First Stop 4 Home Loans

Oh no, the tax credit is gone!  Why would I want to buy a home?  A fantastic question that we will answer in this educational evening about buying your first home.  Please join Steve Howe, Realtor MN Real Estate Team, and me, on Thursday May 20th to learn the steps involved in purchasing a home.  The seminar goes from 6:30-7:30 pm and is located at the Cornerstone Mortgage office at 436 Gateway Blvd in Burnsville.  

Our agenda is simple — to educate.  Would we love to be your Realtor and loan officer … of course.  Do we make you feel like you HAVE to use us — no.  This isn’t a high-pressure seminar.  It’s a relaxed atmosphere where we hope you will learn a lot, get your questions answered and be able to make good choices moving forward in this process.

We will talk about the process in the order you’ll go through it, starting with pre-approval and ending with getting the keys to your home.  We will also discuss the available first time buyer programs and the many reasons why it is still the BEST time to buy, even without a tax incentive.

If you’re interested, please RSVP to clavey@houseloan.com as soon as possible.  We’d love to have you and look forward to sharing our knowledge.  Most importantly, come with questions!

You may have heard that it’s getting harder and harder to qualify for a loan.  It’s true.  Though things have lightened up a bit, some old rules have come back into play, as well as new rules are being enforced more than ever.  For the most part, I am referring to FHA financing below as they are the most lenient when it comes to qualifying for a home.  More than 95% of my clients use this loan type due to this, the lower down payment requirement and the ability to receive a gift.

These days, what do you need to know with regards to credit requirements?

• Your credit score must be 620 or higher.  The line is drawn in the sand on this one — higher requirements for conventional financing.
• You must have THREE tradelines* with at least 12 months history.**
• If you have ANY disputed accounts, we MUST manually underwriter your file, per FHA.***
• Judgments and liens must be paid in full prior to or at closing.
• With FHA, collections do NOT have to be paid off.
• With FHA, student loan payments DON’T have to be counted in the ratios for qualifying IF they are deferred and we can get proof they won’t start until at least 12 months after your first payment is due.

For the most part, these are the main things to know about credit these days.  So you know, first time buyer programs aren’t programs that allow anybody, such as people with bad credit, get a loan.  You first have to qualify for a mainstream loan, like FHA, VA or Conventional.  Once you’ve passed their muster, then we look to see what first time programs meet your situation in terms of income, household size and location.

And some tips for dealing with your credit?  If you want to buy a home, you need to watch a few things:

• Make your payments on time — period.
• Bring your credit card balances down to 50% or less of the available credit.
• Don’t apply for new credit or have your credit pulled.
• Don’t consolidate credit cards.
• Definitely don’t close accounts, whether you use them or not.
• Don’t pay off collection accounts unless your loan officer advises you to (if you pay off an old account, it could negatively affect your score)

Certainly, if you have any questions, don’t hesitate to contact me.  It’s best to talk about what you want to do with your credit PRIOR to doing it.  Easier to “fix” a potential problem before it happens.  Once it’s done, it’s done.

*Tradeline is an item of credit on your credit report.  It can be a credit card, house payment, car payment, student loan or another type of installment debt.  Collections and derogatory credit don’t qualify as a tradeline.

**Some first time buyer programs defer to FHA standard rules and don’t require the 3 tradeline minimum or 12 month history.  Check with a first time buyer expert (like myself ) to see what you can do if you don’t meet these parameters.

***Most loans are run through an automated system to get an answer and all still get seen by an underwriter for final approval.  However, if there is a disputed account, the automated system isn’t acceptable and an underwriter MUST look at the file and stick to standard FHA guidelines.

Are you buying your first home?  How has your experience been so far — with the realtor, loan officer, even the listing side?  What have you heard about the home buying process?  Is there just one house out there for you or could there be more?  Good questions to ask yourself as you go through this unknown and possibly long process.

I can tell you that everyone’s experience is different.  That’s just the nature of the beast.  But, because this is such a personal decision, you really want to  make sure you’re working with people you can trust and actually like.  I know this may sound silly.  I have known people to buy big ticket items, including houses and not like who they worked with.  Gosh, I hate to say it, but I fell into this category once. 

