10 Things First Time Home Buyers Should Know About A Deed of Trust

Hello and welcome to Houston first time home buyers edition. Let's jump right into today's topic. A deed of trust. Among other things, this document gives mortgage lenders the right to sell your property if you default on the loan. Here is some additional information to know about this very important document. A deed of trust:

• Provides security for the lender and support for the borrower.

• Clearly outlines the roles of the trustor (you the borrower), the beneficiary (the lender) and the trustee (a neutral third party that conducts the foreclosure sale).

• Outline the terms of the loan and the consequences of default.

• Is a standard document used in most real estate transactions in Texas.

• Pledges the property as collateral for the loan.

• Allows the lender to initiate foreclosure without going through the court.

• Must be recorded in the county clerk's office where the property is located.

• It publicly notifies others of the lien on the property.

• The average cost with using a deed of trust is about $710 for drafting and securing the document. Additional fees include but not limited to, filing, recording, title search, escrow and preparation fee. 

Any questions or concerns you have regarding the deed of trust during your home buying process, can be addressed with the title company. As always, thank you so much for stopping by. Remember, if you are thinking of purchasing your first home, please give us a call 713.204.8013 or Email us. We are here to help. We have been helping Houston first time home buyers since 2011 and we can help you. I hope you have an amazing day. Until next time...