The Home Title Insurance explained. 

 

 

Do you need title insurance when you are purchasing a home? What is escrow? Last week, I got a chance to chat with my good friend Bridget Dennison who is an Expert Escrow Officer from Texas Secure Title. She's the best closer in the business and I have the pleasure of getting more information on why new homeowners need Title Insurance. 

 

What is Title Insurance? 

The title insurance is just like any other insurance that you get. This is much like your car insurance, and your homeowner's insurance. The only difference is, title insurance protects you for the past so this protects your biggest investment that you're probably going to make in your lifetime. Homeowners insurance protects you for future events. 

 

What are the benefits of having Title Insurance?

1. Protection from unexpected claims. 
If you have a claim leaky brief, or whatever you're going to call your home homeowner's insurance and they will protect you if there was anything missed on the title at closing. Let's say there was a deceased person on the home’s title and we closed on it. Now a child or a family member is suddenly interested in the home that you just recently purchased. This is where Title Insurance comes in to protect you from surprising moments like that. 


2. It protects you from a certain Lien on the property. 
Let’s face it, a lot of unpleasant surprises can come at the closing table. Maybe was missed during the closing day so they can't go after you. Usually, a title insurance company can cover you up to the sales price of the home. Let’s say, you purchased a $287,000 home, the title insurance company is going to cover your attorney fees, and everything for free up to $287,0000. 

3. Relax knowing that your prized investment is protected.
The true peace of mind for the biggest asset that you're going to purchase in your life can only occur when you know it's 100% yours and you're not going to worry about anybody else coming in and trying to take your home from you. There won't be any doubt in your mind that somebody's gonna try and take your homestead away from you. 

 

How can an Escrow Agent help you in your home buying journey?
If you are a first-time homebuyer, you need more than just a Real Estate Agent. You need lenders, home inspectors, and most especially, a good Escrow Agent. Home-buying is a fairly new process and your Escrow Agent will walk you through it by constantly giving you an update every time they do something in the file. You get an update and step-by-step guides on what's to going to happen next. 


What happens during the Closing day?

The day before closing, home buyers will get an email indicating how much money they need to bring to the closing table. You will be informed about the parties that need to be present at closing, and what to expect. For a seller closing, it's usually 20 to 30 minutes and then the buyer’s side changes anywhere from 30 minutes an hour depending on the lender you're working with and they have you sign electronically signed documents ahead of time or not. The escrow agent will explain the documents so both parties can be prepared for closing and have every understanding and every question answered by your lender when it comes to your loan financially. 


During the closing day, you need to make sure you have a good advanced understanding of your payment. The last thing we want to do is have someone get to the closing table and really not understand what they're getting into because they’re signing a lot of paperwork. 


Do you think you’re ready to buy a home? Do you have a good reliable team to ensure your journey is smooth sailing? Take the buyer readiness survey now to find out.