title insurance

TITLE INSURANCE FOR HOME BUYERS

September 28, 2021 in Blog, Home Buyer Guide, Video Library

Today, we are talking about title insurance. Title insurance is a requirement. However, let’s discuss why we should have it.

Benefit of Title Insurance

Title insurance protects the lender and the homeowner against any claims regarding the legal title of the home. Your mortgage lender will require this because it protects them from defects linked to the title of your home.

Policy Types and Costs

The cost of title insurance is based on the loan amount of your home. It is a one-time charge that is included in your closing cost. There are two types of policies that you should consider purchasing. The lender will require the lender’s title policy. However, there is also an owner’s title policy. You can buy this to protect you (all the way up to the purchased price of your home) if title defects are found.

Just like homeowner’s insurance or car insurance, each title company has its own rates. As these rates can vary, you can shop around for the right title company for your home. In addition, discounts can be offered under certain circumstances. For example, if the home was purchased in the last few years by the previous owner. However, most contracts will state that the seller chooses the title company. So, if you are interested in shopping around for a title company, you may want to ensure that when you write your contract for the purchase of the home, you include that you would like to choose the title company.

Common Misconception

A big misconception is that if you purchase new construction, you do not need title insurance. This is wrong because there may have been previous liens on the land of the property. In order to ensure that nothing negatively impacts the title of your home, we want to make sure that there is a title policy on the property.

It is a requirement to have a lender’s title policy. Whether or not you choose to have an owner’s title policy? Well, that is up to you!

monica

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About Me

About Me

Hi I'm Monica! I'm a Real Estate professional in love with houses, especially vintage houses. I even have my Historic Homes Specialist designation. I enjoy decorating and rehabbing and helping my clients create their dream home with inexpensive updates. I also love helping sellers get top dollar for their property by taking the dated out of their home and staging in a modern simplistic way. I'm also obsessed with Mid Century furniture, so if it doesn't fit in my house, you'll find it in my Etsy Shop. I enjoy coffee and thrift store shopping to look for items to repurpose and use in house. And of course anything vintage, I’m a bit of a June Cleaver. I’m a wife and a mom of teenage twins that I homeschool. I am currently a Realtor in San Antonio, TX, and a lender in both Texas & California. But if you are from Southern California don't worry I have connections, I also help educate all over the country about the home buying process and have a team of people that i work with to help you reach your goals. We moved to SATX from SOCAL in 2018 to simplify our life. I love it here and have helped several people relocate. Read More

Monica

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