Settle on the right title insurance for you by resourcing the right title company.
You’ve done your homework, signed the right documents, and now it’s time to close on your house! As purchasing a home is the single largest investment most consumers make in their lifetime, and not the easiest one at that, it’s critical to consider the right title company to make the closing smooth and stress-free.
In many cases, the buyer will choose the closing agent. However, if there is a title company whom you trust, you can add that into the contract and let them handle the finer details of closing.
Where do you get started? In order to select the right title company for your circumstances, consider these three criteria:
Although this is common sense, it’s frequently forgotten. Assess the professionalism of the title company by reviewing their website and online presence. If their web page is slow and loads your computer screen with pop-ups, it’s best to choose a different company. Once you’ve narrowed it down to two or three companies, give each one a phone call enquiring about their services and if they have done any transactions similar to yours before.
While you do have free range of choosing a title company, it’s strongly advised to select one near to your local area. If you work with a company on the other side of town, you could be in store for more drive time than you expected (and wanted). You’ll need to visit your closing agent several times to show identification, sign documents, and deliver checks. Choosing a title company close to home could save you time, money, and rush hour stress.
- Owner’s Title Insurance – This title insurance protects your equity in your home and will not need to be renewed. If your home is worth $350,000, and your first mortgage balance is $275,000, then the owner’s title policy protects your equity, the $75,000, should you face a claim or lawsuit.
- Lender’s Title Insurance – As your mortgage lender has provided funds to you to finance your home, they need protection from title problems. Lender’ title policies are designed to protect your mortgage lender from losing legal claim to your home from issues, such as if you were to default on your mortgage loan. Because lenders title coverage lasts as long as the mortgage exists, once you get a new loan through refinancing, a new policy must be secured.
While financing a home is a big expense, refinancing and securing title insurance doesn’t have to be. If you use the same title company as with your current mortgage, you may get a substantial re-issue discount on the new lender’s policy, lowering your closing costs for the refinance.
For more ways on how you can save while staying protected, let the professionals at Fidelity National Title help. Our team works to secure the right title insurance for your budget, needs, and refinance. Contact us today to get started!