As you navigate the complex process of buying a new home, you may feel reluctant to add more considerations to your plate. However, title insurance can be a valuable asset in your home buying journey that protects your investment for years to come, and it is generally affordable. To understand whether you need title insurance and how to go about purchasing it, you should learn more about what it is and who you can trust to offer it at a fair price.
What Title Insurance Can Do for You
Title insurance fills the gaps between what the recorder of deeds has on file for your property and any issues that are as yet unknown. The state keeps track of issues such as liens against a home, unpaid taxes and the authenticity of deeds to the best of their ability, but some issues may slip through or remain unnoticed—or impossible to know—for years or even decades. If an issue arises with the deed to your property after you have purchased it, your financial investment may be at risk.
Title insurance protects you from these unexpected occurrences. Whether it is later discovered that the property deed was forged at some time in the past or a previously unknown heir has a claim to inherit the property, individuals without title insurance will need to fight a legal battle at their own expense for the right to keep their home. Any down payments, built equity, value from home improvements and more could be in jeopardy.
However, title insurance safeguards against these events so that you do not suffer financial consequences as a result of an issue with your home’s title. A mortgage lender will always elect to have title insurance in order to protect their money, but their policy does not cover the homeowner.
Is Title Insurance Required?
Title insurance is not required as part of purchasing a home. However, it is highly recommended, since it offers significant protection against potentially severe financial repercussions. It is typically affordable and is paid as a one-time fee at closing rather than per month in perpetuity. If a real estate agent or other party tells you that title insurance is required, consider whether they receive any financial incentive for securing your purchase. You may be required to pay for the mortgage lender’s title insurance policy; this is common.
How to Buy Title Insurance During the Home Purchasing Process
Purchasing title insurance can be a simple process. You may elect to look up title agencies in your area, or your real estate agent or attorney may be able to recommend a reputable source. Be aware that you have the right to select your own title insurance issuer; you cannot be required to use a certain insurance agency.
It is best to begin this process once you have secured a mortgage pre-approval; since title insurance is tied to the value of the home, once you are aware of the price range that you will be looking in, you can begin gathering quotes for title insurance. Reach out to insurance companies and provide as many details as possible, such as the range of home prices that you are open to, and they will begin the process of securing a quote for you.
Things To Be Aware Of
It is important to note that some real estate agents or other parties may receive financial incentives for getting you to select a certain title insurance agency.
Be aware that anyone trying to convince you that all title insurance agencies charge the same price or that you can receive a discount on other parts of the process by selecting a certain title agency must indicate that the party may have a business arrangement with the company to receive a bonus if you use that service. The service may not necessarily be a bad one, but it is important to remember that you have the right to choose your own title company and that you should shop around to get a quote that is right for you.
Work with a Reliable Title Insurance Agency
If you are considering purchasing title insurance for your home, or if you need more information about the process in order to make an informed decision, be sure to consult with a reputable title insurance agency. Mathis Title Company would be glad to answer any questions about the process and help you to understand the financial and circumstantial impact that having title insurance can make on your home purchase. Reach out to schedule an appointment to discuss your options or begin building your title insurance quote.