During the process of buying a home, there are several risks you are exposed to. If you’re not prepared for them, they can end up being very costly or even derail your plans altogether. However, this doesn’t have to be the case. Before you get to the closing process, you can secure title insurance that will protect your interests as you seek to buy property. This post will help you understand what title insurance is all about and why you should consider it.
Let’s start by defining what title insurance is and why it is so important. The following post explains it in a clear way:
What is title insurance?
Title insurance protects the insured from a financial loss related to the ownership of a property. There are two policies in the mix at a home loan closing: the lender’s policy, which is required, and an optional owner’s policy. Both are a one-time, upfront cost — not a monthly premium that will be added to your mortgage payment.
When you’re in the process of buying a home, a title research company will check the property’s ownership history. Ideally, your new home has what’s called a “clear title.” That means the current owner, who is selling to you, has a complete ownership stake in the property, without any legal claims against it. Claims can be in the form of a lien or levy from a lender, creditor or — in the event of taxes due — the government. Read more at Trending Home News…
In other words, title insurance will confirm whether the property you hope to get is purchasable, preventing you from disappointments.
You may be wondering how much you need to invest in title insurance. This article has some important info on that:
How much does title insurance cost?
Title insurance premiums can vary from a couple of hundred dollars to a couple of thousand dollars. Some factors that can affect the cost of your premium include the title search, examination, and expected cost of any title defects. The average cost of title insurance is $1,000 per policy, but that amount varies widely from state to state and depends on the price of your home. A one-time payment is made when or before you close on your house. Read more at Realtor…
Title insurance is not like regular insurance with monthly premiums so you don’t have to get worked up about the extra cost and give up on it altogether.
Even so, there are ways you can work around this one-time cost and get title insurance at a favorable rate. The following post explains how to do this:
4 Ways Every Homebuyer Can Save on Title Insurance
(TNS)—When you find the home of your dreams, make an offer and apply for a mortgage, you might not give much thought to the cost of title insurance—but that can be a mistake.
A title policy defends buyers (and their lenders) from future property ownership claims, surprise liens and other potentially costly complications with property titles.
Homebuyers usually purchase title insurance as part of closing costs and often take the first title insurer suggested by the seller, says Rafael Castellanos, founder of a title insurance agency in New York.
Unfortunately, many buyers get sticker shock when they realize how much title insurance is. “The fees are generally about 1 percent of the loan amount,” Castellanos says. Read more at RIS Media…
Real estate transactions have many pitfalls that you need to be careful about. Arming yourself with information will help to ensure that you have no regrets when the process is over.
The best way to ensure a smooth process is to work with an experienced real estate attorney. If you’re in the Charlotte metro area and need an experienced real estate attorney to assist you, Meek Law Firm South is here to help. Contact attorney Jonathan Meek at (704) 800-5901 or visit our website for more information.