Colony Title Group, Ltd.

Negotiating home prices in the current economy can nerve wracking, so, we are here to offer a few tips on the best approach for setting mortgage rates and settling on how much to offer when it comes to buying a house.

Do your Homework

That’s right – open up your internet browser and be prepared to do a little studying. One of the best ways potential homebuyers can prepare themselves for the process of negotiation is by conducting a Comparable Market Analysis (CMA), which will reveal  the price at which  comparable homes in the area sold. Consult with a real estate agent to figure out what houses belong in a CMA, and be on your way to being well-prepared to make an appropriate offer on your future house.

Research your Seller’s Motivation

Though homebuyers are not always made privy to this information, knowing why the seller is putting his house up on the market can make a big difference in how willing he is to negotiate and how much time he has to make a sale. Certain scenarios lend themselves to more bargaining power. Does the seller have to sell because he is relocating for a job, can longer afford his mortgage, or needs to upsize? Or do he simply want to – because he has interest in testing the market to see if his home will sell, is thinking about buying a new house while it’s still a buyer’s market, or otherwise. Luckily for prospective buyers, most homeowners are selling now because they have to – and this can give you leverage in negotiating price.

Don’t Be Late

Just like you don’t want to dawdle in the hallway and get into the classroom after the bell has rung, you can’t waste time when it comes to buying a house. Don’t expend your energy on immovable sellers, and don’t waste sellers’ time with unfair offers. If a seller is not open to hearing about CMAs, it may be a sign that he’s not serious about closing a deal. And if buyers come in with lowball offers, it makes them seem like an undesirable candidate who isn’t truly committed to buying the property at hand.

Keep these tips in mind when embarking on the process of negotiating home prices – it will help you to make informed decisions about price points and to be on your way to owning a new home.

Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings per year in the central Maryland area. Our experienced staff can handle closing transactions from start to finish, from preparing contracts to putting those on the search for a new home in touch with our large network of Maryland realtors. To learn more about our services, please contact the Maryland real estate insurance experts at Colony Title Associates by calling 410-884-1160 or visiting ColonyTitle.com today!

You can also follow Colony Title on Facebook, Twitter, and LinkedIn.

Sources:

Home Buying Tips: Negotiating House Prices

Real estate agents are considered the go-to experts and consultants in the home buying process, as they guide both homebuyers and sellers through real estate transactions. But in order for real estate agents to effectively handle all the paperwork associated with closing on a property, they often consult a title insurance company. Here are a few insights that explain why a title insurance company – in Maryland or elsewhere – can be a big help in making the transaction process smooth from beginning to end.

Why Real Estate Agents Need a Title Insurance Company

Coordination: Many title insurance companies don’t just perform title searches, but also coordinate each step of the settlement process to avoid headaches for real estate agents over technical documents.

Document Review: In the event that legal documents need to be looked over with a fine comb by legal experts, many title agents are also attorneys, and can handle the paperwork for you.

Title Insurance: What goes into the process of procuring title insurance? A title agent will perform a search on the property in order to protect homebuyers from any fraud, forgery, or incorrect documentation made in the past. Title insurance guards from any of these unforeseen claims made against a property.

The title insurance agents in Maryland at Colony Title can help real estate agents handle client transactions with ease.To learn more about our services, please contact the Maryland real estate insurance experts at Colony Title Associates by calling 410-884-1160 or visiting ColonyTitle.com today!

You can also follow Colony Title on Facebook, Twitter, Google+, and LinkedIn.

Though we’re all culprits when it comes to shopping and purchasing items at national chains and big box shops, sometimes goods and services are better sourced locally. Farm fresh veggies from the field miles from your house are likely to taste better than those shipped in from the other side of the country. Buying furniture, clothes, or other wares from a local business boosts town economies, circulating money within the community and fostering employment. At Colony Title, we’ve seen that the trend to live local shouldn’t be cut short when it comes to real estate advice.

