Shopping around for a title insurance company is one of the most important steps in the home buying process.
Before you can “take title” to a property, your lender will most likely require a title search of records to ensure there will be no issues when transferring the property into your name.
Two types of title insurance exist to protect you from any type of loss or dispute over ownership – lender’s title insurance and owner’s title insurance.
Read more to find out what crucial questions you should ask a title insurance provider before deciding which title company to use.
What are your rates?
This may seem like an obvious question to ask when looking for a title company. So, why is this so important?
Most title insurance rates average $1,000 per policy, covering upfront work and ongoing legal and loss coverage. However, this price can vary widely depending on the price of the home you are looking to purchase.
Overall, getting rates from different title companies can potentially save you money in the end.
How do you handle challenging title searches?
Some title searches can be easier to clear than others. There is no determining how difficult the title search for your property is going to be until it’s in process.
Ask the title company how they solved their most challenging title search. This will assure you that the company will be able to troubleshoot issues during the title search of your property.
How long does it take to complete a title search?
Depending on the terms of your home sales contract, you may be under a strict timeline to reach a settlement.
You will not know the terms of your home sales contract until you make an offer on a house. Since there is always a possibility that the terms fall under a strict deadline, you will want to find a title company that can conduct a title search promptly.
Typically for most title companies, the process takes about two weeks. If they say that the search will take significantly longer than this, using that company could force you to delay closing, which can potentially lead to a collapse of the home purchase.
The bottom line is title insurance can be confusing to home buyers. However, it is essential protection provided for homeowners.
Ask questions, take your time, and consult with your real estate agent before choosing just any title insurance provider.