One of the most important expenses you'll make in the process of buying a new home is purchasing title insurance. This type of insurance provides protection for as long as you own the home. During the purchase transaction, a title insurance company will trace the title of the property in question to make sure there aren't any defects with it. They'll look for and clear any claims, liens, and anything else that might suggest that the property’s title has not been transferred appropriately.
So, if the title company checks for problems, why would you need title insurance? There's always the possibility that something can get overlooked, or that a claim did not show up for some reason. With title insurance, you'll be protected from that claim or issue, should the need ever arise.
At the time of closing, the title company will likely automatically include the insurance premium for your lender’s policy with your closing costs. This policy covers your lender’s interest in your property. It’s recommended that you get a homeowner’s policy as well, if it’s not already being purchased for you by the seller. It's not very expensive, it’s paid in full at closing so you won’t have monthly payments, and it's well worth the assurance the policy will provide, for the long term.
What a simple way to have more peace of mind when it comes to the security of ownership on your property!
