Selecting Service Providers
Title
insurance is important because by providing you with an Owners Policy,
they make sure that you have clear title to the property. If there are any title problems later, you can always go back to the title insurance company
and have them clear it up. Since it is customary for the seller to pay
for the owner’s policy, they have an interest in which company is used.
However, you
are going to pay a fee to the title insurance company, too. This is for
the Lender’s Policy. The lender’s policy ensures your mortgage lender
that there are no liens or judgments against the property and that the
mortgage will be in first position. In other words, should you sell the
property or refinance it, their mortgage gets paid first, before any
other claims against the property, if applicable.
The lender’s policy is less expensive than the owner’s policy.