So, you’re ready to buy your house and everything is going according to plan. As you approach the closing process, you might hear about something called “title insurance”, but you might not know what it is.
Today we’re going to be going over what title insurance is and the difference between a lender’s policy and an owner’s policy. Let’s take a look.
Let’s start with the most basic question: What is title insurance?
Title insurance is an insurance policy that protects you from issues that may arise with your property’s title. Things like undisclosed heirs, property liens, forgeries in the title, and other errors or omissions.
This type of insurance is essential to ensure your property stays within your possession.
What is a Lender’s Title Insurance Policy?
A lender’s policy, also known as a “loan policy”, is the title insurance policy that protects your loan lender. It doesn’t actually protect you from problems with your title.
The price of this policy is based on the dollar amount of your loan. If you pay for your house in cash, then you won’t have a lender’s title insurance policy. However, you will definitely need an owner’s policy.
What is an Owner’s Title Insurance Policy?
This is the title insurance policy you need to specifically protect your own interests as the homeowner. Once you purchase a title insurance policy, you and your descendants will be protected.
You’ll have an opportunity to purchase an owner’s policy during the closing process, so make sure you don’t miss your chance.
This policy will also protect you in the event that you go to sell your house. You will be protected against any issues with your title until the house leaves your possession, so though it may seem like an extra expense, title insurance is essential for every homeowner.
Armour Settlement Services is Here When You Need Title Insurance
Armour Settlement Services can help you with any questions you may have about your owner’s title insurance or your lender’s title insurance.
We are available 24 hours a day and 7 days a week with mobile settlements available. Don’t let the home-buying experience overwhelm you. We are happy to help you with your questions through every step of the process.