About 9 years ago, I went to buy/lease a car at Lexus.  Now, I drive a mini-van — nature of the “mom” beast!!  Anyway, we only have 2 options in the MN area for Lexus — I chose the closest one to test-drive on December 31st for their “December to Remember” event– so I was under the gun to BUY before January 2nd.  I test drove a car with a salesperson who I am happy to say is no longer there.  I found the car I really wanted, but needed to negotiate the buyout of my other car — I got an estimate from them, lower than what I KNEW I could get.  I was determined I was going to buy a car THAT DAY, so I brought my husband for his seal of approval.  I had the price of the new vehicle just where I wanted it — now for my trade.  A heated discussion ensued between my husband and the used car sales manager about HOW they determined the price — Kelly or NADA.  Oh, what a night of poor behavior on both parties, even me for not standing up to the rude behavior.  To end it all, the salesperson yelled us out the door saying he never wanted to see him in the dealership again — real professional!

My husband was walking … but I wanted the car.  Being a person of great determination and getting my way, I actually went back to the dealership on January 2 and bought the car.  Yes, I bought the car.  I was blinded by my desire to have THAT car, that it didn’t matter how they treated my husband or us.  Looking back, I am ashamed I let something cloud my judgment and my ethical standards.  To this day, that whole deal frustrates me.  I know how people in sales and the service industry should behave.  Though the customer isn’t always right, they deserve to be treated with decency, care and the utmost respect.  We were NOT respected and I still went through with the deal.

Okay, so where am I going with this?  A car purchase is NOTHING in relation to purchasing a home — a VERY big financial decision.  It makes ALL the difference in the world to not only like who you work with, but who you trust.  As first time home buyers, many Realtors and loan officers don’t “have the time of day” to help you.  Maybe your price point is too low or your knowledge is less than a previous home-owner that they don’t want to INVEST in something that may not reap financial rewards.  I know loan officers AND Realtors that have this mindset.  I do NOT do business with those Realtors.  I want someone who shares my similar values and philosophy — doesn’t matter what price, loan amount or what type of knowledge you have.  It is my responsibility to serve you, to educate you and make sure you are comfortable with the process — a process that can be scary and can be blinding by the new “shiny” house.

So what does love have to do with it?  EVERYTHING!  You don’t have to “love” the people you work with, but you definitely have to enjoy and trust them.  Another point of all this — I bought a car from someone who didn’t care about me, who treated me and my husband with disrespect.  A car … how many of those cars are out there?  I had options.  I did NOT have to buy from them.  With houses, this is the same.  You may fall in love with a home that is perfect for you and your family.  It just may be, but what you need to understand is there are other homes out there.  This isn’t the ONLY home that meets your needs.  The Realtor your working with isn’t the only Realtor out there that can help you.  I am aligned with so many AWESOME agents that really do their job for you.  That’s why we’re here.  Sure, we make money and sometimes not enough to cover the time invested.  BUT, it’s not always about the money — it’s about providing a service with our expertise and show you that we care, that we love what we do and we would like you to love the experience.

There you have it.  So, if you’re in a ”bad relationship” with your Realtor or loan officer, don’t give in.  Don’t think that you can’t do any better, that you have to settle.  I’ve done that and it feels horrible.  Nine years later I remember that experience like it was yesterday.  Just think if I was LIVING in that house that someone sold me that wasn’t my best fit or the payment was really out of my range?  Now how do you think I’d feel?  LOVE the characteristics, knowledge, personality and personality of the people you invest your time with to spend the most money you have ever spent before!

Ahhh, the  market.  The market that is flooded with foreclosures — some that are in decent shape, some that are stripped of anything of value and homes that fall somewhere in between.  Here’s the dilemma that many buyers are experiencing … how do I buy that house when the lender won’t finance it due the condition it’s in?  There’s a great question.  With so many opportunities to get a great deal on a house right now, use first time buyer money and take advantage of a 40-year low in rates, how can anyone “make it happen”?

It’s called the FHA 203K loan.  A little background first on where the mortgage market is now.   Most buyers are using FHA financing, which stands for the Federal Housing Administration.  The main reason is the minimum down payment requirement of 3.5%.  Another reason for its popularity is being the closest thing to a “sub-prime” loan.  Now, I am not saying it’s like a sub-prime loan in the true meaning of it.  It is, however, the most lenient loan on credit score requirements.  You need a minimum mid-score of 620.  Conventional loans recently came back to the marketplace with a 3% down loan in part due to the PMI (private mortgage insurance) companies are willing to insure them.  To do 3%, you must be a first time buyer and in most instances, need scores over 700.  My experience these days supports that score being tough to come by.

