By Fabi R. Gomes | July 8th, 2019
Title insurance is a policy, required by lenders when homebuyers apply for a mortgage, that covers if any issues arise with property title. Borrowers typically pay for lender’s title insurance as part of their mortgage closing costs.
In most cases, there is no guarantee of perfect accuracy in the deed record-keeping. Therefore, title insurance protects the lender from:
• Previously unreported liens and easements on the property
• Forged transfers of ownership rights on the property
• Unintentional errors in recording or filing of documents
• Other title defects that occurred prior to the start of a buyer’s policy
Typically, mandatory lender’s title insurance costs range from $500 to $1,500, based on the state and the total mortgage price. To calculate payments, fees, and costs on your mortgage by your state, click here to access First American Title‘s free calculator.
It’s important to remember that a title insurance policy issued only to the lender does not protect you. To protect yourself from loss because of errors by the deed recorder or because of a legal defect, you will need a separate homeowner’s policy.
Contact us now if you have any questions regarding title insurance. With strong relationships with third-party professionals, our knowledgeable CBHarper agents can give you recommendations on their trusted title companies.
Coldwell Banker D’Ann Harper, REALTORS® can be reached at (210) 483-7581 or firstname.lastname@example.org and has been an affiliate of the Coldwell Banker franchise system for over 30 years.
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