There is a lot to think about as you move through the home search process, so it’s not always easy to project ahead to the day of your closing. However, if you neglect to do so, you could make a mistake that costs you both time and money.
For instance, it’s critical to buy title insurance when buying a home, as it’ll protect you against anything that’s gone wrong with the title before you took over as owner.
A common example is a lien on the home that wasn’t found during the title search. Fortunately, when you have a title insurance policy, you’re no longer on the hook.
Work with a reputable title company
Before a title company provides title insurance, they’ll run a detailed search to better understand if there are any problems. By doing this, they minimize the risk of a future claim.
Some of the most common issues that come about from a title search include:
- Incorrect names
- Tax lien
- Outstanding mortgage
If one of these issues, or another type, is found during the title search, it’ll be brought to your attention. You can then negotiate with the seller to ensure that everything is worked out before you buy the home. And if you’re unable to find a resolution, you can walk away from the property.
Most mortgage companies require title insurance, so you won’t have any choice but to purchase a policy.
If you run into any issues when negotiating the purchase of a home or moving through the closing process, learn more about your legal rights. You don’t want to make a mistake at this time that you’ll regret in the future.