During the real estate transaction (especially if you’re a first-time buyer), you’re hit with so many foreign terms, fees and requirements your head spins. One of those strange and unfamiliar costs is title insurance. In most cases, borrowers have no option—either you get title insurance (among other requirements) or you don’t get a loan.
The lender says you need it, you want the loan to go though, so you buy title insurance. Great. So what is title insurance?
When you buy a home you want to make sure that the people selling it actually have full and legal title. The party who conducts closing will check this out by going down to the local property records office to research the history of ownership.
Written By: Courtney Ronan. If you would like to continue reading, click here.