In the last couple of months, we’ve had an influx of clients come to us after seeking out the best rate for refinancing from out-of-state lenders sourced online. Though they made bold claims to offer the lowest possible rate for mortgages, their lack of knowledge about the location of the properties meant that their appraisals were often inaccurate. In one case, a property that was acquired for $600,000 just five years prior would not support an appraisal of $250,000. Another house, bought for $950,000 and then renovated and upgraded, wouldn’t support a new loan of $800,000. Why were there such discrepancies in the quotes from these lenders?

What the difference in appraisal comes down to is the lenders’ deficit of information about the local market and their general hesitancy to work through issues if there was a glaring disparity between their pricing assessment and the actual value of a property. When the borrowers converted to a local lender like the ones that Colony Title works with, they were able to get an accurate appraisal, approve their loans and close on the deal. The takeaway is this: claimed rates supposedly guaranteed by lenders aren’t the only means of choosing a lender. The associates at Colony Title are happy to work with you to help you find the lowest rate you can possibly obtain, making the borrowing process a simplified one.

Currently, rates in the area for conventional fixed mortgages are under 4.0%, while ARMs can be anywhere as low as 3% – sometimes even better. Jumbo loans are higher, but still available at attractive rates. Realtors in the Maryland area have agreed that we are at an all-time-low from a pricing standpoint – now is the time to invest!

At Colony Title, we can help you to find the best rates in real estate – we want to be your title company and real estate law firm.

If you have questions, the Maryland real estate insurance experts at Colony Title Associates can be reached by calling 410-884-1160 or visit ColonyTitle.com today!

You can also follow Colony Title on Facebook, Twitter, and LinkedIn.

The real estate market is beginning to improve: rates are down and housing contracts are being submitted near or at the asking price of properties if the home is listed at a fair and appropriate price.

With low rates, the question on many homeowners’ lips is whether or not to refinance. A lot of our clients approach us with hesitancy about adjustable rate mortgages. We respond to their uncertainty with a question: “How long do you plan on staying in the house you have now?” If it’s ten years or less, we recommend an adjustable rate mortgage, since it can be fixed for 5, 7, or 10 years at a rate below the 30-year fixed rate. This allows for some degree of flexibility, giving borrowers the luxury to invest their savings as they see fit – including possibly paying the difference towards principal.

With the state of the market, investors are looking to buy, and with the tax savings, rental properties are becoming more and more valuable. Though closing on a property in foreclosure can be a risky ordeal, the professionals at Colony Title can help you to make the right moves.

As an independent business, we have something to offer you that most other title companies cannot. The title company recommended to you by your realtor or lender oftentimes has a financial connection to said advocate. This means that the title company’s allegiance could be questionable.

At Colony Title, we have maintained a status as an independent company that does not call to a captive realtor or lender, meaning that we provide unbiased, professional representation and advice for our clients.

Right now, there is a locally pending lawsuit that seeks to answer what happens when lenders, realtors, and title companies are linked – and whether that serves the consumer well or not. Here at Colony Title, we are interested to see what conclusions the court reaches, and are confident that our independent status helps us serve homebuyers in the best possible capacity.

We want to be your title company and law firm. We work very hard to deserve your trust. If you have questions, the Maryland real estate insurance experts at Colony Title Associates can be reached by calling 410-884-1160 or visit ColonyTitle.com today!

You can also follow Colony Title on Facebook, Twitter, and LinkedIn.

According to a new real estate study, the old trope holds true: buying a home is often more affordable than renting one.

Conducted by the real estate information online resource, Zillow, the study examined 200 metropolitan areas and 7,500 cities to determine how long it would take before a homeowner would begin to see the financial payoff that comes with purchasing a home. In about three of every four metro areas tracked, the break-even point was ushered in in as little as three years – or less.

Factors considered in reaching this conclusion were housing and renting costs – including down payments, property taxes, closing costs, maintenance fees, tax deductions, rental payments, and mortgage expenses.

