Frequently Asked
Questions About:
Real Estate
Which
is a better source for a mortgage, a bank or a mortgage company? -
Unfortunately, there is no easy answer. Generally, banks have
slightly higher interest rates, but lower closing costs. Mortgage
companies may have higher closing costs, but lower interest rates.
It all comes down to 'pay me now, or pay me later'. A lower
interest rate may qualify you for a larger purchase, but lower
closing costs may save you money up front. As with every major
decision, it is important to shop around and research
carefully.
How
much will it cost me for a closing? - There are certain fees
associated with buying or selling a home. The most common fees for
the Seller are real estate commissions, taxes and attorneys fees.
The most common costs for the Buyer are mortgage charges, deed
charges insurance and attorneys fees.
I
received a Good Faith Estimate from the mortgage lender, how
accurate is it? - A Good Faith Estimate is a disclosure required by
Federal Truth in Lending laws that is supposed to give a Buyer an
idea of the costs to close a purchase of a home. You must remember
that it is an estimate
and
not written in stone. Some costs are considerably less expensive
and other costs may not be there at all. You should always discuss
the costs with your attorney.
Do
I need an attorney? - Buying or selling a home is a major life
decision. In many states, closings are conducted by Title Companies
and is not considered the practice of law. However, issues in
Connecticut can be complex and closings are generally handled by
lawyers because it does involve the giving of legal advice. The
mortgage lender will require an attorney if you don't get your own.
The mortgage lender's attorneys will not always be looking out for
your best interests; after all, he or she is representing the
lender. If you are the Buyer, you may be able to save some money on
attorney's fees by having your attorney also do the mortgage
lender's work. While you will still pay for the work, it is cheaper
to pay one lawyer than two.
What
is Title Insurance and why do I need it? - Title insurance protects
the mortgage lender against claims of ownership by others against
your property. In the past, this meant disputes over boundary lines
or use restrictions. However, most recently, a very real threat of
Indian land claims has developed in the State of Connecticut. Due
to the interaction of a 200 year old Federal law with current
regulations, Native Americans are able to make claims to recover
former tribal lands. How would you like to lose your home to a new
casino? You can purchase this insurance for yourself as well and it
requires only a small one-time premium payment.