Why Title insurance?
Buying a home is one of life's most gratifying experiences. As you approach the big day of closing, however, all the details can be a little overwhelming. You might easily overlook the single most important step in the entire process - the purchase of Title Insurance on the wonderful new home of yours.
Title insurance protects the bank against mistakes made in a title search. A title searcher, who should be licensed and bonded, checks on details such as making sure there isn't a lien against the title, or that the person you're buying the house from really owns it.
An error made during this search could result in the bank collecting on the value of the mortgage from the title company while you continue paying a mortgage on a home you no longer own. Claims on title insurance are rare compared to other types of insurance, with the title industry paying claims equal to about 5.4 percent of operating income compared with more than 80 percent for property and casualty insurers, according to ALTA's figures.
Common types of title insurance claims are for the cost of back property taxes that the title company missed in researching a sale, or the cost of a settlement with a neighbor whose new driveway or fence crept across a property line.
Cost:
The one-time premium is directly related to the value of your home. Typically, it is less expensive than your annual auto insurance. It is a one-time only expense, paid when you purchase your home. Yet it continues to provide complete coverage for as long as you or your heirs own the property.
When to get title insurance:
Call Holt Title as soon as you and the seller sign the earnest money contract. With a brief summary of the details, our team of title experts will begin a search of the public records and issue a title commitment. Because there are a number of steps we must take to make certain that we know all we can about the title, it is wise to get the ball rolling as soon as possible.
Can Holt Title handle my closing?
Yes, we act as a central clearinghouse for the parties involved -- collecting necessary documents, insuring adherence to the lender's title instructions, making arrangements for proper payment and distribution of funds. We are fully prepared to work with you from the beginning of your transaction all the way through to conclusion
What items are needed at closing?
You will want to have these items complete or in hand when you come to the closing (please confirm with your escrow officer, as practices vary by state):
Buyer