Buying a home can be stressful, especially if it’s your first time purchasing. Preparing yourself ahead of time with the correct questions will help you know what to expect and ease concerns. Asking the right questions will also help you find the lender that works best for you and your needs. Lenders at SmartMortgage are […]
Do I Really Need Title Insurance?
Purchasing a home is a huge financial and legal endeavor. Homeowners, sellers, buyers, and lenders have the responsibility to ensure that the property belongs to the right party and is free of defects. This is where title insurance comes in.
You may be asking yourself if you really need title insurance. The short answer? Yes. Title insurance gives you an extra layer of security against fraud and claims.
Title Insurance Protects You & Your Lender Against Errors & Fraud
There are two types of title insurance: lender’s policy, and owner’s policy. These policies protect buyers and lenders against the following on the property title:
- Fraud or Forgery
- Undisclosed Heirs
- Spousal claims
Title insurance helps lenders and homeowners guarantee a good and marketable title. If a third party makes a claim on the property, title insurance helps provide evidence of a marketable title, along with an abstract of title, certificate of title, and a warranty of title.
If you are getting a mortgage on your home, title insurance is required. If you are selling, title insurance helps assure buyers that the title to your home is good.
Title Insurance Is Paid Upon Closing
Choose Your Title Company Carefully
You have the right to choose the title company that will provide your insurance. Not only will this help prevent confusion with the previous owner, but overpaying. Choosing your own title insurance company will provide you with a clean slate.