THE FAQS OF TITLE INSURANCE FOR HOMEBUYERS
For most of us, a home is the largest investment we’ll make in our lives. Title insurance is the smart way to protect your property from legal claims.
To help you understand how owner’s title insurance works, here are answers to common questions:
WHAT IS TITLE INSURANCE?
If you’re buying a home, title insurance is a policy that protects your investment and property rights. There are two different types of title insurance: an owner’s policy and a lender’s policy.
- An owner’s policy is the best way to protect your property rights. Either the buyer or seller may pay for this policy.
- A lender’s policy is usually required by the lender and only protects the lender’s financial interests. The buyer typically pays for this policy, but that varies depending on state.
WHAT DOES OWNER’S TITLE INSURANCE COST?
The one-time payment for owner’s title insurance costs around 0.5% of the home’s purchase price.
WHAT HAPPENS AT CLOSING?
Closing is the final step in executing the transaction. Upon completion of the closing process, you get the keys to your home!
Reach out to your local Pacific Alliance Title office to start your transaction today!