Of course, there are always exceptions, and it’s no doubt that some pricier real estate markets – like San Jose, California – have a significantly longer timeframe when it comes to reaping the financial benefits of homeownership. While about 7% of the 200 metropolitan areas followed took over five years to reach the break-even mark – all of which, again, were in California – many areas took only 1.6 years. These real estate hot spots include Memphis, Tennesse; Salisbury, Maryland; Red Bluff, California; Fernley, Nevada; and Tampa, Florida.

The chief economist at Zillow, Stan Humphries, insists that the unprecedented affordability of housing throughout most of the country ensures that buying a home is an increasingly wise decision. Contributing further to the incentive to hop on the home buying bandwagon is the reality that rents have risen more than 5% over the past year, according to Humphries.

If you’re prepared to take advantage of the nearly nationwide real estate deals, the Associates at Colony Title are here to help you further make the most of your money, with our one-time cost insurance and affordable title search services. Just like buying rather than renting, making the investment in title insurance now will save you money in the long run by protecting you against unsettled claims on your property’s title.

If you have questions, the Maryland real estate insurance experts at Colony Title Associates can be reached by calling 410 884-1160 or visit ColonyTitle.com today!

About Colony Title Associates:

Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings per year in the central Maryland area. The founder Tee Tillman has over 23 years experience in the title and real estate law fields. Colony handles closings for several lenders, including banks, credit unions and mortgage brokers. Colony is the preferred choice for many real estate brokers in the area.

You can also follow Colony Title on Facebook, Twitter, and LinkedIn.

Sources:

Many Homeowners break even shortly after buying, new analysis reveals

According to the 2012 U.S. Primary Mortgage Servicer Satisfaction Study conducted by J.D. Power and Associates, Americans are in less financial distress than ever when it comes to home affordability: the rate of overdue payments has significantly decreased.

The probable reasons for the sudden surge in homebuyer affordability?  Historically low mortgage rates, affordable closing costs, and loan modification programs.  Of those polled, 7% reported that they were up-to-date on mortgage payments because of payment arrangements that they had made with their mortgage provider or through a loan modification plan.

Compared to the results of a similar poll held last year, homeowners claimed to have less trouble keeping up with mortgage expenses: 15% affirmed less financial strain as opposed to 17% just a year ago.

Besides decreased financial anxiety with homeownership, Craig Martin, J.D. Power’s mortgage practice director, revealed that individuals have communicated that they are more content with their mortgage servicers as well.  According to J.D. Power’s index, mortgage servicer satisfaction jumped from 718 to 725 between 2011 and 2012 on a 1,000-point scale.  This contentment is likely due to improved access and comprehension of real estate buying information.

Hopefully, additional customer satisfaction is to come: in April of this year, the Consumer Financial Protection Bureau put forth a number of new rules for mortgage servicers to potentially abide by, including monthly breakdown of payments, warnings prior to an increase in interest rates, and better efforts to issue early notice when foreclosure is a possible risk.  If these guidelines are adopted, they will go into effect next year, and should aid in making the borrowing process painless for homebuyers.

At Colony Title Associates, we are likewise committed to making your homebuying processes stress free, which is why we’re here to perform title searches on your home and issue title insurance for your protection.  Our services will help protect you against title defects, liens, and other issues, thereby ultimately lessening your financial burdens and contributing to the continual affordability of homeownership.

If you have questions, the Maryland real estate insurance experts at Colony Title Associates can be reached by calling 410 884-1160 or visit ColonyTitle.com today!

About Colony Title Associates:

Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings per year in the central Maryland area. The founder Tee Tillman has over 23 years experience in the title and real estate law fields. Colony handles closings for several lenders, including banks, credit unions and mortgage brokers. Colony is the preferred choice for many real estate brokers in the area.

You can also follow Colony Title on Facebook, Twitter, and LinkedIn.

