The importance of Title Insurance when buying a home

Title Insurance when buying a home

Buying a house is an exciting time and the more you know about the process, the more relaxed you’ll be going through it. The American Land Title Association (ALTA) partnered with the Designing Spaces television series on Lifetime to explain to home buyers the closing process and the importance of purchasing an owner’s title insurance policy.

The segment does a great job explaining how the work by title insurance professionals provides consumers peace of mind when purchasing a home.

 

About Arizona Property Taxes

Arizona Property taxes are levied twice a year for 1/2 year periods and paid in arrears.

1st Half Jan-Jun taxes: due October 1st of that same year
2nd Half Jul-Dec taxes: due March 1st of the following year.

Bills for the current year’s taxes are mailed in September and include 2 coupons for each half of the year. When there is a mortgage loan on the property the tax bill is mailed to the lender as these taxes make up part of the monthly payment.
Property taxes are prorated at closing for taxes accrued but not yet due and payable, based on the yearly tax amount and the closing date.

For cash transactions Escrow will pay the full year’s tax, if closing date occurs after tax bill information is available.

Informational PDF: AZ Property Tax Collection

 

About the new Loan Estimate form

New Loan Estimate form

The new Loan Estimate is one of two forms required by the CFPB and will be used for impacted loans originated on or after October 3rd 2015. This form is provided to consumers by the lender within three days in the loan application. It replaces early Truth In Lending statement and the Good Faith Estimate and provides a summary of key loan terms, an estimate of the loan costs, and closing costs. The intent of this form is to promote easy comparison shopping.

CFPB Overview #1

Real Estate Settlement Procedures Act commonly known as RESPA governs the mortgage and residential real estate closing industry. It is intended to prevent kickbacks & unnecessary costs.  In addition it gives consumers buyers and sellers full disclosure of the costs for a transaction it was originally enforced by the Department of Housing and Urban Development.

The Truth in Lending Act known as TILA governs all types of credit and lending industries. It requires the disclosure of credit terms, costs of credit, calculations, and a projected payment schedule. It was originally enforced by the Federal Reserve Board.

Congress passed the Wall Street Reform and Consumer Protection Act (commonly known as Dodd-Frank) which went into effect July 2010. The law created the Consumer Financial Protection Bureau or CFPB, and moved enforcement of RESPA to this new Bureau. The law also mandated that the two sets of disclosures be combined into one Integrated Disclosure.

TRID= TILA-RESPA Integrated Disclosures.

REALTOR Webcast about the coming Integrated Disclosure changes

“REALTOR® Magazine presented a live webcast on July 16, 2015, to help real estate professionals understand the changes to the closing process that are scheduled to go into effect later this year. The program featured attorney Phil Schulman, a partner with K&L Gates and former official with the U.S. Department of Housing and Urban Development who specializes in federal closing rules, and NAR Senior Counsel Finley Maxson.

As part of the changes, which stem from the merger of the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA), two new forms—the Loan Estimate and the Closing Disclosure—will replace the HUD-1 settlement form and the Good Faith Estimate. Samples of the new forms are available from the Consumer Financial Protection Bureau.”