Real Estate Title & Settlement
Comprehensive title services lead to a seamless and successful transaction.
Dimension National Title offers title services for every kind of property, including purchases and refinances for both residential and commercial, as well as HELOC's. We utilize the most knowledgeable independent title abstractors across the country allowing us to diligently deliver concise and clear transactions for a smooth no nonsense process nationwide.
Title and settlement services play a crucial role in the lending process, providing lenders with essential information and ensuring a smooth and secure transaction for all parties involved. Here is a comprehensive description of title and settlement services:
Title Services
Title services primarily focus on establishing the legal ownership and history of a property. Lenders rely on title services to verify that the property being used as collateral for a loan has a clear and marketable title, free from any liens, claims, or other encumbrances that could jeopardize the lender's interest.
Title Search
A title search is conducted by a licensed title company or an attorney to examine public records and determine the history of ownership, mortgages, liens, judgments, and other recorded encumbrances on the property. The goal is to ensure that the property's title can be transferred to the lender without any legal issues.
Title Insurance
Title insurance is crucial for lenders to protect their investment in case any undisclosed issues or defects with the property's title arise in the future. Lenders typically require the borrower to purchase a lender's title insurance policy, which provides coverage up to the loan amount.
Title Commitment
Once the title search is completed, the title company issues a title commitment to the lender. This document outlines the conditions under which the title insurance policy will be issued, including any requirements that need to be satisfied before the loan closing.
Settlement Services
Settlement services, also known as closing services, involve the finalization of the loan transaction and the transfer of ownership from the seller to the buyer (or the borrower). These services ensure that all legal and financial obligations are met, funds are disbursed correctly, and all necessary documents are properly executed.
Closing Disclosure (CD)
The Closing Disclosure is a document that provides the borrower with a detailed summary of the final loan terms, including the interest rate, closing costs, and any other fees associated with the transaction. The lender is responsible for preparing and delivering the CD to the borrower at least three business days before the closing.
Escrow Services
In many real estate transactions, an escrow account is used to hold funds and documents until all the conditions of the transaction are met. The title company or an independent escrow agent acts as a neutral third party, ensuring that the transfer of funds and documents occurs according to the agreed-upon terms.
Document Preparation and Execution
The title company or closing agent prepares all the necessary legal documents required for the loan closing. These may include the promissory note, mortgage or deed of trust, and any additional affidavits or disclosures mandated by state or federal regulations. The closing agent facilitates the signing and notarization of these documents by all parties involved.
Funds Disbursement
Once all the closing documents are properly executed, the closing agent verifies that all necessary funds, such as the loan proceeds and the borrower's down payment, are available. The closing agent then disburses these funds to the appropriate parties, such as the seller, real estate agents, and other service providers, while ensuring that all outstanding liens and debts are satisfied.
Overall, title and settlement services for lenders involve conducting thorough title searches, providing title insurance, coordinating the closing process, preparing legal documents, and ensuring the secure transfer of funds and ownership. These services help lenders mitigate risks and ensure a smooth and legally compliant transaction for all parties involved in the lending process.
