|
Title
Insurance what is it & why do I need it?
What is it?
Title insurance is a guarantee that there are not liens outstanding against the
specific property as may be placed by a lender, contractor, tax agency, and
creditor of various types. There is title insurance to insure the home owner and
another to insure the lender against liens that may exist. The insurance is not
a guarantee that there may not be a future lien but a guarantee that one does
not exists at the time of purchase, refinance or at the conclusion of a
construction loan.
If I own
the home why do I need to have to pay again when I refinance?
Liens against a property move up according to date and if liens, such as one for
unpaid work on the home, are not cleared they can take first position over a
later mortgage. Although the homeowner may feel confident that no lien has been
placed against their home since they purchased it this is not a 100% guarantee
and, naturally, the lender will want to be assured that there is not a lien that
precedes the new mortgage. Also, not all homeowners are completely honest and
may know of a lien that they would not tell the new lender about.
What is involved in the title charges?
Title charges are for more than the actual title insurance. The job of providing
title services is specialized and is of value to the buyer, seller, homeowner
and lender. Services performed Include title search, providing the title
insurance itself, notary services, overseeing the signing, assisting with
questions, preparing and collating documents, providing a place for the closing,
overseeing monies and their proper payment, and other services. Depending on the
mortgage amount the actual title insurance fee is one of the lesser fees for the
services provided by the title company or attorney.
Can I pick my own title company or attorney?
In nearly all cases with Acquire Mortgage & Finance you are free to use the
agent of your choice.
What can I do to save some of the title charges?
Title
companies can definitely be shopped ... call around! Make calls to various title
companies in the state of your purchase or refinance letting them know what you
are doing, the purchase price or appraised value and the proposed mortgage
amount. They can give you a specific dollar amount and have them send you a
proposal. Be sure you have a proposal sent. I have had borrowers get quotes that
were not honored by the title company and this can be corrected by having their
proposal in writing.
Back to
the top. |
