Rachael Ossovicki | title insurance

How Important Are Title Companies?

When a property is bought or sold, the ownership must be transferred and valid for all parties involved. That’s where the title company steps in.

If you are like most people, the mortgage process is kind of a blur. You have lenders, title agencies, closing costs, credit reports; the list goes on and on.  With all the moving pieces, it may be hard to understand everyone’s role.  Today, we’re going to focus on the importance of title agencies:

Title agencies are the “mom” of the group, making sure everyone involved (buyers, sellers and lenders) is taken care of and playing nice. When a property is bought or sold, the ownership must be transferred and valid for all parties involved.  That’s where the title company steps in.

What Do Title Companies Really Do?

When a piece of property is being sold, the title agency validates the property. Title agencies protect the buyer and lender from possible claims, liens and other fees that may arise. So what do they do to ensure your protection?

  • Hold and maintain escrow accounts: Sounds fancy, huh? This means when issues comes up in the process, like fees or claims and eventually, the final closing process, title agencies make sure money is used solely for facilitating these requests.
  • Regulate closing process: This is when your title agent meets with all parties involved, issues closing payments and provides all necessary documentation to have a legal and safe closing.
  • Wrap everything up: After closing, documents must be filed and put into place the correct way. Title agencies specialize in this.

They Are Your Friends

As title agencies begin transferring property ownership, they conduct a title search – an in depth examination of the property being bought or sold. This is where they make sure the property is exempt from any liens, unpaid taxes and other restrictions. If your title agent finds some shady evidence, your insurance can come into play.

Pick Your Own

There are thousands of real-estate agents and mortgage lenders out there and part of their business is making referrals to title agencies with which they have good relationships. As a buyer, you are entitled choose your own title agency. Make sure to do your research!

Title Insurance

Title insurance can be viewed as the title agency’s primary purpose: it protects both the lender and the buyer from claims or fees which may surface. Two types of insurance include owner’s insurance, which protects the property owner, and lender insurance, which protects the lending party involved.

The title agency and lender you use are equally important so be sure to get the right information needed to best fit your situation. If you have any questions about a title agency good for you, contact Mutual Title today!

We thought you'd also like to know...

Millennials and Homeownership

What’s the Big Idea?

Loan Officer
Homeowner
Home Buying Tips

Who Owns the Home When Two Names are on the Mortgage?

The difference between Title and Mortgage

Home Buying Tips
Buyer/Seller
Loan Officer
Title and Escrow

Home Buying Tips for Offer Rejections

House hunting is fun. Until it isn’t.

Home Buying Tips
real estate agent
Loan Officer
Buyer/Seller

How to help millennials understand the benefits – and possibilities – of homeownership

Once they understand their possibilities, here are four more reasons to help millennials make the move to homeownership:

Home Buying Tips
Loan Officer
real estate agent

3 Ways Loan Officers Can Strengthen Relationships With Real Estate Agents

Here are three ways to build strong foundations and long-lasting relationships with real estate agents:

real estate agent
Loan Officer
Marketing

Searching for a Title Company

When it comes time to select the title company, keep the following in mind:

title insurance
Closing Process
Buyer/Seller

Spring Market Tips for Real Estate

As a seller, buyer or loan officer, here are steps you can take to get ready for this busy time of year.

Loan Officer
Home Buying Tips
real estate agent
Buyer/Seller

7 Great Referral Sources for Loan Officers

Consider these examples to embrace these important referral sources and increase referral business

Loan Officer
real estate marketing