Support & FAQ

What type of Insurance do I need?
Posted on August 26, 2010 by Pamela Price, Attorney at Law

There are three types of insurance generally associated with a real estate closing:

1.  Title Insurance.  Most Lenders will require title insurance which protects the buyer and the lender from risks associated with tax liens, mechanic’s liens, judgments, unsatisfied mortgages and other liens or problems with the title to the property.  This type of insurance is provided by the closing attorney.

2.  Homeowners’ Insurance protects the buyer from fire and other destructive elements which may damage the property.  The Lender wants to be sure the buyer has Homeowners’ Insurance so that if the property is damaged it can be repaired which protects the Lender’s interest in the property.

3.  Mortgage Insurance.  Under some loan programs the lender will require the borrower to purchase Private Mortgage Insurance (PMI) or Mortgage Insurance Protection (MIP).  This type of insurance protects the lender in case the mortgage goes into foreclosure.  It allows the borrower to borrow a larger loan amount and pay a smaller amount of down payment.  

Do I need a new survey (plat)?
Posted on August 26, 2010 by Pamela Price, Attorney at Law

A survey will determine the dimension of the lot, will show encroachments or projections over the property boundaries, and may show the foundation of the home.  If a recent survey has been done, the Lender will not require a new survey, however Title Insurance will not cover matters of survey for the Owner unless a new survey is purchased.  We encourage purchaser’s to consider obtaining a new survey of the property especially if the latest survey is old.  The title search obtained by the closing attorney will provide a copy of the most recent survey on record. 

What is a HUD-1 Settlement Statement?
Posted on August 26, 2010 by Pamela Price, Attorney at Law

Federal Law requires a Hud-1 Settlement Statement be prepared for real estate loan transactions.  This Settlement Statement should include every cost or expense related to the purchase of the property.  Harvey & Vallini, LLC tries to prepare the Statement as soon as information is received however changes can be made up until the time of closing.  A rough draft of the Statement will be provided to all parties as early as possible.