The Best Closing Time

For business professionals in countless industries, the end of the month is the most hectic period of time. The same can be said for the title insurance industry. So when is the best time to close on your home?

While many aim for the end of the month because of perceived savings, the total costs remain roughly the same. Generally, interest rates are lower towards the beginning of a month. However, buyers then normally pay another note (with lower interest earlier in the month). There is an exception in the event of a Federal Housing Administration loan.

More so, if you're a first-time home buyer, you're probably transitioning from an apartment. Despite the fact that you're purchasing a property, you can't deduct your rent payments on your taxes. Plus, many people would rather move to their new home sooner than later.

In addition, by waiting for a day ranging from the 29th through the 31st, you have a higher chance of competing with numerous others also trying to close on their property on one of those days.

Of course, we haven't even examined the mantra that "time kills deals". While you aren't guaranteed to lose out on selling or buying a property by waiting a few weeks, it wouldn't be unheard of for either side to find a better deal in the eleventh hour.

By closing earlier in the month, you will usually receive better service from everyone in the lending and closing industry.

For more information on home closings, please contact Cambridge Title Company by phone at 224-330-1886 or by email at info@cambridgetitleco.com.

Be Prepared for Closing

The process of closing on a home is an arduous journey. When the time comes, the last thing anyone wants to be is unprepared. But what do you need to bring with you? Today, Cambridge Title Company runs down the basics.

Please keep in mind that if you're in the role of the "buyer", your checklist will differentiate from that of the seller. For starters, a home buyer should bring the following items to a home closing.

• Buyer's copy of purchase agreement
• Cashier's check(s) to make all payments
• Proof of insurance for fire, casualty, etc.
• Invoices for any unpaid taxes, utilities or assessments
• Photo identification, including a passport, driver's license, and/or state-issued identification card

Meanwhile, as the home seller, some items will be similar to those on the home buyer's checklist. Similarities include:

• Seller's copy of purchase agreement
• Invoices for any unpaid taxes, utilities, assessments, and latest utilities meter readings
• Photo identification, including a passport, driver's license, and/or state-issued identification card

However, as the home seller, you will also need to bring these additional items:

• Receipts for last payment of interest on mortgages
• Bill of Sale of personal property covered by the purchase agreement
• Any unrecorded instruments that affect the title
• Proof of satisfaction of any mechanics' liens, chattel mortgages, judgments, or mortgages that were paid prior to the closing

For more information on title insurance and escrow services, contact Cambridge Title Company by phone at 224-330-1886 or by email at info@cambridgetitleco.com.

Title Commitments & Policies

For nearly twenty years, Cambridge Title Company has provided title insurance and escrow solutions to Chicagoland homeowners. Over the years, we've answered numerous questions from our customers. Today, we'd like to address another one. So what is the difference between a title commitment and a title policy?

First of all, a title commitment is issued before a home's closing. Basically, this is a title company's way of saying that they will issue title insurance assuming that the home seller fixes any outstanding issues with the property.

While this commitment doesn't assure the home buyer that there aren't any issues nor will there be in the future, it does alert the buyer to items that may cause problems.

On the other hand, a title policy is issued after the home closing. The purpose of the policy itself is to provide full property coverage.

Title policies come in two flavors: an owner's policy or a loan policy. Owner's policies are used to protect you from questions of property ownership that were unheard of prior to closing on the property. Meanwhile, the loan policy protects your mortgage lender till you pay off the property, including interest.

For more information on title insurance and escrow services, contact Cambridge Title Company by phone at 224-330-1886 or by email at info@cambridgetitleco.com.

Title Insurance: Lender vs. Owner

Title insurance and escrow services can be a complicated subject. In this week's blog, Cambridge Title Company is diving into whether or not you need seperate title insurance from your mortgage lender.

When it comes to title insurance, a lender's policy only covers the amount of the mortgage loan, which usually isn't the full value of your property.

If someone were to follow a lien against your property, the lender would be protected due to lender's title insurance. Because of this, the lender would be indifferent to the claim unless it threatened their ability to foreclose on your property. This would ultimately prevent them from recovering their principal value with interest.

Additionally, lender's title insurance wouldn't protect you against incurred legal expenses paid out to protect your right to the property. This is where owner's title insurance comes into play. With this form of title insurance, your legal expenses would be covered. Should you lose the right to the property you would have paid a fraction of the otherwise cost.

For more information on title insurance and escrow services, contact Cambridge Title Company by phone at 224-330-1886 or by email at info@cambridgetitleco.com.