If you’re a first-time homebuyer, you may not be too familiar with title insurance. Before you purchase your first home, get to know what this is and why it’s so important.
Your Title Insurance Questions Answered
If you’re a first-time homebuyer, you may be somewhat familiar with homeowner’s insurance or flood insurance, but what about title insurance? If you don’t really know what title insurance is needed for or how it can help you in the future, you’re not alone. To help you understand this type of insurance a bit better, Home Key Title has prepared some vital information for you to read.
What Is Title Insurance?
When you’re buying property, title insurance will likely be a requirement of the purchase. In general terms, title insurance will protect your home investment should any title issues come up while you’re the homeowner. Before the title gets signed over to you, a title search will be performed in order to detect any existing issues with the title, such as tax liens and other clouds in the title. If these are detected, they will have to be cleared before you can own the home. If they aren’t detected but come up later on while you’re the homeowner, your title insurance has you covered. Depending on your policy, title insurance covers things like legal fees associated with the title issues and even covers any financial losses you or your lender may suffer as a result of a title defect.
Is Title Insurance Required When Buying Property?
Title insurance is often required when purchasing property, but this can also depend on different state laws and on the mortgage lender. It’s uncommon for lenders to not include title insurance as a requirement since they are also in danger of financial losses should a title issue come up in the future. Even if you’re purchasing property with cash, purchasing title insurance is a must just for your own peace of mind and protection.
What Does Title Insurance Protect You From?
Title insurance covers you and your lender from losses that are the result of a title issue. For mortgage lenders, title insurance means they can avoid serious financial losses that add up to the amount they originally loaned the homeowner. The homeowner will also be protected from financial losses, including their downpayment and other payments they made from their own pocket. There are different types of coverage, but most policies will cover things like tax liens, forgery, fraud, deed errors, mistakes in the public record, and unknown heirs, all issues that can come up in the future. If you’re a first-time homebuyer, you may not know too much about title insurance in Westborough and that’s ok. If you’re seriously looking into purchasing property, now is a good time to learn all about it from a professional. To get more specific title insurance questions answered, contact Home Key Title at (508) 475- 5502.
How Much Does Title Insurance Cost?
The cost of title insurance can vary based on a number of factors, including the state in which you’re purchasing property, the location of the home, the price of the home, the amount of money you’re getting from a mortgage lender, and the type of coverage you’re getting. Title insurance only requires a one-time payment which will cover you for the entire time you own the home. In fact, your policy will even be transferred to any heirs you have listed in your will. Because of this, it’s a small price to pay for the amount of security and peace of mind you get.
How Does a Title Search Work?
Once you purchase a title insurance policy, a title search will be started. During a search, the home’s history will be looked into, including all the previous owners, tax standings, liens, etc. Once the search is performed and no issues come up, your title insurance company will commit to insuring you. Of course, like with any other type of insurance, you will be presented with certain conditions under which your title insurance will keep you protected. It’s important that you get to know these and keep them in a safe place should you have to review them in the future.
Title Insurance in Westborough
As you prepare to buy property, be sure you understand just how important title insurance is at closing. Before you sign any documents, get all the information you need to make an informed decision. If you have more questions about title insurance in Westborough, contact Home Key Title at (508) 475- 5502.