This biweekly feature is sponsored by Allied Title & Escrow.
So you just got under contract on your first home and it’s time to choose a title company. One question we often get is ‘Do all title companies charge the same for the title policies?’
Title policies are regulated by the state, so no matter which title company you choose for your closing, the prices of the title policies will be very similar.
How much should you expect to pay for title insurance?
Title insurance is a single fee, paid up front, rather than an ongoing expense with monthly payments. A lender’s policy is based on the amount of the loan. The lender’s title insurance is required. Owner’s title insurance, however, is considered optional.
The total amount of a title insurance policy is approximately 0.5% to 1% of the purchase price when both a lender’s and owner’s policy are purchased together.
Why is lender’s title insurance required?
In short, lender’s title insurance is designed to protect a lender’s investment in the property, in case there are any title defects that remain uncovered during the rigorous process of a title search. When conveying title to a new owner, the property has to be free and clear with no judgements, liens, unknown owners or heirs attached to it, so nothing goes wrong. Because of that necessity, a title insurance policy is purchased.
Title Insurance at Allied Title and Escrow
At Allied Title & Escrow, we can help smooth the way toward your purchase of commercial and residential properties. Our mission is to make buying or refinancing a property as easy and simple a process as possible.
So, whenever you need title assistance, we’re here as a team of skilled and experienced professionals, to handle everything you need to make your property purchase a success. To learn more, contact Allied Title & Escrow or give us a call at 703-567-7933.
Have questions related to title insurance? Email [email protected]. Want to use Allied Title & Escrow when you buy a home? Tell your agent when you buy a house to write in Allied Title & Escrow as your settlement company!