For first-time home buyers, the entire process can be pretty intimidating. This isn’t a surprise, especially when it’s the largest financial investment a person’s ever made. Most home buyers will want to understand exactly what’s involved in each step. For the most part, listing a home and working with a real estate agent is fairly straightforward. However, once it’s time to close on the property, things can get tricky.
A title company plays a crucial role in the closing process. Their clients rely on them to facilitate a number of important details related to the legal title. Because this is such a complex process, first-time home buyers usually have questions. In addition to providing answers, title companies are now using artificial intelligence to make the process easier. Let’s go over some common questions home buyers have and how AI can help during a closing.
How Much Will Closing Costs Be?
Once a first-time homebuyer discovers they have to pay additional closing costs on top of everything else, they want to know what this amount will be. These costs include things like taxes, title insurance, and a title search. A title company will need to provide a closing cost estimate. This is where a virtual closing assistant powered by AI can help. These virtual assistants can take integral information related to the sale and generate buyer and seller closing costs. This is a helpful resource for a title company and will provide an accurate estimate for the buyer.
What Happens During the Closing?
First-time home buyers are usually confused about what to expect from a closing. The process involves legal documents, a financial transaction, and is usually attended by an attorney. This sounds ominous to the buyer, but a title company can put their minds at ease. The title agents, lenders, and real estate agents who handle closings are familiar with the process and can help the buyer out. A title company’s virtual closing assistant powered by artificial intelligence can also be an invaluable resource to clients who have questions or need access to the right documents.
Do I Need Title Insurance?
If a person’s never purchased a home, they’re probably unfamiliar with title insurance. This is a question title companies regularly have to clear up for first-time homebuyers. Aside from learning what exactly title insurance protects them from, the buyer should know how the owner’s policy differs from the lender’s. They also need to know how long coverage lasts. A title company’s job is to provide the right type of policy depending on the situation.
What’s a Title Search?
This is another detail most people won’t understand unless they’ve purchased a home in the past. A title search is performed by the title company and is a critical step in the closing process. Because a title search looks for things like unresolved liens or violations connected to the property, if it’s not thorough, the buyer could suffer in the future. A title company can use their virtual closing assistant to keep track of important documents and information during this step.
Help Home Buyers Start a New Chapter
Title companies help homebuyers through the toughest part of the purchasing process. It’s important they provide the best service and information possible.
Alanna.ai develops AI-powered software for the real estate industry. To learn more, request a demo today.