YES, YOU NEED HOME TITLE INSURANCE — HERE'S WHY

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The closing costs on a typical mortgage loan can seem overwhelming. According to Zillow, the closing costs for a $150,000 home can range from $3,000 to $7,500, with an average falling around $3,700. So when you discover that you'll also have to pay for something called title insurance when closing your loan, you might wonder if this fee is necessary, or if title insurance is something you can skip. Here's the short answer to those questions: Yes, title insurance matters. And no, mortgage lenders won't let you skip it.
What Title Insurance Does To sum up, title insurance protects you from clerical errors, mistakes in property records, or unpaid taxes involving the home you are purchasing. Maybe the past owner of the home hasn't paid property taxes in years. If you buy the home, the government agencies levying those taxes will come after you to pay them <strong>—</strong> unless you have title insurance. Or, maybe a past seller bought the home with a sister. Maybe these two siblings had a falling out, and the brother sold the home without telling his sister. That spurned relative could come after you for the profits she says she is owed from the sale <strong>—</strong> again, unless you have title insurance protecting you. Title insurance is like most other forms of insurance: You pay for it in the hopes that you'll never need to use it. What Title Insurance Doesn't Do Title insurance covers the window of time before your ownership of the home, protecting you from certain claims and legal fees that were beyond your control. Even though it extends backward through time indefinitely, coverage ceases on the date you take ownership. If you decide not to pay property taxes once you're the official homeowner? That's on you.
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YES, YOU NEED HOME TITLE INSURANCE — HERE&#039;S WHY

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YES, YOU NEED HOME TITLE INSURANCE — HERE'S WHY