There are other settlement services that Choice Lending Corp of Lancaster will require for your loan. You may be able to shop for these services or you may choose providers identified on the written list you receive from Choice Lending. Let’s explore some of the settlement services below.
Why Do I Need Title Insurance?
Title insurance is a form of indemnity insurance predominantly found in the United States which insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans.
When you purchase your home, you receive “title” or proof of ownership to the home. Certain title services will be required by your lender to protect against liens or claims on the property. Title services include the title search, examination of the title, preparation of a commitment to insure, conducting the settlement, and all administration and processing services that are involved within these services.
Many lenders require a lender’s title insurance policy to protect them against loss resulting from claims by others against your new home. A lender’s title insurance policy protects the lender; it does not protect you. If a title claim occurs, it can be financially devastating to an owner who is uninsured.
If you want to protect yourself from claims by others against your new home, you will also need an owner’s title insurance policy.
To save money on title insurance, compare rates among various title insurance companies. If you are buying a newly constructed home, make certain your title insurance covers claims by contractors. These claims are known as “mechanics’ liens” in some parts of the country. In many states, title insurance premium rates are filed with the state and may not be negotiable, but other title service related charges may be. Be sure to ask your title agent about any available discounts such as a reissue rate or a simultaneous issue discount.
Title services also include the services of a settlement agent. Settlement practices vary from locality to locality, and even within the same county or city. Depending on the locality, settlements may be conducted by lenders, title insurance companies, escrow companies or attorneys for the buyer or seller. In some parts of the country, a settlement may be conducted by an escrow agent. Unlike other types of settlement, the parties may not meet around a table to sign documents. Ask how your settlement will be handled.
The First Step Toward Getting Insured
Lenders or title insurance companies may require a survey to disclose the location of the property. The survey is a drawing of the property showing the location of the house and other improvements on the property. You may be able to avoid the cost of a new survey if you determine the company that previously surveyed the property and request an update. Check with your lender and title insurance company on whether an updated survey is acceptable.
The Second Step: Homeowner’s Insurance
As a condition to settle, most lenders will require that you procure homeowner’s insurance, flood insurance, or other hazard insurance to protect the property from loss. Don’t forget to shop for the best rates. If you are ready to talk about what you can afford and what type of loans will fit your needs Choice Lending Corp of Lancaster can help you explore all the options. Call a lender or mortgage broker today at (877) 777-1203.