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Loaner1971
9 Posts |
 Posted - 05/15/2008 : 9:52:44 PM
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I am based in Texas and lend in several states but mainly CA, TX, GA,NV, AZ and FL and I recently got set up to lend in NY and Mass. I'm very aware of what I need to do to get a loan approved in those states but I'm a little confused as to how title and the whole escrow/closing process works. Can anyone offer me some pointers or direct me on who to contact to were I might go to educate myself?
Here are my main questions:
1.In most states were I order title the title company handles the title work and escrow. Is this true of NY and Mass or does a title company just issue title and than an attorney handles the closing.
2. In these states does the correspondent lender(me) select the escrow company to use for closing on a purchase loan or is that specified in the sales contract or by the seller or buyer?
3. I read that at a closing in NY the buyer and seller are represented by attorneys. Is this true and if so should what should I estimate as the borrower attorney cost on my GFE?
4. I read in NY the lender has to pay a tax on a mortgage loan. I'm a correspondent lender. Is this tax paid by the correspondent or does the investor who purchases the loan pay the tax? If the correspondent pays is it built into my rate or am I actually going to get charged a fee? How much is the tax? Does it apply to refinance and purchase loans?
Anything else I need to know would be appreciated. |
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Janlynn
91 Posts |
Posted - 05/16/2008 : 05:59:28 AM
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| I am not familiar with NY, but in MA, I have a great title attorney that I use - very reasonable and superior service. They handle everything- the title and closing. Email me if you want their name/number. There really is not an escrow company per se- title co can do it all. |
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steela
186 Posts |
Posted - 05/16/2008 : 06:18:39 AM
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Good luck in NY. The closing agent makes more than the broker/lender.
I am also in Mass. Janlynn is correct. Closing agent handles the title search, title commit, CPL, title policy and closing. I have one that I have used since 1989 and they'll close a loan for me at midnight at a Burger King drive thru windiow if need be. |
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CoralSnake
11208 Posts |
Posted - 05/16/2008 : 06:50:08 AM
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quote:
Originally posted by Loaner1971
I am based in Texas and lend in several states but mainly CA, TX, GA,NV, AZ and FL and I recently got set up to lend in NY and Mass. I'm very aware of what I need to do to get a loan approved in those states but I'm a little confused as to how title and the whole escrow/closing process works. Can anyone offer me some pointers or direct me on who to contact to were I might go to educate myself?
Here are my main questions:
1.In most states were I order title the title company handles the title work and escrow. Is this true of NY and Mass or does a title company just issue title and than an attorney handles the closing.
2. In these states does the correspondent lender(me) select the escrow company to use for closing on a purchase loan or is that specified in the sales contract or by the seller or buyer?
3. I read that at a closing in NY the buyer and seller are represented by attorneys. Is this true and if so should what should I estimate as the borrower attorney cost on my GFE?
4. I read in NY the lender has to pay a tax on a mortgage loan. I'm a correspondent lender. Is this tax paid by the correspondent or does the investor who purchases the loan pay the tax? If the correspondent pays is it built into my rate or am I actually going to get charged a fee? How much is the tax? Does it apply to refinance and purchase loans?
Anything else I need to know would be appreciated.
1- In NY the title company does title and there is an attorney who does closing for the lender, but you need a title closer to close title as well. This adds about $750-900 attorney fee for closing.
2- In my experience, in all states, the purchaser or his attorney orders title. In NY the broker or lender selects the attorney. Many lenders have a list of approved attorneys that you must chose from.
3- There is no law in NY that states that the buyer or seller must be represented by an attorney at closing (only the lender) but it would be wise for any buyer or seller to be represented by competent legal counsel who will represent them and their interests in contract negotiations and any other legalities involved in purchasing real estate, as they should in any state.
4- Correspondent lender is the lender of record. You pay the lender tax. It is 0.25 of the loan amount. Refis and purchases. |
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