Home Buyer"s Guide - What Are Title Insurance Policies For?
When you go over the items in the GFE (Good Faith Estimate) sheet that your lender will give you is the title insurance policy.
Usually, this policy is done by a third party company referred by the lender.
Since it originates from a third party, you can look for your own title insurance provider.
It's a great way to save some money on something that is required.
Getting title insurance is one of those requirements that you should be happy to comply with because it gives an important aspect of protection to you as a buyer.
How exactly does this protect you? Title isurance policies are issued by companies by tracing back the history of the title of the property that you want to buy.
Let's say that you looked through Westchester homes for sale, and have made a purchase offer on a particular Westchester real estate property.
Part of the closing process is to make sure that the history of the title of the Westchester property you want to buy is traced from the beginning to the time that it was transferred to the current grantee.
Conducting a title search will also show how much land area is covered by the title, or how big the property you're buying really is.
Additionaly, a title search will also show whether the title is clean, meaning that all encumbrances on the title have already been paid off.
Depending on the title insurance coverage that you opted for, a lot of other things could be checked with the title, which is very useful for you as a home buyer.
A basic title search, however, would show you whether the title of the property is authentic, properly signed and recorded.
The title search would also reveal if there are any other liens on the title.
Say for example that you bought a Westchester real estate property.
If the former owner of that property went through a divorce, there's a possibility that the former spouse may still have a right to part of the property.
A title search would also reveal if the property has unrecorded easements, or if part of the property should be accessible to other people or the public that you are unaware of.
For example, if you're planning to buy beachfront properties, is part of the property on an area where public access to the beach is located? A title search can answer this question, which is a good question to ask since it will definitely affect the value of the property.
Sometimes, it's possible to negotiate that the seller also shoulders part of the payment for the title insurance fee, although it's really typically something that the buyer pays for solely.
A lot of people find closing costs to be quite cumbersome and resort to questioning all items in the GFE sheet.
While it's good to be aware of everything in the list, reacting negatively or skimping on the title insurance will not be beneficial for you in the future.
Buying a house is a huge financial investment.
Imagine if you ended up buying a house and you find out later that part of it is accessible to the public, or that part of it is owned by another person? Such precautions are wisely taken to protect your interests.
Usually, this policy is done by a third party company referred by the lender.
Since it originates from a third party, you can look for your own title insurance provider.
It's a great way to save some money on something that is required.
Getting title insurance is one of those requirements that you should be happy to comply with because it gives an important aspect of protection to you as a buyer.
How exactly does this protect you? Title isurance policies are issued by companies by tracing back the history of the title of the property that you want to buy.
Let's say that you looked through Westchester homes for sale, and have made a purchase offer on a particular Westchester real estate property.
Part of the closing process is to make sure that the history of the title of the Westchester property you want to buy is traced from the beginning to the time that it was transferred to the current grantee.
Conducting a title search will also show how much land area is covered by the title, or how big the property you're buying really is.
Additionaly, a title search will also show whether the title is clean, meaning that all encumbrances on the title have already been paid off.
Depending on the title insurance coverage that you opted for, a lot of other things could be checked with the title, which is very useful for you as a home buyer.
A basic title search, however, would show you whether the title of the property is authentic, properly signed and recorded.
The title search would also reveal if there are any other liens on the title.
Say for example that you bought a Westchester real estate property.
If the former owner of that property went through a divorce, there's a possibility that the former spouse may still have a right to part of the property.
A title search would also reveal if the property has unrecorded easements, or if part of the property should be accessible to other people or the public that you are unaware of.
For example, if you're planning to buy beachfront properties, is part of the property on an area where public access to the beach is located? A title search can answer this question, which is a good question to ask since it will definitely affect the value of the property.
Sometimes, it's possible to negotiate that the seller also shoulders part of the payment for the title insurance fee, although it's really typically something that the buyer pays for solely.
A lot of people find closing costs to be quite cumbersome and resort to questioning all items in the GFE sheet.
While it's good to be aware of everything in the list, reacting negatively or skimping on the title insurance will not be beneficial for you in the future.
Buying a house is a huge financial investment.
Imagine if you ended up buying a house and you find out later that part of it is accessible to the public, or that part of it is owned by another person? Such precautions are wisely taken to protect your interests.