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If you’re thinking of buying a house with cash, it’s important to understand what title insurance is and whether you need it. While most people purchase homes through mortgages, the reality is that it’s not necessary to buy title insurance if you’re paying cash for your home. However, it could be a good idea to consider purchasing it for your own protection.
The answer to this question is no.
Title insurance is an indemnity policy that protects owners and lenders from losses caused by defects in the title of real estate, which cannot be verified through an accurate search of public records. This type of insurance can be purchased separately from a loan, and can also be included as part of the closing process.
The best way to determine if you need title insurance is to discuss it with your Realtor and a qualified title insurance professional. They will be able to evaluate your situation and explain how title insurance can help you to protect your investment in your new home.
There are two kinds of title insurance policies: lender and owner’s. The most common is the lender’s policy, which protects the interests of the mortgage lender. The other is the owner’s policy, which protects the interests and equity of the property’s new owner. For more info https://www.dignityproperties.com/we-buy-houses-peoria-heights-il/
Typically, homeowners pay for the lender’s title policy, and then also obtain the owner’s title policy when they’re ready to move into their home. This is a smart move, as it’s usually less expensive to get both policies at the same time, rather than buying them separately.
A Lender’s Policy is Required by Most Mortgaged Homes
When you buy a home with a mortgage, your bank requires that you purchase title insurance. The reason that a lender needs title insurance is because they want to be sure that you can repay the loan in case of any problems with the title to the home.
You can save money on this by paying for it with the seller of your home, although in some areas of the country, it’s customary that the owner will also purchase an owner’s title insurance policy for you. If you choose to do this, be sure to conduct your due diligence in order to make sure that you’re getting a quality title insurance company.
The cost of title insurance is a one-time premium that’s paid upfront, at the time you purchase your mortgage. The actual amount of the premium will depend on the purchase price of your home.
If you’re looking for a home that you can purchase with cash, talk to the team at Mathis Title about how title insurance can help you. They’ll be able to help you to understand how this type of insurance can protect your investment in your new home and make the entire transaction easier.
The title insurance process is a comprehensive and thorough way to ensure that you have the clearest title possible, so that you can enjoy the benefits of your home for years to come. If you have questions about the title insurance process or are interested in learning more about it, please contact us today.