New: Homebuyer videos section

Sometimes it's easier to understand a subject with visuals. Title insurance and the real estate closing process in general are just two examples. 

With that in mind, take a moment to tour our new Homebuyer Videos section. Real estate agents: Use this section as a resource for your homebuyers. And homebuyers: Use this section to learn more about what goes on behind the scenes leading up to closing.

Here at Federal Title, we believe it's important to inform homebuyers, many of whom are purchasing a home for the first time. The more our homebuyers know in advance, the better prepared and the more comfortable they are when it comes time to sit down at the closing table.

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Unfortunately, title insurance is tough to illustrate in pictures (hence our text-heavy blog).

Thankfully though, we've got friends at local company called Say it Visually, who've helped us explain the steps between ratified sales contract and signed HUD-1 settlement statement in terms as simple as stick figures.

We have plans to create a series of videos about various aspects of the closing process. We'll post each video in the newly created Homebuyer Videos section.

As it turns out, these videos take some times to make, and so production is inching along slowly. All right, we only have two videos so far...

These days more and more web users are turning to online videos to learn everything from how to change a bicycle tire to, well, how to buy a house. But did you know Federal Title was the first in the title industry to produce videos for homebuyers explaining title insurance and closing costs?

Other title companies jumped on the bandwagon shortly after, and now even the U.S. Department of Housing & Urban Development is creating videos to help homebuyers understand the real estate closing process.

We know most homebuyers will do an online search before contacting a real estate agent. The wisest homebuyers will also research the title company that handles their settlement.

It's our hope that by educating prospective homebuyers, using tools such as our Homebuyer Videos section, we they will be better equipped to make informed decisions throughout the homebuying and closing process.

Title company fees matter

Most reputable title companies now maintain robust websites with a disclosure of their title charges/fees, making it simple for prospective homebuyers to compare title company fees and select their title company.  

According to a recent analysis, less than 10 percent of homebuyers and refinancing homeowners chose to select their own title company – despite the fact that it was their legal right to choose a title company.  Instead, the overwhelming majority of those homebuyers and refinancing homeowners deferred to their real estate agent or mortgage lender to choose the title company on their behalf.

Why?

Because most homebuyers do not realize the potential cost-savings associated with selecting their own title company.  They do not realize that a simple online search for comparing costs among local title companies could save a thousand dollars or more.  

In fact, many real estate agents and mortgage lenders are not aware of this simple fact.  It is incorrectly assumed that all title company charges are equal.  

My “Best Friends” advice is as follows:

• Choose a title company yourself – don’t leave the task to others.

• Choose a title company that clearly discloses their title fees and title insurance rates on their website.

• Choose a title company that is independent – not a title company affiliated and sharing profits with your real estate agent’s brokerage or your mortgage lender’s company.

• Choose a title company that has been in business for at least 10 years.

• Choose a title company that conducts closings by licensed real estate attorneys – not notaries or settlement agents.

• Choose a title company with positive user reviews. Check out Yelp, ActiveRain.com or Google for starters.

Follow my “Best Friends” and you will end up at the closing table of a reputable title company AND pay less.