So now you have finally purchased your very first home. It’s a wonderful feeling. But understanding your rights and duties as a new homeowner can get lost in the excitement. In fact, there is a lot to understand when it comes to finally being a homeowner. Here is a very helpful guide that will help first-time homeowners better understand title insurance and why it is so incredibly important to have.
Title insurance jargon can be incredibly confusing. From title and escrow to title search and liens, there are a ton of words that are used when purchasing a new home that most first-time home buyers are completely unaware of. But, understanding the basics can help first-time buyers get a hold on what they need to know. First, the title is the ultimate thing that first-time homeowners need to understand. In essence, a title is simply the document that proves that an individual legally owns a particular property. Then, there is escrow which is just the period where a third party (like a title company) will hold the funds for the sale of the home until the transaction is finally ready to be completed. Then, there is a title search which occurs during escrow by the title company to look for any potential mishaps in the previous titles to the property in question. Lastly, there are liens which can be placed on a property if the previous owner owed money to someone –– think mortgages that were left unpaid.
Title Insurance And Why It’s So Important
Title insurance is not really that complicated to understand. In fact, it’s really not that different from other types of insurances that people are used to –– like car insurance. However, the biggest difference is that title insurance will protect homeowners from any events that have happened in the past as opposed to protecting against future events.
Owner’s Insurance And Lender’s Insurance
There are two different types of title insurance policies out there: a lender’s title insurance policy and an owner’s title insurance policy. As you’d expect, an owner’s title insurance policy protects the owner’s rights to the property while a lender’s title insurance policy will protect the mortgage lender if a mortgage is being used in the purchase of the home.
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+.