The REAL Credit™ Program
Home Buyers
Would you walk away from $900? We didn't think so. However if your real estate agent hasn't signed up for our REAL Credit Program, essentially you are paying up to $900 at closing that you should be keeping in your wallet.
 Years ago Federal Title made a bold move by eschewing all Affiliated Business Arrangements (ABAs), which are very common in the real estate business. We decided the money made from those arrangements should go to the home buyer, not the executives of large real estate firms.
Instead of sharing our revenues with referral sources, we share our revenues with you, the consumer. No gimmicks, no inflated fees, just a REAL Credit.
What's the catch? How much does it cost? How can YOU save up to $900 at the closing table? It is simple, first check our REAL Credit Partner list to see if your agent has already signed up. If they are on the list then place your settlement order here, it only takes a few minutes and you will have your closing costs in hand.
If your real estate agent has already signed up, then you will automatically save up to $900 on closing costs. If your agent isn't a REAL Credit Partner yet, then have them contact us immediately to get signed up!
|
|
How is Federal Title able to offer such a large credit?
Federal Title is now in its 15th year of business and has gained the largest market share in the District of Columbia. With this high volume of business and our innovative technology, we are now able to offer a very substantial closing cost credit to our home buyers.
Is the REAL Credit a "true" credit OR do you inflate your fees to cover the credit?
The REAL Credit is an absolute TRUE credit to you, the home buyer. Unlike many of our competitors with similar credit incentive programs, we do not inflate our customary settlement fees or title insurance premiums to offset the credit. Take a minute to review our fee schedule.
Furthermore, Federal Title gives all home buyers a clear choice between the standard (more expensive title policy) and the limited title insurance policy. Many of our competitors issue the enhanced coverage without giving home buyers a choice.
Will I receive the $100 online discount in addition to the REAL Credit?
No, the $100 online discount applies only to orders that do not qualify for the REAL Credit Program.
Why has Federal Title implemented this program?
Federal Title is a forward-thinking company. We recognize the consumer-driven market pressures, as exemplified by HUD's recent proposed changes to RESPA, and seek to offer you substantial closing costs savings combined with a streamlined closing process. Federal Title has a reputation of being technically innovative and always at the forefront of the latest real estate trends.
Is this program an Affiliated Business Arrangement (i.e., a kickback to the real estate agent)?
NO. The participating real estate agent will not receive any financial benefits; ONLY you, the home buyer. Unlike many of our competitors who profit from an ABA referral relationship at the your expense, you will receive the money back into your pocket. In other words, Federal Title is giving you, the home buyer, the financial benefit rather than giving it to your real estate agent's company as a reward for the referral.
In addition to the REAL Credit, can I also receive a reissue rate discount on the owner's title insurance premium (assuming the seller provides a policy less than 10 yrs. old)?
NO. However, the REAL Credit exceeds, in MOST cases, the savings that would otherwise be received through a reissue rate for standard ALTA title insurance policies. On the occasion that the reissue rate is greater than the REAL Credit, Federal Title & Escrow Company will honor the reissue rate (in lieu of the REAL Credit).
Title Insurance Premium Reissue Rate versus
the REAL Settlement Credit
In over 60% of purchase transactions, a home buyer is NOT entitled to a reissue rate discount because the seller has either owned the property for longer than 10 years or the seller cannot or refuses to produce a copy of their existing owner's title insurance policy.
In nearly all purchase transactions in which the home buyer is entitled to a reissue rate discount, the discount average is approximately 25% off the title insurance premium because the seller's coverage amount is far less than the new purchase price.
Example: A Seller purchased the property 7 years ago for $250,000 and today, the purchase price is $400,000. The reissue rate discount applies up to the original $250,000 coverage amount producing a reissue rate savings of $360.00 to the home buyer. Under this same scenario, the REAL Settlement Credit amount on a $400,000 purchase price would be $600.00. Therefore, the REAL Credit savings exceeds a reissue rate savings by $240.00.
Our REAL Credit program will typically save you more money while eliminating the worry and task of obtaining a copy of the seller's title insurance policy.
Are there any conditions to or restrictions for qualifying for the credit?
Yes, but they are FEW and SIMPLE. They are as follows:
Why must settlement services be ordered online to receive the credit?
Saving time is saving money. The more time that Federal Title can save in data retrieval/input, the more savings we can pass along to you. Therefore, we require you, your real estate agent or lender to input the data (i.e., buyer/seller names, agent names/address, sales price/loan amount, property address, current address, lender info, email addresses, etc.). Inputting this data also eliminates a lot of potential errors. The approximate time to complete an online order is about 5-7 minutes.
What if my agent isn't a REAL Credit Partner?
Ask your real estate agent to contact us today to see how they can become a REAL Credit Partner.
|