If you are buying a home, you will likely have to borrow money from a bank or mortgage company in order to pay for the property. Most lenders will require you to buy coverage to protect your interests and the interests of the lender throughout the sale. Title insurance rates are a small part of the overall portion of the cost of buying a home, but this coverage is very important to protecting yourself and the lender. So, what exactly is this coverage? |
Title insurance protects the homebuyer and the lender in the event of any legal issues that may arise during the process. These issues include unpaid mortgage payments, outstanding liens against the property, fraud, or uncovering a separate legal owner of the property. These issues can cause many problems and raise the overall costs involved in purchasing a home. The companies that issue this coverage will do a thorough search to ensure that none of these issues exist throughout the sale of the property. They will also hold money that will act as funds during the closing process.
These policies protect against any losses that could happen before or during the process of closing on the property. Unlike other forms of coverage, this policy covers incidents that occur before the date of the policy. Title insurance rates differ depending on the type of coverage that you buy. Most lending institutions require the borrower to buy coverage for both lenders and owners coverage. The lenders policy protects the lender for any losses that could arise from defects in the title. The owner will most likely also need to purchase a policy to protect themselves from these potential defects as well.
Title insurance rates will seem insignificant once you realize how important it is to be properly covered. With this coverage, the company issuing the policy will conduct a thorough search into the history of ownership and legal issues related to the property you wish to purchase. This process will work to possibly uncover a variety of issues that may be associated with the property, and having the necessary coverage will protect you against these issues. These hidden problems could include forgery or even mistakes in the deed, so it is very important to be properly insured so that both you and your lender are protected.
To find a company to issue you a policy, speak with your real estate agent, your mortgage company, or friends and family member who have recently gone through the same process. You will have to sit down with a professional at this company a few times during the process, so make sure you hire a trustworthy and experienced team to handle the job.
In Michigan, title insurance rates can be found at Liberty Title. Learn more at http://www.libertytitle.com.
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