It’s definitely a smart idea to get title insurance, and many lenders won’t even move forward without it. Title insurance is a one time payment and tends to be inexpensive relative to other forms of insurance, but that doesn’t mean it isn’t still costly.
Here’s some tips and tricks designed to help you save money when purchasing title insurance:
1. Negotiate the Add-on Fees
Many states highly regulate insurance, so many title insurers aren’t able to adjust their rates. However in many cases there are extra fees tacked on, that are negotiable.
These fees range from mail and courier charges to copy fees to searches and certificates. Oftentimes you can remove these charges simply by calling the title insurance company. If they refuse, you can always look for another provider.
2. Find the Best Deal!
OK. This one might be a little obvious, but of course you want to find the best deal you can. Make sure to find the best deal possible when conducting the title search as well as when purchasing the title insurance.
The best way to do this would be to speak with an independent attorney for help in understanding local regulations and for a recommendation on a title insurance company.
3. Have the Seller Pay for It
If the market your in favors buyers, then you may be able to coerce the seller into paying for your title insurance.
In a buyer’s market, sellers will be willing to negotiate and just might be willing to pay for your policy. This varies from seller to seller and is not always guaranteed to work.
One thing to keep in mind however, is your goal is to close the sale. Don’t let the relatively minute cost of title insurance distract from closing.
4. Get the Simultaneous Issue Rate
Home-buyers purchase title insurance to protect themselves. However lenders also require a separate insurance policy to protect them.
Both of these bills typically fall to the borrower.
Some states allow for what is called the “simultaneous issue rate”. This, when both policies are bought together, reduces the cost. Always be sure to look into your state’s laws and offerings, you might just save a nice chunk of change.
5. Ask About the Reissue Rate
The reissue rate can greatly reduce the cost of your title insurance, in some cases by up to 60%! But what is a reissue rate and how does it work?
Homes that are being refinanced or homes that the seller has purchased within the last 10 years are eligible for the reissue rate. The principle of reissue rates is that a shorter time means a shorter and easier title search, thus a cheaper title search.
Make sure to ask your title service company about the reissue rate, as many will not tell you about it in an effort to make more money off of you.
If you have any questions about title insurance or any Maryland title services, don’t hesitate to give us a call at (1-877-TITLE-30). The Maryland title experts at Armour Settlement Services will be happy to answer any questions that you may have.