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Did you know that it is almost always required for buyers closing on properties to purchase title insurance? Though it is yet another expense to budget for, it is one that is actually worth it. This policy protects both the buyer and the mortgage lender from being victim of fraud or held liable for any liens on the property in question. Plus, if there is ever any dispute as to the legitimacy of a person's ownership, the insurer is there to make claims and handle any legal proceedings. There are a few things you should know before buying title insurance. Keeping these simple tips in mind may help you save money and get through the purchase process without any setbacks. The home buying process is already rather tedious. Don't let the easier parts of the process become more difficult than they have to be. The first thing you should know about title insurance is that you only have to pay for it one time. It is usually included in the closing costs on a home, and it should not ever cost more than .5% of the asking price on the house. If you feel like you are being overcharged for the policy, you might want to speak to the company issuing the policy. Ask them for a full explanation of the charges and the kind of coverage you are getting for this fee. Most mortgage lending agencies already have a title insurance company that they work with on all of their loan transactions. You could just let your lender refer you to an insurer, but you can also find a different company if you feel so inclined. In many cases, homebuyers can meet with a competing company and explain the rates they have already been offered. If the competitor truly wants your business, they might offer you a lower rate or a more comprehensive policy for the same price. While it is an extra step in the whole process, this move could actually save you hundreds of dollars. Finally, it is important for you to know that many title insurance companies offer discounts on premiums when a house has been bought and sold recently. If you know that the house you are buying has changed hands in the past 5 years of so, it is worthwhile to ask about getting a discount on your premium. It certainly cannot hurt to ask, and you might be pleasantly surprised with the kind of rate adjustment the insurer can give you. Searching for a place to buy title insurance? Michigan residents can go to Liberty Title. For more information, visit: http://www.libertytitle.com.
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