The Importance of Title Insurance When Buying a New Home
Updated: Jun 9
If you are in the market for a home, you’re probably thinking about things like home inspections and mortgage pre-approvals. However, there is one other thing that you should be shopping for, even if you haven’t yet thought about it — title insurance. Many people don’t understand the importance in title insurance when buying a new home, but there are actually a few reasons why this coverage is very important.
Ensure There are No Liens
First of all, your title insurance company will do a title search to ensure that there are no liens on the property. This is important if you want to avoid issues with the home in the future.
Prevent Future Problems
Having your home taken from underneath you can be a nightmare. However, it could be a possibility if there are unknown liens on your property or if someone finds a loophole in regards to property law. Luckily, your title insurance will protect you in the event that this happens.
Satisfy Your Lender
Most mortgage lenders require some form of title insurance. They don’t want their collateral to be sold from underneath the owner. It’s smart to go ahead and shop around for title insurance now so that you won’t have to worry about finding it to satisfy your lender later.
As you can see, there are actually multiple reasons why title insurance is so important. If you haven’t started shopping around for title insurance yet, or if you have been shopping but want to make sure that you end up with the best coverage possible, contact us at Liberty Land Transfer, Inc. so that we can help you.