Title Insurance: 5 Things Every Homebuyer And Mortgage Refinancer Should Know!

Typically a homebuyer will let their attorney take the lead when it comes to the title insurance portion of a purchase transaction!

Similarly those refinancing a mortgage will do the same with their lending institution.

And while that is certainly all well and good think about this…In any purchase that a consumer makes (particularly expensive and important ones) they should at the very least be aware of some of the criteria being considered prior to the selection of a product provider is made.

After all, when you buy a television or a car you are intimately involved in the decision-making process so, why not in one of the most important segments of your property purchase/mortgage refinance.

That is the selection of the firm that will be ensuring that you have good and clear title!

Of course the cost of the title insurance premium will not vary regardless of the firm that is providing it but, there is so much more…

Five Things To Be Aware Of When Buying Title Insurance

1. Examining The Title Bill Making Sure To Compare Apples To Apples, not Apples To Oranges 

– When you are provided a copy of the title bill for your transaction ALL of the fees, taxes and recording charges should be included.  

Otherwise, if a homebuyer chooses to ‘comparison shop’ the cost with another firm, they will NOT have a basis to actually see how the expenses stack-up!

These are two title bills for the same transaction ($670,000 Nassau County purchase with $536,000 mortgage) with one of them including the taxes and recording fees and the other not including them. If a title insurance provider sends the one without those taxes and recording fees included, then they are not giving the consumer an actual basis for comparison to a firm that does include them!

The first sample bill does not include those fees with a total cost to the purchaser of$3,792.56. The second does include them with a total (and the actual) cost to the purchaser of $9,440.56. For the consumer who is unaware the cost comparison seems unreasonable when in effect they are comparing apples to oranges…