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What is Remote Online Notarization? 

Notarization is the process of authenticating a signature on a document by having an authorized person, called a notary, witness the signature. Remote online notarization (RON) allows you to use virtual video-audio conferencing to have your paperwork notarized. The documents are signed and witnessed digitally. It allows individuals, banks, law firms, and other parties involved to connect with a notary through the internet. RON retains all the components of a traditional, in-person notarization, but the process is more secure and convenient.  

RON can be used for: 

• Power of Attorney 
• Auto Title Transfers 
• Deeds 
• Real Estate Transactions 
• Establishing trusts 
• Beneficiary changes and retirement distributions 

What are the Benefits of Using RON? 

1. Convenience and Easy Access 

Without the ability to get documents notarized digitally, you would need to travel to a notary and sign the documents in person. This inconvenience can be avoided by digital authentication, eliminating paperwork. 

Scheduling a signing is much simpler and more efficient when all parties involved do not need to be present in the same room. Anyone with access to the internet within the United States can have their signature verified by any notary from the states that have legalized RON. You and every party involved can simply just agree on a day and time that is best for everyone.  

2. Decreased Likelihood of Fraud  

The identity verification process has multiple steps to it. Through knowledge-based authentication (KBA), you are given a questionnaire that is generated based on your personal history and your credit history. To verify your identity, you must answer the questions provided correctly. You may also need to show your government-issued photo ID, driver’s license or passport to prove your identity. The requirements for authentication vary from state to state. 

 RON allows you to use audio-video technology to sign and notarize documents.

3. Increased Security 

Compared with physical paperwork, digital documents are less likely to be lost, stolen, or damaged. RON provides fully digital records of your notarizations. The entire video chat is recorded in real-time and saved for future references, including the identity verification and the notarization of documents. 

How Does Remote Online Notarization Work? 

The RON law has specific requirements and standards for how remote online notarization must be performed depending on the state. RON is also not available for non-U.S. citizens who reside outside of the United States. 

The remote online notarization process is simple: 

1. The documents are uploaded to be signed and notarized 

2. The signer accesses the RON platform and begins the authentication process 

3. The RON platform will start the recorded video chat session with the signer and witness 

4. The notary will complete the infinity validation and credential analysis 

5. The signer will digitally sign the document 

6. The signer will receive digital copies of all notarized documents 

7. A copy of the video recording, including the authentication process, witnesses and documents are uploaded and stored to the notary’s digital journal.  

Remote Online Notarization facilitates the process of notarization. The process becomes more convenient and secure when compared to traditional notarization. Most lenders are still not allowing their recordable documents to be signed this way, but Express Title Company is. If you are interested in learning more about RON, Express Title’s experienced team can help you every step of the way.  

The post 3 Reasons Remote Online Notarization Simplifies the Homebuying Process  first appeared on Express Title Company.

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What is Private Mortgage Insurance? 

Private mortgage insurance is designed to protect mortgage lenders, not the homeowners. When you buy a home and make a down payment of less than 20% of the home’s purchase price, your lenders might require you to secure PMI. PMI protects your lender from the risks of default and foreclosure if you stop making payments on your loans.  

If you are required to pay private mortgage insurance, it can either be paid in full at the time of closing or added to your monthly mortgage payment. PMI is not a permanent expense and can be dropped from the monthly mortgage payments once the borrower’s loan balance reaches 78% of the original value, or in other words, when equity reaches 22%. Borrowers can also request the PMI be removed when they pay the principal equivalent of the 20% down payment toward their loan.  

Tips for How to Avoid Private Mortgage Insurance 

1. Make a 20% down payment  

The simplest and ideal way to avoid PMI is to make a large down payment of at least 20%. A larger down payment can offer you an advantage, however, not everyone can afford it. The average cost of a home is $375,000 nationally, and that means that 20% of that is $75,000. One way to produce this amount is to save up overtime.  

2. Utilize Lender-Paid PMI 

An alternative to eliminating the costs of monthly payments from PMI is to get a lender to pay for it, known as lender private mortgage insurance (LPMI). This option helps you as a homebuyer get a mortgage on your new home with as little as a 3% down payment, however, the lender will charge a higher interest rate. Therefore, it is important to compare costs and benefits before accepting LPMI. 

