Misfitmorgan's Journal - That Summer Dust

T-4

"All my bags are Packed....I'm Ready to Go"!!.....I know ya won't be leavin' on a jet plane....but thought the line in the song was Fitting........and take my word for it....it is much better to read it here, than to listen to me sing it.....

Yes, you will sign, sign, sign, sign......and it will be yours! At our closing, we were presented with a spiral bound copy of all the papers, it was an inch thick. I am really, really happy for you.

almost ready for lift off.

I mis-typed on the title insurance thing, I was thinking of mortgage insurance. Make sure you get that taken off as soon as you have 20% equity because they sure as shootin' aren't going to tell you!

I have no idea if we are paying title insurance or not, maybe it is in with the rest of the house insurance? Seems like one shouldn't have to pay a lawyer to make sure the title is clear then have to pay insurance for the rest of eternity if s/he didn't do a proper job.

Since this is a bank repo, they own it free and clear. There should be no delay in handing you the keys after closing. The wire from your lender to the title company is a "deal", but not really a "big deal" as title will have already verified that you're approved and the funds are enroute. Title insurance, as GB stated, is to protect you, the buyer, from bad title where you could lose "your" property to an unknown previous owner. From the above post, sounds like Misfit is on top of all that and the reasons for it. Typically the owner's title coverage is paid for by the seller, as they are backing up their promise of free and clear title (ownership) of the property to you the buyer.

Bruce, the title insurance is a one time deal. the policy is paid for at closing and lasts as long as you own the property.

As for PMI, read the documentation. Typically you can remove it after 5 years with zero missed/late payments. You can also remove it after 2 years with no missed or late payments as long as the property appraises at a higher value to make the loan to value percentage lower than 75-80% (varies by lender). In virtually all cases today, it will automatically stop after ~7-10 years as by that time, the loan to value should be below the 80% threshold regardless. With the improvements you'll be doing to the property, I expect the value required to remove PMI should easily be reached by the 2 year qualifier.

Latestarter said:

Typically the owner's title coverage is paid for by the seller, as they are backing up their promise of free and clear title (ownership) of the property to you the buyer.

Click to expand...

Hmmm, I'm starting to think I may be ignorant of some things regarding title insurance If it is paid by the seller, is there some "account" I should know about in case someone does ever come claiming they own the place? Other than my wife of course.

You should have a copy of the title insurance policy included in all of your closing paperwork. If you had a title company involved in the closing in any way, I'd expect that you have an owner's policy. Otherwise, there's be no reason to involve a title company in the transaction.

I do plan on dropping the PMI ASAP. Just clearing the stumpage will raise the value of the land by around 10k. Atm that 10 acres is not usable and a cleared field is worth more then woods...atm it is valued at almost nothing. I'm fairly confident that with what we are doing to the house alone it will appraise high enough to drop the PMI or possibly re-finance.

Money was wired yesterday. I will not be at work monday and tuesday so after today you guys wont hear anything until wednesday i believe.