Obtain Hazard Insurance (well before closing)

• If you are purchasing a single-family residence,
  your credit union will require you to obtain hazard
  insurance for the replacement value of the
  property. If you are buying a condo or townhouse,
  get a copy of the HOA’s umbrella insurance policy.
  You will likely also be required to purchase
  insurance coverage protecting the interior, including
  contents.
• Certain hazards are not covered in a standard policy
  (flood, earthquake), and you may be required to
  purchase additional insurance.
• Members should obtain more information
  regarding specific insurance requirements
  from their credit union.

Prior to Closing: Review Closing Disclosure

• The “Know Before You Owe” rules require your credit union to send you a form called a Closing Disclosure at least three business days before your loan closes. The Closing Disclosure lists your final mortgage costs in the same format as the Loan Estimate. You should compare your Loan Estimate to the Closing Disclosure and make sure that you understand the reason for any differences. Be sure to keep a copy of your Closing Disclosure; because some of the closing costs may be tax-deductible.

Closing Agent or Settlement Attorney

• Generally, these important closing functions are performed by a title or escrow company. In certain regions of the country, specially trained closing attorneys deal with this task.

Title Insurance 

• Your credit union will recommend a title insurance provider, but you have the option to choose for yourself and decide on coverage options. Title insurance policies protect both you and the financial institution against losses resulting from certain claims, such as others claiming ownership to the property or undisclosed liens against the property.
• A title insurance company will research public records to ensure that the seller holds legal title to the property and that there are no undisclosed liens or past due taxes.
  
  
  While all this may get complicated we can help you make sure you have the knowledge for the market to be in your corner.
  

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