A lender’s title insurance policy will protect a homeowners’ lender against problems with the title to the property. For example, if someone with a legal claim against the home comes forward in the future, the lender will be protected, and so will their interests in the house. To protect yourself, however, it’s essential not to forget about getting an owner’s title insurance policy as well. That’s because a lenders’ title insurance policy will typically be required when applying and being approved for your mortgage loan. Here are a bunch of crucial facts for homeowners to understand when it comes to having a lender’s title insurance policy for their humble abode.
Protecting Your Lender
For the most part, it is just like it sounds. A lender’s title insurance policy helps protect the lender against problems with the title to the home you purchased. Consider an instance where someone tries to sue to say they have some claim against the home. A lender’s title insurance policy doesn’t protect your ownership interest in the property but in fact, protects your lender’s interests. As a result, if someone sues with a potential claim against your lovely home, you, in turn, will be the first person responsible (unless you are equipped with an owner’s title insurance policy). However, with that being said, the lender’s title insurance policy ultimately only covers those claims that can have an impact and affect the lender’s actual loan. To adequately protect your equity in the event of a title issue or defect that arises after closing, homeowners will surely want to consider getting an owner’s title insurance policy as well.
Buying a home is often the most significant purchase a homeowner will ever make in their lives. In fact, it’s why protecting it becomes so crucial. Having the proper knowledge surrounding the best ways to protect your home from any defects and issues that may arise in the future provides you with a leg up when it comes to ensuring your ownership rights are never at risk and that your home is yours.
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+.