If a well and private septic service the property, certification of water potability and septic standards must be met at this time as well. In the meantime, a buyer must go about securing a mortgage loan from a lender. After receiving a mortgage application, the lender will offer a commitment letter, a truth in lending statement and a good faith estimate of the total closing costs. While waiting for the mortgage loan to be approved, the buyer's attorney or a title closer orders the title work, including a title search, title survey and title insurance. The purpose of a title search is to prevent fraudulent sales and to uncover any outstanding liens on the property.
Title insurance is required as further assurance that the title is marketable.
A buyer may be eligible for a reissue rate if the previous policy is less than 10 years old and the seller has his documents on file. The seller also may have access to a recent property survey, which is often ordered by the lender to confirm that the property's boundaries are as described in the sales contract. A buyer may be able to have a recent survey updated at a lesser cost by a surveyor who has previously surveyed the property. At the time of closings, lenders also require proof of homeowner's insurance, which protects both the purchaser and the lender from loss in the event that the house is damaged or destroyed. Coverage must be equal to at least the replacement cost of the property.