When buying a home, there seems to be a million-n-one rules: don’t change jobs, don’t buy a car, don’t accept large sums of money, don’t don’t don’t. The relief of getting the keys and doing what you want is palatable.
Why? Because it’s not JUST A KEY. It’s a key to dreams, to happiness and laughter, to a place where you’ll grow sweet memories. I get it!
“Homes — the very idea of homeownership — evoke a strong emotional reaction in all of us,” admits Spencer Rascoff. Co-founder of Hotwire.com and former Zillow COO.
Yet, with homeownership comes great responsibility. And I don’t simply mean cutting the lawn to keep the HOA happy or paying the mortgage in a timely fashion. I mean it’s also avoiding the pitfalls of not knowing what you don’t know.
Real estate agents, title companies and lenders follow strict confidentiality expectations with your information. They don’t sell your name and address to the next highest bidder. However, there are those whose purpose in life is to capture data when public information is recorded at the local county clerks office, and they sell it.
That, friends, is how you get the personalized Bed Bath & Beyond coupons and the welcome basket from the Chamber of Commerce. It’s also how you’ll be notified of services that are advertised as making your life easier, for a small fee, of course. And what you don’t know, is that those services are free, or unnecessary.
Homestead Application: The homestead exemption is a legal provision offered in most states that helps shield a home from some creditors following the death of a homeowner’s spouse or the declaration of bankruptcy. It is also a way to minimize property taxes for homeowners. In Texas, this document is available thru the local county office, however, it’s not uncommon for new owners to receive what appears to be a very official letter with the state seal emblazoned on the return envelope requesting a $35-$50 application fee to file. A homestead application is free.
Deed Transfer Protection: A deed transfer is a signed legal document that transfers ownership of an asset to a new owner It is used to move the ownership of some sort of property from one entity to another, such as from one person to another, from one business to another, or any combination of the two. The person transferring the property is called the “grantor” and the person receiving is the “grantee.” Unscrupulous advertisers are scaring homeowners into thinking anyone can just take your home willy-nilly and offering services protecting deed transfer and falsification of deeds. Don’t fall into their trap! Contact your local county clerk to ask how to have a notification added to watch for unsavory activity.
Mortgage Protection Insurance: Mortgage protection insurance (MPI) is a type of insurance policy that helps your family make your monthly mortgage payments if you die or become disabled before your mortgage is paid in full. It is different from private mortgage insurance (PMI) or FHA mortgage insurance, which protect the lender against default on mortgages. In theory, this sounds great! However, the monies can only be used to be sure your mortgage loan payment is made on the specific house in the policy… which means if it’s in your best interest to sell, they money stop. Take my opinion for what it’s worth; if you’re concern is financial stability in the face of tragedy, talk to a life insurance agent or Aflac subsidy.
County Tax Assessor “Welcome”: A county assessor has to locate, identify, and establish the assessed value of all taxable property in accordance with the law. It’s unimaginable how daunting a task that is even with staff to help in communities with hundreds of thousands of homes. So, the next easiest way to do it …. ASK! Which is exactly what the Welcome letter is about, you doing the assessors job to be sure they collect the right about of funds on the next tax bill. Texas is a non-disclosure state! You are under no obligation nor law to provide the sales price of your home to anyone or any authority.
You’ve scrimped and saved, you budgeted, planned and followed the rules … by choosing how to spend your money, you achieved the American dream. That doesn’t change when you’re handed the keys.