Buying a home is an expensive purchase, and homebuyers hunting for the perfect property may be looking to reduce the total cost by cutting a few corners here and there. While there’s nothing wrong with getting the realtor to drop a point off the commission fee, there are some things you should not skimp on.
One of those is owner’s title insurance, an insurance policy purchased by the buyers of the property. Read on to learn why taking out a title insurance policy is so important.
Your mortgage lenders insist upon title insurance
When you get a mortgage, the bank or other lender will insist on lender’s title insurance from either the buyer or the seller. They do that to ensure that their investment is protected in case there is a problem with the title later.
That’s exactly why homebuyers should also purchase their own title insurance. Imagine the problems that could arise if you buy a property with an out-of-state lien on it that the cursory title search failed to find. You could get trapped in years-long litigation that could ultimately see you losing the property you purchased.
Protect your family’s largest asset
For many Americans, their homes are the largest and most essential asset they possess. It clearly makes good sense to protect it to the best of your ability. As you prepare to buy the home of your dreams, make sure to include owner’s title insurance to keep the ownership of your home free of disputes. Learning more about what other steps to take will be a wise investment of your time.