If you're buying a new home, the title company is going to be an integral part of the process. This is particularly true when it comes to the title insurance. When you purchase a home, the title of ownership is transferred to you – and the lender as lien holder. That's where title insurance comes in. This type of coverage protects you against fraud, forgery, and undisclosed heirs. That means that if it's discovered that the paperwork was forged, or there were other heirs to the property who want to fight the sale of the property, your interest in the property is protected. Here are two things you should know about title insurance.
You May Have to Pay
When it comes time to purchase the title insurance for your new home, it's important that you know who will be responsible for the payment. If you'll be paying for the insurance, the cost will be included in the closing costs. However, if you plan on asking the seller to pay for the title insurance, you'll need to make sure that you have the agreement in writing before escrow closes. That will ensure that the payment is made and your closing isn't delayed. It's important to note that the purchase of title insurance can always be negotiated between the buyer and the seller.
You Have the Right to Choose
If this is your first home purchase, you might not realize that you have the right to choose your title company. This is particularly true if you're being guided towards one particular company. Before you agree to a certain title company, know that you have the right to choose for yourself. There are many different title companies out there. When choosing a title company, take the time to find one that you're comfortable with. If you're making a local real estate purchase, it's usually best to choose a company that does business that's located near you. However, if you'll be purchasing a home in another city – or state – be sure to choose a title company from that area. This will ensure that the title company you choose is familiar with the local housing market.
Now that you're purchasing a new home, make sure you choose the right title company. Your title insurance will protect you against problems that can arise during the escrow process. For more information about title insurance, be sure to speak to your real estate agent. For more information, contact a business such as TitleSmart.