to consult with your bank or a mortgage loan officer. I can certainly help you by referring you to a professional lender that will go over your financial snapshot, make loan product recommendations, discuss interest rates and see that your loan closes on time. All lenders charge closings costs.  [Read more...]

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To Refinance Your Home Or Sell?

August 31, 2010 By 1 Comment

I bought my condo in North Austin 2 years ago. How do I know when it’s a good time to sell and buy a home? Or, in the interim, how do I know if I should refinance? – Madeyline

Thanks for your question. As we all know the real estate market fluctuates as do reasons for buying a selling. It costs money to buy and sell, so some people want to make sure they are getting a good deal. Since you purchased 2 years ago, you probably haven’t gained much equity. It usually takes several years before a home has gained enough equity to turn around and sell. Of course, this depends on when a home was purchased, where it is, etc. You will probably want to stay for another couple of years in order to gain some equity. Now this would not be the case if you have just won the lottery!

Which brings us to a good point about refinancing. Again, it costs money to refinance a home, so you will want to weigh how much money you are saving per month vs how much it is costing you to refinance. For example, let’s say that your mortgage payment is $1000 per month. Your refinance could cost $2000 and will bring your payment down to $900 per month. Therefore, you are saving $100 per month on your mortgage. It will take you 20 months to recoup the amount of money it cost you to refi. If you are planning on staying in the property for 20+ months, it would be a good idea to refinance. If you are planning on selling before then, you should hold tight.

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