Title insurance, because a closing cost by any other name wouldn’t be as sweet. (We can also be Shakespearean.) As you read, title insurance is a closing cost, but what is it, really? It’s a policy that covers third-party claims on a property, or “clouds” that don’t show up in the initial title search but arise after the real estate closing. A title claim can happen at any point, even thirty years after you’ve owned the property. Like the ghosts of Christmas past, they’ve come without any solicitation. So, this often becomes the question: “I understand why I need title insurance, I’m financially responsible. So, why does my lender need one… they’re a financial institution… I go to them when I need funds.” Yeah, us too. However, they’ve given you a handsome mortgage on your three-bedroom dream home. So, they need, and deserve, a little coverage for their faith-filled financial contribution to this giant step in your life.
Lender’s Title Insurance Policy
A lender’s title insurance policy protects the financial interest of your mortgage company. The lender’s policy will cover if you fall on troubled times and will guarantee them at least the mortgage principle.
Owner’s Title Insurance Policy
The owner’s title insurance policy coverage amount is equal to the purchase price of the home, so long as you or your heirs own the home. An owner’s policy is optional, but in your best interest, and only needs to be purchased one time. Also, it’s only paid for one time.
For any more information on title insurance for you, or your lender, our team at Gables Title Group will answer any and all questions that you may have.
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