Since most buyers are using FHA financing, many are unable to get offers accepted on foreclosed properties with any work that needs to be done.  Why?  A few reasons.  First, FHA is a little more strict on safety and structural issues with the homes.  When we send an appraiser to the property, they’re supposed to look for those things that could pose a hazard, such as missing cover plates on outlets, or the biggest one, peeling paint ANYWHERE in/on the home if the house was built before 1978.  Those homes have a higher chance of the paint being lead-based.  If you eat the paint chips, you could get sick — too many, like a little kid might, and you could die.  That’s scary and that’s why FHA is very clear on their position.  So, if any issues are found, they must be fixed prior to closing on the home   Second, many banks won’t accept FHA financing.  Due to the amount of work potentially required by an FHA appraiser, they don’t want to have a deal fall through if an FHA appraisal comes in with work orders.  In 99% of the cases, the bank won’t fix the issues.  Banks are known for selling the home “as is” and really, this makes sense.  They never lived there, so they really can’t comment on water damage or storm damage or stolen fixtures.  Yes, some people DO take the toilet and sink.  Seriously, what are they going to do with that stuff?  Nothing, I would assume – it’s just a way to say “I’ll show you bank for taking my house away”. 

So, if the bank won’t accept FHA financing and most people are buying this way, how can these foreclosures be sold?  The financing that can handle this is called the FHA 203K loan.  Under this program, there are two sub-programs, the streamline 203K and the full-blown 203K or “K” as I call it.  This is a rehab loan that would allow you to get into a home BEFORE those repairs are completed.  The repairs would be addressed in a bid which is added to your loan size.  There are only a handful of companies that do these loans, mostly because they are labor-intensive and carry a lot of risk.  Cornerstone Mortgage has been doing this for years and understands the niche that is filled by doing the rehab loans.

As I mentioned, there are two sub-programs.  The streamline “K” is a more condensed rehab loan.  The maximum addition to your loan size is $35000 including the “K” costs.  The main difference with the streamline vs. the full-blown “K” is that you cannot do any structural or foundation work on the streamline.  You can paint, carpet, replace the furnace, add A/C, change lighting, add a bathroom, do the roof and even something that isn’t re-habby at all like buying appliances.  Most importantl, you can fix those items that are required by the appraiser to bring the home to FHA standards.  Another REALLY cool thing about this streamline “K” is that Cornerstone CAN do a smaller version of this in conjunction with the MN Housing Finance Agency loan (max $15000 including “K” costs) and you could still get $5000 in assistance.  We can do the the regular version with both the City Living and Dakota County programs, which are programs that just received a big chunk of money at a low rate.  And speaking of rates, if you don’t use a first time program, then the rate on the 203K loans will be about 1/4 – 1/2% higher than a normal FHA loan.  Trust me when I say, this is a screaming deal even at a little higher rate.

The second sub-program is the full-blown “K”.  The loan amount that can be added to your primary loan is UNLIMITED, assuming two things — 1) you can qualify for the loan and 2) you stay under the FHA loan limits, which in the 11-county metro area are $365,000.  In this rehab program, you can do anything — like items mentioned above, doing an addition to the home and get this, even tearing down a home just as long as you re-build on the existing foundation.  Yes, seriously.  Of course, you’d have to get that home pretty darn cheap to keep a new home build under $365,000.

You may be thinking, ‘this is cool, but how do I qualify for this?’  Are there any special requirements?  Nope, not really.  You need the 620 score or higher, need to be able to qualify for the higher loan amount and need to do a little extra in terms of paperwork and hiring a contractor.  We have a team of awesome contractors that are ready to give a free bid based off what your needs are and what the inspection may bring to your attention.  We don’t require you to use our preferred contractor partners, BUT, we highly recommend it.  I can tell you stories as to why another time!

