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.
