Picture this: you’re a first-time home buyer, and you have finally signed your first real estate contract to make one of the largest purchases of your life! Now that you are under contract, it is time to put your good faith deposit with a title company to hold your escrow. Why should your closing be held at a title company, and what is title insurance?
That is where we step in and walk you through the closing process!
My name is Danielle Youmans, and I am a senior title processor with Hillsborough Title of Wesley Chapel, Florida. As your title processor, I am here to walk you through the closing process, make this nerve-wracking experience exciting, and answer all your questions or concerns you may have.
What Is Title Insurance, And Why Should I Have It?
The number one question I am always asked by our buyers is, “What is title insurance, and why should I have it?”
Title insurance is insurance that protects the buyer against any loss or damage due to defects in the title. As your trusted title company, we order a title search with our underwriter, who is insuring your policy. We received the title commitment and reviewed all the requirements needed to issue a clear policy to you. This covers any liens, judgments, or defective deeds required to close you on your new home. Why is this so important to have?
As a processor, I have run into defective titles; when I do, I always check to make sure the seller has a title policy that was issued when they purchased the property they are selling. For example, upon reviewing the title commitment, there is a mortgage payoff that was not satisfied by the previous owner. Your prior title policy, also known as your owner’s policy, will help cure that defect in the title.
Should you not have had an owner’s policy issued when you purchased this property, that lien is now YOUR requirement to pay off. Now, I can see why title insurance is so important. It protects you not only as a buyer but also as a seller if you ever go to sell your home.
There are also other benefits to obtaining a title insurance policy. With Hillsborough Title, we offer reissue credits to our sellers with their prior owner’s policy as long as the policy is three years from the date of being issued. A reissue credit will help lower your closing cost, and the best part is you do not even have to be a returning client!
Your Trusted Title Company
As your trusted title company, we walk you through every step of the way with your closing process, whether you are buying your first home, selling your home, or purchasing a real estate investment property. We are here to help and assist with any questions or concerns you may have to make the closing process as smooth as possible!
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