Real Estate Closing Services Key Terms
Understand key terms related to real estate closing servicesReal estate closing services involve underwriting, finalizing documents, obtaining approvals from concerned departments and obtaining other documents. These services help make origination and closing processes fast, efficient and successful. Real estate closing service providers help to finalize loans, transfer the property title and perform many other related services.
Whether you want to become a service provider or you want to make use of real estate closing services, you will need to be conversant with the technical terms related to it. This guide will cover some of the important key terms related to real estate closing services.
Title insuranceTitle insurance protects the policy holder from any loss that arises from defects in the title. It is meant to protect an owner's or a lender's financial interest in property against loss due to title defects or liens. Title insurance is a mandatory requirement and a part of real estate closing services.
Homeowner's insuranceHomeowners insurance offers coverage in the event of damage to the owner's property as well as liability for injuries and damage caused to other people. Many banks make this insurance policy mandatory for homeowners and need this policy at the time of closing of the loan.
Real estate appraisalsReal estate appraisals help lenders verify the market value of a house. An appraiser carries out the evaluation based on various factors, like condition and square footage of the house. This helps establish whether the loan is a good risk or not.
Loan processor (or loan officer)The loan processor is the person who verifies documents and determines the credibility of the borrower. Loan processors verify all documents for originality and income of the borrower.
Certificate of OccupancyA certificate of occupancy is a document that the local government (or the building department) issues. This document certifies a building's compliance with applicable building codes and other laws. This certificate is extremely important from a homeowner's point of view since a loan cannot be closed without this certificate.
Down paymentThe down payment is the lump sum cash payment paid by a buyer at the time of closing the loan.
Copyright © 2013 Business.com, Inc. All Rights Reserved.