Closing Tips Checklist: How to be Prepared When Buying a House

Buying a home is a series of new experiences coming at you at the speed of light. And the closer you are to getting your hands on those keys, the higher the stakes are and the bigger the pressure is.

That's why we've put together a comprehensive home-closing checklist. This checklist outlines everything you need to take care of in the days leading up to the sale.

Real Estate Terms You Should Know When Buying a Home

Every profession has its own language. You've likely stood there scratching your head at your mechanic, IT guy, or contractor. The same can be said for real estate. When buying a home, you're likely to encounter brand new terms, and acronyms, that seem foreign to you. However, they play an important part in your real estate transaction.

That's why it's important to know what your agent means when he refers to, for example, an HOA fee or Earnest Money. So we've put together this list of real estate terms any New Orleans homebuyer should know. Bookmark this page, or save it for your records. When you're ready to buy or sell a home, this list could help you save thousands of dollars and hours of confusion.

Understanding the HUD Statement

Home for saleLooking to buy a home? Chances are you know that real estate transactions come with their fair share of paperwork, forms, and contracts.

One of the most recognized forms associated with real estate transactions is the HUD-1 Settlement Statement.

The HUD-1 settlement statement is a standard government real estate form that used to be used by the closing agent to itemize all charges imposed upon a borrower and seller for a real estate transaction.

It was designed to give each party a complete list of their incoming and outgoing funds.

What you need to know about wire fraud in real estate

In 2017, close to $1 billion was "diverted or attempted to be diverted" from real estate transactions, according to an article in the Chicago Sun-Times titled Hackers scam homebuyers out of millions — and it's getting worse.

That figure is so staggering, that it's clear no one is immune. You need to know how to protect yourself so you don't become part of the statistic. And the best way to protect yourself is to know how this happens in real estate transactions.

How Title Companies Determine if a Title is Valid

When you hire a title company during a real estate transaction, you're hiring a company that specializes in confirming the legitimacy of a piece of real estate. Once the legitimacy is confirmed, that company will then issue title insurance for that property.

The goal of the title company is to provide a buyer with peace of mind that once he or she buys a piece of property, they are the rightful owner of that property. With hundreds of thousands of dollars at stake, you can see why title companies play such a pivotal role in every real estate transaction in Louisiana.

But not everyone is clear on how title companies determine a title is, indeed, valid.

Here at Clean Title of Greater New Orleans, we conduct a title search. During this search, we look for outstanding mortgages, liens, judgments, or unpaid taxes tied to the property.


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