Buying a home can be a complicated process. Ask the real estate broker about what you’ll be required to bring to closing, as there can be a number of added expenses besides the down payment. For example, during the closing process when people purchase a home, one of the items that the buyer will often be asked to purchase is title insurance.
This Insurance May Be Required By Your Lender
Although it isn’t always required by law, unless you’re paying in full for your home, you may not have a choice. Many mortgage lenders require the purchase of title insurance to help protect their investment. In case a problem comes up, they don’t want to be out the cost of the home, and neither do you.
There Are Two Types of Title Insurance
The lender’s title insurance policy is meant to protect the lender and cover any payments that you can’t make if someone else claims the house from you. The owner’s policy cover’s your own losses should this occur. While sometimes the lender only requires you to purchase the lender’s Home Title Insurance in Blissfield MI, it may be a good idea to purchase both types of lender’s insurance.
The Title Insurance Company Performs a Title Search
When you purchase Home Title Insurance in Blissfield MI, the title insurance company first does a thorough search to verify that the title appears to be clear and that the person selling the home really does own it and have the right to sell it. If any problems are discovered, they’ll notify you and the sale can be called off without any penalties to you. In the case of liens on the property, sometimes the seller simply pays these off to clear the title and allow the sale to go through.
It Protects You From Unforeseen Problems With the Title
It’s relatively rare for there to actually be a problem with a title that isn’t caught ahead of time by the title insurance company, but in rare instances, there are issues due to fraud, omitted heirs, errors in the public record, and undiscovered liens. With title insurance, losses due to these types of errors will be the responsibility of the title company.
Contact us for more information. We can help with all your title insurance needs.