Okay, what’s the process?  More than likely, you won’t be looking for homes that need the work.  But, the appraiser may just require that work has to be done and now the 203K program becomes a necessity.  Essentially, you locate the home, make an offer using the 203K (since many bank-owned properties won’t accept regular FHA financing), we have an inspection and potentially have the contractor out there with you to assess the scope of work and provide a written bid.  This information goes to processing with your file and an appraisal is ordered using the purchase price PLUS the bid.  The home will be valued “as-is” and also given an after-repairs value.  Here’s an example of built-in equity.  I helped finance a townhome that  just required new flooring throughout and then the client decided to get appliances (were none in the home)  – home price was $115,000, bid items added up to $13000 — it appraised at $150,000.  WOW, that’s awesome.  The work, not that extensive at all nor value-enhancing per se, just brought the home to a level playing field with the other townhomes that are in good shape.

There is more to the process, but I see that this post has become quite long.  You can wake up now!!  To summarize, you DO have a way to do an FHA loan and still purchase a home that needs work or is bank owned.  We have the opportunity waiting to help you and I do profess that this is one of those programs I have done quite a bit and with great success.  I hope I can help you make the house you’re buying a “dream home”.

Another month, another seminar frenzy.  It’s all about you — it’s in my Vision for You and truly is part of who I am.  To me, education is key to owning your first home.  Sure, I want to help you navigate through your first financing experience on a house.  The Realtors I work with want to help you find your very first house.  Business is business, right?  Partly.  As a team, we have an alterior motive — we want you to be as prepared as possible for buying a home.  So, to this end, I dedicate three nights a month to first time buyer seminars with the help of some very awesome Realtors.

So, what’s in it for you?  My hope is that you will walk away with a greater understanding of what the process is, how to get started, what programs can help with down payment assistance and other information to understand what you’re “getting into”.  There are many people out there, maybe you included, that have a desire to own a home, but hang in the shadows due to fear, credit challenges or even stories about your friend’s bad home-buying experience.  With something so big as buying a house, you do not want to go in blindly, not to mention work with people that don’t have the market knowledge and extensive resources for assistance.   This process should be educational, stress-free and believe it or not, fun!  I get reminded quite often while talking to people refinancing that lenders and Realtors are not created equally.  Not everyone gets to experience this knowing the facts, being given options on first time buyer programs or being led through the process.  Many of my clients who weren’t first time buyers with me were slammed into the system of homeownership without a clue about the loan they were doing, consequences of certain programs, and some were even put into loans that they didn’t have to be in. 

How would you like to get a grip on your first home-buying experience?  The awesome team I surround myself with would love to help “get your education on,” with NO obligation.  We’ll discuss the process from the first step of pre-approval to the last step of closing on your home and getting the keys!  Oh, and did I mention it’s FREE*?

I have THREE seminars coming up in March.  These are the same seminars, so feel free to pick the one that fits with your work or home location. 

The South metro seminars are on Monday the 15th and Thursday the 18th from 6:30-8pm at the Cornerstone Mortgage office located at 436 Gateway Blvd. in Burnsville.  I will be presenting these steps with trusted partners, Brandon Hedges — Homes of Minnesota Team, as well as Steve Howe – Minnesota Real Estate Team.  We will help you take that first step to home ownership. 

If the North metro is a better fit, then join us Thursday the 25th from 6:30-8pm at the Shoreview Community Center — 4580 Victoria St N #203.  This time, I have the pleasure of presenting with Steve, as well as Tony D’Agostino, also with the Minnesota Real Estate Team. 

Trust me — you will go away knowing so much more about the process AND will feel more comfortable now that you’re armed with information – info that many lenders just don’t share!!  Both will be a fun and educational evening. 

Please register by calling 952-808-0042 as space is limited.  Hope to see you there!

*ALL of our team’s seminars are FREE of charge. Cornerstone Mortgage is proud to be a drop-off site for the CAP agency, which is a non-profit organization that collects food items and gently used clothing for Scott, Carver and Dakota Counties. If you can, please donate a canned food item, baby food or clean clothing so we can continue to support the families in need in the communites we serve!

How do you get started buying your first home — short of actually looking at houses or driving around on a Sunday and visiting open houses?  There really is a “first” step in the home buying process.  It’s to get pre-approved.  Now, don’t mistake pre-qualify for pre-approval.  These are two totally different thing!  A pre-qualification is nothing more than gathering some info on your income, assets and debts to let you know the amount you can afford for a house payment and a sale price.  This process does not hold any water and certainly doesn’t tell a seller you can get home financing. 

