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4 Things to Know Before You Close a Loan

Considering purchasing your piece of Texas? Watch Lone Star Lending Expert Garrett Edwards as he shares the four things you need to know before closing a loan! From the survey to liens, easements and flood zones, our Lending Experts are here to help answer your questions. Click here to contact us for more information, and read the full guide on purchasing land in Texas here: "Ultimate Guide on How to Purchase Land in Texas" here


Four Things to Know Before Closing Defined:

Read below for a definition of each term discussed in the video above.

Survey:

A property survey shows the boundaries of the property indicating the acreage amount, and includes a written description of the property, and should show including any structures that would transfer with it.

Lien:

A lien is an interest in land held by a person other than the owner as security for a sum of money owed to that person (such as a loan or a judgment). When a property that is subject to a lien is sold, the lien must be discharged (by payment of the money owed, for example). Otherwise, if the lien is not discharged, the lien will stay attached to the property, even after the sale, and can be foreclosed to enforce the obligation(s) it secures.

Easement:

An easement is the legal right to use a property for a specific purpose, despite not owning the property. The easement runs with the property, meaning the new owner would be obligated to the same agreement. Easements may exist for things like railroad tracks, power lines, drainage, and access.

Flood Zone Determination:

Knowing whether or not the property you want to purchase lies within a flood zone will impact lending as well as insurance.



Published October 8, 2019