Continuing with my Series on the Importance of a Title Company and how they fit into the closing process. Title companies provide peace of mind to both the Buyer and Lender. If there is ever any doubt about ownership, they have you covered.
Issuing Title Insurance (The Safety Net) - Even the most thorough search can't catch hidden issues like forged signatures or unrecorded deeds. That’s where title insurance comes in. Unlike auto or health insurance—which protects against future accidents — title insurance protects against past mistakes that surface after you move in. There are two types:
1) Lender’s Policy: Usually required by your mortgage lender to protect their financial investment in the loan.
2) Owner’s Policy: Optional, but strongly recommended. It covers your equity and legal defense fees if a hidden title issue arises down the road.
One thing to note - Title insurance is paid as a one-time fee at closing, and the policy stays active for as long as you or your heirs own the home.
