1.
Your mortgage lender is going to require it.
Title insurance protects the lender and the secondary markets to
which they sell the loans from defects in the title to your home and
property. It ensures the validity and enforceability of the mortgage
document. Title defects could include mistakes made in the local
property office, forged documents and claims from unknown parties.
The amount of the policy is equal to the amount of your mortgage at
its inception. You pay a one-time fee as part of your closing costs.
If you are purchasing a home, you should also purchase an owner’s
policy which provides coverage up to the purchase price of the home
you are buying. In some states it is customary for the seller to
purchase the owner’s policy on your behalf.
2.
You have the right to choose! And it’s now it’s easier than ever.
You can shop around for a lower insurance premium rate on line at
sites including Closing.com,
EasyTitleQuote.com
and FreeTitleQuote.com.
You can also ask your lender or real estate professional for
help in getting quotes.
3. Check
the companies out before you select one.
Make sure the title insurance company you choose has a favorable
Financial Stability Rating® with Demotech, Inc., the leading title
insurance rating company (www.demotech.com).
4.
It’s
easy to save money on title insurance.
Request quotes from a few companies and then reach out and speak to
them. Ask about hidden fees and charges which could make one quote
seem more attractive than another. Ask about discounts. There are
often discounts available if you are refinancing and sometimes even
when you are purchasing if the current policy issued to the seller on
the property isn’t too old.
5.
Even
new construction needs coverage.
Even though the home is new, the land isn’t. There may be claims to
the land or liens placed during the construction which could
negatively impact your home.
Source:
ENTITLE DIRECT, Direct-to-Consumer Title Insurance,
www.EntitleDirect.com