What is Title Insurance?
Title insurance is a part of every mortgage loan, but often times clients may not know what it is. Considering they are paying for it on their home purchase and any refinance , I thought it would be important to outline what your money is getting you:
What Your Money Buys You
Every time a home is bought or sold there is a public record of the transaction that outlines who, what where, when and why. It also explains details of the transaction like what loans or liens were against the property at the time. These are the important things a client should know before closing, because it could have an affect on their finances.
Things title companies are searching for:
- Liens against the property (mortgages , second mortgages, tax liens)
- Special assessments (Street improvement, drain and sewer repair)
- Chain of title (previous owners, sales and purchases)
- Authenticity (Legitimacy of documents and people in prior and current transaction)
Even the most skilled title professionals may not find all problems associated with a property, though. Some risks, such as title issues due to filing errors, forgeries, or undisclosed heirs, are difficult to identify. So after the title company finishes its searching, it also provides a title insurance policy that will help protect you from a variety of issues that might be uncovered later.
If you take out a mortgage loan when you buy your property, your lender will require a loan policy of title insurance. This protects the lender’s interest in your property until your loan is paid off or refinanced.
On the other hand, an owner’s policy of title insurance insures your ownership rights to the property. Even though you’ll pay for this policy only once, your coverage will last as long as you own your home.
A real estate purchase may be the largest financial investment you ever make. So, when you buy an owner’s policy of title insurance, just think of it as buying some peace of mind!
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Justin Scott
Loan Officer
NMLS 878581
- C) 920-530-4484
- O) 920-490-8823
- F) 920-490-8967
Executive Mortgage
NMLS 271650
909 . E Walnut Street
Green Bay WI 54301