3. Use a “Piggyback Loan”  

A piggyback loan, sometimes called an 80-10-10 loan, provides a way to double the size of your down payment with the help of a second mortgage. The first mortgage covers 80% of the home price, and the second covers 10%. The remaining 10% is covered by your down payment. If your lender does not offer a second mortgage, you can get it from a local bank or credit union.  

4. Military Member or Veteran 

If you are a member of the military or a veteran, you qualify for a VA loan. VA loans that are backed by the Department of Veterans Affairs do not require PMI, however, there is a one-time funding fee.  

Homeownership is a monumental life event worth every penny. While waiting to buy a home until you have saved 20% of the down payment may seem like the best option to avoid Private Mortgage Insurance, this shouldn’t be the only thing holding you back. Buying a home can be frustrating and exciting at the same time, so before you use all your savings or retirement funds to pay for that 20% down payment, it is worth remembering that PMI is not tacked onto your expenses forever. To learn more about how Express Title can help you achieve homeownership, contact our team today. We are here to help you every step of the way.  

The post How to Avoid Private Mortgage Insurance   first appeared on Express Title Company.

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What is Title Insurance? 

The purpose of title insurance is to protect the insured against losses that occurred in the past before you even owned the home. During a home buying process, a title insurance company, such as Express Title, will perform the title search and examination that will provide the basis for the title insurance policies that will be issued to you and your lender.  

Title insurance is not required for homeowners, but it is often required for lenders. Even though it is not required for homeowners it is recommended, because without it the buyer will be responsible for any legal costs and may potentially lose the property.  

Types of Title Insurance  

Owner’s Policy:  

• Not required but recommended 
• Protects the equity of the property 
• Protects the buyer 
• Lasts for as long as you or your heirs own the property  

Lender’s Policy:  

• Required by most banks and mortgage lenders 
• Protects lenders until the mortgage is paid off 
• Expires once the mortgage is paid in full 

Benefits for Buyers with Title Insurance 

Being a homeowner without title insurance is risky as you may not be protected from claims against ownership of the property and may lose the investment. With an owner’s title policy, homeowners also receive the following rights:  

• You would be able to use the property as you wish 
• Be free from debts or obligations that were not created or agreed upon you  
• Be able to freely sell or pledge your property as security for a loan.  

It is recommended to invest in title insurance because it will protect the buyer if any title defects occur in the future. Buying title insurance will help you have peace of mind knowing that you will be protected from expenses and legal suits.  

Types of Claims or Risks Covered by Title Insurance 

At Express Title, we offer two levels of coverage: Standard and Enhanced. 

Standard Coverage Covers: 

• Forgery and Impersonation 
• Lack of Competency, Capacity, or Legal Authority of a Party 
• Deed not joined in by a Necessary Party including 
  • co-owner, heir, spouse, corporate officer, or business partner 
• Undisclosed Prior Mortgage or Lien 
• Undisclosed Easement or use Restriction 
• Erroneous or Inadequate Legal Descriptions 
• Lack of Right of Access  
• Deeds not Properly Recorded 

Enhanced Policy will Cover all the Risks of Standard Coverage Plus: 

• Off-Record Matters – claims for adverse possession or prescriptive easement 
• Deed to Land – buildings encroaching on land of another incorrect survey 
• Silent Liens – such as mechanic’s or estate tax liens 
• Pre-existing violations of subdivision laws, zoning ordinances, or CC&R’s  
• Post-Policy Forgery 
• Forced removal of improvements due to lack of building permits 
• Post-policy construction of improvements by a neighbor onto insured land 
• Location and Dimensions of Insured Land 

Protect Your Home with Title Insurance 

Homeownership is a monumental event and an investment worth protecting. At Express Title, our team provides knowledge and expertise to ensure that your home and family are protected now and into the future. If you are interested in learning more about title insurance, please contact us today! 

The post What is Title Insurance? Benefits for Buyers  first appeared on Express Title Company.