6 Steps to Transform You From Homebuyer to Homeowner 

You chose your real estate agent, you chose your new home, you chose where to negotiate throughout the process — and now here you are at settlement. 

During this complicated and fast-paced time, it’s easy to feel you no longer have control. You’ll be told where to show up, what to bring, and asked to sign papers you likely don’t understand.

The truth is, you do have a choice now, too. Many lenders suggest a settlement company or attorney but don’t present it as an option. Ultimately, however, the decision of who walks you through the final steps in the greatest financial endeavor of your life is yours. 

You don’t want to leave something this important up to chance. Take advantage of this power and determine which settlement company is right for your unique needs. At Scheib Settlement Services, we’re committed to being homebuyers’ No. 1 choice by maintaining trusted, professional relationships with lenders, realtors, and clients.

Let’s start at the beginning — what is title insurance? When your property was bought or sold in the past, a record of those transactions was filed in public archives. Other events, such as liens or levies (a legal right against the property), that may impact future ownership are also noted.
 
Title insurance is a one-time paid policy used to protect both you and your lenders during the title search process. In the event that defects or problems arise during the transfer of property ownership, the insurance company is responsible to pay specific legal damages, depending on the degree of the policy. 

While the vast majority of lenders require title insurance, it’s important to see why this type of policy is critical for your own protection. Unfortunately, there’s always a chance even the best title professionals won’t uncover underlying issues associated with a property during their search. 

If a problem were to arise after closing, such as issues due to filing errors, forgeries, undisclosed heirs, or other encumbrances your title insurance policy protects you from various potential legal and financial issues. 

Once you’ve secured title insurance, a search is performed on your pending real estate purchase. Title searches assess whether or not the seller has the full legal right to sell the property. Various encumbrances (liens, mortgages, undisclosed heirs, and more) or property line disputes could prevent you from possessing the property at this time. 

An attorney or title company performs the search to ensure your transaction goes through without a hitch. At Scheib Settlement Services, our team doesn’t believe something this important should be outsourced. We complete a full 60-year search at the Recorder of Deeds Office in the property’s county, as well as in the prothonotary’s, assessment, and tax offices. 

The goal of a title search isn’t just to appease lenders and move the transaction forward. We want all of our homebuyers to walk away confident that no unprecedented problems disrupt their lives next month or even 20 years after living in their homes.

Of course, there are times when a real estate issue is found, stalling the home buying process. Our team has the in-house ability to resolve the problem as quickly as possible. When there’s a more complicated problem, we don’t stop fighting for you and your home. Our team communicates with the buyer, lender, and realtors to develop a strategic plan to expedite the resolution.  

Buying a home is probably the largest purchase you’ll make in this lifetime. Naturally, there are mounds of paperwork involved in this process. Sitting down at closing with those papers in front of you can be one of the most intimidating parts of buying a home. 

We don’t want you to ever feel you’re blindly signing your life away. Before closing as we prepare documents, any and all questions are encouraged. 

Here’s a glimpse of a few of the documents your lender and settlement company prepare before the big day: 

• The Closing Disclosure (CD): This document contains the terms of your loan and the fees of your transaction. By law, your lender must provide the Closing Disclosure to you three days before closing. Once it’s in your hands, you’re free to go over the final details, such as projected monthly mortgage payments, estimated fees, and closing costs. 
  
  
• The Note: When you sign “the note,” it’s your promise to repay the loan’s full amount to your lender by a designated time period. Here you’ll see the amount, interest rate, the principal and interest payment, when your first monthly payment starts, and the loan’s maturity date. Lastly, it addresses where payments are mailed and the consequences of failing to make your monthly payment. 
   
  
• The Mortgage or Deed of Trust: These documents transfer legal ownership of the property. They also lay out the repercussions should you fail to repay your mortgage, for example, forclosure, and explains your rights and responsibilities as the borrower.
  

The wait between signing a contract agreement with sellers and actually closing on your home is often unbearable. Our team calls the day before closing to calm those anxieties and help you prepare. 

During this call, we notify you of the fees you need to pay at closing and the form of payment. Depending on your buyer-seller agreement, you may not be responsible for any closing costs. However, in average cases, the buyer pays between 2% to 5% of the home’s purchase price. 

If you are required to pay, you’ll be asked to provide the money in the form of a cashier’s check, certified check, or a wire funds transfer from your bank. 

Back when you were negotiating with the seller, you both agreed on a closing date listed in the purchase agreement contract. And now it’s finally here. You’re ready to put this long process to rest and get the keys to your new home. 

Before you arrive, be sure to bring two forms of identification to allow for the notarization of various documents. One must be a photo I.D., such as a driver’s license, passport, or work badge. The other can be an insurance card, social security card, or even a utility bill.

During closing, you’ll work your way through approximately 50 to 100 pages of paperwork full of legal jargon. Don’t be afraid to take your time. Our team of knowledgeable experts is by your side, prepared to answer questions and calm concerns. 

If the seller didn’t request to stay in the property post-closing, you’ll walk away from closing straight into your new home. Congratulations! 

While you’re moving forward in your journey, our team continues to work behind-the-scenes. We process, file, and send every document to the appropriate offices. As a result, you can close this chapter with the peace of mind that your transaction was completed legally and accurately.