Sources:

Study: Fewer homeowners in financial distress

Twelve years ago in 2000, the real estate industry took its first stride towards going green with paperless transactions.  It was in Broward County Florida that the original computerized home buying process took place, cutting the process of recording the purchase and financing of a home down to a whopping five minutes.  At the time, confirmation documents with the pertinent information was forwarded to the settlement agent by email immediately, and images of the recorded documents were swiftly made accessible on the county’s website.

Since, then, however, many real estate companies around the States have been lagging when it comes to catching the train to paperless proceedings.  In fact, in many parts of Maryland and Washington DC, the real estate world has failed to upgrade from horse-drawn cars to steam locomotives: they still use paper, pen, and notary stamps.

The major issue with this old-fashioned method of record keeping is time: it requires making several trips to courthouses or recorders of deeds, which in turn calls for payment of fees and the presentation of original documents for recording.  Manually processing, imaging, and returning these documents can take anywhere from two to eight weeks, depending upon the jurisdiction.

But why hop aboard the paperless trend?  It eliminates the need for a middleman to drive sale contracts around town, and strikes the necessity for buyers and sellers to meet together in one place at one time.  Too, it will rid of illegibly re-faxed contracts and messy documents with cross-outs and different handwriting.  Going electronic also means, of course, that purchases and sales documents all have the capacity to be stored and accessed in digital form at any given point in the near or distant future.  Finally, it will provide homebuyers with the luxury to review documents from home on their own time, and to conveniently forward the information to attorneys for evaluation.

Digital signature programs like Authentisign, which is approved by the Federal Housing Administration (FHA) and complies with the Federal Electronic Signatures in Global and National Commerce Act (E-SIGN), have streamlined the process of electronic documentation.  Essentially, what E-SIGN did was to ensure that contracts couldn’t be denied validity just because they were in a digital format.  This in turn revolutionized the secure authentication of real estate contracts.

Whether or not the real estate company you’re working with in your endeavors to find a new home have gone paperless or not, it’s important to remember that Title Insurance, just like electronic forms, will ultimately make your home buying process that much simpler.  With a one-time payment fee, title insurance will protect you and your home against any potential title defects, liens, or other issues, freeing you from the prospect of legal issues.  It’s important to select a company like Colony Title that will perform thorough checks of public records to ensure your property is actually available for sale before you sign those documents, whether electronically or with pen and paper.

If you have questions, the Maryland real estate insurance experts at Colony Title Associates can be reached by calling 410 884-1160 or visit ColonyTitle.com today!

About Colony Title Associates:

Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings per year in the central Maryland area. The founder Tee Tillman has over 23 years experience in the title and real estate law fields. Colony handles closings for several lenders, including banks, credit unions and mortgage brokers. Colony is the preferred choice for many real estate brokers in the area.

You can also follow Colony Title on Facebook, Twitter, and LinkedIn.

Sources:

Real estate in the digital age: The time has come

With headlines optimistically indicating that the housing market is making steady improvements, more and more potential homebuyers are feeling confident about investing in real estate, according to a poll conducted by Prudential Real Estate.

The survey indicated that almost 70% of those polled believed it was an optimal time to sign a Deed and acquire the keys to a new home.  Juxtaposed with a comparable poll held at the beginning of the year, that’s an increase of 6%, and a rise of 17% since last year, in 2011.

The poll further suggested that consumers understand that the phrase, “it’s a buyer’s market,” holds some validity, as 72% of them predicted that real estate costs would escalate over the course of the next two years.   This means that people are ready to act and they’re ready to act now: potential homebuyers know that it’s a suitable time to think about settling down in a permanent place.

Of course, that being said, many consumers don’t want to enter the world of residencies without a little help: about 74% saw a need to consult with a professional and reputable real estate agent to make the process run a little smoother.  At Colony Title, we agree: working with housing experts will help you obtain what you want within your budget.

