Page 13 - Home Buyers and Sellers Handbook English - California

6. Closing Disclosure (CD)
• The CD is designed to make it easy for you to understand the terms of your loan.

• The CD must be delivered to the buyer/consumer at least three business days prior to signing the
final documents.
• If the CD is delivered via email, it is important to acknowledge receipt to avoid additional delays.

• The CD may also be mailed seven days in advance and does not require proof of receipt.
• This time allows you to share it with your agent, attorney and/or financial advisor, and ask questions or get
clarification from your lender about the terms and conditions of your loan.

7. Lender’s Title Insurance Policy
• Lenders typically require their borrowers to purchase a Lender’s Title Insurance Policy for the purchase
of a loan(s).
• The fees are usually based on the amount of the loan(s).
• A lender’s policy protects only the lender’s interests should a problem with the title arise.

8. Owner’s Title Insurance Policy
• Research the value and importance of an Owner’s Title Insurance Policy early on in the process of obtaining
a loan and closing on the purchase of your home.
• Homebuyers often assume that the Lender’s Title Insurance Policy protects them from challenges to their
ownership rights in the property being acquired. This is not the case. Instead, the homebuyer’s interests are
protected by an Owner’s Title Insurance Policy. This insurance coverage typically protects against adverse
matters such as ownership challenges, errors and omissions in deeds, forgery and undisclosed heirs, among
other things. It also provides coverage for the attorney’s fees that arise where legal challenges to your
property’s ownership occur. The cost is typically based on the home’s total purchase price, and is a one-time
fee paid at closing.

9. Ask Questions

• This is one of the most important purchases of your life. Do not be afraid to ask questions of your lender, real
estate agent and escrow officer.

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