Being pre-approved means a couple of things.  First, you’ve applied for a loan – which can be done via the phone, in person or mycompany  website which is the option many take.  Our online application is a secure site which will only take you about 5-10 minutes, depending on how long it takes you to type!!   A one-on-one meeting is not necessary at this time, BUT, I do suggest we meet PRIOR to you looking at homes.  There is a lot to learn about the process, the money you need to purchase a home and the different loan programs and first time buyer programs you could qualify for.  I would be doing you a huge disservice if we didn’t take the time to meet.  Generally, my meetings take 1-2 hours.  I try so hard to keep them manageable for you, but it’s my goal that you leave the appointment with a full understanding of what happens next.  And, you feel like ALL of your questions have been answered.

The second piece to a pre-approval is pulling your credit report.  The credit report is important for a few reasons.  First, regardless of whether you are buying your first home or fifth, you must have at least a 620 credit score.  Though it is true that loans insured by FHA (Federal Housing Administration) and VA (Veteran’s Administration) do not have minimum score requirements, it just doesn’t matter.  FHA and VA are not buying or servicing the loan — the end investor is.  THEY are the ones requiring the 620 score.  And, there are some investors that require a 640 score.  This part of the pre-approval puzzle has become crucial to qualifying for financing.  It didn’t used to be this cut and dry.

The third part is submitting your loan to an automated underwriting system or to an underwriter.  In order to confirm your pre-approval, it’s important that I collect documentation to support the information you provided on the loan application.  The following documents will be required from you to complete this process:

-most recent paystub

-last 2 years W2s AND last 2 years federal taxes (it’s the last THREE if you’re applying for a first time buyer program)

-most recent MONTH bank statement, all pages, all accounts

-copy of your driver’s license (this is part of the Patriot Act that came about due to 9/11)

-any court papers, such as bankruptcy, divorce or child support

Because everyone has a different situation, there may be more documents requested.  For instance, let’s say you had a $3000 deposit into your account from the sale of a car.  Your “extra” paperwork would include a copy of the title, cashier’s check you got for the sale and a copy of the blue book value to substantiate the value matches what you sold the car for.  Now you may be asking why this is any of our business, and truthfully, I would do the same thing too.  All lenders want to source the funds you receive.  If you have deposits other then income, then lenders want to know where the money came from — if it’s a loan, then we need verification of that and need to count payments in our debts.  If it’s a gift, then we need to document that according to the specific program you’re doing.  This can be a lot of back tracking which is why during our appointment, I will advise you what NOT to do while in the home-buying process.  It’s better to know what you need to get to verify deposits then having to re-create documentation that may not even exist.

One of the main reasons this is the FIRST STEP in the process is two-fold — first, it insures that you can get financing and two, you will know what price range you can look at, as well as what payment you’re comfortable with.  Sellers will require that you’re pre-approved.  And just so you know, all pre-approval letters are NOT created equal.  Just because a lender says you’re approved doesn’t mean this is true.  Some lenders don’t take the step of verifying the information provided.  Some don’t understand the rules of the first time buyer programs or don’t know the ins and outs of the loan type you’ve applied for.  The paper the letter is written on is sometimes worth more than the actual “pre-approval”.  More times than I can count, I was presented with a pre-approval letter from another company via the Realtors I work with.  Low and behold, they were coming to me to “save” the deal because indeed, the person was NOT pre-approved.  So, how can you tell?  I guess the only suggestion I have is to work with a reputable company, one that’s known for your special needs (i.e. first time buyer programs).  Listen to your agent’s advice.  Even then, they aren’t always connected to the right people.

Woohoo — you’re pre-approved.  Now what?  It’s time to get excited because the fun begins — you get to look at houses and find one that fits your needs, as well as your budget.  Speaking of budget.  This is a VERY important thing to keep in mind.  A lender can tell you your max payment is $1500, but in your heart and on paper, you know going over $1200 would put you in the poor house.  Staying withing your comfort zone is key to having a great home -buying experience.  I don’t plan to make your house payment so you would be wise to have a number in your head for that “max” payment you’re willing to exceed.  When you do put some numbers down as a budget, don’t forget things like insurance, meals out, entertainment, clothing, etc.  Many people forget these things — hey, even a coffee each day adds up!  Another note … being pre-approved with take a lot of disappointment away from the process.  If you start looking at houses you THINK you can afford and then come to find you don’t fall in that price range; you will be frustrated and bummed.  Believe me; I’ve seen it.  It’s better to know what your range is before you start looking — either on your own or with an agent.

