In a sale, refinance or reverse mortgage closing, just about everything depends on something else. So there’s no such thing as a single, isolated mistake or delay. 


You can’t close without mortgage approval. You can’t get mortgage approval, in turn, without a termite report and a title insurance binder. And you can’t get a title insurance binder without a clean bill of health from the right kind of title search and property survey.


This means that a delay, a mistake, or any other kind of glitch at any stage of the process can throw the whole closing out of whack  causing lots of people lots of unnecessary grief as they scramble to put things right.


At TitleWorks of Virginia, we always keep this in mind as we concentrate on doing the most important thing in your closing quickly and right ‐ and to us, the most important thing is everything.

Search the Title

Before you can buy, sell or finance a home, it’s essential to make sure the title to it is clear. So as soon as the contract comes in, our order for a title search goes out (along with instructions on what kind of search is needed). Because of our strong relationship with our title searchers, and because they work out of the county courthouses, that search is very likely to start right away. They search the chain of title, usually back 50 years. Do any of the deeds (or wills and trusts relating to them) contain improper information (We review them to find out and have corrections made.)? Are there outstanding judgments or liens against the property? Are there easements? Some 25% of title searches uncover some kind of problem, and whenever they arise we work with the sellers, the buyers, their realtors and their attorneys to resolve them. 


Once we know the title is clear,we prepare a written title commitment, checking the title information for completeness and accuracy and taking note of any requirements that must be satisfied before closing. We also compare the title commitment to the contract, the closing instructions and other documents to make sure all the information’s consistent. 

Make Sure the Property Conforms to It

It’s also important that the property itself be consistent with the documents that describe it. So we phone the sellers to learn the year and type of their latest survey, whether they added to or sold off any of the property, who holds their mortgage, and so on. If surveys are needed,we  get them conducted. If they’ve already been done, we’ll the date and a copy. That way, everyone has the reports and information they need when they need it.

Get the Title Insurance

Even with the most thorough and conscientious title search, hidden hazards can come to light after the closing. There may be mistakes in the public records, undisclosed heirs claiming to own the property, or forged deeds that could cloud the title. Even with relatively new homes, there could be a mechanic’s lien or a judgment for unpaid taxes or child support.


Title insurance is protection against that. Lender’s Title Insurance protects your mortgage lender’s interests if title problems arise. The policy covers the unpaid amount of the loan, so it decreases as you pay the mortgage off.  Owner’s Title Insurance protects the homeowners’ interests. It covers the purchase price of the property, lasts as long as the owners and their heirs have an interest in it, and can even cover legal fees for defending against claims.
TitleWorks is pleased to offer both kinds of title insurance, with three-day turnaround from ordering it to issuance of a binder.

Finalize the Financing

First, we’ll deposit the buyer’s deposit or earnest money check in an escrow account, where it will stay until closing. We’ll get payoff figures from the seller’s mortgage lender. And we’ll make sure to gather and deliver all the reports the lender needs in order to approve the mortgage as early as possible.

Prepare the Paperwork

We work closely with the mortgage lender sending tax information, wiring instructions and the title insurance binder; confirming receipt of the preliminary documents, loan approval and figures for the final settlement statement. We call the sellers’ attorney to get their fees. Finally, we assemble all these figures into the HUD-1 form (the settlement statement showing payments already made and those due at closing) and get it to everyone concerned  the sellers, the buyers, the realtors, the attorneys  in plenty of time for review.

Close

We confirm the date and that we have all the latest information. Next, we recap the terms of the loan package with the customers before they come in to sign.  Then, and only then, are the closing documents ready to be signed, notarized and sent for recordation at the courthouse.