Though the associates at Colony Title aren’t real estate agents, we are specialists in performing title searches and providing title insurance.  Here at Colony Title, once a search has been conducted, we prepare the title insurance commitment, the Deed, settlement sheet and in many cases loan documents. We conduct the closing, collect and disburse all funds to the appropriate parties, record all necessary documents including deeds, mortgages and mortgage releases in the appropriate jurisdictions. Once all documents have been recorded in the County, a final title policy is issued. 

About Colony Title Associates:

Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings per year in the central Maryland area. The founder Tee Tillman has over 23 years experience in the title and real estate law fields. Colony handles closings for several lenders, including banks, credit unions and mortgage brokers. Colony is the preferred choice for many real estate brokers in the area.

You can also follow Colony Title on Facebook, Twitter, and LinkedIn.

As anyone knows, home buying can be expensive. First and foremost, there is the cost of the house. But then there are all of the closing costs, as well, including: Title Search, Attorney Fees, Recording Fees, Lender’s Title Insurance, Home Inspection, Home Appraisal, Home Warranties, and much more! So it is no wonder that many home buyers are hesitant to shell out any more money for optional coverages, such as Owner’s Title Insurance.

But according to REALTORs everywhere, Owner’s Title Insurance is a must!

Owner’s Title Insurance is one of the least understood, yet incredibly necessary insurance policies around. If a previous owner perpetrated a fraud, committed a forgery or the clerk of the land records failed to record or recorded incorrectly, the purchaser is unprotected without Owner’s Title Insurance.

The most common causes of title encumbrance include:

• False impersonation of the true owner of the property
• Forged deed, releases or wills
• Undisclosed or missing heirs
• Instruments executed under an invalid or expired power of attorney
• Mistakes in recording legal documents
• Liens for unpaid estate, inheritance, income or gift taxes
• Fraud

With the Owner’s Title Insurance, the title insurance company incurs the expense of determining the validity of a claim and defending against the claim. If there is a title defect, the title insurance company pays the claim so that the purchaser retains ownership without loss, or compensates the owner for any and all losses incurred as a result.

We at Colony Title want to be your Title Company and real estate law firm. For additional information, please contact Tee Tillman at 410.884.1160 ext. 3007 or visit ColonyTitle.com today!

About Colony Title Associates:

Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings per year in the central Maryland area. The founder Tee Tillman has over 23 years experience in the title and real estate law fields. Colony handles closings for several lenders, including banks, credit unions and mortgage brokers. Colony is the preferred choice for many real estate brokers in the area.

You can also follow Colony Title on Facebook, Twitter, and LinkedIn.

Maintaining good credit is often one important aspect of people’s finances that they completely neglect until it is too late, like when they want to apply for a home mortgage. Did you know that most lenders require a minimum credit score of 680? Do you know what your credit score is?

Disturbing Facts about Credit Scores

• 79% of all credit reports have errors
• 25% of all credit reports have errors large enough to keep you from obtaining credit

Tips for Maintaining Good Credit

1. Occasionally obtain a copy of your credit report and go through it line by line to make sure everything is accurate. If you notice an error in your credit report, notify the credit-reporting agency as soon as possible.
2. Keep your credit card balance at less than 30% of your credit limit.
3. Be sure to pay your bills on time. Even just a few late payments can really damage your credit score.
4. Avoid going to a collection agency at all costs. If you are contacted by the collection agency, you have 30 days to resolve the problem before it appears on your credit report. A collection account can lower your credit score significantly!

Have any more questions? Contact the Real Estate experts at Colony Title!

We at Colony Title want to be your Title Company and real estate law firm. For additional information, please contact Tee Tillman at 410.884.1160 ext. 3007 or visit ColonyTitle.com today!

About Colony Title Associates:

Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings per year in the central Maryland area. The founder Tee Tillman has over 23 years experience in the title and real estate law fields. Colony handles closings for several lenders, including banks, credit unions and mortgage brokers. Colony is the preferred choice for many real estate brokers in the area.

You can also follow Colony Title on Facebook, Twitter, and LinkedIn.