Understanding the Home Mortgage Loan Closing Process:
Title Insurance
As you go about the process of seeking a home to purchase
and finding the most appropriate home mortgage loan, you
likely have many questions. Indeed, many of the questions
and concerns that you likely do have probably center around
the home mortgage loan closing process.
In many instances, the home loan mortgage closing process
can be confusing and can seem complicated -- particularly
if this is the first tim ethat you’ve purchase real
estate. Through this article you are provided with some
basic and necessary information about the home loan closing
process. Specifically, this article answers your questions
in regard to title insurance. With the information that
is provided to you in this article, you will be in a better
position to understand the closing process and the role
title insurance plays in the sale and purchase of a home
(or in the sale and purchase of any other type of real estate).
What is Title Insurance?
After a real estate sales agreement is entered into, but
before the closing occurs, a title search is undertaken.
The purpose of the title search is to determine that there
are no defects to the title, that there are no encumbrances
on the title that will prevent a free and clear (fee simple)
transfer of the real estate from the seller to the buyer.
Title insurance is a type of insurance that protects against
the possibility that some defects on or to the title are
no properly discovered. The title insurance protects the
seller against any expenses or losses that he or she will
suffer as a result of the problem or defect associated with
the title insurance.
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