So, take the first step to your home buying experience by getting pre-approved.  It’s the one piece of this home buying puzzle that will help all the other pieces fall into place.

If you’re in the loan process right now, your head is probably spinning with all the new information.  Throw in there a lot of references to insurance — insurance for the home (aka hazard insurance), for the mortgage company (aka PMI or MI) and title insurance.  Oh, and to confuse the matter more, you can actually purchase mortgage insurance on your loan (in case something happens to you, the loan will be paid).  What the heck is the deal with all these insurances and what is really protecting you?

I am so glad you asked.  Let’s just start with some explanatory definitions, then I will get to the meat of this.  Homeowner’s Insurance is insurance that covers your home and the contents in case of a catastrophe or burglary.  As lenders, your house is our collateral.  If something should happen to it, we want to make sure you have enough coverage to replace your home.  This is a policy you purchase with your current insurance agent or one I could refer you to. 

If you were to buy a townhome or condo, you may not need this type of insurance.  In most instances the homeowner’s association covers that with the owner’s association dues.  There are some changes that have occurred with investors in regards to requiring a separate policy.  If the association’s insurance policy only covers “studs out”, then you would need to buy a special policy called a HO-6 — basically, this will cover the “studs in”, which means, all your personal belongings along with cupboards, fixtures and appliances.  If the association does have the extra coverage, it is still advisable for you to get the HO-6 policy (just won’t be as expensive) to cover your personal belongings.  In this instance, proof of this would NOT be required at closing.

How about the “dreaded” Private Mortgage Insurance (PMI) on conventional loans or Up-Front Mortgage Insurance (UFMIP) with FHA?  First of all, it’s not something to dread; it’s reality.  And in this day and time with all the private mortgage insurance companies that had to pay on claims due to foreclosure, it will never go away.  In a positive light, it allows you to do a minimum down program.  Anyway, the purpose for mortgage insurance is to insure the lender in case of default.  You remember AIG???  Who couldn’t forget the insurance  company that was bailed out … a few times, right?  They insured a lot of the high risk loans that were done in the past years.  No wonder it’s harder to get this type of insurance.  Only in the last few months have the PMI companies “let loose” a little to do 3% loans.  UFMIP is for FHA loans.  FHA is self-insured.  They have an up-front amount that is financed into your loan amount, as well as a monthly amount for insurance — which is lower than conventional insurance. 

Last, at least the last I intend to address, is Title Insurance.  This is the CHEAPEST insurance you will ever purchase.  There are two types of title insurance — lender’s and owner’s.  The lender’s policy is required to be purchased to insure the lender that they are in first lien position.  One of the title company’s jobs is to search public records at the county to check for any liens.  The title company can only find what is correctly recorded.  You have the  option to purchase a  policy for yourself, called an owner’s policy.  This protects YOU in the event any liens were to appear against the property that you didn’t incur.  For instance, let’s say that a few owners ago, a new roof was put on the home and the owners didn’t pay the contractor.  In order for the contractor to make sure he gets paid, he placed a lien against the home YOU’RE purchasing.  If recorded correctly, the title company will find this and require the seller to pay it off to give you free and clear title.  If, however, someone made a mistake at the county, then it may not show up.  Bummer deal is liens follow the address, NOT the person who incurred them.  Five years later you decide to sell and wah-la, a $5000 lien appears.  Hmmm — what to do?  You have a few options — pay it (cheerfully I’m sure :-D ), go to court to fight it or … drum roll please … at closing when you purchased your home, you purchased owner’s title insurance.  With this insurance, you pay ONCE, at closing, and it covers you for the ENTIRE time you own your home.  This insurance depends on the loan amount and sale price, but for first time buyers, it won’t be much more than $200 or so.  Paying just $200 to save $4000.  No brainer.  The two real estate attorneys I trust would NEVER let their clients close without it.  They spend way too much time fighting in court for other clients that don’t have the insurance.  Unpaid work is just an example of a type of lien, but there are more “opportunities” to have to use it — heirs to a property, divorce situation, many things that may put a  person in title to the home YOU own. 

The long and short — there are many types of insurance during this process.  The only one you have the CHOICE to purchase is the owner’s title insurance.  It’s a necessary, but cheap, evil and well worth the investment.  Just do it!