Sponsored Links


Your Professional Mortgage Loan Acquisition Team

There are several individuals and/or companies that you will definitely need on your professional mortgage acquisition team.  They are:

  • A professional real estate agent;
  • A lawyer;
  • A title company;
  • A closing company (if the title company doesn’t handle the function in your state);
  • Your mortgage company; and, finally,
  • You.

Real Estate Agent

The real estate agent may or may not cost you anything directly.  But it depends upon the situation.  Your real estate agent will help you find the homes in the area where you want to live based upon what you want. The real estate agent will also help get into a home that you can afford.

Lawyer

The lawyer will definitely cost you money out of pocket.  But, in my opinion, will be worth every cent and then some.  The lawyer on your team will make sure that none of the other members of your team are taking advantage of you or cheating you.  But, you must make sure that that is in your contract with him or her.  That can save you thousands of dollars.  Never sign anything, especially where you are on the hook for paying out money, without your lawyer’s approval.

Title Company

The title company is normally paid out of the proceeds of the sale at the closing.  The title company will review the ownership records of the property that you are purchasing to make sure the title is  “clear”  of any title (ownership-related) problems.  As part of their service they will also identify anyone that has had any any kind of interest in your property such as mineral or water rights. Or, who have permission to cross or use your property which is called an easement.

The title company will guarantee the results of their investigation with a thing called Title Insurance. Title Insurance is required by most lenders before they will grant a mortgage to you.

Closing Company

Frequently the closing company functions will be handled by the title company.  The closing company is like so many others is normally paid for their services out of the proceeds of the sales transaction.  The closing company makes sure all the documents are signed, all moneys paid and that all amounts are escrowed, as appropriate.  They will stop a transaction if all of the paperwork and money paid is not correct.

Mortgage Loan Lender

Your mortgage loan lender will prepare the mortgage contract and provide the funds that you are not responsible for providing.  They will pay the funds (money) they are responsible for providing at closing to the closing company who will escrow the money so that it cannot be used for anything other than for the transaction for buying the house that you are purchasing.

You

Finally, you are responsible for making sure that the money that you are obligated to provide as pre-closing amounts due (such as loan applications fees and sometimes “points”) have been paid to the mortgage company, agreed to professional fees such as separately contracted real estate advisory fees or legal fees, down payments, closing costs, title insurance charges, etc., have been paid as specified in all contracts that you have signed.

If you do not pay everything that you are responsible for paying at the proper time, the closing company will not allow the transaction to be completed until you do or, if appropriate, force the cancellation of the transaction.

If the transaction is forced to be cancelled because of your non-performance, you should expect to be sued in a court of law.  This is why you always want a lawyer on your team.  Your lawyer will make sure that you do everything that you are responsible for doing at the proper time if that is part of the services that the lawyer agreed to provide.

More Information

If you will return to “The Basics” menu, you will find a list of more detailed articles about each of your team members discussed above and the functions that they perform and some things that you will need to watch out for when you deal with them.

Also, here is a list of links to each of the articles referred  to above if you don’t want to return to the “The Basics” Menu.

Real Estate  Agent

Lawyer

Title Insurance Company

Closing Company

Mortgage Loan Lender

You

It is very important that your professional mortgage acquisition team be totally complete.