When buying a home, title insurance is one of the most important things to consider.
Unlike flood or hazard insurance, title insurance is paid only at the closing of your home, with no additional renewals. With increasing amounts of fraud going on in the real estate industry, safeguarding your investment is one of the most important decisions you make. Insurance companies provide title insurance to buyers in the event they lose their title to their properties due to the previous owners’ encumbrances such as unpaid taxes, unrepaid mortgages, judgments against the seller, and restrictions upon the use of the property. Here are six things you probably didn’t know about title insurance, including how to find a Minnesota title company and obtain title insurance quotes.
1. Payment is due with Closing Costs:
Your title agent will check the property for any liabilities or problems with past sales, and from there you will conclude the purchase of the property and pay the title insurance at closing. The total cost of the title insurance is included in your closing costs.
2. Who Pays For Title Insurance Can Vary:
It is usually the buyer of the property that pays for the property title insurance unless your contract states otherwise. Whoever pays for the title insurance typically chooses the title company.
3. You’ll Need Title Insurance When Refinancing:
In refinancing your mortgage, you are essentially applying for a new mortgage. If you refinance, you’ll need to purchase a new lender’s title insurance policy. Your lender will most likely require it. If you already had title insurance planned when you first purchased the house, then this shouldn’t be anything new. You will hire a title insurance company who will check your documents and issue the lender’s title insurance policy.
4. Prices are Usually Regulated:
The average closing cost varies from state to state, so the regulations help limit differences in prices from company to company.
5. You Should Research the Title Insurance Company:
It also helps protect the buyer and the lender by ensuring the validity of the title transfer. Research title insurance companies carefully, read reviews, and ensure they are in good standing in their community. A clear and marketable title is extremely important, and only experienced title companies can help ensure your closing goes smoothly with a clear title.
6. Saving Money on Your Title Insurance Is Easy:
Do not forget to inquire about hidden charges and fees from a Minnesota title insurance company. These can affect your closing costs. You should also inquire if there are any discounts available for refinancing or purchasing a newer property. At Cities Title Services, we have an experienced team of professionals who understand the ins and outs of title insurance. We’ll work closely with you to make the home buying and real estate closing process as smooth as possible!