Lender

Lender

Our experienced Minnesota Title Agents work with professional lenders to provide flawless and timely closings for customers purchasing their first home, their dream cabin on the lake, refinancing their present home, or new construction loans.  We handle everything from start to finish with your lending institution.

Contact our office to speak with Minnesota Title Agent today.

Residential Mortgage Closings - Canoe Country Title assists buyers, lenders and real estate agents with sales and refinances for any type of mortgage - whether it is a first mortgage, junior mortgage, home equity loan, or reverse mortgage.  

Title Services include:
  • Reviewing the title commitment
  • Insuring the closing is conducted in accordance with the lenders requirements
  • Preparing the HUD settlement statement
  • Disbursing all proceeds to appropriate parties to insure all existing liens are properly released
  • Recording the documents
  • Conducting all necessary closing follow-ups

What is a Lender's Policy?

A lender's or loan policy is issued to mortgage lenders.  The lender's policy encourages the sale of loans into another market because the policy benefits the purchaser of the loan. Basically, the lender's policy protects the lender's interest in the property up to the amount of the loan.  It helps to cover any errors made in title work.  Usually the buyer purchases the lender's policy as a requirement to take out a loan, thus the lender's policy offers no protection to the buyer. 

What is an Owner's Policy?

An owner's policy encourages the sale of a property because the policy benefits the buyer of the property.  An owner's policy protects the buyer's interest in the property up to the amount paid for the property.  Similar to the lender's policy it protects against errors made in title work.  Unlike a lender's policy, an owner's policy is optional, and can be purchased by the buyer or seller.

Typical Real Estate Transaction with A Lender

 A real estate lending transaction often begins with a mortgage application. The loan application is usually prepared by the lender for the borrower's signature. Upon receipt of the application, the lender completes its underwriting process and decides whether or not to offer to make a mortgage loan to the borrower. If the lender decides to make the mortgage loan, it usually prepares a written offer—called a mortgage loan commitment—to make a mortgage loan. Mortgage loan commitments are frequently prepared by loan officers or in-house lawyers. In complicated or unusual transactions, however, a lender might ask its outside counsel to prepare the commitment. Upon receipt of the mortgage loan commitment, if the borrower decides to proceed with the transaction, the borrower accepts the commitment by signing and returning it to the lender, often accompanied with a fee paid to the lender.

Upon the borrower's acceptance of the commitment, the lender will usually obtain an appraisal of the real estate serving as collateral for the loan, and an environmental study of the real estate, called a Phase I. The lender will also order title work in the form of a title insurance commitment from a title insurance company and sometimes obtain an engineering or other professional analysis of the real property and its operating systems.
 
At some point in this process, the lender will also direct its lawyer to prepare the documents. When the lender's lawyer has completed the documents, the documents will be forwarded to the title company. If the appraisal of the property, environmental reports, title insurance commitment, engineering or other professional reports, and documents are satisfactory, the parties will close the loan transaction. This process often (but not always) involves a face-to-face meeting between the lender and borrower, called a "closing." At the closing, the borrower will execute the loan documents, and the lender will provide the loan proceeds to the borrower. It is not uncommon, however, for the loan to be made without a formal closing. In this situation, without meeting face-to-face, the borrower will make arrangements to execute the closing documents, often through the services of a closer at a title insurance company, and the lender will make arrangements to make the loan upon the borrower's execution of the documents.

Mortgage

A mortgage is an interest in real estate that the borrower gives to the lender as security for performance of the borrower's obligation to repay the debt. In Minnesota, a mortgage is a lien on the borrower's property and the borrower retains title to the property. If the borrower does not repay the loan according to the terms agreed to by the parties, the lender may foreclose on the mortgage. Issues addressed include:
 
    •  warranties of title
    •  payment of taxes, charges and liens
    •  environmental representations and indemnities
    •  insurance requirements
    •  application of insurance and condemnation proceeds
    •  defaults

Queen City Federal Savings Bank, Boundary Waters Bank, American Bank, Wells Fargo Mortgage, U.S. Bank, 1st Equity, Lendsmart Mortgage, Embarrass Vermilion Federal Credit Union, Northern State Bank of Aurora, Ely Area Credit Union, Northern State Bank, Northstar Mortgage

 Do you have a question? Feel free to send us an email and we will be happy to assist you.