Ready to be a Homeowner?

Since property is one of the most expensive purchases of a person’s life, it’s important to be sure that you’re ready for it. With that said, here are questions to consider:

Are you ready to be a homeowner?

It is critical to consider whether you have saved enough money to make a down payment in addition to being able to pay your other debts. You must have job stability and a steady income.

How long do you plan on living in your home?

Real estate is not always an investment that grows in value. No one can predict what will happen within your local housing market. If you plan to sell your home in the next few years, realize that the property may not increase substantially in value or may actually lose value. Ultimately, it’s possible to owe more on a mortgage than the home equals in value.

What is your estimated monthly payment for the home?

In addition to the monthly payment for principal and interest, you will have to pay for taxes and insurance and possibly homeowner association dues. If your down payment is less than 20 percent, your lender may require that you pay the added expense for mortgage insurance.

What are the other costs of owning a home?

Be realistic about the costs of owning a home like heating and cooling and other utilities. You will generally need to budget for repairs and routine maintenance of your home, especially if you buy an older home.

For information on homeowner’s title insurance, contact Cambridge Title Company by phone at 224.330.1886 or by email at info@cambridgetitleco.com.

Why Conduct a Title Search?

You may have noticed on our attorney and lender services pages, one of the services Cambridge Title Company offers is a tract search, otherwise known as a title search. But what does this mean for a prospective home buyer?

By definition, a title (tract) search conducted to discover whether there are any defects in the ownership of a particular "tract" of land.

Let's put it this way: You're in the process of wrapping up a home closing. Both parties have agreed to the terms and the financial arrangements have been put into place. So what happens now?

The title insurance agency, let's say Cambridge Title Company, for example, conducts a title search. This search recovers all sorts of information, including whether the seller actually has the right to sell the property you're on the cusp of purchasing and what rights you'll have to the property in question.

Without this title search, you're left vulnerable to a plethora of issues. For instance, the actual owner can show up down the line and claim that you're living on his or her property.

This is why home buyers purchase title insurance. For a one-time fee, homeowners are extended a wide array of protections for their homes. As part of the title search process, title insurance agencies determine the insurability of a property's title and protect you from any legal expenses at a later point in time.

By conducting a title search you're gaining five primary items:

• chain of title
• tax search
• report on possession
• judgment and name search
• commitment

Over the next five weeks, we'll dive a little deeper into what each of these items is and how they all affect the title insurance process.

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