Lender’s title insurance will ultimately protect a home’s lender from any problems that may arise with the title to a home. Possible problems include a legal claim against the home, among other things. Lender’s title insurance will only protect the lender — not the homeowner — against title problems that may arise. To protect your interests, you will most likely want to purchase an owner’s title insurance policy as well.
Why You Need a Lender’s Title Insurance Policy
There is something to be said about the fact that homeowners are required to get a lender’s title insurance policy. Lender’s title insurance policies are usually a requirement for mortgage loans. Lender’s title insurance policies will typically only protect your lender against any problems that may arise with your title. Potential issues include — but are not limited to — someone saying they have a legal claim in your home. If someone ends up suing you with a claim against your home, you are ultimately the very first person who ends up being responsible. Because the lender’s title insurance policy only protects the lender, many homeowners opt to purchase an owner’s policy as well to protect their property rights.
At the end of the day, making an investment as significant as a new home is a huge decision. In fact, it is often the largest purchase a person will end up making in their entire lifetime. As a result, being aware of the importance associated with protecting one’s property rights by having an owner’s policy is essential. However, having an owner’s policy doesn’t diminish the importance of having a lender’s policy as well. By investing in both owner’s and lender’s policies, you are protecting not only yourself but your lender as well.
A Title Company You Can Trust: Colony Title
At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, LinkedIn, and Google+.