COMMONLY ASKED ESCROW QUESTIONS
Here are commonly asked questions addressed by Anthem Title and Settlement Company LLC.
WHAT IS TITLE INSURANCE?
Title insurance is often confused with Homeowner’s insurance. The two are very different. Homeowner’s insurance will insure your property against any damage that may occur, whereas title insurance will insure against any defects that have occurred in the past, affecting the chain of title to your Real Estate. There are three general types of Title Insurance Coverage: Lender’s, Owner’s, and Closing Protection Coverage.
HOW DOES TITLE INSURANCE PROTECT A HOMEOWNER?
An Owner’s Title Insurance Policy insures the owner/buyer of the real estate against defects in the chain of title to the property such as false impersonation, forged deeds, deeds by minors or persons of unsound mind, and more. For a one-time low premium, you receive protection against these "hidden risks." Additionally, if you sell/refinance within 10 years, you may receive a discount of approximately 30% on your new policy.
HOW DOES TITLE INSURANCE PROTECT THE LENDER?
A Lender’s Title Insurance Policy is required by lenders when refinancing or purchasing a home with a mortgage. It guarantees the lender to be in first lien position on the title. Should the mortgage go into default, the policy protects the lender against additional liens filed against the property.
CAN I GET A DISCOUNT ON TITLE INSURANCE?
You can receive up to a 30% discount on your title insurance premium when you provide your Owner’s Policy of Title Insurance or the Settlement Statement from the purchase or refinance of your home.
HOW DO I GET THE DISCOUNT?
You must provide one of the following to the Title Company handling your closing: Owner’s Policy of Title Insurance, HUD-1 Settlement Statement, or Closing Disclosure Form from your last refinance (if you’ve owned your home for more than 10 years).
CAN YOU SELECT A TITLE COMPANY OF YOUR CHOICE?
Yes, you may select a title company of your choice. While your Real Estate Broker, Realtor, or Lender/Bank may recommend companies, you are not obligated to use them.
WHAT IS ESCROW?
The escrow process facilitates the sale or purchase of property. When opening an escrow, the seller and buyer establish terms for transferring ownership, which are managed by a neutral third party known as the escrow holder.
WHO PAYS THE ESCROW FEE?
Escrow fees are generally split evenly between the buyer and the seller, but this is negotiable.
WHAT IS THE ROLE OF AN ESCROW OFFICER?
The escrow officer ensures that all terms of the purchase or sale are met and that paperwork is accurately completed. They remain impartial throughout the process and help resolve any issues that arise.
WHAT IS A CLOSING?
A closing is the finalization of a real estate transaction, where all parties execute closing documents and disburse funds as outlined in the Closing Disclosure Form or HUD-1 Settlement Statement.
WHAT IS REQUIRED TO ENSURE A SMOOTH CLOSING?
Cooperative participation from all parties is essential. Anthem Title believes that a well-prepared closing is a necessity, ensuring a successful transaction.
WHAT DO I NEED TO BRING TO CLOSING?
Bring two forms of ID, including one with a picture. You’ll also need a certified check or wire transfer for closing costs, as well as any requested documents.
WHAT HAPPENS AFTER WE CLOSE?
After closing, the Title Company will disburse funds and send the appropriate documents to the County Courthouse for recording. You’ll receive your Final Title Insurance Policies afterward.
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